Here is a podcast I did on the top 4 real estate investing strategies in 2018.
It just helps me out because my mission is to get this message out to as many people as possible because what I believe is if you could, if you answered this question, what would you do if money wasn’t an issue? Right?
If you can answer that question and say, well, it’s something meaningful…
I would do something meaningful. If money wasn’t an issue, then your mission needs to be to do that, and the way to do that is to develop enough passive income in order to quit your job.
Whatever is making you just over broke, your mission is to quit your job as soon as possible so that you could have a fulfilled life doing whatever that purpose is it serving your church, is it playing music, art, whatever it is that you’re not doing because you’re in the rat race, you need to be outside of that rat race and serving the world.
Okay? And, uh, and if you just subscribe to this podcast, share this with others, it just helps me get the message out.
So this is one of those podcasts you’re going to want to share, okay? So here’s my top for real estate investing strategies.
Now listen, when I was picking these strategies, I had a certain criteria. The first criteria I had was that it’s got to be a strategy that is possible for you to quit your job in 12 months or less. Okay?
I didn’t want strategies that are like, you know, it’s, it’s a long haul, okay? These things have high cash flow value to them and if you just implement one of these strategies, it gives you the ability to make that quit your job kind of money in 12 months or less. Okay.
And then the next, uh, criteria that I had was, it’s got to be scalable…
Now what do I mean by that? What, uh, what do they mean on the shark tank where they deny somebody because their business isn’t scalable?
Uh, what I mean by scalable is you’re not just one and done, you know, it’s not like you saved up all this money and you finally bought your first rental property and now you’ve got to wait 10 more years to buy another rental property. Okay? It’s not strategies like this is a strategy where if you know how to do this, you can do it over and over and over again. Uh, and just kind of perfect that strategy. Okay?
It’s scalable. You can make as much money…
Sky’s the limit. It’s just about developing the skill to do it. Okay? And then the next criteria that I had was, it’s got to be a strategy that is, um, that is trending, okay?
Something that is kind of a blue ocean right now, most of these, uh, you may or I guarantee you haven’t heard of all four of these things, but uh, some of these, uh, you may not have heard of and that’s a good thing. Okay. But it’s also a blue ocean to where what worked in 2017 doesn’t necessarily work in 2018.
So I want to give you those strategies that are working right now for a lot of people. Okay. And then the last and final criteria I had in picking these strategies was it’s got to produce for you passive to semi passive income. Okay? And if you don’t know what that is, it’s basically money you make while you sleep.
Now, none of these strategies are get rich quick schemes.
It’s nothing where you just push a button and a and it boom, you’ve got money…
All of them require some degree of upfront work and some of them are semi passive, meaning that you could kind of do like a one to four hour work week on these side hustles. Okay. Alright. So if you guys are ready to get into it, let’s roll. Okay.
So number one, the number one, a real estate investing strategy of 2018 is for you to set up an air B and b business.
If you don’t know what Airbnb is. It’s how a bigger a chain of hotels…
It was not really hotel. It’s basically privately owned homes that people are renting out on the peer to peer sharing market. And now airbnb has beat out the largest hotel chain in the number of rooms that they have is exploding.
And there’s still not a whole lot of people…
Uh, there’s still a great amount of people that are still not using airbnb…
Okay. Um, so that is the demand for it. Now, let me kind of tell you why I, why I promote this opportunity. Because a couple of years ago I was fishing out in the New Orleans area and um, and what I do is I always think, well, here’s something that I would like, how can I afford it?
So I was like, it would be great to have one of these waterfront homes…
Uh, and so I went to look to see how I could afford. I was like, well, maybe I can buy one and put it on like the vacation rental market and Airbnb and get that to pay for the house. So I actually found a house and I thought I was a genius at it at the time for how I arrange this, but I’ll tell you in a second why was actually stupid.
But, uh, but I, uh, I found this house, it was a five bedroom, three bath house and it also had a separate mother in law suite in the back.
