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.
Owner-finance
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.
Smaller Rehabs
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.
More Passive
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
The online membership is perfect for out-of-staters. There are higher levels of membership for in-staters.
Thanks for the information I’ll have a look into Equity Academy. Is it a lot better to live close to San Antonio, as I’ll be located in Canada?
Thanks again.
I think education is important, but it can be difficult to find an affordable bang for your buck out there with so many high priced courses.
You might consider the education company that I co-own, Equity Academy. We have an online subscription here that is $37/mo.
http://equityacademy.com/subscribe/
http://equityacademy.com/
“The Ultimate” in real estate investing depends on what you are looking for. If you’re looking for passive, I wouldn’t go for apartment complexes unless you can completely run the businesses without being there.
The most passive guys I know in real estate investing are private lenders and owner-finance investors. Private lenders are “the bank” and lend money to people who want to flip properties.
Hi Brian,
Very interesting video!
I have gone to a Rich Dad real estate course before, but never signed up for the advanced courses because of the price. I was wondering did you think you need to do
any courses like these or if it is possible to learn outside them?
Also on the video, Mitch talked a lot about owner financing but I thought that the ultimate thing in the real estate business was to own large multi-family apartments, but those seem to mean a lot of maintenance calls etc?
Thanks for all your help.