63. Make $30,000 over 5 years – Family property flipping with mortgages to cover expensive debt
Make money with property flipping with mortgages: you can get a mortgage for your children or for other family members and take a profit for taking on the risk of a mortgage.
Here is an example:
Your child cannot get a mortgage himself/herself. You buy a house for $150,000 for your child he/she likes. After 5 years, if your child can get mortgage, he/she has to buy (thus mortgage) the house for $180,000 from you, you make a quick $30,000 profit in 5 years, which you could gift back to your child.
Meanwhile, your child needs to make the monthly mortgage payments (as rent) and knows that in 5 years, the house is his/her. You could, but not necessary, sign a contract that in case your child buys (thus mortgages) the house in 5 years, he/she has to pay you $30,000 more.
The good thing is that the $30,000 profit, which comes from a mortgage your child takes (he/she pays over 20-30 years), could be used by the parents to cover expensive credit card debt for the family, cover expensive credit card debt for the child or cover the student loans of the child, resulting in monthly savings for the family ($100rds per month).
Be careful when exiting a mortgage, closing costs may apply, contact an attorney first.