Real estate can provide passive income, even allow you to quit your day job and become financially free. For many investors, this is the goal: to be their own boss and to be able to work when they want and where they want.
Here are 5 must-haves before you give up your day job.
- 30% more monthly cash flow then you need – Surprises happen. Vacancy, maintenance and other expenses arise and you are not guaranteed optimal cash flow on every property every month. Make sure you have 30% more than what you need as a buffer for surprises.
If you really want to make six-figures in this business you’re going to need partners so you can leverage your time. Well, last week I wrote about 
I’m currently working on my longest deal ever. So far it’s been about eight months in the making. Let me show you how this deal evolved so you can learn how to make $70,000…with only a few hours worth of work.
I purchased my first investment property in Victorville, CA. It was an REO that looked ok on the outside but I had no idea what I was going to find inside. When I opened the door to take a look inside I couldn’t believe anyone could live in such conditions. The place looked and smelled like a garbage dump. I am not kidding, it literally looked like one. Roaches would cascade down doors I opened them up. I think they were upset that I disturbed their sleep, lol. The previous owners pets no doubt had full range of the house, but especially in this one particular front bedroom. The smell of urine was so bad you needed a gas mask. Even though the property was in need of many repairs it was still a great investment.
Diversification is the key to any good investment strategy. Parochial and or dogmatic mindsets will certainly catch up to any entrepreneur and be the kiss of death to his enterprise. Most real estate investors are aware this fact yet many stubbornly cling to a small geographical area. Despite the advice given by the great Andrew Carnegie who said, “put all your eggs in one basket… and then watch that basket,” I just feel a little better knowing that the total value of my real estate portfolio is not dictated by the fortunes of one town.
It’s the beginning of a new month which means it’s time to pay all of the bills on my rental properties. This includes multiple mortgages, multiple HOA dues and payments to owners of some of my lease option properties. So, how do I keep track of all this without going crazy?
estate investors we are always looking for the next “perfect” opportunity. You look around and see potential everywhere and are afraid of missing out. If you aren’t careful it can lead to a fatal case of gotta-do-a-deal-itis.
It’s no secret that there are some great deals available on the mls right now in the form of REOs and short sales. I’ve been wholesaling REOs off of the mls for the last two years, and have learned a thing or two about what the banks are looking for in an offer.
Joshua Dorkin
Charles Feldman
Ted Karsch.
