He bought new windows for a house he doesn't own
A tenant-buyer in one of our Youngstown houses spent over $2,000 of his own money on custom windows and a new sliding glass door.
He doesn't own the house. Not yet.
The drywall's done too. When he sent us the receipt, the windows were paid in full and still being built.
Here's why he's doing it. He's on a 3-year lease option. The price he can buy the house for is written into his agreement, and it doesn't move. The option also makes the windows and the door his job. He's doing them, and he kept going with the drywall, with new flooring planned next. So every dollar he puts in goes into a house he has a fixed price on, if he buys it.
That's how we run our deals. We look for people who want to be owners, not tenants, and we give them a fixed path to get there.
Now here's why I'm telling you this.
I've owned rentals for years and I still manage them myself. A rental is a fine middle ground if you don't mind vacancy, turnover and maintenance calls. But the landlord is the one who hears about the windows. Whatever the house needs, the landlord deals with it, all year.
A note works differently.
My Roth IRA holds a private note: $40,000, first position, five years, fully amortized, about $850 a month. I did my work once, before I funded it. I checked the house's value, the title and the insurance through the title company, and the operator's reputation with local landlords. That was pretty much it. The window calls go to the operator, not to me.
That's the trade. With a rental, you manage people year-round. With a note, you check the deal and the operator once, up front.
Like every investment, a note carries risk. Your money is committed for the full term, and if the borrower stops paying, getting it back goes through foreclosure, which takes time. That's why the checks up front matter so much.
If you want the basics on how private notes work, they're in the kit:
incomeoverwealth.com/kit
He doesn't own the house. Not yet.
The drywall's done too. When he sent us the receipt, the windows were paid in full and still being built.
Here's why he's doing it. He's on a 3-year lease option. The price he can buy the house for is written into his agreement, and it doesn't move. The option also makes the windows and the door his job. He's doing them, and he kept going with the drywall, with new flooring planned next. So every dollar he puts in goes into a house he has a fixed price on, if he buys it.
That's how we run our deals. We look for people who want to be owners, not tenants, and we give them a fixed path to get there.
Now here's why I'm telling you this.
I've owned rentals for years and I still manage them myself. A rental is a fine middle ground if you don't mind vacancy, turnover and maintenance calls. But the landlord is the one who hears about the windows. Whatever the house needs, the landlord deals with it, all year.
A note works differently.
My Roth IRA holds a private note: $40,000, first position, five years, fully amortized, about $850 a month. I did my work once, before I funded it. I checked the house's value, the title and the insurance through the title company, and the operator's reputation with local landlords. That was pretty much it. The window calls go to the operator, not to me.
That's the trade. With a rental, you manage people year-round. With a note, you check the deal and the operator once, up front.
Like every investment, a note carries risk. Your money is committed for the full term, and if the borrower stops paying, getting it back goes through foreclosure, which takes time. That's why the checks up front matter so much.
If you want the basics on how private notes work, they're in the kit:
incomeoverwealth.com/kit