Saturday, July 19, 2008

Cash Flow

So you want more cash flow?


Below are ways you can increase your cash flow in real estate. I am always looking for new ideas, so let me know if you know better ways to make money.

******************I will buy your silver and gold coins for pretty close to what ever the spot price is on that trading day. I have an account through a precious metals dealer. Give me a call at 208 589 5599. *********************************************

1-If you have $150,000, loan it to me and I will pay you 8% interest. You can have a lien on my property I currently own free and clear. You would be in a 60% LTV. We can set it up through a title company so you are guaranteed payment. I have around an 800 credit score which means I am a very credit worthy investor, and low risk.

2-You could buy single family homes and rent them out. See my list of property managers at http://www.seidahohomes.com under "Get an Apt.". Also, see my investor home link under "Burke's news" at http://www.seidahohomes.com for homes $75,000 to $175,000.

I currently have 7 of these. I can show you how to rent to own the home. You sell the home and buy it in the same tranaction. For more on my "rent to own" go to http://www.seidahohomes.com

I always hear it takes money to make money, but the truth is it doesn't have to be your money. A poor person will take his whole life and maybe accumulate a million dollars. A rich person will try and borrow it.3-Buy an existing multi family unit that cash flows. I can help you verify the income and expenses and check out the property for you.

I currently own 1 trailer park, and am looking to buy several more.

a-Verify property income.

b-Verify expenses.

c-Determine net operating income.

d-Find the capitization rate and valuation.

e-Calculate the loan payment and your profit or cash on cash= ROI (Rate on investment)

f-Repeat until you are financially independent.

As kids, we all learned how to get wealthy investing playing Monopoly. All you had to do was buy four green houses and then trade it for a red hotel.

The rents made you wealthy.You will need to develop a relationship with a bank. Use the bank of your choice or if you don't have one already, use mine. It is Patriot Lending group at 208 406 3834. KC Kuttler can tell you what you can and can't do in a hurry and if you need to put any money down.

You can get up to 100% financing on an owner occupy. You can put 10% down if you have good credit and are planning on buying this as an investment. This goes for investment homes, or 4 plexes.They are based right here in Idaho Falls.

Make sure you tell them Burke Bennett sent you so that you can get the best deal possible. Once you figure out what you can do financially. Buy as many homes/income producing properties under $125,000 per unit as you can and rent them out. You will make money on rental income and if you hold them for at least 3 to 5 years, you will make equity also if you decide to sell.

I recommend the following property managers to collect your rents and keep your properties up. See link below. I don't recommend that you do this yourself unless you have quite a bit of experience.http://www.seidahohomes.com

List is below "Get an apt."Once you have built a considerable amount of income and appreciation, trade your 4 "green houses" or investment properties for a "red hotel." You can do this with a 1031 exchange.

This makes it possible to pay zero taxes legally. Below is some information on how to do that. You have 45 days to identify the properties you are going to trade for after the property you are selling closes, and 6 months to finalize the deal.

You will need to go through an exchange company so that everything is legal. If you ever wondered how the rich get out of paying taxes, here is a huge loop hole.

4- Here is an example of how real estate can beat the pants off of stocks or mutual funds.

Let's say you put down $10,000. Our rate of appreciation in this area is 6.3% and it has been that way for a long time. You could rent this out for $750 to $900 per month. You would borrow $90,000 at 7% interest for 30 years. Rent of course would go up over time, but let's just use $900 to show you how this would work.

Below is a chart of how much money it would be worth year by year.
1 Year $106,000 $914 equity Build up from paying down loan $3000 positive cash flow
2 Year $112,360 $1894 equity Build up from paying down loan $3000 pcf
3 Year $119,101 $2945 equity Build up from paying down loan $3000 pcf
4 Year $126,247 $4072 equity Build up from paying down loan $3000 pcf
5 Year $133,821 $5281 equity Build up from paying down loan $3000 pcf
6 Year $141,850 $6577 equity Build up from paying down loan $3000 pcf
7 Year $150,000 $7967 equity Build up from paying down loan $3000 pcf
8 Year $159,382 $9457 equity Build up from paying down loan $3000 pcf
9 Year $168,944 $11055 equity Build up from paying down loan $3000 pcf
10 Year $179,080 $12768 equity Build up from paying down loan $3000 pcf

Totals $79,000 $12768 equity build up $30,000 cash flow assuming rents never raise.How many investments will let you put down $10,000 to make $121,848?

