6 Non-Traditional Ways to Profit From Real Estate with Guest Bill Hawthorn #57
On the fourth and final episode of our four-part real estate series, I’ve invited my friend and special guest, Bill Hawthorn.
Bill is the owner of Homes R Us LLC and he’s been hard at work for over 20 years helping new real estate investors get started and helping people who don’t qualify for a mortgage. Bill was kind enough to join me on this episode to share his decades of experience in real estate. Make sure to have pen and paper handy, you don’t want to miss a minute of this informative episode!
You will want to hear this episode if you are interested in...
How Bill Hawthorn makes a profit from real estate [2:00]
What is an option agreement in real estate? [6:30]
Getting the word out [17:30]
Taking over a mortgage payment with a warranty deed of trust [19:00]
Bill’s winning formula for making a profit in real estate [22:00]
How Bill uses the owner financing process [23:45]
Why you should check out Bill’s website and podcast [26:00]
An option agreement in real estate
Sure, you’ve heard about flipping houses and becoming a landlord but what if there was a way to have the best of both worlds? Most people have never heard of an option agreement, so how does it work and what are the advantages? According to Bill, using an option agreement is a good way to make a profit in real estate, he’s been using this method for years!
In short, a real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property.
Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else. The buyer pays for the option to make this real estate purchase. The option usually includes a predetermined purchase price and is valid for a specified term such as six months to a year. However, the buyer does not have to buy the property, whereas the seller is obligated to sell to the buyer within the terms of the contract. Options have to be bought at an agreed-upon price. If the buyer doesn’t buy within the time frame, the seller keeps the money used to buy the option.
To hear more about using an option agreement to make money in real estate, make sure to listen to this episode as Bill expands on this topic and so much more!
Bill’s preferred method for selling real estate
Having options is great but what do the experts do? How can savvy men and women like you learn from Bill’s years of experience and hard work in real estate? Follow his footsteps! You don’t have to do everything like Bill does it but why try to reinvent the wheel? Bill’s preferred method for selling real estate is known as "Subject-To." Subject-to is a way of purchasing real estate where the real estate investor takes title to the property but the existing loan stays in the name of the seller. In other words, "Subject-To" the existing financing. The investor now controls the property and makes the mortgage payments on the seller's existing mortgage. Properties can be purchased using this method with little cash and no credit. Want to learn more from Bill and his innovative approach to real estate? Make sure to check out the links to his website and podcast in the resources section below!