One of the things I teach is that you shouldn’t be technique driven. In other words, don’t just be a wholesaler, just someone who buys and resells properties or just do subject to deals, etc. You need to be diversified in all the different methods that I cover in my four-day Never Step into a Bank Again boot camp. You will be so limited and not be a successful real estate investor if you only stick to one way of doing things.
One of the real estate investing methods, seller financing, is an extremely important tool you need in your toolbox Too many people are simply payment driven and don’t care how much money they borrow, even though many of the first payments are just interest. The rules of 78 explain how a loan works. The first half of a loan payment is primarily interest.
If you rely on institutional financing, you must rely on the economic climate of the country at that time. This can steal your profit and isn’t always a good idea. Seller financing will allow you to pay only the interest you have to instead of absorbent amounts to the lender. As interest rates go up, monthly payments increase and fewer people can secure a loan.
Seller financing allows you to never step into a bank again. If you can make a deal with a seller with no interest, you will make so much more profit. Check out my Never Step into a Bank Again boot camp coming up soon so you can learn even more about how seller financing can make you a profitable real estate investor.