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If you are like most cash flow investors, liquidity is always on your mind. You want to make sure that you have enough liquidity to take advantage of new opportunities, but don’t want a lot of cash in the bank just sitting there accruing zero interest.
Usually with investments like buy-and-hold real estate, real estate syndicates, or other cash- flow-focused opportunities, the minimum hold period is 5 years. This just doesn’t work for some people from a liquidity standpoint.
- What if you have to buy a house to live in?
- What if you have to buy a car?
- What if you are sending a child to college?
The truth is, life expenses don’t wait for optimal timing for investments, they just happen when they happen.
That is why it is really important that you start looking at some mortgage notes that yield double-digit returns, but only have 6-12 month terms!
What this means for you as an investor…
- Control real estate without owning it, by utilizing proper secured structures.
- Receive a 10-12% interest rate on your capital.
- Receive cash flow directly to your bank account every single month, regardless of the performance of the property.
- In 12 months or less, receive all of your initial investment back!
The beauty of investing like this is that it will be completely passive. You do not need to purchase property, hire property managers, or deal with tenants, toilets, and trash.
Not only that, short-term mortgage notes provide immediate cash flow with no closing costs!
All you do is purchase your note and sit back and enjoy the cash flow.
Here is an example note:
- Property Value: $70,000
- Purchase Price: $50,000
- Loan-to-Value: 71%
- Monthly Cash Flow: $333.33
- ROI: 8%
- Term: 12 months or less!
You put up $50,000 and receive $333.333 each month. Your $50,000 investment is secured by a $70,000 property so you are well protected.
It’s as simple as that.