How To Buy 6 Duplexes In 15 Months Investing In Real Estate
Imagine making $700 a month in passive income from one duplex on your first deal?! This investor did it and only has $2,000 into the deal! Watch as he shows us how he did it and you can too. This is truly how you can start investing in real estate as a beginner.
UPDATE!! Benjamin has now purchased 6 Duplexes in just 15 months!
Watch how he scaled his real estate investing business to 12 units and $4500 in passive income!
Join the Real Estate Wealth Builders Investor Membership https://www.masterpassiveincome.com/builders
Listen to the Duplex Investing Podcast Episode here:
Fears You Will Encounter Before Buying Your First Real Estate Property
Real estate is a great way to make money. It’s easy and safe, and you can start making money Now.
Fears about buying real estate are things you need to overcome before you start investing in real estate. Once you’ve done that, the rest is easy.
Owning a property is one of the most enjoyable and fulfilling things you will ever do. But before you can get started, you need to learn all your limits and set boundaries accordingly.
Certain factors will have their weight on your mind when deciding whether or not to buy a property. Here are some of the most common fears about buying real estate.
Fears About Lending Money
Most people have heard about the “buyer’s market” and how it can make real estate expensive. But what happens when you’re trying to borrow money?
You need to be able to demonstrate that you have the cash flow to make your loan payments. If you don’t have a strong cash flow, lenders are likely to reject your application for a loan.
So, you’ll have to create a financial plan to ensure you have the necessary money to make the payments on interest-only or principal-only loans.
This will come into play when you’re discussing loan applications with lenders.
Confidence In Your Judgment
This is the No. 1 reason people don’t buy real estate: they don’t have confidence in their judgment.
Your real estate investment is only as strong as your confidence in your ability to make wise and calculated decisions. If you don’t feel good about your judgment, you won’t be able to attract the good clients you’ll need to make your business successful.
This will show up both in the number of clients you have and in the quality of their relationships with you.
Poor Credit Or Bad Credit Rating
You need to be very careful with this one. With the economy still struggling, banks and credit unions are very protective of their borrowers.
If you have a bad credit rating, it will show up on your credit report and affect the interest rate you can borrow at.
This could also show up on your credit score, which will also affect your ability to get approved for loans.
If you have a credit score of 700 or below, you are in a very risky financial situation and should not consider taking out a loan.
Stigmatization Of Real Estate As A “High-Risk” Profession
Stereotypes about real estate are everywhere. People think of it as a risky business and a “get out of jail free card” for homeowners. This has to change. People need to realize that real estate investing is a serious business.
There is immense potential for real estate to grow in this current economic climate. And with the right investment and strategy, anyone can make money in real estate.
There is no indication that real estate is a “get out of jail free card” for Wall Street investors. So, before buying a real estate property, make sure you understand your risk tolerance and understand the risks of investing in real estate.
You don’t want to end up like the victims of the 2008 real estate crash—a group of people who lost their homes and savings due to bad real estate investments.
Scams In The Real Estate Industry
As real estate investors, we are all about eliminating scams and having a healthy skepticism about everything.
So, when we see a new and unusual tactic being used by a real estate agent or developer, we immediately question it.
That’s why we are here—we want to root out the bad apples in the industry and help people avoid being scammed in the process.
Bigger Houses Have More Space… Right?
This one is a bit of a red herring. It’s often the first question we get when someone hears they’re thinking of buying a house.
And the answer is always no. The fact that you’re thinking of buying a house doesn’t mean you want to buy a bigger house.
The only people who think they can buy a bigger house are very rich people who can easily pay for the house with cash.
The only people who need more space in their house are people who have really large families and want more space for entertaining.
Things To Keep In Mind When Starting With Real Estate Investing
1. You will need to understand the basics of real estate.
2. There are a lot of risks involved in this type of investment.
3. You need to be prepared to lose money.
4. You should always research the risks before making any decisions.
5. You need to be able to do your own research to find the best deals.
6. You need to be able to work independently.
7. You need to have a lot of experience.
8. You will need to be willing to take risks.
9. You need to be able to handle difficult negotiations.
10. You need to be able to be versatile.
11. You need to have a good understanding of the real estate market.
Why We Don't Want to Be Passing on Good Deals of Real Estate Properties
It makes you wonder what the heck we're doing. We spend so much time thinking about our next acquisition that we end up missing out on the best deals available.
Nowhere is this truer than in real estate. It's easy to get caught up in the moment, anticipating the next transaction and forgetting about all of the other properties for sale that are sitting on the market.
Luckily, there are people out there who don't let Market Conditions get to them.
Even though we may not usually talk about it, some individuals are TOO targeted by overly aggressive real estate investors and property managers to pass up on properties they believe can be had at a great value.
Real Estate Investing Is A Bottom-Line Business
If we're not getting a ton of return on our investment, it might be because we're not buying in the right areas. Or we might be overpaying for properties. And yes, we all make mistakes, but when it comes to real estate investing, the more you know about the property and the market, the better off you'll be. Bottom line.