So I could rent out two separate properties on Airbnb. And uh, and I got the owner to it. It was almost a million dollars, what this house cost, but got the owner to owner finance it to me fully furnished. And with only $60,000 down, which was way less than 10 percent of the purchase price, you know, you can’t get that through banks. And don’t worry if you don’t have any money, you do.
This strategy doesn’t require you to have a whole lot of money…
So when I say 60,000, I’m about to show you why I did foolishly by putting $60,000 down. But I also got the guy to agree to an interest rate of three percent, uh, over 30 years. So I’ve got these great financing terms, owner financed. And uh, that first year I made a little over $80,000 on this, um, on this vacation rental.
So that’s when I really opened up my eyes. I was like, wow, this is a huge market. People aren’t really traveling like they used to. They don’t take vacations like they used to. I mean it used to be I’d hop in the car with my parents and we’d drive down to a hotel somewhere. The hotels are really fighting the AIRBNB.
He’s in legislation because they’re hurting bad. AIRBNB is kind of taking over the peer to peer sharing economy is really taking over with the Internet. So, uh, it was a huge demand that I discovered. Now I’m about to tell you why this was actually a foolish way to do it and the reason is because I stumbled across this other guy and I’m actually going to have him on a, on my podcast coming up within the week here.
Um, but I stumbled across this other guy who is doing an airbnb business and um, except he didn’t own the property, I was like, how’s this guy doing this?
So basically the technique is you find properties that are furnished that people have for rent. Okay.
They, they put up their property for sale or for lease or just for lease, but they’re fully furnished and you’d go around and you secure leases on these properties and you could do this with as many properties as you want.
And as soon as you secure a lease on it, and preferably a month to month lease, as soon as you secure a lease on it, you turn around and you put it on the Airbnb a website, okay? And, uh, and we’re talking about properties that maybe you owe a thousand dollars a month, but when you put it on Airbnb, you’re making a 3000, 4,000, 5,000, $6,000 a month. So it’s this incredible high cash flow that you can make past what you’re paying in rent.
Now, the secret to this real estate investing strategy, like I said, it’s scalable…
You can do this as many times as you want. In fact, the guy, um, that, um, that I learned from a, he in six months, scaled it to make $350,000 in passive income and quit his job. Okay? In six months, $350,000. All right? So this is something that is a, you could totally do. It’s a total side hustle. And, um, but the secret is to set up your automation.
So you’ve got all these moving parts. Excuse me.
Um, you’ve got all these moving parts, you’ve got a inquiries, customer inquiries, general inquiries on the Airbnb, you’ve got your booking, collecting payments, uh, your, your cleaning service, all this stuff. And the trick is what this guy really teaches and what he’s an expert on is setting up your automation for this business.
So it’s passive, you know, semi passive. So he says, uh, four hours or less a week.
Honestly, I spend less than 30 minutes a week on mine. So after I learned his strategy, uh, I actually acquired another property down the road from me on the river and I got it on a lease option, so I actually have an option to purchase it if the airbnb rental income goes well. And so far I’m cashflowing about a thousand dollars a month on the property.
And this is with no money up front…
All I did was rent out a fully furnished place, a nice place on the river.
Now it works with not just vacation homes on the river, on the beach, on water, whatever mountains it works in, like just regular anywhere that’s near a hotel like seven minutes within driving distance of a hotel, you know, any place that someone would, if they’re traveling to a certain area or city, they would say a, am I going to book a room?
I’m going to book a hotel now, let me check out airbnb and then they see your place. Okay. So, um, if you’re interested in this particular strategy, send me an email at Ryan at cashflow data [inaudible] dot com and I will send you a link to a free training that I’m doing with this guy on his, uh, his, his webinar. It’s a free webinar where he lays out the steps that he does to do this. Okay. And then, uh, moving onto the second.
Also guys, you know, this podcast, I also, uh, I articulated this information on my youtube channel as well.
(Click the picture or HERE to be taken to the YouTube Channel).
Alright, so a rolling real estate is the second of the real estate investing strategies for 2018 and for the same reasons as airbnb.
Now what I like about rolling real estate, this is, this is basically rv rentals on the short term rental market. Okay?
