How to Avoid Making Payments on Private Money by Making the Interest Accrue - Lou Brown's 101 Street Smart Cash Flow Accelerator # 37 Make no payments. Wow. How good is that? Well, why would that be good for the lender? Let's say they have a retirement account and they've loaned to you at say 6% interest and imagined that that interest is accruing. That means that every month that you don't make a payment that you owe interest on the original amount borrowed, plus you own an interest on the payment that wasn't paid so they can earn interest accruing. Well, what does that mean by the end of the year? Let's say that the loan was $100,000 you just saved the payment every month on that. That could help your cashflow dramatically. And what you could do with that additional cashflow is by more marketing. Marketing will drive the train. When you got the right marketing, you've got the ability to build an amazing business in the real estate business. But the key is you got to be able to pay for it. Wouldn't it be great as if you didn’t have to make monthly payments on this private money? That I've been teaching you in this series. What you say to the investor is, would you like to receive annual payments, semiannual payments, quarterly payments, or monthly payments, and let them choose if they save monthly payments. You say: “Of course when I send that payment in, what's going to happen to it? You're going to put it into your retirement account and it's just going to earn what? Zero point something percent. So not much. What if you just let your interest accrue? I'll pay you interest on that as well.” Then annually you can make them a single payment that incorporates both their regular payment and the accrued interest. How cool is that?
To watch the next part of the video go to: Never offer collateral first, only if the lender insists. https://youtu.be/1H7r__86tAI
Investors have long regarded Lou’s training, systems and forms as the best in the industry. He has been quoted as an expert by many publications including The Wall Street Journal and Smart Money Magazine.
Lou draws from his wide and varied background as a real estate investor. Having bought property since 1977, he has invested in single-family homes, apartments, hotels and developed subdivisions, as well as building and renovating homes and apartments. These experiences have given him a proving ground for the most cutting-edge concepts in the real estate investment industry today.
