There are two reasons we teach so many different creative real estate techniques and money-making strategies at CashFlowDepot:
(1) One technique may appeal to you more than other techniques. When you’re just getting started, you will usually gravitate towards the techniques which require the least amount of cash and no bank financing. As you learn more and make more money you will be ready to learn the next level techniques which can produce even bigger profits.
(2) While it is good to focus on just one technique initially, you really need to learn a variety of ways to make money with real estate, so you will be able to provide solutions to a variety of real estate problems that sellers have. The more ways you learn how to solve problems, the more deals you will do. If you only know one technique you will not have as many opportunities.
With that in mind, here are FIVE ways you can make $12,800 per month in your own real estate business (perhaps more):
WHOLESALING – is a great way to get started. You don’t need much cash, you don’t need to buy houses, get loans, or do any repairs. You simply get a contract on an old run down property, then sell it to a rehabber. You typically get paid within 30 days. Average profit is $6,000 per deal, sometimes more. I’ve made as much as $30,000 wholesaling one house. So, with just two wholesale deals per month you could be making over $12,800 per month.
MASTER LEASING – is another great way to get started. Like wholesaling, you don’t need much cash, you don’t need to buy houses, get loans or do any repairs. You lease a house from an owner then sublease to your tenant. It is important that your lease with the owner be below market so you have good cash flow. Many CashFlowDepot members are making $10,000 to $20,000 or more per month with this one technique. The average cash flow spread is $350 per month though you could make as much as $600 per month. With just 25 houses at $500 per month cash flow, you could be making over $12,000 per month in cash flow. Let’s say you only get one Master Lease per month. Within 2 years you could meet your goals of $12,800 per month. Financial Freedom!
OPTIONS & OPTIONS/HIGHEST BIDDER SALES – are similar to wholesaling buy you don’t need to focus on old, run down houses. Any property that you can get a contract on below market then sell for more is an opportunity. Vacant houses are ideal for Options. It’s important that you are dealing directly with a motivated seller to get the price low enough for you to make a profit. A Highest Bidder Sale is a good way to sell the houses that you get an Option on because you will sell the property in about 7 days. You can either sell to a buyer who will pay cash, get financing, or sell with seller financing so you get a big down payment and monthly cash flow. The average profit is about $20,000 per deal. One deal per month is all you need to exceed your goals.
RENTALS/LANDLORDING – similar to Master Leasing but you own the house. Instead of getting bank financing, you can buy Subject-To the existing mortgage or buy with seller financing. Like Master Leasing, it only takes about 25 hours to meet your goal of $12,800 per month assuming a $500 per month cash flow. Once you get some good equity build up, you could sell some of the houses then pay off others. You can also use proceeds from Wholesaling to pay off your houses quickly. So, by the time you are ready retire (in a few years), you could own 10 houses free & clear each netting $1,500 per month or $15,000 per month in cash flow.
MOBILE HOME INVESTING – is a good way to create monthly passive income. You find older mobile homes that you can buy for a few thousand dollars, then resell quickly for 4-5 times more money with seller financing. This works so well because sellers of older mobile homes have few buyers who can pay cash. And people who want to buy an affordable mobile home cannot get bank financing so they love that you provide seller financing for their home. Your average cash flow is $350 per month. So, it will take about 35 mobile homes to meet your $12,800 goal. If you have some mobile homes on land (not in a park), your cash flow will be even great so you can reach your goals faster. You can reach your goals even faster with mobile homes if you buy a mobile home park with 20 park owned homes. You’ll get cash flow from the lot rent plus cash flow from the rent on the park owned homes. Of course, we would recommend buying a mobile home park you can buy with seller financing.
There are so many ways you can make $12,800 per month with real estate!
MULTIPLE STREAMS OF INCOME MAGIC
The real magic comes when you combine techniques and do some Wholesaling, some Options and Highest Bidder Sales, and some Master Leasing. With multiple steams of income from multiple sources you can meet your objective of $12,800 per month in income even faster.
Sure there are other things you could do, like Fixing & Flipping or building new houses but both of these require a lot more knowledge, a lot more cash investments and usually bank financing.
SOME THINGS TO THINK ABOUT:
How much money do you really need to replace the income from your job?
How much monthly cash flow do you need to retire next month? If it is expensive to live where you are now, would you consider moving to a more affordable state or country?
It’s easier to reach your financial goals if you know how much you need to support your lifestyle. Write it down. Crunch the numbers. Determine how much money it will take to quit your job or retire.
Which technique sounds like a good fit for you? Comment below.
LET’S GET STARTED…
You can learn how to do all these creative real estate strategies with our Premium Membership Training!