Real Estate Investing with No Money

Real estate investing with no money

Real estate investor, Trainer Trevor Evans, teaches, how to invest in real estate with No Money. Trevor teaches, how to get funding for your deals, fix and flip,  your, investment properties, and, how to flip a house.

Watch the YouTube video to learn how to Invest in Real Estate from a, Rich Dad, real estate investor.

What you will learn about Real Estate Investing in this motivational video:

1. What are some strategies to purchase property for your,  real estate investing, business with little or no cash?

There are several way to do this. You can max out your credit cards, you can set up a lease to own deal, you can get seller financing.

2. What does, Hard money lenders, look for in a good deal?

They look for the ROI or return on investment

3. How do you make your deal attractive to a, Hard money lender?

Show that the resale value is at least 40% higher that the investment.

Strategies using other people’s money to fund your, real estate investments:

1. Using your credit cards to fund your deals. The more credit you have the better off you are!

2. Hard money Lenders,  Hard money lenders,  look at the asset and not at your credit score.

3. Borrow money from friends and family. You convert them into, Hard Money lenders, and pay them a good interest rate to start your, house flipping, business.

4. Borrow from your Whole Life Insurance policy.

2. Take a loan from your 401K.

3. Take out an Equity line of credit on your personal house.

 

The commonly used strategy in, real estate investing,  is the use of a, Hard Money Lender.

You need a, Hard money lender, for your, real estate investing, business. A money lender does not look at your credit, what does he look for?

1. Your expertise. Most, Hard money lenders, want you to have three investments under your name. This does not include your personal residence.

2. The ARV or after repair value. The property must have equity before the deal is made.

3. How did the property come on the market. Eg is it a Foreclosure, short sale or probate.

4. What is your, exit strategy? Is your, exit strategy, to, buy and hold, or, fix and flip?

5. How long you need to complete rehab work.

6. How much is the estimated cost of repairs.

 

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Hard Money Lender do not offer 100% Financing

Make no mistake, hard money lenders, need borrowers to deploy their capital and get a return on investment for their capital partners. They often enjoy repeat business, real estate investing, aren’t typically one-time borrowers, so asset-based lenders like, hard money lenders, or, private money lenders, value the business relationships they develop with quality borrowers.

Real estate investing, with no money down or little or no cash is to borrow from, Hard money lenders, who charge high interest for short term loans. When, hard money lenders, provide a loan, they want to be confident that the, borrower, is able to repay the loan on time. If the, borrower, isn’t able to pay back the loan, this creates a great deal of extra work, stress and potential financial loss for the lender. A strong, borrower, with a significant down payment (or equity in the property) and cash reserves has the best chance of obtaining a, hard money loan, and succeeding with their, real estate, project.

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Looking for a, Hard Money Lender? Here is an article from Connected Investors on how to get bids on your project.

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Connected Investors, the world’s largest, real estate investing, network and marketplace, today announced the launch of the first centralized real estate investment funding portal, CiX.com. The technology allows real estate investors to quickly and easily submit their deals to a network of asset-based lenders, ensuring the best terms for loans on their, investment properties.

Subscribe to the Transform you Mind podcast with Coach Myrna to get notification of all shows, Life coaching tips as well as Real Estate Investment tips and strategies.

Additional Resources

How to Create the Freedom Lifestyle through Real Estate Investments.

How to Build Wealth with Turnkey Real Estate Investing

How to Get Started with Wholesaling

business coaching

 

Wholesaling, is often marketed as a low-to-no cost way of getting into real estate investing and this can be true. A new, wholesaler, can certainly profit with a much lower initial cash outlay than a, real estate investor, who has to buy a property and rehab it.

In, wholesaling real estate, a real estate, wholesaler, contracts with a home seller, markets the home to his potential buyers, and assigns the contract to the buyer. The, wholesaler, makes a profit, which is the difference between the contracted price with the seller and the amount paid by the buyer.

What Exactly is Wholesaling Real Estate?

Wholesaling, is often marketed as a low-to-no cost way of getting into, real estate investing.  However, the successful, wholesaler, has to have a firm grasp of what makes for an attractive deal – once you understand this process of , wholesaling, it becomes much easier and can be broken down into a serious of repeatable steps.

