No Money Down Assignment - I'm digging it

Today I'm going to post up a video where I cover a no money down assignment deal that I recently closed on. This was my first deal in over 3-4 years and I have to admit that even though it was only $1422 if felt like a million dollars and just as large as my rehab checks I used to cash in back in the day.

Before I get to the video let me cover my past few years and what I've learned.

I haven't been active on these forums in a long long time. In fact, in 2010, after taking a brutal beating financially I decided it was time to reset and take a break. So I did. I stopped real estate investing completely. Dealing with the aftermath of the market crash I filed bankruptcy, opened a web design business, and also a virtual assistant business for Real Estate agents.

Here is what I've learned.

1) Multiple Income Streams are critical. I failed in not having a couple of different businesses or businesses that are linked but still separate. For example if I had started developing online businesses or reinvesting my real estate profits into another business then I would have been able to weather the storm of not being able to flip over a single rehab for the 2-3 year downturn. What I found over the past couple years is when I started the web design business I outsourced the work. I then realized I could use and train outsourced VA's to work for Real Estate Agents who couldn't afford a full time business. The skill sets needed to run each business are linked but the industries are different which diversified my income streams.

Also they were separate types of income streams. Web Design is more capital income or lump sum income. The VA business is more reoccurring monthly income. This is a topic I could go into deep detail on but basically multiple income streams reduce your risk. I wish I had started to develop these when I had my real estate business running full steam. They don't have to be large income streams either. Just some small part time diversification is a smart move to make.

2) I had no clue what REAL Cash Flow was. I was buying rentals, refinancing them, and then was completely clueless that I was not truly cash flowing. I thought my $200 a month on a $600 monthly payment was cash flow. Boy, was I an idiot. Rentals that did not cash flow and the inability to flip over any houses to generate capital lump sums of cash are what destroyed my business in the downturn. Bottom line looking back and from here on forward I will not hold property unless its at a 50% mortgage payment to rental income ratio. This allows enough room in most cases for taxes, insurance, repairs, and maintenance. However, even this is tight. I prefer ALL expenses to only be 50% of the total rent but honestly, going back to point one. I'm going to use my real estate profits to purchase online assets for the time being. I'll purchase rentals later and mostly likely with cash.

My currently plan is wholesale wholesale rehab. Its about generating cash, paying back lingering debts, and buying assets which give me monthly cash flow. So below is a video that covers the first deal I did since the downturn in detail. I have more videos and details of my current businesses at http://www.risktaker.tv