How Do I Rent Out High Priced Properties? – Real Estate Investing

Joe: Hey everyone, it's Joe Crump.

I've gotanother question here.

Boy, I'm going to kill this name here — Rajav Guktah.

Hopefully,that's pretty close.

Rajav: "The challenge that I'm faced withis simply carrying costs.

Three or four years ago, you could virtually buy any propertyand rent it out for positive cash flow.

" Joe: I'm assuming you're meaning with 100%financing.

Rajav: "This was on account of two primaryfactors.

1) it was prior to the massive appreciation we've seen, and 2) interest rates were lower.

Large amounts of cash to use as down payments are not available to me.

The one investmentproperty that I do own, I purchased by leveraging equity in my primary residence.

The investmenthas done well but I'd like to be able to pick up some new things.

"Joe: Well, first of all, never borrow against your current property (the property you livein) to buy your investments.

Never ever do that.

There's no need to do that.

Don't takethat risk.

You can lose your property.

You can lose the house you're living in.

Peoplesay, 'Well, you've got to take some risks to do investing,' and I agree; you have to.

But you don't have to take that kind of risk.

Protect your house — protect the house thatyou live in.

That's the first order of business.

Joe: You also don't need to go get loans tobuy these properties, and you don't need to wait until you get your next chunk of moneybefore you can put down another down payment and buy another property.

That's just completelywrong thinking.

So don't buy properties that way.

Use creative financing to do it instead.

Joe: The way that you find people that will do creative financing is by using marketingthat works.

So use the right type of classified ads.

Use the right type of internet marketing.

Build lists of buyers.

Build lists of sellers.

Build lists of investors, and you'll be ableto use this stuff.

And by building a list, what I'm talking about is an online databaseof these people.

It's not difficult to do if you have the right software and the rightknowledge.

Joe: You just need to learn this process.

You can get all of this stuff from my "Push Button Method".

That's at PushButtonMethod.

Com.

You can learn how to build those systems and how to build those marketing tactics.

Joe: But even if you've got none of that stuff, you can put a sign out in the yard that says,'I'll buy your home.

' Or, 'I'll make a guaranteed offer on your home in 24 hours' and your phonenumber.

You'll put deals together using that if you put them in the right places.

Joe: Do it handwritten.

Do it on cardboard.

Do it on Coroplast.

Don't make them fancy.

Don't spend money on these signs.

These signs should cost you two bucks.

You can get a pieceof cardboard for 90 cents and you can get a couple of grape stakes or tomato stakesand staple them on there, get the yellow cardboard and write on there in black, 'I'll Make AnOffer On Your Home Today' and your phone number, or, 'Guaranteed Offer On Your Home In 24 Hours.

'Joe: These are great ads and they will work.

Make sure you put them into high traffic areas.

They won't stay up very long, but they'll work.

Joe: Now, there are a lot of other things that will work and that'll also be very effectiveif you get into some of these more advanced techniques that I teach.

Joe: Just get started.

Just do something.

Just take action on what you're doing andyou're going to make money.

Anyway, good luck to you and keep buying properties.

Don't letit stop you.

Joe: I don't think I answered the question,though, because you asked about the values going up.

When the values go up on a property,one of the things that you can do to sell that property is to sell it on a lease withan option to buy.

Now, instead of renting the property, you're selling it, so the buyertakes a whole new perspective from this property.

Joe: Let me give you an example of a propertyin California that I had.

This was back in the 80's actually.

It was $495,000 if I rememberright, and it had a payment on there, because the interest rates were very high at the time,of $4,300 a month.

Now, you can go rent a house like this for about 27-2800$ at thetime, and I had to figure out a way to get that payment covered, because I either hadto sell the property, and I had the problem of selling the property because the marketwas going soft on me, so I had to find a way to get that thing covered because at the timeI had the loan in my name.

That was crazy; that was a crazy time.

But I did it.

Joe: Anyway, so I had to get that payment covered.

So I went out and sold it on a leasewith an option to buy.

I told the guy, 'Look, you're making payments on this property thatcosts you $4,300 a month so you're going to need to make payments on this property thesame as if you were buying it.

And if you can't make that payment, you can't affordthis property.

' So he saw the logic to it, he bought the property, he's making $4,300payments, and he eventually exercised his option and took it over.

Source: Youtube