Living on Real Estate Passive Income
Do you want to know what it takes to create a big enough Real Estate portfolio where you can live off the cash flow?
- • Have you dreamed of living off the passive income of Real Estate?
- • Wondered about what it takes to get started or scale a portfolio?
- • Do you feel stuck and not sure what to do next?
In this training, Dean and Renae will share how they started with a goal and grew to 50 units quickly. They will also cover...
- • What the Big Plunge was that got them started
- • Their financing tips that help them expand
- • How they have Diversified their income
7 Steps to Passive Income
The Proven Profit Formula Coaching Program - Click Here to Learn More
1. Leverage Your Wealth
What is Leverage?
Allows investors to Use OPM (Other People's Money). When you use leverage, you are borrowing the money to purchase the property. The most common form of leverage is to obtain a mortgage.
Leverage helps you to get a much greater ROI (Return on Investment) then buying with all cash.
Example is if you purchased a property for $100,000 with all cash and your cash flow was $1000 per month. Your yearly ROI would be 12%.
Now if you got a mortgage on the same property instead with 25% down and a 5% interest rate. Your monthly payment would be $400 per month and cash flow would now be $600 per month. However, since you invested less cash ($25,000 instead of $100,000) your ROI is now 29%.
Use leverage rather than all your cash on one deal. You could go out and purchase three more similar properties with the remaining $75,000. Your money goes a lot further in growing a portfolio using leverage.
2. Identify Your Investment Vision
This is where you determine the best strategy given your personal skills. Also, you must take a look at your mindset around money. With a microscope on your beliefs, you can shift your thoughts and confidence as an investor with our tools.
Strategies for Investing
- Buy and Hold for Appreciation
- Buy Rentals for Income/Cash Flow
- Profit by Adding Value (rehab, flip or hold)
- Uncover Off Market deals and Innovative Financing Alternatives
Skills Related to Investing
- Financial
- Business
- Entrepreneurial
- Technology
- Investing in the Right Education
Wealthy Mindset - 7 Keys
- Clarity and Focus
- Certainty and Confidence
- Support and Team Building
- Persistence and Decisiveness
- Faith and Trust
- Systems and Sequence
- Curiosity and Opportunities
3. Know Your Numbers
Understanding the terminology and what metrics you are going to use is key. Without this, you might invest in a lot of bad deals unknowingly. Are you buying for good Cash Flow, a strong Cap Rate, Cash on Cash return, or a solid ROI?
You must first know the formulas to determine what qualifies as a good investment for you and your family. Then calculate each property's numbers to determine if it is a "good deal or a bad deal". Without this knowledge you are likely investing hit or miss, growing at a slower rate and perhaps even losing money!
4. Grow Your Numbers
Optimize your rental income by:
- Getting market rent
- Screening for the right tenants
- Raising rents when appropriate
- Making improvements to the property to raise the rental value
You can do this yourself or hire a property management company to handle most of it. If you hire a property manager, remember, you still have to "Manage the Manager".
5. Cover the Bases
- Double and Triple check Investments before signing on the dotted line.
- Identify potential threats to the value of your investment
- Do the Due Diligence - pre-closing
- Financial Review with the end game in mind - how long are you holding the property?
6. Choose Your Power Team
- Business/Management Team
- Real Estate Team
- Wealth Team
- Legal Team
- Maintenance/Rehab Team
- Leasing/Customer Service Team
- Marketing Team
- Support Team
7. Spring into Action
All the greatest planning in the world is worthless without the proper action. You must sprint into action if YOU want to live off the passive income of real estate. Don't worry about the market. With the right team of realtors to help, there is always a deal out there.
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