Passive Income
What does that mean? This is the easiest way to literally make money while you sleep. You are only working your full-time job and letting the side hustle work for itself. One of the most common passive incomes is vacation rentals. Don’t have 20% down for a $250,000 vacation home? No problem. Real estate investors have given us the secret. Investors are able to acquire properties like Orlando vacation homes for almost no money down. How do they do this?
Real Estate Investors
Simple. They go to the courthouse in the county where they are looking to buy investment properties. Investors can acquire public records where they find homeowners who are having problems with their properties. This could be pre-foreclosure which is the most common or they could be going through a divorce. Either way, these homeowners are most likely going to lose their property and destroy their credit scores. It is very hard to get a foreclosure off of your credit report.
“Subject To” Mortgage
To avoid this, homeowners are approached by investors who will offer to take over their monthly mortgage payments. This is called a “Subject To” mortgage. They offer to catch the homeowner up on their payments while the homeowner will transfer legal title to the investor. The mortgage will still remain the homeowner’s name so you don’t have to worry about the approval process and down payment that most go through when applying for a conventional loan. The lender is never involved. Once the mortgage is paid off, the investor assumes the property fully.
