I grew up right here in the Truckee Meadows. I was told my whole life there were only two ways to buy a house: You get rich and pay cash, or you go broke ponying up 20 or 30 percent for a down then take out a mortgage. And if you weren't buying the house, you were renting it.
I've done all of those, and all three have their place depending on your circumstances. But they are also costly, each in their own way.
Cash Buying draws down your liquidity, forcing you to pull your money from far more lucrative investments. So if you buy a house with All Cash, you'd better be buying that house on the pessimistic side of "affordably." It's easy to go broke as a Real Estate Investor; simply believe what the Seller tells you their property is worth!
The Traditional Mortgage route allows you to keep 70 or 80 percent of the purchase price in your pocket, but you're going to pay the bank three times your purchase price over the course of 30 years. Which is why banks are generally in the nicest buildings in town. It is what it is.
Renting a house is great if you're cash poor, slim of credit history and like being told what you can and cannot do in your own home. And doesn't it feel nice to be funding your landlord's retirement every month? Many people feel they must rent, and perhaps they do. There is however, a better route.
What if I told you there was a way to gain all the benefits of Home Ownership, without stealing from your liquidity or donating all your money generously to your landlord?
It's called Leasing with an Option to Purchase.
We lease cars, we lease equipment, we lease office space. Hell; Airlines lease their Jumbo-jets from Boeing. Leasing a house with a contractual obligation to purchase it gives me "Equitable Title." Basically, that means I have the right to treat the house as if I'm paying a traditional mortgage on it: I can cash it out, sell it, lease it to qualified lessors or move into it and live there myself.
People with traditional mortgages don't "own" their property yet, really. Not any more than people making payments on cars or anything else in their world "own" those things. With Equitable Title, I'm in a position to improve the house and market it to my many waiting lessors.
I offer a Lease Purchase on every house and property I look to buy. And I only lease the houses I own to the people who move into them. I never rent. I'm not a landlord, nor do I ever want to be one. The great people I lease my houses to know they are investing in their own future. They are working towards their own future and improved credit, not just shelling out money for a roof.
Buying houses on Terms gives me a lot more flexibility, allows me to offer sellers in distressed situations a lot more money that traditional wholesalers, and makes me far more effective at helping the people who need it most.
If you need to get out of your house fast for whatever reason, or if you want to buy a house of your own and don't quite qualify for a traditional mortgage; contact me today. Hell. Call me if you just want to learn exactly how I do what I do. I'm happy to help everyone learn the Power of Buying a House on Terms.
Benjamin M. Gaul
i Social Tiger Properties, LLC.