Many investors start off with a simple Goal:

To Own 10 Houses Free and Clear

This is a great end goal.  However, along the way, several things may decide to help you change your mind.  First, oftentimes you need some type of extra funds, or income coming in, to realize that dream.  Secondly, it is a perilous mistake to simply think you can buy 10 homes, at full market value and survive the storms that WILL take place.

Cash/CashFlow Blend

Having a nice influx of cash from one of the cash methods of investing (wholesaling, rehabbing, nonperforming notes, short sales, options, etc) in addition to your long term hold strategy (sub-2, buying owner financed, straight rentals, etc) is an ideal investment strategy.  You then get to choose which properties you keep as long term investments, while having cash chunks to help mitigate any “bumps” in the road (new roof on rental, property taxes due, frozen plumbing, etc)

Free and Clear Homes – Leverage them.

Free and Clear Homes are awesome.  No doubt about it.  Over the last couple years, I’ve actually started to employ a chunk it down strategy.  As I get chunks of cash from my flipping side of the business, I actually use those to pay off some of my rentals, and then immediately take out a heloc against the property.  This gives me several advantages.  Instead of keeping, say, $40,000 in a bank account earning nothing for 3 or 4 months waiting for the right investment to come along, I pay off a loan and at least save myself a mortgage payment each month as a return on my investment.  Then, having the heloc in place allows me to quickly capitalize once that sweet deal DOES come along.

It Takes Time – But the MAGIC Will Work!

Many folks enter the REI game thinking that they will be Millionaires in 1-2 years.  I am sure some do, however, I’m more inclined to believe that people CAN get there, but it may take awhile longer than that to realize your dream.  One thing I can definately tell you…if you don’t make any offers, you won’t buy any properties.

So, Get Started in Real Estate Investing TODAY

Do not live your life with regrets.  We all get ONE life.  Are you going to look back in 5, 10 years down the road and wish you had tried to get started in real estate investing ?  DON’T DELAY!  ANY time is a Good Time to buy real estate.  Yes, it makes sense to SELL in certain times more than others, but you can buy deals EVERY week. 

To Your Real Estate Investing, Your Friend and Mentor,

Brandon Yeager

Filed under: Beginner

Like this post? Subscribe to my RSS feed and get loads more!