Creating Long-Term Wealth Using Installments

Another solution is to combine these two approaches. This is by far my favorite technique, and one that will propel you like a rocket on your road to creating wealth. I have generated incredible returns using this strategy, and I’ve sold property to investors all over the world this way.

You see, I don’t like being a landlord, but I love the monthly income. By selling the property on an installment plan, you can do both. Experienced real estate investors will tell you that the real value is not necessarily in the price, but rather in the terms associated with the deal. This is true on the selling side as well as the buying side.

For example, if you had $100,000 to invest in a property, would you rather pay $100,000 in cash at time of closing, or $10,000 down and the balance of $90,000 over the next 10 years at 7 percent interest? Assuming the property is generating some cash flow, then the obvious choice is buying it on terms. But here’s the real question: is the property worth more because of the terms? The answer is clearly yes.

The inverse principle is what says there is a discount for paying cash. When you pay 100 percent cash for something like real estate, you expect to get a discount, right? Let’s show you how to make this work for you when you sell your property. Here is a real-life example of a deal I just completed.

Property: 3-unit multi-family house with detached garage

Tax deed purchase: $4,000
Legal fees: $850

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