Word from our sponsors:

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How to Build Wealth with Turnkey Real Estate Investing

My co-host today on this podcast is Trevor Evans.
Trevor is a Professional Speaker, Real Estate Investor, Retail Store Owner.
Speaker/Trainer for Rich Dad Education and Founder of Personal Awakening brand “Being Normal Sucks.” Trevor has also been married for 19 years and have 2 beautiful daughters ages 22 and 18.

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Are you on a journey to find happiness through the doorway of wealth?
Living in financial abundance is one way to find happiness but not fulfillment.

You deserve happiness, and you CAN attain it.

The Transform Your Mind with Coach Myrna podcast has entered into collaboration with with Swami’s Brahmananda to offer my listeners guidance and the power of an entire community of happiness seekers, so you too can wake up happy.

For more information please clink the link below and start your Happiness journey

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Show Notes:

How to get started with real estate wholesaling

Investors ready to learn how to start, wholesaling houses, will be happy to know the process is not complicated. Here are a few simple steps to get started, real estate wholesaling:

  1. Research your local market before getting started.
  2. Find a realtor with off market discounted properties.
  3. Secure a financing source that works best for you. This is usually a Hard Money Lender.
  4. Begin searching for potential, wholesaling, properties by driving for dollars.
  5. Decide whether to sell the contract or assign the contract.
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What is a step by step plan to becoming a Real Estate Wholesaler?

Step 1: Create a Database of buyers:

Contact local Rehabbers and Contractors and ask them what kind of properties they are looking for to rehab.
You can find them at your local Chamber of Commerce or your local REIA

Ask them these questions.
1. What kind of properties are they currently rehabbing?
2. Type of properties they like to work with Eg. Single family or multi family?
3. What are they certified to work on? Eg. Are they certified to work on burn down or water damaged properties?

Step 2: Put an AD on Craigslist
Ask the following questions when you get responses to your AD
1. Is the property listed with a Realtor?
2. Are you speaking with the owner of the property?
3. Is the property in, Foreclosure, probate, bank owned, or free and clear
4. Does the property need rehab? If so what is the estimated cost of repair.

Step 3: Put together your power team which includes your Title and Escrow Agent.
If you structure your deals properly, you could use one escrow deposit for 10 properties!

In our first episode you talk about process. You said that setting up a process prevents failure.
What is the process for the real estate Wholesaler?

Wholesaler Website: do you need one

My friends at Connected Investors wrote this article on Getting started with, real estate Wholesaling.

Wholesaling, is often touted as the easiest entry point into the world of, investing in real estate. And financially speaking the barriers to entry are generally a lot lower, especially when compared to fix and flipping or buy and hold investing. Many experienced, professional investors have door-knocked and bandit-signed their way up the REI ladder without having more than a cell phone, gas money, and the will to WIN. read more …

• If you found this blog post inspiring, please Subscribe, Rate and Review this Podcast, then send me an email to info@myhelps.us with the subject line “podcast review” and I send you a free gift.

Free eBook: Wholesale Plan of Action Cheat Sheet

This cheat sheet was created by Connected Investors and goes into further detail on the Wholesaling steps.

Additional Resources

Is Starting A Real Estate Investment LLC A Good Idea?

How to Build Multiple Passive Income Streams

How to Make High Returns Investing in Mobile Home Parks

Investing in mobile home parks

Mobile home parks, are a great, real estate investment, because of their low maintenance, high returns and overall affordability.  There’s a strong argument for, mobile home investing. Listen to this interview with Jefferson Lilly,  mobile home park,  investment expert and educator and learn why and how you should be investing in one of the, real estate, industry’s hidden gems.

Jefferson Lilly is the founder of Park Avenue Partners, a private equity real estate fund that acquires and operates, mobile home parks, nationwide.  His investment funds are currently returning 8% – 15% cash annually to Limited Partners.  Both personally and through his partnerships, Jefferson has acquired 25, mobile home parks, in 13 states since 2007 totaling over $56mm in value.

He also started the industry’s first, mobile home park podcast,  and the largest group on LinkedIn dedicated to, investing in mobile home parks. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the Real Money television show.  He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.

