In response to an online property for sale ad, I had a conversation with a nice older woman that currently lives in South Dakota. The property she owns is in Birmingham, Alabama. It is a duplex with one side vacant and needing repairs. I learned that she purchased this investment property without putting her eyeballs on it before she wrote the check. This is not how you grow your money!
I was asking about the details of the property I quickly learned that she had another property in Illinois that she wanted to get rid of also. It seems both properties were headaches for her because she was losing money each month on them. She didn’t have good property management for either of these homes and they needed some repair. I asked her what she was going to do with the money if and when she sold these properties, she responded that she had a few CDs (certificates of deposits) in her portfolio and probably would just invest in more CDs.
As we talked she started asking about how I buy properties and how long I have been doing this etc. Well, I told her that I have been buying houses for many years by borrowing money from people just like her who are earning very little in traditional type investments. I asked her what kind of return was she getting with her CDs. She never told me, she only said it was a “safe” investment. Well anyone who hasn’t been living under a rock in the past 10 years, knows that the rate banks are paying isn’t even keeping up with inflation. So I politely, enlightened her on a better way to consider to grow her money and she received it very well. This is exactly how I have attracted the Private Money Partners that I have today. Simply by educating them that there is a better way.
I began talking about how she could roll some of her funds into a Self-Directed IRA so it could be available to be used by individuals like myself who buy real estate and that she’d be SECURE by the real estate that we buy as well as earn a better rate of return. I just planted the seed so that she could begin having an internal conversation in her mind about a better way to invest her money because clearly buying rental properties sight unseen throughout the country isn’t earning money for her. I’m all about teaching and helping my Money Partners grow their money and be SECURED in the process.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).