it’s Lou Brown back with another one of my hundred and one street smart cashflow accelerators. I love teaching these. It’s gotten a lot of great information. This segment we’re going to focus on managing. So number 50 buy right so you can keep some of your fines. The real wealth is in the holding of the property and I couldn’t emphasize that more. I couldn’t be a better testimony to that fact that we have bought right and held over many, many years and given people the opportunity to someday end up with home ownership. And as a result, we’ve got great cashflow and great residents that live in the homes. So one of the things that you’re looking for is when you purchase the property, you’re looking at financing because when you use hard money financing, it’s usually limited to three, six months, maybe a year, and then you’re done.
You better have that house bought, fixed up and sold within that period of time. Or the lender could actually call the loan due. I don’t like that program. Your second option is you could go to the bank and qualify for a loan and get a brand new 30 year or 15 year loan. I don’t like that program either. First of all, you have to put up your own credit, you have to put up your significant down payment. Typically when it’s investment property and they don’t count the rent as big, as strong as the amount of rent you’re actually receiving towards your being able to qualify for the loans. Also there’s limitations on the number of loans you can get. So I really don’t like going to banks and qualifying for loans and guys, I am a testimony to the fact that you don’t have to do that.
I have been buying, holding and selling property now for over 40 years. I’ve never been to the back. I’ve never qualified for a loan on a single family or small multifamily property and you can too. And you know the cool thing is I teach you the scripts and what to say and how to say it because when we buy right at the beginning, then the seller becomes the bank. I’m going to in a couple of ways. One is I can take over their existing financing on the property and the second is if there’s equity in the property, they can be the bank for me. And so I teach you exactly how to present that to the seller so that the seller sees what’s in it for them and what makes sense for them to actually do when they are becoming the bank. For you, the buyer, it’s an amazing process and when we say so you can keep some of your funds. Well, what this allows you to do if you’ve got longterm financing from your seller, now you can offer longterm financing to your buyer and you can actually put yourself in the position to be the bank. Instead of sending your buyers to bank, instead of you going to the bank, you can actually be the bank. How cool is that?