Listen to the full interview here:

Warren Buffett advises that we should stay within our circle of competence, so I figured that I had always lived in a house or apartment so that was within my circle of competence.   I started looking for traditional apartment buildings; but kind of stumbled into, mobile home parks,. I began researching it, in then realized why, mobile home parks,  was really the best niche in, real estate.

How to Get Started investing in, Mobile Home Parks,

I started out by buying my first, mobile home park,  it was a little under $500,000. I put down a little less than $100,000 and I borrowed almost $400,000 from a bank.   I still had some other reserves and I still had my day job.  Just to be clear, at no point you can say like hey, mobile home park,  next stop actions is silicon valley.   I was looking for passive income, I had two streams of income the, mobile home park, and my regular W2 income for about a year.  It’s now just coming up on 12  years later and I haven’t  looked back.

The first, mobile home park, I purchased, I  just bought the land, I didn’t actually buy any of the homes at that time.  My tenants owned all the, mobile homes. There were about 45, mobile homes, in the park. I purchased the land and the, mobile home, owners paid me rent to park their homes in the park.  Think of it as a parking lot.  You own the lot, not the cars parked on the lot.  The cars pay you to park there.  Same concept in a, mobile home park.

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Investing in, mobile home parks, instead of mobile homes

Then about 5 years ago, I formed my first partnership to start acquiring, mobile home parks, Nationwide.    Now sometimes I buy, mobile home parks, with the homes as well as the lot.

We call those a horizontal apartment building of sort,  our colloquial term for that.  Most of the, mobile home parks,  the owner of the park does not own the, mobile homes, and the owner is paying rent to the park owner.

Whenever we buy a, mobile home park, with the homes, we tell the tenants, hey you can now own your own house for the same monthly payment as renting. Depending on the value of the house they can own after about thirty six months or less then 60 months. When they become homeowners they have to actually maintain the houses.  It’s just like real home ownership, they’ve  got to put on  big-boy pants, there  now a homeowner.  So when that proverbial toilet leaks, they don’t call me.  They have to go to Lowe’s or Home Depot and spend $12 for the part instead of the $200.00 it would cost me to send in a plumber to fix.

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The optimal way to own these, mobile home parks  is to not own the home but just home the park.  You don’t want to be responsible for fixing leaky toilets and such.

If you don’t have the money to buy, mobile home parks, for $500,000 as most of you will not, then buying individual homes and fixing them up or something and selling them or even renting them would be a good start. I know one gentleman who started with just a couple thousand dollars and now owns over 50 mobile homes.

How to talk to the owner of the, mobile home park, to get a deal

If you don’t have a lot of money to start, investing in mobile home parks, what you can do is you can go to a, mobile home park, owner and say.  Hey do you have any individual, mobile homes, in your park that are just sitting there vacant?  Maybe they need some renovation so you you can hopefully find a win-win scenario.

That Park owner may even give you the house for free or maybe just for a couple thousand dollars.  You then put some sweat equity into it.  You paint,  put in new flooring etc.  Your agreement with the park owner is that maybe you’ve got a couple months to get the house fixed up.  Hopefully you can do it in one month and then indeed you’ll begin paying the lot rent.  Because that house is just sitting there un-renovated and  obviously the, mobile home park, owner is getting no cash flow off it because it’s sitting there vacant.

So you get a month or two abated lot rent, you fix up the house and then rent it or sell it. You might then get an extra two to three four hundred dollars a month for the house depending on the market.  You put that additional money in your pocket, and that is how you get started.

The average income of a, mobile home,  owner  is around  $35,000 annually.  That’s about three thousand a month. So their housing budget is around a thousand dollars a month.  Most folks that make thirty five thousand a year aren’t going to be able to save up twenty thousand for a down payment on a single family home, so that is the target market for the mobile home buyer.  Our, mobile home,  a 3 bedroom, 2 bath rents for about $800.00 per month. We offer a rent to own package and in 3 to 5 years, they can own their own home.  Beats a 30 year mortgage any day.

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If you visit my website https://parkstreetpartners.com , on the homepage you’ll see our phone number and information on our, mobile home parks, nationwide.  There is also information on investing in our private equity fund. You can also email us at Park Avenue partners. com.  You will  find other information on the web site as well. Articles and webinars on investing in, mobile home parks, on the upper right corner of that web page they’ll see a button that simply says “Invest” they will find  and again they can find  summary information on the fund and also the PPM, the private placement memorandum which is a very long and dry legal agreement.

