How to Finance & Build 10K/month Cash Flow from Rentals!

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How to Finance & Build 10K/month Cash Flow from Rentals!

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5 Vital Mistakes and Tips for Real Estate Investors

Real estate investing is a very exciting business. The success stories can get beginners so pumped that they would do just about anything to do a deal. Unfortunately anything is often a slew of mistakes which end with brutal results. Here are some vital mistakes to avoid and tips for real estate investors.

  1. Buy Right – Stick to your criteria. Sending 10 offers is not enough. It is a numbers game and often takes 100-500 offers just to land one deal. You should be doing only the best deals. It is recommended to implement a solid plan to get a ton of prospects into your pipeline, filter out the duds and write a ton of offers of the worthy prospects.
  2. Focus on one strategy – Become a master in one strategy and focus 100% of your time in this strategy. Let everyone else try 5 or more strategies and put 20% of the needed focus to become successful in a strategy.
  3. Have multiple exits – One exit strategy is not enough. Always have backup plans and multiple exit strategies. It is recommended to never go over 70% LTV and also have positive cash flow. Having both significantly mitigates risk and you have many exits that will result in a strong return.
  4. Have good teams and systems – Don’t try to do everything yourself. The most successful real estate investors are entrepreneurs and delegate as much as they can. Create win-win situations with your team members, create automated systems and delegate. You will then have time to do the things that will significantly improve your profits which are the entrepreneurial tasks.
  5. Make informed business decisions – 95% of people are followers. They believe all media and everything they hear. Is this information accurate? Not always, so be careful and do you due diligence. You wake up, put on pants and make decisions every day. Make sure to gather accurate information, justify sources and their information and you will be able mitigate a lot of risk and avoid unpleasant surprises by making informed business decisions.
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5 Responses to 5 Vital Mistakes and Tips for Real Estate Investors

  1. Shirish Junagade says:

    I need to know how can I build finances to buy good real eatates IF I want to put 1% or less from my own pocket (hard money)!
    I know, banks won’t do it but I heard there are ways for this.

    Appreciate your pieces of advice.

    Shirish Junagade

  2. Kevin Chan says:

    Thanks for your 5 tips, is very helpful.
    I am personal investor in Tokyo Japan on rental income multi-residential.
    In Japan we also cannot get full loan these days, may be up to 90%, and also base on your “salary income” 10 times is the rule. About your tip 1) of sending many bids….. do you mean rock bottom price and after 1 out of many accept the deal, then look for mortgage? But what if later you cannot get mortgage do you still have to purcahse the property? Also will appreciate if you give some examples of realestates strategies from any past experiences.
    Thanks
    Kevin

  3. Programs that use high leverage usually present lesser cashflow’s. in today’s econmy look to projects that offer cashflow. this will require greater investment on your behalf.

    look at investments that offer little or no profit sharing by the IRS. establish a ROTH Solo (K) or a Roth IRA and recieve your profits income tax free. after all these are investments.

    If you only have a 1% investment capital, you have no risk or investment either. Look at Master Leasing properties with an option to buy at a fixed price in the future. You don’t own the investment vehicle, but you can create a cashflow if you structure your leases accordingly. You can also ask to receive the tax advantages typically recieved from ownership, if you structure your leases correctly. There are a lot of landloards who would like out of the business, but can’t afford to sell right now. follow my comments section or e-mail me at jerrygenschorck@comcast.net

  4. Pingback: how to write a strong executive summary for a business plan

  5. Manny Bermas says:

    Thanks for your post. Will keep track of your websitite.

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