Why You Should ALWAYS Hire a Property Manager
Hiring a property manager will allow you to avoid some of the hassles that come with buying and managing your property.
The main one is renting. Most people don't think about this, but rental properties are probably the most difficult real estate investments you can make. They're also, by far, the most expensive.
How To Look For Real Estate Opportunities
Depending on where you are in life, this may sound like common sense, but for many of us, it's the first thing we miss when we're trying to think about the next deal.
Look around you.
Where are these opportunities to make money?
Where are these people willing to part with their money?
Where are these properties for sale?
Where are these properties that have been offered but have not yet been taken?
These are the types of opportunities you'll want to look for when hunting for real estate opportunities. The next thing you'll want to do is zero in on the types of properties you want to buy.
What's Your Strategy? (And It Isn't Just Hitting the Market Hard)
Let's say you're looking for investment real estate and you want to avoid the high cost of buying into high-end developments. What do you need to look for?
Typically, this is a business-to-business or commercial real estate investment. Industrial and commercial properties are good bets for this type of investment.
How to Find And Get The Best Deals On Real Estate
When it comes to investing in real estate, there are a variety of strategies that you can use.
You can buy properties based on the value they’ll bring you, or you could look for bargains by identifying underpriced properties and buying them at an affordable price.
Whatever your preference, there are many ways to find great deals on real estate.
What Is A Real Estate Deal?
A real estate deal is a type of investment that allows you to purchase a residential or commercial property at a deeply discounted price.
While all sorts of investors can find deals on real estate, the “deal” in this type of transaction refers to the price at which you will acquire the property.
Because real estate transactions are often long-term, you’re typically dealing with a real estate broker, who will negotiate the deal for you.
Identifying Undervalued Properties
A good way to find undervalued properties is to perform some market analysis. Look for areas where the inventory is low and try to identify which properties are underpriced.
While you don’t have to buy every property that comes on the market that’s listed at a reduced price, you almost have to make an effort to buy properties that are underpriced by a healthy amount.
If you don’t, you could be wasting your time and money.
Knowing When It’s Worth Spending Money
Once you’ve identified potential deals, you need to decide if it’s worth spending money on real estate. There are a few factors that you’ll need to take into consideration before making that decision.
Will the deal be worthwhile? What is the ROI of real estate?
Finally, you need to think about your time investment and the return you’ll receive on your investment if you decide to sell the property at a later date.
Knowing How To Get The Best Deals On Real Estate
If you decide to purchase a piece of real estate at a discounted price, you’ll likely need to hire a real estate agent.
While most people would be content to let a professional handle their real estate need, it’s important to understand the process behind buying a property.
This includes knowing who to call, what to ask, and how to negotiate.
While no one truly knows the value of a property until they have a contract to purchase it, you can still negotiate a significant discount on your purchase price.
You’ll likely need to use some creativity, but there are several tricks and shortcuts that real estate professionals use that you can’t know without having worked in the business for years. For example, some real estate agents only work with commission sales, which means they will advertise the homes for sale, but won’t show you the properties until you make an offer.
Other real estate agents charge a fee for each call and will make their markup on the product before showing it to you. It’s important to understand the difference so that you know how to get the best deal on real estate.
Buying real estate can be a great way to make money in various scenarios. You can use real estate as a short-term investment, or you can use it as a long-term financial tool.
Knowing how to find and get the best deals on real estate is crucial to both your short-term and long-term financial health.
After all, real estate is like any other investment: it will provide you with a small amount of profit, but it will come with significant risk.
How Having Passive Income From Your Rental Properties Can Change Your Life?
Have you ever thought about how life changing it is to have passive income from your rental properties? If you’re like many people, you probably don’t think about renting property very often.
After all, it’s not the most exciting of businesses. But for some people, running a property business can be a great way to provide for themselves and their family.
How To Have Passive Income From Your Rental Properties
Typically, the first thing you need to do is understand your financial situation.
Do you have a mortgage?
Do you have a significant income from other sources?
Do you have a large amount of debt?
In all likelihood, the answers to these questions are not yes. You might be able to overcome some of these issues by working extra hours, taking on additional projects, or refinancing your mortgage.
But for the most part, renting property is the only way to get passive income.
What Your Property Business's Passive Income Can Do to Change Your Way of Living
Depending on your situation, one of the best things about rental property is that you can get started making money without any capital.
You don’t have to buy into the stock market, earn an advanced degree, or take any other risky venture. All you need to do is build a rental property.
That’s it. And you can do it without any extra capital. The best part is that you don’t have to spend a small fortune either.
A typical three-bedroom house in the U.S. costs between $800 and $1,200 per month to rent. A one-bedroom apartment can cost you as little as $100 per month. So, for less than $1,000 you can have a fully featured rental property and make some serious income.
Life Changes When You Make Passive Income
The most obvious change that happens is that you no longer have to work a job. You can pursue your long-term goal of running a profitable rental property business full time.