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Additional Resources

https://blog.myhelps.us/build-wealth-turnkey-real-estate-investment/

https://www.forbes.com/sites/brandonturner/2017/07/11/7-powerful-benefits-to-mobile-home-park-investing/#2f9eb1476e92

My interest was peaked after interviewing several mobile home park investors on The BiggerPockets Podcast, and later finding The Mobile Home Park Investing Podcast, hosted by Kevin Bupp and Charles Dehart of Mobile Home Park Academy.  I realized that mobile home park investors were crushing it right now.

 

How to Build Multiple Passive Income Streams

Passive Income Retirement

Looking for, passive income streams, for retirement? Jack Gibson, President of High Return Real Estate, shares how to use real estate to build passive income.

Today’s episode in the 3rd in our series on building wealth with Real Estate investments.  My intention is to sow seeds into your subconscious that 2019 is the year to build your net worth. The power of intention is an invisible force of energy in the Universe. It is activated when we become inspired and will propel us towards our goals.

Passive Income Coach Myrna

Looking for a Passive Income Coach? Check out my one hour coaching special on Shopify  

  • Guest Biography

Jack Gibson began his entrepreneurial journey at 19, and founded his first company at the ripe old age of 21. Operating a successful nutrition consulting and distribution company.  He had built a multi-million dollar venture before he was old enough to rent a car. Soon thereafter, he bought his first home as an investment. One home quickly became five, and then the bug hit. He became obsessed with learning everything about Real Estate Investing and soon had over 50 investment properties generating Massive amounts of passive income. Today, Jack spends his time mentoring other entrepreneurs, building his real estate investment portfolio, and helping other investors to build a brighter future through the power of turnkey real estate income.

 

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Show Notes

My very first business that I started at age 19 was  a multi-level marketing nutrition distribution business.  The whole goal of that business was to build up a sales team and create ongoing, passive streams of income, so  I got that concept right away. I built that business up over the years and we currently have annual revenues over ten million dollars.  The last couple years it’s been a little bit more part-time or quite a bit more part-time as I pursued building my real estate company.  But I mean I still love it, I still love the people and I love the, passive streams of income,.  Two years into my network marketing company,  I read the book Rich Dad Poor Dad, that was the book that really transformed my mind to start thinking about utilizing real estate as a way to deploy the cash that I was making in my primary business and add additional, passive streams of income,.  I was still investing in stocks until about 4 years ago.  I was in stocks for most of the last 14 years, so about four years ago two events happened that were critical and really pushed me over into investing into real estate as another, passive streams of income,

There were two negative events,  but you know most negative events if we look back we can find the good in them.  One of them was I had some insider information, not anything illegal by any stretch,  I mean I knew that our company had a good earnings quarter.  I mean it wasn’t that hard to figure out based on what I heard from all my colleagues, so that’s kind of my insider information.

I bought into the stock about a week before the earnings report was to be released expecting things to be great.  Well the earnings report was phenomenal and typically, not always but typically stocks go up when the earnings report is great.  Well this  billionaire Hedge Fund investor was very well known as  an activist in terms of shorting stocks.  He gets on our company earnings call,  he asked  three or four pointed questions and then it appeared that he was shorting the stock;  the stock drops 30% overnight.

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Stocks as a, passive streams of income,

I realized then that I didn’t have control over stocks. Not even a sure thing is guaranteed. I want to be in the driver’s seat and put myself in a great position where I have as much control over the outcome as possible.  I took that as my sign that this is my time to learn a new asset class and another, passive streams of income, it was the final push.  I told myself, I’m going to draw the line in the sand.  So I studied real estate and listened to podcasts for a hundred straight days.

Jack you know that someone listening is going to pay devil’s advocate and say the same thing happens in real estate.  What’s your come back on that?

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So here’s what we have to consider when looking at real estate as another, passive streams of income,  we look at the past.  I mean could go back 100 even you know 200 years or whatever, the variance between real estate and the stock market is almost four times different.  If you look at historical data,  the swing in the stock market is around a variance of 16 or so from year to year.  Real estate has a variance of four.  That means from year to year on average that the swing in the market is going to be four percent, so you’re not quite so volatile in real estate.

