No Kidding. You can create your financial future in todays market- if you buy right. More and more sellers are in over their heads and will compromise their equity to save their lifestyle or move on. If they want to save their house you can pick up significant equity but not by making them a loan or making them tenants.
For the owner that has significant equity, you can offer to give them money upfront for an option to purchase their house. Now you dont need to deal with tenants, management or maintenance. You lock in a price today and give them money today for a sale in the future- as far out as possible. In many cases you dont have to give them a lot of money upfront at all. You see, if its the lifestyle theyre trying to save they need money every month. So create an agreement that allows you to subsidize their lifestyle each month. It could be $100, $200, $500 or more each month in a set time period. This allows you to buy equity cheap and on terms.
Ive actually taken it a step further and have bought a 50% interest in their property with an agreement that they can stay forever and when they sell- we split the proceeds. This gives you the benefit of the mortgage pay down (amortization), future appreciation plus your discounted purchase of equity up front.
This doesnt help you to create current cash flow, unless you sell your position to another investor. But it sure provides a safe long term investment.
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