1. How to Build a Passive Income Portfolio
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Module 1B – Choosing the Right Strategy
How to Build a Passive Income Portfolio
with Creative Financing & Private Money
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. Rental or Option Income
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3 Main Types of Passive Income
Passive Income
Rental or Option Income
Generate Notes
Partnerships
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

3. Seller Financing Lease Option to Buy Master Lease Option (commercial)
Subject To … (existing mortgage staying in place)
Owner Financing
First Position – Free & Clear – 100% Funding Possible
Second Position – Second or Partial Mortgage funding
Wrap Around Mortgage
Land Contract, Contract for Deed

4. or After Repair Value

5. Money Partners Anyone with Funds Available
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Money Partners
Anyone with Funds Available
Older people nearing retirement
People who do not want to deal with day to day operations
Investors who are already in real estate but looking to spread into other areas
Bonus Tip – “Transition” your Cash Buyers to Become Money Partners Instead
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

6. Who are Immediate Money Partners?
Cash Buyers

7. Money Partners
Partner with them, instead of wholesaling the deal “as is” to them
Split on the first deal to their advantage, then negotiate

8. Money Partners MLS Search Cash sales in the last 6 months Auctions
Court Auctions
Tax Auctions
Private Auctions
HudsonandMarshall.com
WilliamsandWilliams.com
Linkedin
Search keyword “Portfolio Manager” “Asset Manager”
‘Straight’ Cash Purchases
Used Private Money

9. Money Partners Other Wholesalers Co-Wholesale or Partner
Title Companies
They know who close for cash
Real Estate Agents (dealing with investors)
They have cash clients (will work for commission)
Join Local Real Estate Group

10. Generate Notes Wholesale a Deal PP $50k Buyer Buys Cash Financing
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Generate Notes
Wholesale a Deal
PP $50k
Buyer Buys Cash
SP $70k
Financing
80/20
SP $70k
You can ‘create’ a 1st or 2nd Mortgage up to $20k
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

11. Example Wholesale or Fix & Flip or Retail Your Purchase Price $50,000
Re-Sell Price $70,000
Your Potential Profit $20,000
You can Sell It:
Cash Price $70,000
Cash/Loan + 2nd Note $55,000 Cash/Loan
$15,000 2nd Note
Your “Walk Away” Cash at Closing $5,000
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

12. 5/1/2019 3:34 AM
Example
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.