Take a few minutes to read this if you are serious about your real estate investing business.
When I first got started in the real estate business I was a rehabber. The good thing about rehabbing is the profits are HUGE. You can easily have a “man sized” bank account within a few short months.
Then I started renting properties which is a great strategy for cash-flow and saving money on taxes.
After that I started wholesaling houses for quick cash.
These days (12 years later) I do it all, so today I wanted to share with you what I feel is the easiest way to retire young.
Here is the 3 Step Real Estate Process:
1. Wholesale houses- If you are brand new in the business, then I truly believe that you should start off in the business as a wholesaler. The reason for this is because you can make quick profits wholesaling while learning the business and building your network at the same time.
Also, with wholesaling you don’t need to have money in order to do deals with. All you need is a marketing budget to keep deals coming in, or access to a network of other wholesalers so that you can tap into their inventory and you are good to go. Couple that with a cash buyer network and you will be making money in no time.
2. Rehabbing houses- After you’ve wholesaled 4-5 houses you may want to start looking into rehabbing houses. The good thing about rehabbing houses is the profits can be HUGE.
Think about it like this…
On the average wholesale deal, you will make $5,000 to $10,000. When you are rehabbing you can easily make $30,000 to $100,000 or more on each deal.
Another good thing about rehabbing is you become the money guy. In other words, leads come to YOU. It’s that much easier for you to get deals once you have access to the money.
The downside to rehabbing is it takes a little more work and it takes longer to actually get paid the lump sum. With that said, you CAN pay yourself on the day you buy the house in addition to the day you sell the house a well.
I don’t know about you, but I always like to pay myself when I buy a house AND when I sell a house as well.
Obviously, there are many benefits to rehabbing houses, but the buck doesn’t stop there…
3. Renting properties for profits- Once you rehab 4-5 houses, then you should consider renting houses as an investment strategy as well. This is a great strategy for creating passive income as well as saving money on taxes.
If you combine all 3 of these strategies into your business you will be well on your way to retiring young as a real estate entrepreneur.
With that said, here is how I’ve set my business up for maximum profits.
1. I wholesale houses in order to keep cash-flow coming in.
2. I rehab houses in order to make huge cash.
3. After doing 3-4 rehab deals, I buy a rental property for cash in order to get a great deal and then I mortgage the property in order to benefit from the tax write off and get my money back.
I do this in my IRA as well as outside of the IRA. The benefit of doing this inside of a traditional self directed IRA account, is the money is untaxed until you cash out later on.
There are many benefits to using this model, but the first thing you need to do is get started (if you haven’t already).
If you are NOT wholesaling houses, then you need to check out my Property Umbrella Blueprint training (if you haven’t already), when it becomes available again. I consider it to be one of the best, if not the best training programs available for that niche…
And I’m not saying that because I created it.
This training will show you how to rehab houses and flip them for man sized profits, and it will also show you how to rent them for passive income.
Now go and close some deals!
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