Do
YOU Know How to Wednesday, 11:36 AM By Alex Gurevich
In March of 1998 I was sitting in the conference room of Dallas Marriott hotel during the annual Creative Real Estate Online Convention.
A presentation by Scott Britton somehow stood out in my mind. Scott said, his basic goal was to bring home $10,000 cash each and every month to support his familys lifestyle. Yet, because hed been in the real estate business for 20 years, on many occasions hed hit much higher numbers.
He said, if you get good at this business youll have months when youll bring home $30,000-$40,000-$50,000. What about having a $100,000 month?
By that time Id been buying and selling houses for 7 years. I was a fairly experienced investor and had my string of successes. I had months when I made $20,000, $30,000 and even $40,000.
But a $100,000 month?
I must confess, I just could not see it for myself. To be totally honest, I thought Scott was exaggerating somewhat to make a bolder impression.
I now feel embarrassed to suspect Scott because I know what it feels like to have
A Really Good Week
Would you like to make $160,000+ profit in a week?
Click here to see what $143,000 earnings cash in a single week looks like. Actually there was also a $20,000 note I got in one of these deals bringing a total take to over $163,000 for the week.
It took some time for me to get to that point, but I have to thank Scott Britton for planting the seed in my mind three years ago.
Id like to plant that same seed in your mind. Start thinking NOW about making that $163,000 or more in a short period of time. Perhaps, youll be able to give me credit for inspiring you to do better and bigger things.
What about having every week like this one?
Shouldnt we all be planting seeds today to prosper in a not so distant future?
I dont care what kind of investment strategies you employ. What I am about to say will probably apply to you, at least in part.
If you really strip both success and failure down to just the bare bones, youll realize, its all about profits.
Plenty of them = success, not enough of them = failure.
Which brings me to
The
2 Income Streams
Stream #1: Monthly Cash Flow
Traditional methods most of investors use for building monthly cash flow are WAY TOO SLOW.
I am talking about NET cash flow you can take to your bank and live on, not the cash flow on paper. Most of the houses you buy are probably leveraged with loans.
If you really take a look at an average NET monthly income you make from a single home like that, after all payments, expenses and vacancies you likely end up with only $100-$200 or so. Not a whole lot.
Stream #2: Profits Upon Resale
The average NET profit per transaction most investors make is WAY TOO SMALL.
I dont care how you buy or sell those homes. Whether you are flipping Contracts for cash to rehabbers, remodel and sell homes retail through Realtors, take over payments on existing high balance loans, or lease/option them.
With very few exceptions you are in a relatively low profit situation. On average you probably clear $10,000-$15,000 NET cash after accounting for all expenses of sale.
Low monthly cash flow coupled with small profits at resale time are NOT healthy for your real estate career.
At a rate of $100-200/month per home it takes a substantial size portfolio to replace that paycheck from work. If you are starting part time, it may take you several years to build a large enough portfolio, before you can quit your job.
The problem with small profits from resale its really hard to build any significant wealth at $10,000-$15,000 a pop. In fact, at this rate it would take buying and selling almost 100 homes to make your first $1,000,000 bucks. Thats a HUGE task.
Do you like the thought of having to postpone your freedom for several years?
I dont.
But heres the good news
In the first part of this message Ive identified 2 major problems the real estate investors face lack of monthly cash flow and small profits upon resale.
In the second part I am going to show you what you can do to overcome these problems.
You
Can Make $500-$800 Monthly Cash Flow
YOU can start making more than $100-$200 a month. A lot more... I think youll agree that if you learned how to clear $500-$800 a month from each home you buy, your investment life could change dramatically.
I know it may seem high, but even these figures are not the limit. For example, some time ago I purchased a home for $130,000 and put a Tenant/Buyer in it. I later renegotiated the terms with a tenant. As a result, my NET cash flow from just this one house is now close to $1,100 a month. You might think it's an exception. It's NOT! I'm not alone benefiting from these outrageous cash flows. Here's how Stacy Orth, an investor in Phoenix, AZ describes the results he achieved employing some of the simple strategies I teach in the "Supercharge Your Cash Flow" course on maximizing cash flow and overall profits.
Would you like to have a few homes like that?
You
Can Easily Make $30,000 to $40,000
While having a great monthly cash flow is wonderful you shouldn't stop there. You must work on driving your back end profit up high. Ill show you how to make much, much more than $15,000 a pop when you sell your homes. You must target at least $30,000-$40,000 profit upon resale for each home in your investment portfolio.
These are pretty high numbers but, again, its far from what you actually might be able to squeeze out of homes with the right kind of tools in your hands.
Time for another example. A few years ago, I bought a house for $65,000. The initial profit based on its value was only about $12,000. In a period of 3.5 years I was able to make a combined $83,000 NET profit from this one home between the monthly cash flow and the resale profit. Id like to stop for a moment and show you my appreciation for the time you took to read this message up to this point.
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