I had the pleasure of interviewing the author of “My Life & 1000 Houses,” Mitch Stephen.
Mitch is a self-made real estate investor out of San Antonio Texas who has mastered the art of owner-finance as a way to create passive cashflow from real estate.
I was able to spend a few days with him while we filmed his segments for an episode of EquityTV.
A More Passive Way to Invest in Real Estate
I was impressed with Mitch’s approach to cashflow real estate. Traditionally, people think of rental houses as a way to produce cashflow from real estate; but they quickly learn that land-lording isn’t all roses.
Mitch’s solution is to owner-finance the properties instead of renting them. Since he started this technique, his profits sky-rocketed and he has now done over 1,100 deals.
The difference between renting a house and selling it owner-finance is that you actually transfer the deed to the new property owner instead of just renting the property. This creates a few huge advantages:
Bigger Down Payments
When you rent a house, you typically get a deposit up front equal to 1 month’s rent. This money is not yours unless you need to use it for repairs.
When you owner-finance a house, you will get a large down payment of $5,000, $10,000, or how ever much you can negotiate. Heck, I received a $40,000 down payment last year for a house.
The best news is that the money is yours.
When you rent or flip a house, you typically fix it up to tip-top shape before you put it on the market.
When you owner-finance a house, it’s not uncommon to do a minimal rehab or even NO rehab. The reason is: many people who buy owner-finance properties like to do the rehabs themselves.
The biggest downfall to being a landlord is answering phone calls for maintenance.
When you sell a house owner-finance, you are no longer the owner; so you are not responsible for maintenance.
Watch the Interview
The interview I did with Mitch is about 80 minutes long and is packed with fascinating information about how he got to where he is now. To access the video, simply click the button below and share it via Facebook or Twitter.
Read the Book