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Follow Sean Advanced Real Estate Investing Strategies For 2009
11 Mar
An Investment Strategy That Will Make You $10K a Month and $1 Million in Equity
In this series we are learning How to Go From $0 to $10,000 a Month as a Real Estate Investor. So far we’ve covered how to Get Mentally Prepared to Become a Successful Real Estate Investor and the Top 14 Real Estate Investor Tools.
Today I’d like to share advanced real estate investing strategies for a new or seasoned real estate investors. I ‘m having a little trouble writing this article today because I spent the better part of the morning in the emergency room. I ripped the tendon off my middle finger playing football at the local country club early this morning, some friends and I, for a work out, were playing a friendly game of touch football and when trying to catch the ball I jammed my finger.…and snap……Ouch!!
Anyways, let’s talk about what exactly you would like accomplish, how about monthly income, say $10,000 a month or higher. As a professional investor it’s crucial to have consistent LARGE chucks of money coming in. How about monthly cash flow? Wouldn’t it be nice to have $5,000 plus a month coming in automatically? Here’s the name of the game:
1. Big Short Term Profits
2. Consistent Monthly Cash Flow with Huge Upside Potential
As you might know Mike and I own Fortress Investments and are very active real estate investors (we actually closed on 2 bank owned fourplex’s today) we have offers in on properties all over the metro Phoenix area and regularly buy properties at the county auction. We also buy cash flow properties for our inventory which provides monthly income and upside potential, we currently own over $13 million dollars worth of residential real estate. This strategy has proven to work great for us and can work for you to. Using this method you’re able to make an income to pay the bills but also build a bank roll for the very best deals. You’ll come across some incredible properties that don’t make sense to flip but to keep in your inventory.
Big Short Term Profits
I got started flipping properties making $5k to $10K in profits per deal. The goal for you starting out is to do 2 deals a month averaging $5K per deal, and then scale it up to 5–7 deals a month. That’s $25-$35K a month in income! I know what you might be thinking….he’s crazy, “I want to do one deal”. Don’t be a small thinker; I know you can think bigger than that. Just shoot for a goal of 5–7 a month and go back and read Get Mentally Prepared to Become a Successful Real Estate Investor. There’re much BIGGER deals out there than flipping houses for a $5 to $10K profit. Look at Trump, he’s big time! I’m not saying we should all strive to be Trump, but the possibilities in real estate are endless if we can think big enough. In the next article I’ll share with you How to Find and Execute you First Real Estate Deal. Make sure you subscribe so ya don’t miss a beat.
Consistent Monthly Cash Flow with Huge Upside Potential
This method will make you rich; owning cash flow properties that have built in equity is the key to this step. Your goal should be to own 20 cash flow properties with 25% built in equity. Let’s do the math, 20 properties that are worth an average of $200,000, would mean you own $4 million dollars of real estate with $1 million worth of equity. Let’s say each property (multi family and single family) on average cash flows $300 a month; you’d be making $6,000 a month in income. You’d also have a huge tax benefit of owning this size of portfolio. Now I know you’re asking, “Fannie Mae will only let me finance 9 properties” yes I know but I will show you a secret that you won’t find any where else. You might also be asking “what if I don’t have good credit, then what?” I’ll cover this to in the proceeding articles in this series so again, make sure you subscribe so you don’t miss a beat, it’s free.
Now that you have a clear cut goal and know exactly what to focus on we can move forward to the next article in this series, the meat: Finding and Executing Your First Real Estate Deal. We’ll cover exactly how to and where to find you first deal, what to pay for it, and how to flip it for a big profit!!!
To follow along with this series make sure you subscribe to our RSS feed or bookmark and come back to this page where I’ll be linking to each new post as it is published on the blog.
So if this strategy worked for YOU, would it change your life? If so How? Please share your thoughts by leaving a comment below.
Happy investing
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I really liked your blog! I will be linking back to you.
Sean,
One of my biggest challenges in searching for financing is being self-employed. I bring in over $12,000 a month (in earned and passive income), have excellent credit, but I’m turned down on numerous occasions because I don’t bring that in as a an employee for some big, established company. I have not yet reached the 2-year mark in terms of self-employment history either, which is another barrier I hit when lenders list that as a requirement. I guess my question is, what kind of strategy would you suggest I employ to best leverage what limited sources of OPM I currently have available to me? I would assume a mortgage broker would greatly increase my odds, but I first wanted to hear what kind of advice you could give me. I too am a former military man, so I don’t take the answer “no” very lightly. Thanks for your help!
-Jordan
Hey Jordan, I feel your pain, a lot of investors are being taking out of the market because they’re self employed showing little income or haven’t hit the 2 year mark as you mentioned. The solution is to bring on a credit partner. We’ve done this to build a $12 million dollar portfolio over the last 12 months. I did a blog post on How to Build a Million Dollar Property Portfolio, please read that, it will give you an idea on how we structure the deal. There are a lot of people that have great credit with w-2’s or tax returns that can qualify for 10 houses, you just need to partner up with them, you contribute the deal/expertise/money and they contribute the qualification. The opportunities are endless really. As a prior military man myself(USMC) I also believe that no is never an option.
If you need more on how to structure this type of deal let me know.
Sean
I am a member of John Beck’s real estate program. I have learnt a lot from his steps strategies. I have come to know more information from your post. Good contribution. I will be looking forward for more posts.
Is now a better time to invest or to buy? I can imagine it might not be a bad time for either approach.
I want to congratulate Jordan for how much earn every month.Can you help me how to earn more money,I have big problems on financing my loans.
In real estate business you have to have a good business strategy to be successful in this market. And not only that you should also revisiting your plan, find out if its effective or not.
Great post by the way.
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