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When it comes to real estate investing, there are all kinds of effective money making models. With other investment models such as equity and other speculative instruments, you will never get the security and reliability that you get with real estate investing. That's the reason this business is so lucrative.
Making Money With Real Estate - The Most Effective Models By: Curt Cloyd – Director Personal Wealth Academy, LLC When it comes to real estate investing, there are all kinds of effective money making models. With other investment models such as equity and other speculative instruments, you will never get the security and reliability that you get with real estate investing. That's the reason this business is so lucrative. With that said, here are some effective models for making money with real estate... 1. Fix and flip properties... Well... this is one model using which you can generate huge amounts of cash flow every now and then. It's the process of finding properties that are in need of repairs, purchasing these properties, fixing them and reselling them for massive profits. When it comes to fix and flip properties, there are some key things that you need to take care of before you step into the field: 1. Finding properties that are in need of repair - This is a skill that you need to master for yourself. You can rely on other agents and specialists to help you find properties at first. But it's not something that you must depend on completely. You need to be able to find properties that are in need of repair on your own. Being dependant on others will only cause trouble to your real estate business in the long run. 2. Find the money - Unless you have lots of money at hand, you are likely to be dependent on hard money lenders and other financial institutions to provide you the funds required for purchasing and fixing the property. Before you go out to find a property, you have to make sure that the property you're trying to put under contract meets guidelines set by the lender. 3. Take care of the repairs - Well... the repairs are a tricky aspect. You'll have plenty of repairs to perform for the house. But not all of these repairs will really boost up the value of your house. Think 80/20. 20% of your repairs will boost the value of your house by 80%. So think about all the repairs necessary and only perform the top 20% repairs that increase the value of the house by 80%. 2. Rental income... Rental income is a must-have in your real estate investment portfolio. Without rental income, you'll never be free. For you to be free, the rental income you earn has to exceed your current day job's income. That's the only way you'll have the freedom to do whatever you want without having to work at all. ©2012 Personal Wealth Academy LLC http://personalwealthacademy.com Here's how to find rental income properties successfully... 1. Scout for leads The first step is to scout for potential owners having houses in a high-demand location who may want to sell off their property. There are many reasons as to why the house owner would want to sell his/her property. It could be because he/she's leaving the state/country or his/her property is in a state of foreclosure, etc. Make sure that you only find people that desperately want to sell off their house. Check for the urgency element in a potential prospect before you negotiate with them. If they have no sense of urgency, you won't be able to negotiate a successful deal with them. 2. Fund the deal Get in touch with hard money lenders and other financial institutions that'll provide you with the funds to put the deal on contract. You may have to present a proof of funds letter early on in the deal in order to increase the seller's faith in you. But once you have shown it, closing the deal will be extremely easy as long as the property you've found meets the regulations set by the hard money lender. Funding won't be an issue for most rental properties because these houses are likely to be in top-notch condition unlike the fix and flip properties. These properties will naturally meet the requirements set by the lender. 3. Take care of everything Well... in order to maximize the rent you receive, it's important that you take care of everything in the house. If the house requires a repaint, have it done at your own expense before renting it out. Take care of tax payments and all other bills that you may need to pay every now and then. Or set a real estate asset management company do it for you. Beautify the home as much as possible with the money you have. And finally rent it out to third parties. Once you've rented a house, it's time to work on fixing and flipping a new property and using that money to pay off your existing loans and use the monthly rentals to pay for your monthly expenses. Keep doing that and within a couple of years, you'll be earning more rental income than the amount you earned at your day job and living a much more happy life. At this point, what you really need to understand is that certain strategies may or may not be right for your particular goals or wants. They may not be right for your particular situation in life either… Before you dive into real estate investing, you should strongly consider working with a real estate coach from Personal Wealth Academy. A coach can help you to analyze your situation and all of the options ©2012 Personal Wealth Academy LLC http://personalwealthacademy.com available to you for making money with real estate. Then together, you can develop a plan that will allow you to achieve your goals. It will save you tons of time, money and headaches. Click here. ©2012 Personal Wealth Academy LLC http://personalwealthacademy.com
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