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Real Estate Investing – How do You Spend Cash Flow?

Many real estate investors are losing their investments as single family houses or duplexes because they simple did not get the proper education before, during their real estate investing years. If the investor loses their job then their investment property goes to foreclosure along with their personal home.

I talk to investors on a weekly basis that are upside down on their properties because of over financing, refinancing, or simple putting too much money into their investment properties. These individual investors are losing their houses and duplexes to foreclosure simple because they didn’t understand the concept of Positive cash flow!

Do you know how to figure out if your property you are going to purchase will have Positive Cash Flow? Or is the Real Estate Agent telling you the property is a good deal and it cash flow? If the agent is telling you it cash flows, ask the agent, if they are going to pay the mortgage for you if your property is NEGATIVE cash flow?

My first property I purchased has Positive Cash Flow however I did forget to figure in other cost prior to making my offer. After being a real estate investor for over 4 years my first investment property clearing is a reminder for me to NEVER overpay for an investment property as I did on this one.

It’s critical to understand Positive Cash Flow before buying your first investment property. I purchased mine on the 1% rule. For those of you who don’t understand the 1% rule is an explanation. Property is selling for $90,000 and rents equate to $900.00 per month. According to the 1% rule your property will cash flow. Take a deeper look at the numbers than going off this simple little equation. For instance, how much work needs to be completed on the property in order to keep the current tenants or how bad has the building deteriorated? This is an area where I made my first bad mistake.

Cash Flow is King! Without it you will end up losing your all of your hard earned work to the banks or another real estate investor. Without positive cash flow, you become a MOTIVATED SELLER quickly!

Cashflow Cindy

P.S. Invest in John Dessauers Property Management course to gain your financial freedom with Positive Cash Flow.

Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – Plea to Raise Section 8 Rent

As stated on article posted ‘Section 8 June 24, 2009’, you noticed the majority of these items listed are tenant neglect.

The question you need to ask yourself is, “How much money will it cost to get this unit Section 8 ready?”

Remember: This unit passed Section 8 inspection one year ago. This means the holes in wall, screens with holes in and a couple screens missing, broken windows are all tenant neglect.

This particular tenant does not maintain the property or respect it.

Course of Action:

I contacted this tenant and asked her about the broken windows, missing screens and holes in the wall. We also discussed the garbage lying on the ground around the building. Whenever I drive up to this property I always have a garbage bag with me to pick up the garbage around the building. I’ve instructed this tenant repeatedly to pick up the trash.

This particular property is located across from the homeless shelter and has been a challenge to say the least due to the location. However, it’s been a great learning experience for my partner and I to carry over into multi-units.

· Instructed tenant to either maintain property or will be evicted!

· Tenant’s Brother fixed the broken window and hole in the wall.

· Tenant’s brother is painting the hallway this week.

· Contacted Section 8 for a plea to increase rent to offset the cost of repair due to tenant.

In order to increase the rent you need to mail a copy of the Notice of Rent Increase form to the tenant and a copy to Section 8. This is a 60 day notice form.

Managing rental units is a learned skill and requires education, cooperation and training. However, it;s all about wealth building and cash flow. I am working with Section 8 to increase this tenant’s rent to offset the cost for Section 8 compliant.

Cashflow Cindy

P.S.   People ask me, “Why do you own rentals?”  Albert Gray said it best, “The common denominator of success - the secret of success of every person who has been successful - lies in the fact that they formed the habit of doing things that failures don’t like to do.”

Its time to attend Marshal Sylver’s Prosperity Alliance training to put yourself in the driver’s seat:  Choose your path otherwise somebody else will!

http://prosperityalliance.com/cindyconradt