That doesn't include rent increases or all of the tax shelter you will enjoy. Your maintenance would be really low since these are brand new. Call me if you want to jump on this opportunity.

The easiest way to leave the rat race (work force) is through monthly passive income from your investments. You leave the rat race when your passive monthly income is greater than your monthly expenses and current gross income of your job.

For example, if you gross $3000 per month working and have $2500 per month in expenses, you would need $5501 per month in passive monthly income to officially leave the rat race.

Once you have achieved this, you have officially left the rat race and choose to work because you want to and not because you have to.

I have a banker who currently does 90% financing on single family investment homes, duplexes, tri plexes, and four plexes. He can also get you up to 85% financing on commercial properties. The rates are between 7 and 9% interest. It really depends on your credit and what you are trying to do.

I also want to introduce to you a quick way to evaluate investments. It is the 1% rule. How it works is that a $100,000 investment should bring in at least $1000. This will eliminate a lot of investments. Even using 100% financing, you can easily have your property cash flow. A more realistic measurement in this area is the .08% rule. Meaning a $100,000 unit should bring in $800 rent per month.

As an investor, you really need to start thinking in units. How many units do you currently own? I would love to help you buy your cash flow. Some investors focus on single family homes, others focus on 4 plexes, while others will focus on large commercial projects.

5-Get Educated so you can create your own deals.

I have found a company that can teach you how to be financially independent in 2 to 5 years. They not only teach education from people who have been out there and done it, but they also help you find investments in real estate that you can buy right over the computer and do all the due dilligence for you all over the country. You can log on as a guest and see how they make it so you can click a mouse and buy a house. I can help you sign up for this. You will get your money back with one transaction. Check it out and then call or email me.

http://www.investorconcierge.com/ Log on as a guest to see all the investment opportunities available.

Check out these 10 short videos of this opportunity, or email me when the next investment meeting is. It is usually every Thursday night at 7 p.m. You can meet people who make 6 figures routinely. We also play cash flow once in a while and talk about ways to increase our passive income.
http://www.youtube.com/watch?v=gnEnrnII_aQ&mode=related&search= 1 of 10
http://www.youtube.com/watch?v=Ylksumng4e8 2 of 10
http://www.youtube.com/watch?v=z3oGvqTdlEc&mode=related&search= 3 of 10
http://www.youtube.com/watch?v=z0WqHhCT4PY&mode=related&search= 4 of 10
http://www.youtube.com/watch?v=HTfbhmvhv4k&mode=related&search= 5 of 10
http://www.youtube.com/watch?v=yq0aukFoO0c&mode=related&search= 6 of 10
http://www.youtube.com/watch?v=LtBDz6awJEQ&mode=related&search= 7 of 10
http://www.youtube.com/watch?v=1UyVHXBtWz4&mode=related&search= 8 of 10
http://www.youtube.com/watch?v=nHLz5-5ozOw&mode=related&search= 9 of 10
http://www.youtube.com/watch?v=sOj4TuNrmkk&mode=related&search= 10 of 10

6-Short sales, wholesaling, fix and flip, buy and hold, rehabbing, subject to, rent to own, or just buy as many homes as you can. One of my instructors favorite strategies is to beat down the price as low as possible and then pay cash. Of course not every one can do that yet.

7-Find someone who wants to sell his note that he is receiving payments on. I can help you make an offer and split the deal with you.

There are lots of ways to increase your cash flow. Email me or call me if you have any additional ideas.

I am always looking for better ways to provide for my family.

So get on my email list. I can help you get out of the rat race.

Thanks Burke Bennett208 589 5599
http://www.seidahohomes.com
burkebennett@hotmail.com

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