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#006: Real Estate; How Do I Make Money?

by | Aug 23, 2020 | Foundation | 0 comments

#006: Real Estate; How Do I Make Money?

by | Aug 23, 2020 | Foundation | 0 comments

Your money just has to keep moving and that way you keep growing and growing and growing and you become that woman who is building well.

Your money just has to keep moving and that way you keep growing and growing and growing and you become that woman who is building well.

I liked the long-term stuff with real estate. I just love the wealth-building tool of real estate. So that’s really what my portfolio focuses on but I do want to teach you about other areas.



So let’s talk wholesaling. A lot of people start at wholesaling where you can have zero money, go knocking on doors and find somebody willing to sell their house, of course, at a discount off the market, not to a realtor or not through a realtor.

[00:00:52] They may be in money trouble, they may be ready to go through a bankruptcy, foreclosure, or there may be damage to the house that they can’t repair. They can’t afford to repair it like roof damage or termites or does something wrong with it. So you’re looking for those and it may even be a vacant house to house that’s been sitting vacant. With that house, they’re willing to sell it at a discounted rate. Now as a wholesaler with zero money, let’s say you put that house under contract, you make the contract assignable and I suggest partnering with a realtor or someone in your area.

[00:02:09] So if you have zero money in your pocket, you better be ready to hustle your ass off to get that deal done. If you want to get paid, you can start building buyers lists and going to real estate meetings and reaching out to real estate investors in your area. What’s cool is Facebook and Instagram make it pretty, I wouldn’t say easy, but it makes it easier to find investors in your area. You’ll find realtors and you’ll find investors as well on Facebook in groups.

[00:03:49] If you’re looking for a big payday with starting with zero down and just hustling your butt off for a time, wholesaling is a great way to go and there are probably local investors in your area that will teach you wholesaling as long as you sell the houses to them. So use your negotiation skills, sing as you’re going into real estate. You probably need to brush up on those and start asking investors in your area to do some free labor for them. If they’ll teach you for a deal and then walk you through your second deal or just walk you through the deals for half the cost or something, start using resources and negotiation to learn how to wholesale.



[00:10:39] I’m going to divide rentals into two parts — short term rentals and long term rentals. Short term rentals are like AirBNB where you can rent the houses or even rooms, their vacation rentals, college rentals and dorm type living. In short term rentals, you normally have a higher return on investment and the reason is that you’re going to have a higher turnover.

[00:13:49] In long-term rentals, my favorite long-term rentals is when I purchased mine as retail. I’m not rehabbing them for rental, although that is a method I would be open to later down the road. Currently, I’m purchasing retail, getting a loan on it and putting a renter in there that is paying more than my mortgage and I’m making money.

The benefit of doing this when you do it as a retail rental where you don’t have to go in and do any work is that you can get a renter in almost immediately and they’re set to go. You don’t have to buy furniture and you don’t talk to him unless something goes wrong for a year until you’re signing a contract again, which is an amazing concept for me with the right contracts in place, your renters understand that they’re treating your house as their own and they’re going to take the best care of it.



[00:18:42] This is what the banks do when you go to a bank for a car note or a mortgage or a personal loan, a business loan, the bank is making a note. Imagine once you have money and sitting in your bank account and you are like, “Ah, I don’t want to buy a house right now. I don’t have time for that. I just don’t understand the numbers.” I may not even want to buy a house and you don’t have to buy a house. A note is a cool way. If you’re not into the stock market or mutual funds, you want to collect more interests. A note is a great way for you to collect interest on your money where you are deciding the interests.

The goal of money is if you keep it moving and it will keep flowing, your assets and your accounts will keep growing because you are using this money and you’re leveraging your knowledge to keep growing.

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