The other part in this, passive streams of income, scenario  is it that you’re  investing in the real estate as  Robert T. Kiyosaki says, for the cash flow that it produces.  Not necessarily for it to go up in value.  You really don’t care if it appreciates or depreciates. As an investor and you’re renting it out and you will always be able to rent it out for more than the mortgage payment.

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At the same time  property values  will go up eventually, even if it dips for a little in the short term.  I was listening to the Automatic Millionaire Homeowner and the author was interviewing homeowners who lived in their homes for about 2 years and then sold and moved to bigger homes, and became millionaires because homes always go up in value.

We’ve discussed  real estate, we’ve talked about the stock market and we’ve also talked about multi-level marketing.  I understand why that’s been your foundation for, passive streams of income, because you’ve been you’ve been taught well.  You stayed in the business  for 20 years so you must be really doing well, because everybody that joins the business under you feeds you, passive streams of income,.

Multi-Level Marketing a Tool for generating, passive streams of Income,

Yea, it is phenomenal. If I could describe the business to people without saying what it was they’d be like wow that sounds too good to be true. I have a multi-million dollar business that I work right here from my home office.  That I help people with their health and nutrition. I have no employees, I have no accounts receivable.  I have no inventory, I have no monthly overhead whatsoever.  I have a free cash flowing business that produces ten to twelve million dollars in sales revenue per year.  That’s not obviously my income; but a percentage of that.

Skilled , passive streams of income: Writing a book, Music, software

That’s why, passive streams of income,  is so important.  On my website, www.myhelps.com  I talk about a some other forms of, passive streams of income,  like writing a book, or writing music.  Mariah Carey wrote the song “All I want for Christmas”  in 15 minutes. She’s generated sixty million dollars in royalties off of that 15 minute work.  So her, passive streams of income, is phenomenal.

Explain what we mean by, passive streams of income,  which ones would you recommend it to a seasoned investor or someone just starting out?

Passive income is created from work you have done in the past, that is paying you today.

You have one or two scenarios.  You either have money at work or capital at work and you’re drawing royalties. There’s multiple ways to go about creating, passive streams of income,  it boils down to either unskilled or skilled forms of passive income. It’s like what you talked about in terms of creating music and selling music, or writing a book, or creating a piece of software that you then are able to license out and sell.  Those are very technical skills, very skilled types of, passive streams of income,.

Creating, passive streams of income, from a business  I won’t say is unskilled in terms of work. It does it takes skills to put the right management team in place.  There’s a way you can have any type of business that you set up  to become a, passive income stream, if you’re not involved directly in day-to-day operations, then it’s a, passive income stream, business.

To listen to the full interview, download on iTunes and please subscribe and leave a review.

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Check out Jack on the web https://highreturnrealestate.com/.  All of our properties are listed on the website. Nicole is the Head of Investor Relations and she will be happy to answer any questions.

On the nutrition side,  we have a brand new system, it’s a nine week online body transformation Course that we’re planning on scaling so that over 10,000 people can participate. Check out Jack’s Body Transformation podcast 

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Additional Resources:

Top 20 Areas In Miami For Increasing Property Values

25 Best Passive Income Ideas to Make Money in 2019

https://wellkeptwallet.com/passive-income-ideas/

https://wallethacks.com/passive-income-ideas/

How to Create a Freedom Lifestyle with Investment Property

How to Create a Freedom Lifestyle with Investment Property

Mike Wolf has made millions from, investment property, and created, freedom lifestyles, for many of his investors. Mike has helped investors in the Atlanta area build wealth and passive income from, investment property, by offering them turnkey services.

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I’m your host coach Myrna Young, as we start 2019 I wanted to spend some time on how to build wealth through the vehicle of, investment property,.  As you know I am a Realtor, an Investor, Property Manager and a, Life Coach, so I have a very high-level overview of how to build wealth through home ownership or with, investment property,.

So this month I will be interviewing experts in the field of, real estate investments,  investment property, as I help you to get into the space of building wealth in 2019.

Wealth is the vehicle that you need for any successful venture in your life, whether it’s to give your kids a better life, whether it’s to have financial freedom, whether it is to retire wealthy, whatever you need to do,  you need money unfortunately to do it with.  So building wealth through, real estate investments,  investment property, is what we’re going to be focusing on for the next three remaining episodes in our four part series.

