In this series we’re learning How to Go From $0 to $10,000 a Month as a Real Estate Investor. This is part 7 of a 10 part series.
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Here’s where it gets exciting, we’re about to show you how to go from one $15,000 deal a month to 5-10 deals bringing in $50,000 to $75,000 a month. Not possible you say? Very possible, it’s called intelligent scaling. Flipping properties is not rocket science, really..…look at me, I have no college education, (I’m sure you can tell from my incredible writing ability) NOT! I’m not the sharpest tool in the shed for sure and I can tell you it’s harder writing this blog post than doing a real estate deal.
In the world of successful real estate investing $50,000 to $75,000 a month is peanuts, think bigger, much bigger. I have several friends that make millions on a single deal not $15,000. I love investing in real estate because you can make as much or as little as you want.
4 Steps to Building Momentum for Big Real Estate Profits
1. Build an Investor Data Base
2. Hire More Real Estate Agents
3. Hire a Transaction Coordinator
4. Hard Money
Build an Investor Data Base
Create a demand by building a large investor data base; we spend a lot of time, money, and effort doing this. If you can create a strong demand for your properties, than the sky is the limit. Let me explain, let’s say you find a great deal and you only show it to two potential fix and flip investors and both of them don’t like the deal…then what? No money right, but if you’re able to show the deal to 20–50 investors then guess what, your deal gets sold quickly and the others want more. Here are several ways to find investors:
Print Ads: Put a small ad in the newspaper that says “Handy Man Special 60% of after repair value great 4 bed 2 bath built ‘75 quick close. Give the address” keep the ad in the paper at all times, and the calls will come in. After the property is sold let them know you have others in the pipeline. Get their email and phone number and add them to your list.
Craigslist: Keep a fresh ad with the same info as above, change the ad around every week to keep the content fresh.
Local Radio: Find a news radio station in your local market and see if you can buy ad spot or a show. We have a show on 1510 KFNN in Phoenix from 12pm to 1pm every Monday afternoon. We always get calls and leads.
Friends and Family: Ask for referrals, people like to help if you ask.
Remember you don’t have to have hundreds of investors lined up before you contract your first deal, I didn’t have any when I first started. I got my first deal under contract and then had to find a buyer which I did. The result, an $11,000+ check.
Hire More Real Estate Agents
Making offers on bank owned properties is time consuming; find several agents that are able to make offers for you. This will keep them sharp and the offers flowing. You want to increase your offers to 20–30 a week; this will get you 5 to 10 deals a month.
Hire a Transaction Coordinator
You’ll need someone to keep track of all the files in process. There will be two sets of files for each property, the “buy side” and the “sell side.” They’ll be communicating with the title companies, other realtors and investors to get the deals complete. This person will be your right hand man and will keep your life in order when you’re wining and dining new investors.
This isn’t for you but for your investors that will be closing on your properties. You’ll be referring the hard money lender to the investor. This will streamline the process when your investors offer the objection that they can’t get financing. Your hard money guy will fund the deals for your investor purchasing the properties from you. This is a great service to provide for a professional wholesaler.
Now set a goal to do 3 a month with a profit margin of $15,000, once reached push it to 5 a month and then 10 a month. This is truly possible, I know, we’ve done it and we’re doing right now. It’s a lot of work, but boy it’s a blast!!!
If you have any questions regarding the article feel free to leave a comment and Mike and I will be happy to answer.
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