I had an idea this morning. How do I communicate to those who just don’t “get it”? Then it dawned on me. Tell a story or equate the concept to something they can relate to. I chose the latter of the two methods.
Most newbie investors have trouble truly visualizing what the Real Estate business is as well as how to make it successful. Based on the successes we have experienced, the best way to approach Real Estate is to think of yourself as printing money.
Printing Money.
How do successful RE investors print money? Simple. The FlipBoard teaches that you make money on the buy side of the deal. This means, as soon as you close, your net worth increases. If the numbers show that a particular deal will not, then you move on to the next property. This concept takes into account things such as mortgages and monthly expenses. Smart investors only close on properties that increase their network and/or cash flow. What Real Estate allows you to do is acquire ownership of an asset at a fraction of the cost, support yourself and your business through positive cash flows, increase your net worth through appreciation and give you leverage for the next acquisition. What else does that? Money. Or those little slips of paper called cash.
Money provides leverage, increase in value of your portfolio or net worth and can be traded for further goods and services.
So, if you need money, then go print it!
- Find a good property with upside potential. This should not be hard in this economy.
- Close on a deal with 10%-20% down. (If you are really good, you can walk away from closing with a check the same day!)
- Set the monthly Rents on the space where you are making about 10% on your investment.
- Put in a good tenant – collect a deposit amount
- You have just printed Money! (And legally, I might add…)
-Richard – http://www.TheFlipBoard.com
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