Robyn Seymour - New Investment System in Real Estate results in Passive Income

From the rental properties you can have a passive and positive cash flow eliminating all the management worries! The only key is the land trust. This might not sound exciting, but it is the lynch-pin of this amazing new System. Start with a piece of investment property, one you own (maybe can’t sell?) or run out and buy one. Even if you pay full retail, this System will generate a positive cash flow and a nice profit. Then advertise the property for sale to a selected target market: those who can’t or won’t qualify for bank financing.

For Sale, Seller Financing:

There is a “shadow market” for real estate consisting of self employed people, small business owners etc. who would rather undergo a frontal lobotomy than submit to the bank’s investigation process. And there are those who simply have stinky credit! These are Motivated Buyers. They have the capacity and desire to buy your property, but they cannot or will not go through the hassles of getting bank qualified. You’ll give them their chance of a lifetime, to buy property with small upfront cash with No bank hassles! They will gladly pay you 10-20% more than your property’s Fair Market Value. You don’t have to pay off your mortgage since the property is in a land trust. You take 5-10% cash deposit upfront or a car or speed boat. You make the rules, you Bank!

Your buyer makes mortgage payments to you that are higher than your payments by several hundreds of dollars per month since his payments are based on a higher price and you’ve added a point or two to the rate on account of the fact that you want to! We have found that Motivated Buyers are so grateful for the opportunity you have given them, they will not object if you politely suggest splitting future appreciation of the property, as long as they are using your mortgage. “Equity Sharing” has a fair sounding ring to it.

Let’s see the results:

You have become a banker!

You have “sold” your property for a nice gain, recouping most of the cash you put down; you receive passive income every month; you receive your profit in a lump sum when the new buyer refinances or sells the property; you will also receive your share of the appreciation, if any

Example: Single Family House*, FMV $200,000 (that you can’t rent for enough to make money on!)

Mortgage, $180,000 @ 6.5%; $1132/mo; Sell for $240,000; Mortgage $220,000 @ 8.5%; $1,680/mo; You also get 25% of the appreciation above $240,000, if any; You put $20,000 into your pocket and collect $548 per month!;

If the buyer sells after 7 years, you will have made:

$20,000 upfront (no taxes due!); $548/mo for 84 months or $46,032 (partially tax sheltered); Assuming no appreciation, you get none. If there is 5% annual appreciation, your share would be $15,900; also about $2,109 in net principal reduction; That is a total of $69,273 with no appreciation, $85,173 with.

All this with no tenant, toilet or trash headaches! These “burdens of ownership” belong to the owner living in your property. So do the advantages; like writing off mortgage interest and real estate taxes, a land trust exclusive benefit. And you don’t owe any income taxes on your gains! The IRS says that as long as the property’s title remains in trust, the sale is “incomplete” and therefore the tax liability cannot be ascertained. When your buyer sells, you do a 1031 exchange. OK, someone will ask, what happens if the new owner stops paying? Well, despite the fact that he is “the owner,” another quirk in the trust law gives you the right to put him out in 30 days, just like an ordinary tenant! No time consuming, expensive foreclosure! Anywhere in the country you can produce a passive income without any hassles using this system.