Freedom Lifestyle

So what I will be doing is bringing you experts who have made millions through, real estate investments, investment property, and who will share the details and how they did it so you can do it too!  Be sure to subscribe to your iTunes, Google play, Stitcher, iHeart Radio, or TuneIn Radio,  so you’re not missing any episodes.

In today’s episode I have a re-purposed an interview with Mike Wolfe from back in 2017.  I thought it would be a great resource for this series.  Mike made his wealth from offering turnkey,

Investment property, services to in the Atlanta area.  His system allows his investors to sit back

and collect, passive income, while living a, freedom lifestyle,

Mike Wolf

Mike Wolfe has been a real estate investor for over 28 years.  Over the years he’s gone from being a workaholic who would put in 15 hour days, seven days a week to someone who works smarter, not harder.  He regularly travels the globe doing humanitarian projects and seeking Sun and sand while living off the, passive income, that he’s created through his, investment properties,. Mike’s company sells, turn-key real estate, and, investment property,  in and around Atlanta to investors around the globe.  He helps his investors create truly, passive income, where they get all the benefits of owning a real estate, investment property,.

How did you Start your, investment property, business?

I started, investment property,  in Calgary Canada. I was only investing in Canada back then at the beginning of my, passive income real estate, career but I had a friend of mine move to Las Vegas and when I went to Vegas to visit him, I got into this addiction.  It’s not what most people have when they go to Vegas.  It’s was not gambling or drinking.  It was  actually this addiction to go look at real estate.  I noticed that back in those days the prices of, investment property, kept going up and up.

I had no intention of investing in Las Vegas originally but I ended up doing it and it was kind of at that point I was forced to start building a team, because I couldn’t be in two places at the same time.  I couldn’t go collect my rent from my, investment property, in Calgary and my rent from my, investment property, in Las Vegas.  So I reluctantly hired a property manager.

Three phases of, investment property, business cycle.

At first you know what would I find most entrepreneur’s do is we go through three phases if we survive long enough.

  1. The first phase is where we do everything ourselves, usually because we don’t think anybody else can do what we do as well, and we don’t have the funds to hire help.  It’s kind of like for an entrepreneur our business is like a birthing a baby and you don’t trust just anybody with your baby.
  2. The second page where I had no choice but to get somebody to help me, so I reluctantly hired a property manager; but phase two is what I call the micro manager phase. I needed to about know every little thing that was going on.  So I basically told my property manager to keep me in the loop with every repair, every issue with the tenants. I remember there was one week where my property manager called me twice with the same issue,  it was about a broken fridge.  Two of my properties had a fridge that wasn’t working and in either case I tell the property manager.  I don’t think the tenants need a new fridge, just fix it.  I realized I gave the exact same answer. Let’s see what it cost to fix it and if it’s over a certain amount then we’ll replace it. I started thinking if I gave him the same answer both times maybe I can systematize this and instead of him having to call me, I can give him the freedom to follow our systems and procedures manual, which is to find out what is the  cost to fix and if it’s more than X number dollars let’s just replace it.
  3. Phase three was where I hired a team and put the right persons on our team. You trust them and they do a good job for you. I started to realize that I could build  a whole team like that, where I put the right people in the right position, give them a certain system so that they were following  my procedures then it made me feel comfortable to let them do their thing.  I would get my time back and so that was kind of the start of the transition to my, freedom lifestyle,.  That now has led to a typical work day for me these days is literally.  I wake up, I answer some emails and make a few phone calls when Myrna asked me to do a radio interview I do that and then I’m done for the day!

How to become efficient in, investment property, business:

After 28 years in the, investment property, business I still go to seminars.  I still open to seeing how other people run their businesses and how they make their money.  I’m always looking to be more efficient.  I also do a lot of personal development of work on myself.  Back in the early days I thought I was too good for all that;  but  the most successful people I know are all lifelong learners,  or at least they’re always trying to strive to be better and get to that next level.

I’m making it sound like it was a very short transition like I just did some deals and I became rich and start traveling the world.  There were a lot of ups and downs along the way.

