Flip Tip Summary
Eddie speed is perhaps the most knowledgeable individual on the planet when it comes to note buying and owner financing. Today he shares a tip with us that he’s seeing over and over again, that will make you think about a new, smarter way to owner finance your next deal.
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from FlipNerd.com, and we have a quick VIP tip to share with you from Eddie Speed, who’s going to share a tip on smart owner financing.
Eddie: Hello, everyone. I want to talk to you about something that I’ve spent most of my career doing. I started buying owner financed notes in 1980. So I’ve bought literally tens of thousands of notes from real estate investors. A lot of real estate investors kind of have a perspective of, “Well, I’m owner financed, but I’m really going to think like a landlord.” And what I would say to you, because so many people have escaped the stock market, what we’ll call “stock market refugees,” the availability of loading a house with a tenant and having third-party management in place, then you can sell that house to an absentee investor. And instead of him paying all cash, he might pay half cash, and the other half of the house you could owner finance.
Remember, this guy just paid 50% down, and you could stricture a note that’s not a terribly long-term note. You could get all of your money back, with interest on the note, over a five or six year period. So that’s a very different style of owner financing than people think about, but if I would say to you today, the most innovative things that I see in the market and I think that we are implementing on a daily basis, this is it; smart owner financing, selling to an investor with a big down payment.
Mike: Thank you for joining us for another FlipNerd Flip Tip.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.