The market for commercial properties had yet to rebound in but the residential market was booming. I saw the promise of fast appreciation and easy money through financing and decided to make the switch. I figured I could still get decent market rents on houses which cost ten or twenty grand less, so the returns would be larger. But I was hungry so I busted my butt fixing up properties, refinancing to cash out on the improved value and putting the money into another property.
In the space of three years, I built up to six properties, plus my own home. My six rental properties were producing consistent cash flow, but only because I was doing most of the work myself.
I was my own electrician, painter, and property manager. You get the idea. This would have meant paying out almost all the cash flow from the properties since mortgage payments ate up most of the rents. The downside to less expensive properties on the other side of the tracks was constant tenant headaches, complaints by city housing inspectors when the properties were abused, and missing work evicts a tenant in court. Like a stock investor in a bear market, I avoided even thinking about my houses.
When a tenant moved out or evicted, the property might sit vacant for a month before I spent the week necessary to remodel it and get it back on the market. I started missing loan payments and destroyed my credit score. That meant no more refinancing and no more easy money from the bank. It was and the market was starting to drop out of the real estate bubble so sometimes it meant selling a house just to pay off the mortgage.
I still own a couple of rental properties and believe in the long-term value of real estate investing. Unfortunately, there are a lot of myths out there, too many 3 a. First, real estate is not a get-rich-quick investment. The real stories of real estate riches are created over decades, even generations. The only people getting rich quick on real estate investing are those selling the strategies to unsuspecting investors.
In fact, most of your return is in the tax advantages and long-term appreciation on properties. You might be able to hire a property manager, turning your properties into passive income, but this is out of the question for a lot of individual investors. Making money with rental properties, I mean creating real assets that will make you long-term rich means avoiding these myths. Real Estate Rule 1 — The first thing you need to do is learn how to find the fair value of a property before you buy it.
Real Estate Rule 2 — Estimate how much managing the property is going to cost down to every detail. This means averaging out market rents in the area, deducting for vacancy and property management. Until you get a good idea of other costs like utilities and maintenance, be conservative with your estimates. Real Estate Rule 4 — The 3 a.
This strategy makes for exciting PowerPoint presentations but only leads to burnout and bankruptcy. Real Estate Rule 5 — Take it slow, buying a couple of houses in your first year and getting a feel for how much it takes to manage real estate. Real Estate Rule 6 — Consider joining or starting a real estate investing club along with other property owners.
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This has helped me immensely while rebuilding my fledgling empire. Salt Lake City Tops U. Trading best practices was very difficult and I got lost in the fix and flipper group think mentally too. Always consider the source of your advice. Sure they may be retired but consider the path the took to get there with different circumstances.
In , I started to realize that going to my local Real Estate investing group was probably not the best place for me to go. I started to pay a lot more to get into more qualified groups and conferences and I found that mostly everyone were real investors and not just Wantrepreneurs.
I got even more focused and as an engineer still working the day job I sought out groups with other investors who were primarily working professionals doctors, lawyers, accountants, engineers. A lot of these people were a little older than me which helped me find my highest and best use as an investor but gave me a high-level view of how to put together a holistic life plan.
An example of this happened the other day when I asked my guy at the Mercedes dealership what other people do with their leases do at the expiration of their contract. I did the math. This podcast and blog are meant to distill content just to the golden nuggets for the passive Real Estate Investor.
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Side note… why would you want to flip properties?!? Its a terrible risk adjusted return and a strategy used by broke people. You take on all this risk to make money and then have to pay back the government with taxes on a large portion! Now I get that it makes for a good presentation but sophisticated investors understand the power of investing with taxes in mind.
On larger deals, we do cost segregations to write off most of the profits we make and sometimes even some of our W2 income! Real Estate has empowered me financially I wanted to give back to the investor community. We are only here on this earth for a finite period. I like this picture because this is what will probably be on the welcome table at my funeral. I hope you can make it! And for myself…fame will do you no favors for me once I die but at least people can use SimplePassiveCashflow. And if that does not get your going listen to the wisdom of Frank Ostaseski.
And I really want to have a real book! I jumped on the podcast ban-wagon in while I was working on the road when I did not have a friend near me. It got me into Crossfit in , Paleo in , Real estate investing in , intermittent fasting in , internet marketing in , and led to meeting and creating friendships with a lot of you because we are aligned on the same wavelength. Obviously, a few of these interests have come and gone but in the macro sense, podcasts have instilled a lifelong interest and ability to learn.
Vinney Chopra calls it Automobile University. When you ask a kindergartner how do you make money? I poke fun at MLMs a lot but I would like to create a pyramid scheme of philanthropy. Financial education — people have such struggle so much to make ends meet. I was baptized on Easter and searched for a way to give back. I want to help others but I struggle with giving money away because I know I can grow my money much faster and I am much more frugal than any philanthropic organization.
Bill Gates gave back only after he amassed a fortune. Tithing as you go along has a smaller cumulative impact. It is their kiddos who ultimately get the short end of the stick. Money is not everything but it is important because it gives you the freedom to live life on your terms. And we are being misled by the Wall Street institutions and prevailing dogma. As a great time in history to be alive with general peace and technological convinced, I see a silent war being waged upon the shrinking Middle Class.
This is the Civil Rights movement of my time. In a way, people are having a Stockholm Syndrome with Wall Street profiteers being the captors. The content has been all over the place from Turnkey Rentals to Turkey Rentals and now to syndications and private placements.
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SPC followers are typically younger than 30 or older than My observation is that when people have kids, that takes all precedence. I believe an introvert has nothing to do if you like people or if you are loud and annoying. Your affinity is determined where you derive your energy. And it would be awesome to help out people in Hawaii where I now live where so many struggles with finances. Between investing alongside you folks and wanted to grow my track record the right way with the best product I know you guys will keep coming back and bring your friends.
The Hui Deal Pipeline Club is a free investor club where I filter investments and underwrite the numbers and partners myself. Unlike other investor lists and groups, my investors have personal access to me and know that I personally have skin in the game investing alongside with my investors. This site is just my method to make passive income via real estate. This website is not the bible for real estate and not even the model for buy and hold investing , but at the very least use this site as another data point and get some of my lessons learned.
The new tax laws are putting the W2 employee even farther behind — Insomniacs report of homeowner rates. What is tertiary? The following is the financial secret that has mislead the majority of hard-working Americans …. The system is rigged against you.
- Why I made a more challenging goal.
- Christian Approaches to International Affairs!
- Organizational Leadership: Build a Strong Organization, One Person at a Time;
- Pitfalls Not Barriers.
- The Works of Immanuel Kant.
But instead of taking. This is the reason Hui Deal Pipeline Club members are able to retire in 5 years, instead of Or have one spouse stay at home or work part-time in something they actually want to. Because 20 retirement books focus on financials and none of them write about enjoyments of retirement. When men reach their sixties and retired, they go to pieces. Woman go right on cooking.