Let’s say that you know someone is listening to this podcast right now and they want to quit their job and go into real estate full-time, because obviously they can make much more money in, investment property,  real estate then they can working for a pay check.

How would someone start an, investment property, Business?

If I  could go back 28 years and talk to myself, the first thing I would ask myself is,  Do I want to have my money work for me, or do I want to work for money?

Take advantage of the benefits of, investing in real estate, to create, passive income,

Investment property, is something you buy once and it generates income forever until you sell it.

You’ve got to be  ready for that kind of commitment.  You’ve got to treat, investment property, as a career.  You don’t dabble in it.  If you dabble in it and try and mix it part-time and with your job, I don’t see very many people being successful.

That’s the number one thing. Figure out what type of investors you want to be.  You want to be creating, passive income, or you want to get out of your job and make this your career?

Make sure you have a passion for, investment property, don’t get into it just because you see those shows on TV that make it look really easy,  flipping this property and that property. These shows make it looks like you can just every day wake up find a property, flip it, make a couple hundred grand and call it a day.  It doesn’t work like that.

So number one thing is to figure out what kind of investor you want to be.   Then the second thing that I would do is figure out what  resources you have. Whichever side of that equation you’re on. Whether you’re the passive investor side or whether you’re an active investor. Figure out what your resources are.  How much cash you have available?  How much time do you have?  How much education do you have?

When I first started I got really  lucky on that first deal, otherwise there would have never been a second deal. Then I had some humbling experiences that made me go get educated.  I got a mentor,  somebody to help me.  So I didn’t  go winging it.

Joint ventures in, investment Property,

If you were to go do a joint venture with somebody.  You have to decide what are you bringing to the table.  Are you bringing money?  Are you bringing the ability to qualify for the mortgage?  Are you bringing education? Or are you’re bringing access to good deals?  Figure out what you’re adding and then figure out what you’re lacking and then go find joint venture partners.  Find other people that have the pieces that you’re lacking.  So if you have a lot of spare time and no money,  there’s a lot of people out there with money who can’t create more hours.

I want to be enjoying time with my grandson and my daughter doing a lot of volunteer work and humanitarian things.  I don’t want to be door knocking, looking for good deals anymore.  So if I find somebody who’s got some time, I have got the money.

If you start off on that track asking yourself those two questions, then you’re going to have a pretty realistic chance of succeeding and going forward in your, investment property, business.   A lot of people have really big dreams because they go to some seminar where they make it sound really easy, because  they’re trying to sell you some high-end expensive, investment property,  coaching program.  They fill your mind with all these things you can achieve and probably only about two percent of people who go to those seminars ever end up not even earning their money back that they spent on the seminars!

People come to me after they’ve invested a lot of money in their education and their education is pretty much worthless.  So make sure you do your homework and you know what the reputation is of these quote-unquote gurus that are selling stuff.  They are professional marketers.

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Biggest Myths in, real estate investment, investment property,

I think I think a lot of myths are perpetuated by the media.  We see all these shows about flipping this and flipping that.  I feel the biggest myth is that you know,  real estate investment, and, investment property, can create, passive income, but it can also become something that takes up a lot of your time.  You might be trading your eight-hour day job for a 20 hour a day job.  It can be fun it’s exciting because you’re out there and you’re meeting new people but sometimes when you spend so many hours working on your business, you kind of forget about things such as your health, such as your family and other things start to fall apart.

A lot of people get into, real estate investments, investment property, because they think it’s going to change their lifestyle to a, freedom lifestyle, and they actually end up with actually sometimes with a worse lifestyle with no freedom, because, investment property, is  something you take home with you every day.  You can’t just say oh I’m going to work from 9:00 to 5:00 today on my, real estate investment, business. Because guess what at six o’clock when you’re having dinner with your family, a tenant will call about a leak in the bathroom! And you have to take care of it.

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Additional Resources:

https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/26/eight-things-you-need-to-know-before-buying-your-first-investment-property/#10ac9ea45a93

https://time.com/money/collection-post/2954483/should-i-buy-an-investment-property/

https://blog.myhelps.us/real-estate-investment-fund-fix-flip-series-are-rental-properties-worth-the-headache/

Is Starting A Real Estate Investment LLC A Good Idea?

