Posted by Buddy Blackman
www.charlotteinvestorguide.com
I meet with (and interview) a lot of real estate investors. These are experienced investors, "experienced" meaning they have purchased at least one investment property. Their experience may be good or bad -- but they are experienced nonetheless.
I met with an investor a few months back who stated that he was more than happy if he could get $100-per-month positive cash flow from his rentals (he is doing straight rentals).
A hundred dollars a month ??? I'm not sure that took into account whether that even covers all of his landlord problems, calls, management, etc. This investor was suprised to see that my investor clients, Income for Life Members, are consistently getting $3,000 to $7,000 in up-front down payments from tenant/buyers (option fee) and between $300 to $700 a month positive cash flow. What makes our approach different from his?
A few days ago I met with another experienced investor. She had purchased a four-unit house. Obviously a straight rental situation. This four-plex, she admitted, was in the middle of a rough neighborhood, and she was managing it herself! She claimed she was having challenges.
You think?
I met her because she attended a free seminar I did for non-member investors. She is an educated person, an attorney, so she understands the importance of education -- that is why she is signing up for every investor information package that she can. She came to our free seminar because FREE is better than the big fee she just paid to the well-known "guru" who did a seminar in our town while on his seminar tour of what seems to be the whole country.
Anyway, this local investor is doing what most of us have thought to do. We know that we should be investing in Real Estate. The real question is "how?" She is jumping on the "tri-investing" method. Have you heard of this method ?
The "Tri-Investing" method goes like this: "TRY" everything, and the method that you make the most money with "WINS." The good news about this approach is that you are going to get a good education in real estate investing. But we all know, educations cost money. She is going to pay for that education in the time, frustration and money that she is going to lose (not counting on the SAFETY issue with collecting rent or evicting the rough tenants that rough neighborhoods inevitably attract.
After sitting throuh our seminar, I don't think all the "light bulbs" came on for this woman. She didn't seem interested in our "Nice Homes in Nice Places" strategy. She didn't understand the large up-front down payments (vs. her one-month security deposit). She didn't seem to grasp why we can command the larger than market rent, or the built-in appreciation we enjoy.
Believe it or not, this investor decided to NOT join our investor organization. She stated that she was more interested in "low income housing and Section 8 tenants."
I bid her "farewell" and "good luck" (she will need lots of it). I did give her a big packet of investing reports and information, so maybe we'll hear back from her (I'm sure I will ... after she reads this post).
To Your Success,
Buddy Blackman
Not a member yet? Vist www.IFLapplication.com
Comments