However, there are other changes that happen too. When you make $300 per month from your rentals, for example, it’s easy to drop everything and focus all your energy on your property.
You don’t need to take on extra clients, prepare for an accounting audit, or do any other administrative work. You have all the time in the world to focus on running your rental properties.
Another change is that you have more time for your family. Children tend to be more active when they’re younger, and they typically stop playing around the time they start school.
A parent’s time is valuable, so when you can use it to run a rental property instead of taking care of your family, that’s a great benefit too.
How To Scale Your Rental Business To Be A Success
A successful rental business isn’t just something that happens on a certain day of the week or month of the year. It’s an ongoing process that requires planning, execution, and follow-through.
If you’re going to make your rental property, you should be able to look forward to being profitable at some point in your rental business career.
Even if you plan on operating rentals as a side business, it’s important to have a solid foundation from which to build.
How do you know when your business is profitable enough for you? Several factors need to be taken into account before making that decision.
What Is The Driving Factor For Your Rental Business Success?
As you’re planning your success for your rental business, it’s a good idea to look back at your past experiences and identify what factors were responsible for your growth.
Did you increase your revenue?
How did you do it?
What was the key to your success?
What were the details that made a difference?
These are all factors that will help you determine what you can and can’t do better next time.
Once you’ve identified what factors worked for you and what didn’t, you can put your focus on what you can learn from your mistakes.
Do You Have A Profitable Rental Property Or Are You Still Raising Capital To Build Out Your Network?
If your only source of income is from rentals, then you may be setting yourself up for a loss when it comes to capitalizing on your industry’s growth.
That’s why it’s critical to have a profitable rental property. If you’re still raising money to build out your network, you have time to get your business organized and ready to take the plunge.
There are several ways to get your businesses organized. You can have a plan in place for what you’ll do when you have the money, or you can take the make-or-break approach and hire a professional.
Hire a professional contractor to help you navigate the financing process and make sure you don’t miss any critical deadlines. These can be very expensive mistakes to make.
How Long Do You Plan On Being A Landlord?
If you’re in it for the long haul, the truth is that time is money. If you’re only in it for a month or two at a time, you can probably hire a contractor to help you with your property.
That being said, if you’re planning on being a landlord for the long term, you’ll want to make sure you understand the long-term picture.
The good news is that most landlords aren’t in it for the short term. Instead, they want to build wealth through their properties.
That’s why it’s important to make sure you’re taking the right steps to make your rental property profitable.
Do You Have A Unique Property With High Visibility And A Strong Brand?
If your primary goal is to build a career as a rental property investor, you’ll want to make sure your property is unique.
That means it has to have something that sets it apart from the competition. Your competitors will be able to see your property and figure out how to duplicate your strategy.
How do you make sure your property is unique? For starters, you need to think about what you love to do and make that your primary focus.
If you’re a runner, make sure to include a lot of walking in your strategy. If you’re a creative type, find a way to incorporate your business in your everyday routine.
Is Your Operation Fully Automated? If Not, Does That Matter To You As A Decision-Maker?
If you want to be successful as a rental property investor, it’s important to understand your operational model.
What touches every facet of your rental business, including scheduling, marketing, inventory, cash flow, and more?
If you don’t have a complete picture of your business, it’s hard to know what steps you’ll need to take to scale.
For example, if you have a scheduling issue, who do you call? How do you get that resolved?
What happens next?
Your operational model should help you understand who to speak to and what happens next. Depending on your operational model, you may not need to do anything different from what you do today.
However, if you have a vision for your business and you’re ready to take the next step, your operational model is the first thing you need to consider.
- A.I. Finding Deals For You In Your Real Estate Investing
- How To Use A HELOC To Invest In Real Estate
- Flipping Land for Funding Real Estate Investing w/ Travis King
- Get 5X Profits w/ Short Term Rentals Anywhere
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// WHAT TO WATCH NEXT
How to Become Successfully Unemployed: https://youtu.be/wx5Ke9KVs58
Get Money For Investing in Real Estate: https://youtu.be/u4IY5UMDkrI
How to Start Investing In Real Estate: https://youtu.be/fJVOeSgXZRQ
How to Analyze a Real Estate Investing Deal in 5 Seconds: https://youtu.be/SqA1HcAW4EI
How to Set Up Your LLC for Your Business: https://youtu.be/B9RzLkAZI9s
How to Use Owner Financing to Make Loads of Money: https://youtu.be/qAOpCOWvj6Q
//BEST REAL ESTATE INVESTING RESOURCE LINKS
Find Deals On Properties: https://masterpassiveincome.com/propertysearch
Get Business Funding https://masterpassiveincome.com/fundandgrow
Great High Interest Savings Account: https://masterpassiveincome.com/cit
Accurate Rental Rates: https://masterpassiveincome.com/rentometer
Self Directed IRA for Real Estate Investing: https://masterpassiveincome.com/rocketdollar
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