LIVING OFF DIVIDENDS & PASSIVE INCOME

The past week has been terrible for stockholders of sub-prime lenders. Today a major home builder, Toll Brothers reported that its net profit fell nearly 70% in the 1st quarter.

There’s a major slow-down in many markets across the country. Inventory is piling up and home prices are dropping. However, for renters who are looking to become home owners, this is positive news.

Today I spoke to a friend of mine who’s a CPA. He has a builder client who’s looking to offload some of his brand new homes at a 20% discount to current market value. (Thats not the same as a year old appraisal for 20% more! Its discounted off the current market value.)

If you’re looking for a new home, thats the way to go. Find a builder who needs out and buy directly from him. You’ll get a great deal. Thats not to say you won’t get better deals in the future, but if you want a home NOW, this is the best deal in town.

There’s nothing like passive investments which provide monthly income. There are 2 deals right now.

The first is a 2nd trust deed on a property in Eden, Utah. The developer is a friend of mine who’s very entrepreneurial. He runs a real estate brokerage company, a lending company and also does land development and construction deals too. He used to rental investing as well but he got out of that and into these more profitable deals. He’s currently offering between 12% and 24% (payable on a monthly basis) for various deals. Let me know if you’re interested and I’ll send you his contact info. I’ve lent him money in the past and gotten 24% for an 18 month period. In about 10 days, I’ll be lending him some more money.

The second deal comes from one of my readers. He has some cashflow property in Indiana.

If you’re like most people, you want to invest in real estate only there are some obstacles you need to overcome, like

1. You’ve never done it before & you don’t know how
2. You know how to do it but your credit sucks or you’re tapped out from too many loans & can’t buy any more.
3. You have done it before & you did well but didn’t like the paperwork or dealing with deadbeat tenants that didn’t pay on time
4. You tried it but you couldn’t make it work
5. Your area is way too expensive to make it work and is heading for a correction
And my personal favorite
6. You tried it but now you’re accused of mortgage fraud and are on America’s Most Wanted List.