My Favorite Way to Invest in Real Estate

If you didn’t know, I do a lot of work with seller-finance real estate investing and I want to share with you the top 5 reasons why.

First, let’s discuss what seller-finance investing is.

It is a form of real estate investing by which I buy single family homes at a discount either from bulk rental portfolios or bank foreclosure portfolios as is. The company I work with on these does all of the heavy lifting in finding the homes, helping me purchase them, and doing the minimal essential repairs and clean-ups on the houses to make them sellable. At this point, I own the home, which is part one of this style of investing.

Part two is finding a family who wants to buy the home from me on a mortgage, similar to rent-to-own. The company I work with also interviews and selects families, puts the mortgage payment in place between the family and me, and manages the ongoing relationship and payments for me. With it being a mortgage, I’m not a landlord, I’m a bank. The family is responsible for their own maintenance and repairs and just like any mortgage relationship with a bank, they don’t ever contact me to come fix things or anything like that. They make the payment to live there and I collect the payment. Usually I am charging 12% interest on a 20 year mortgage.