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Real Estate Investing
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May24
Real Estate Investing – YEAH, rents came in!
Filed under: real estate investing; Tagged as: 4 plex, Cash Flow, foreclosures, positive rental income, Property Mangement, real estate investing, rental income1 CommentReal Estate Investing – YEAH, rents came in!
I received Rent Check, Called up my Friends and told them to meet me at the local Pub!
Real Estate investing requires you to be a responsible person by understanding rental income. The value of positive cash flow and be responsible to where the rent money needs to be allocated.
I met a handy man a couple years ago who invested in foreclosures 2 years ago. He was selling one of his investment properties, just happened to be a 4 plex. I immediately asked him one simple question. Can you guess what question I asked?
Here it is, What is your monthly cash flow?
Now, the cash flow number can change depending upon how much money the investor put down on the property and interest rate or how the investor’s loan is structured. It’s critical to dig deep into the answer.
Remember, Cash if King!
He told me he pockets $1,100.00 and uses this money to pay his mortgage payment. Well immediately, I started to probe him for other questions. He never did answer my other questions but all he did was small talk or walk around my questions. I recently found out he lost all of his properties in January to foreclosure.
You ask WHY, I will tell you why.
He never repaired his properties to a living standard. The work was completed but done beyond satisfactory. The city was fining him for violations and he never did complete the work to the cities requirements.
2nd reason, This particular investor took his rental income and went down to the local Pub. Folks if you don’t pay your creditors they will come after you for your assets. Even though real estate prices have dropped dramatically, real estate is still worth a better price than your old furniture or rusty old car.
This particular investor was uneducated in Cash Flow and the banks took back all of his real estate assets.
Property Management is a critical skill investors are not willing to learn and invest and time or money. This area alone will either make you a millionaire or make you poorer than you already were prior to real estate investing. Which one do you choose?
Invest in John Dessauer’s Property Management course to keep your monthly cash flow coming in month after month. Without it, the banks will be calling you
Cashflow Cindy
P.S. Do it Now
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May18
Duplex - Selling Rental Property
Filed under: real estate investing; Tagged as: Cash Flow, positive rental income, real estate investing, rental income3 CommentsReal Estate Investing - Selling Cash Flowing Properties
In today’s unstable real estate market with masses losing their jobs and their homes it’s important to remember WHY people invest in real estate.
The number 1 reason, Sandy and I invest in real estate is cash flow. If the single family house, duplex or tri-plex does not cash flow then we RUN. When I talk about cash flow, I am talking after ALL bills are paid you have money left over from the rental income! I will say this again, after ALL bills as taxes, insurance, water, heat and repairs on the property are paid for any money left is Positive Cash Flow!
If you are buying investment property with Positive Cash Flow then its important for you to SELL your investment property to other investors so the property cash flows. Everyday, people ask me, Cindy how do I sell my property to cash flow for the investor to buy my property and still make a profit on it?
Answer: If you purchased the property correctly in the first place then you will not have any issues selling the property to another investor with positive cash flow.
Remember, when you buy an investment property, someday you are going to sell it. If it’s larger than a single family house then chances are an investor is buying the property as an investment. Many first time investors will buy a duplex and live in one side while the tenant pays the mortgage. However, even in this situation, when you market the duplex, it needs to be marketed as fully rented with Positive Cash Flow in order for the property to sell.
My partner and I sold our cash flow duplex to another investor and made a nice profit plus the investor purchased a cash flowing duplex.
Cashflow Cindy
P.S. Most investors buy property without having a clue or understand money or cash flow. These are the duplexes and single family houses I buy for pennies on the dollar because these investors were too cheap to invest in a property management program. John Dessauer offers an excellent program to teach you the meaning and better yet how to calculate positive cash flow. Invest in a Property Management Course before you invest in Real Estate otherwise, I can assure you will purchase the property Wrong!