Real Estate Investing LLC

This week on The Mindset Transformation Radio show and Podcast with Coach Myrna and Rich Dad trainer Trevor Evans, we discuss the topic “Is Starting A Real Estate Investment LLC A Good Idea?”

This is the 6th episode in our Funding, Fixing, and Flipping Series:
Listen in to understand how important setting up your Real Estate Investment business with the right tax structure, would allow you to keep most of your investment income and not pay all of it to the tax man!

Tip of the week from Coach Myrna: Landlord LLC benefits
If you hold and rent Real Estate, this article could offer massive insight on one possible way to structure your company. We are not giving legal advice, just questions for you to ask you asset protection attorney.
Keeping in mind the risks associated with opening your business as a sole proprietorship, consider using this scenario for your business.

Open an LLC, purchase a property, but don’t manage it. That’s right, don’t be the one to manage the property. You can use the combination of a C-Corp and an LLC. Let the C-Corp manage the company. This is good to reduce liabilities. How? Let’s take an example.

For the last four months, the tenants have been complaining that the parking lot in the complex you own is too dark. They don’t feel safe walking to and from their cars at night and want to have you install more street lights to brighten up the area. They continue to complain to the management company, the C-Corp, letting them know of the issue. Having not addressed the concerns, the parking lot remains dark and one night, while walking in from her car, a young mother of two who live in your property is robbed at gun point in the dark parking lot. When she sues, who is liable? The LLC? They own the property, so it would be them, right? Wrong.
The C-Corp, as the managing entity, is the responsible party when it comes to any damages and liabilities incurred because of this incident.
The LLC, having limited liability, is protected. This is something very important to keep in mind when making the decision on which type of entity you wish to use.

For more information on setting up the structure of your Real Estate Investment business, check out this Connected Investor Blog post

http://connectedinvestors.com/blog/real-estate-investment-llc-vs-s-corp/

So, What are the Pro’s and Con’s of LLC for Real Estate Investing? Is starting a Real Estate Investment LLC a good idea?
Tune in to hear Trevor’s answer.

What exactly are the major differences between an S-Corp, C-Corp and an LLC as it relates to real estate investing?

A C-Corp is a management entity. As per my tip of the week. Use your C-Corp to manage your rental properties.
So, in case you are sued for negligence, the C-Corp would be the benefactor of the law suit and you as the owner would have no liability.
The C-Corp also has more leniency in regards to what expenses can be written off; but the biggest benefit of having a C-Corp manage your rental properties, is the ability for the C-Corp to collect rental revenues and pay the HOA dues and other expenses from these revenues. You as the owner of the property, would only be responsible for your positive cash flow at the end of the month.

If you were collecting the rents in your personal name then you would have to claim the entire amount as income.

LLC – A single member LLC offers no asset protection and is charged with self employment tax.
A multiple member LLC has asset protection.
A multiple member LLC, members are not liable for debt incurred by the LLC
A multiple member LLC can be viewed by the IRS as a partnership and as such the members can determine the split or who gets what.

S-Corp or self corporation is a flow through entity.
Used primarily to expense big ticket items that cannot be expensed by the LLC.
The S-corp does not pay taxes, its members file a K1 for any income not written off and that income is taxed at their income level.

Some other questions answered by Trevor:
I have a rental property in my personal name, can you tell me the pros and cons of transferring that property in an LLC?

I have no mortgage on this property. Could I have transferred it into an LLC if I had a mortgage on it?

What are the states that have the most conducive laws that benefit the Real Estate Investor and protect the LLC?
Can you explain some of the benefits of incorporating or forming an LLC in Florida?

For additional reading, here is an article on “Is Starting A Real Estate Investment LLC In Your Future?
As Investopedia so eloquently puts it LLCs are a “corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.”

If you found this blog post and podcast inspiring, please Subscribe, rate, and review this podcast, then send me an email to info@myhelps.us with the subject line “podcast review”

and I will send you a Free Gift! The Mindset Shift Focus Wheel.

This is a workbook to change your Mindset from a Fixed Mindset to a Growth Mindset. This is so important for success in investing. It will allow you to look at an opportunity with the eyes of an Investor and not with the eyes of an employee. As an employee you have the Mindset of limits and security.
Until next time Namaste.