If you had the choice to either have a huge rental empire ( like 50+ properties) or have a empire where all you do is buy and sell as a Owner Finance ( again another 50+ deals going on at once) what would you rather have? Alot of rentals or alot of owner finance/ land contract deals? Just curious.
I have a property that at the time, a buyer wanted to put $15k down and owner finance the rest for 5 years. At the time i had about $17k into the house. In this case, I would rather owner finance than rent since the initial investment was almost covered and if the buyer defaulted, then i get the property back with 100% equity. I dont know alot about the owner financing, but i would guess that it probably depends on the situation whether or not to finance or rent out. I mean if you have 50 properties that are paid off, then i would rather rent them cuz i would have quit my day job ;D ;D
I would personally rather own a 50 unit complex than have 50 seperate buildings. I would have my own property management team that I would have running the place while I was looking for my next big deal.
The trick is to build self sustaining systems that can run with your absence. I want to own everything but run nothing (except my vacations and my phat bank account!!)
Your question if of personal preference and the circumstances for the deal at hand.
OHL
Hi XJoker25xx,
I’m a bottom line numbers kinda gal. I make my decisions on sound business principals: what is the return on my investment. My invesement would of course include, in addition to the capital invested, the value of my time and aggrevation in working any particular deal. But the bottom line dictates what deals I do.
Another consideration is diversification. Holding rentals for appreciation balanced with buying/selling for cash flow for reinvestment is a good strategy and will become more so going forward with the economy that’s coming at us.
Good luck!
Cate