I am interested in some feedback on the best area to focus my initial real estate investing activity. My short term goal is to establish a $7,500/month income ASAP from my real estate investing in order to quit my job and be a full time investor.

The areas I have identified are:

1. Wholesaling
2. Subject To
3. Lease/Option
4. Buy/Hold
5. Foreclosure

Based on my short term goal, where should I focus?

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Robert:

This is of course the golden question... "Where do I start?". The good thing is that you have defined your outcome, which is a good thing. Your objective is to get to a $7,500/mo cash flow, so how do you get there in the shortest possible path... safely?

I guess there are a few other variables here, like... how much do you have to spend to aqcuire that cash flow?

Wholesaling is the easiest, and least risky real estate investing method that I know of. You can download Matt Gerchow's ebook from the home page of this website http://www.real-estate-investing.com and that will be a perfect system to get you to where you need to be.

The only problem with flipping houses whether you are wholesaling or rehabing is that you cant really guarantee a monthly income until you really get cranking and have all your systems fully in place and a steady stream of deals flowing in.

So, if you can BUY an existing income stream this could be ideal... and in this market you have the negotiation upperhand. But this will be determined by the amount of capital you have.

The other option is to buy notes which is extremely lucrative right now, and can produce a consistant cash flow... again, you will need money.

And finally the "pretty house" model where you control real estate via subject to, lease options, or agreement for deeds, and then sell for a higher price using the lease option or agreement for deed. This gives you an upfront payday with a down payment, as well as a cash flow from the spread between what you collect monthly from your buyer and what you are paying out to your seller.

Long story short. Your experience, capital, and desire are what will determine HOW you get to your goal. The only other piece of solid advice I can give you is... NOTHING worth having comes easy. So you will definately need to work at it to get your investing model going, but once its in place it can be very, very profitable.

Good luck!
Hi Bob,

There are as many answers to this question as "how's the weather?" Let's look at some of the items you are considering and see where it makes sense for you to start out.

Couple of questions for you first.

1. Do you have "more" experience in any of the areas you mentioned in your post?
2. Are there any of them that you like more than another?

For me, I got my start in Wholesaling because it required the least amount of money out of pocket. Once I found a property I could put it under contract for very little out of pocket and then sell it to an investor before I had to close on it.

This provides you quick cash but it carries with it the "Hero to Zero" complex. At the end of each month you need to start over again and make those deals happen.

Rental properties are a great way to make cash flow but you need to be the landlording type. This also is not a very short-term proposition. If you net out $100/mo per unit, you would need 75 units to get to the number you are seeking. Single Family rentals are a tough gig. If you purchase rentals, I would start at the 4-plex number and work your way up from there.

Foreclosures and Short Sales are a bit unpredictable as far as estimating your monthly profit. The reason being is the banks take a very long time to make a decision on whether or not you can purchase the property. Some of the best deals in the next few years will come from short sales, but you will need to be patient.

Be careful with Subject-To-Existing mortgages as new legislation is being written and enforced to limit these type of transactions.

I would start with the book that you downloaded and read it through. After reading it, I would start implementing the strategies inside of the book, one by one, until you have a prosperous business.

Hope this helps,

Matt Gerchow
In order to answer that question one needs to know how much cash you will be investing.

The second question would be how much time will you be investing?
Matt,

Excellent points and well taken.

Thank you!

Bob Burns
Is $7500/month something that is attainable with just one investment?
I think it is. That's if you can find a good deal. I know someone who landed that huge. That is a rare case tho, maybe we can say she just got lucky!

mandiees said:
Is $7500/month something that is attainable with just one investment?
I'm not sure but the best I've heard of is $5000/month. But maybe with John's tactics it is possible. I guess I need to camp in this forum so I can learn some magic!

mandiees said:
Is $7500/month something that is attainable with just one investment?
Hi Robert. The best way to reach your goal of building $7500/month in cash flow is to have a plan and a system to achieve your plan. You must understand first why you want to accomplish the goal of $7500/month. What is the driving factors behind it that you chose this goal. Often, when I work with our students they think they understand their goal only to find out that their goal didn't meet the five (5) elements of an achieving their goal. A goal must be specific, measurable, attainable, realistic and timely. I have met many students that failed because they had not processed their goals through this filter. Real estate investing is simple, but it is not easy. It takes dedication to your goals and clear sense of purpose.

Once you have defined your goal you will need a system. You will need to know how to attract leads, market, analyze leads, make offers, negotiate and then complete the transaction. Those of us that are successful investors have a system in place that allows us to look at any lead and then determine based on the merits of the lead how to turn it into a profitable deal. For instance, we teach 37 different ways to buy a house and none of those include going to a bank and borrowing money! Most of our methods include the owner paying us to buy the house and almost all of the methods include no cash out of our pockets to do the deal. This is the kind of system you need behind you.

So my answer to your question is all of these methods and many more. You need a system to do REI and make it profitable. Feel free to call me in the office at 770-939-8283 and I will be happy to talk to you more.

Happy Investing!
Keith,

Thanks for your reply and great information. I truly believe my goal of $7,500 per month with REI meets the 5 criteria you list in your message. Specific: I must make at least $7,500/month from REI, Measurable: $7,500 deposited in my business bank account per month, Attainable: 1 - 3 Wholesale deals per month can generate $7,500 per month, Realistic: $7,500 per month income from REI is very common, Timely: My goal of $7,500 per month should be attained within the next 90 days.

I am curious about your 37 different ways to buy a house without my money.

I will give you a call.

Have a Great Day!

Bob Burns
Your welcome Bob. You may check out our next event at www.MillionaireDealMaker.com. That is where we teach the 37 ways to buy real estate. Happy to talk to you.

Keith
Happy Investing!
By the way Bob, if you want to see how an entire system of Real Estate Investing is put together, go to www.StreetSmartTotalPackage.com. Thanks.

Happy Investing!
Not trying to burst your bubble, Robert, But earning $7,500 per month within the next 90 days is going to be a really hard trick to pull off. Based on your initial question, I can see that you're just getting started. That being the case, you don't know what you don't know and it's going to take several years to get up to speed; trust me you don't want to rush this.

What I would do if I were you is to learn as much as you can about the basics of real estate as a property locator or bird dog first, and then step out once you have a good understanding of how the business really works. If you do this, you'll be able to avoid many of the mistakes that many investors make and earn money while you're learning.

Join your local real estate investors association to find a couple of wholesalers that are willing to let you work as a property locator. Make sure they don't require you to make a purchase in return for the favor (if you stick with it you'll be making them a lot of money anyway). If they are any good they'll show you how the business works and teach you how to evaluate deals based on the areas that people want to live in, the finances and condition of the properties. If they aren't any good, they'll try to get you to buy one of their 'deals' based on what they presented to you as a good buy.

After you have a good understanding of how that works (about 6 months), you should be able to start wholesaling on your own. Once you have done a couple of wholesale deals and feel confident that you can make money wholesaling, the next step will be getting into retailing, subject to's, options and foreclosures.



Robert Burns said:
Keith,

Thanks for your reply and great information. I truly believe my goal of $7,500 per month with REI meets the 5 criteria you list in your message. Specific: I must make at least $7,500/month from REI, Measurable: $7,500 deposited in my business bank account per month, Attainable: 1 - 3 Wholesale deals per month can generate $7,500 per month, Realistic: $7,500 per month income from REI is very common, Timely: My goal of $7,500 per month should be attained within the next 90 days.

I am curious about your 37 different ways to buy a house without my money.

I will give you a call.

Have a Great Day!

Bob Burns

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