It’s the same as Airbnb, but with Rvs, now if you don’t have an RV it’s completely okay because you can use what’s called OPR, other people’s rvs right now. These things, all these strategies, it always helps if you have a little bit of money.
So I don’t want to be misleading and say these are no money down strategies.
You could definitely do them with no money down, but you got to get real creative about it. Okay? So these are, you know, you’ve got maybe you know, a grand to five grand, you know, granted 10 grand, you can start executing these strategies, which is, you know, not bad for an investment to make for something that can provide you six, uh, six figures of passive income within 12 months.
Right? All right, so the, the rolling real estate is, um, is basically a rvs on short term rentals. Now, how I discovered this opportunity is as soon as I had made enough money, uh, with, with passive income where we weren’t broke anymore and my wife always dreamed of taking an Rv vacation.
And so I wanted to make that dream come true for her, but at the same time I was like, there’s a part of me that’s like, I don’t want to make, you know, like extravagant superfluous purchases and it just seemed like an extra thing.
Um, and so I was like, I wonder if there’s a way where I can make this pay for itself.
And so, uh, I, I put it on the short term rental market. And within the first month I made. I’m sorry, the first year I made over $30,000 on just this one RV.
There were some months where I was making $3,000 past what I owed on it. And what I discovered is the demand was so large that immediately I was like, I gotta find some other Harvey’s because this is such a huge demand in this area. So I ended up going and getting other people’s Rvs and we got a fleet together of five RVs that we put on the short term rental market. Now why this is such a great opportunity is because there are so many people that have RVs.
You know, Warren Buffet is like buying rv companies like crazy and he’s pretty smart. You know, he’s a stock investor. I remember some of his advice. We’re was invest in wherever the people are. So baby boomers, you know, if, if you invest in products that baby boomers are using because that’s the highest demographic of people, then those stocks, you know, those, those stocks are gonna increase.
So the baby boomers are getting older. If you’re investing in like denture cream, you know that’s a good investment because more people are going to start using this companies. All right, so why Warren Buffett is investing in Rvs is because you have both the baby boomers that are interested in traveling like that and taking vacations like that. And now millennials, so the average are being age is between 34 and 55 and the oldest millennial I think just turned like 35.
So millennials are just starting to enter into that RV market.
And millennials, they’re, you know, they, they love travel, they love Wanderlust, they love those experiences. I’d like to travel in different ways and take vacations and different ways and their parents did.
Okay. So that’s what makes it such a popular opportunity. There’s such a high demand for it on the peer to peer sharing market.
And um, and so yeah, I mean, I, I, and well, here’s the cool thing about it too is there’s something called consignment. So if you don’t own an Rv, you can basically go to other people who have RVs but they’re only using them four times a year and you can make this arrangement with them. Same as the airbnb where you basically, um, without any monthly expenses, you say, Hey, I’ll share profits with you, I’ve got this, you know, rv rental business and you basically set up all your automation, the same as you do with the airbnb business.
So it’s passive for you. But for other people you can use their assets and generate cash on it without actually owning an rv. Okay. And are there is another cool thing that you could do with RVs and that is you could buy them at wholesale like $50,000 and sell them at retail at $70,000.
So you can make $20,000 on these things if you have the right wholesale relationships, which I do. And while you waiting for them to flip, you put them on the short term rental market. So you’re making $3,000 a month while you know you’re waiting for it to flip for $20,000. So it’s an extremely lucrative thing that you could do as well.
And what I like about this is, like I said, as blue ocean, you know, you’re, you think about what a red ocean is, where all the sharks are, they’re all feeding in the waters bloody.
And you look at a blue ocean, blue ocean is where there’s plenty of food, but there’s not a whole lot of sharks.
And the reason it’s such a blue ocean is because it’s Rvs, nobody thinks of it like real estate. But when in actuality you can apply the same principles of real estate, you can actually write off an Rv as a second home with the IRS.
It’s a complete, it’s completely uses real estate principals. It’s got the same elements, it’s just rolling real estate, you know, and it’s got a great potential to make six figures within a year, within 12 months where you could really cash flow. It’s a side hustle. Okay. So another semi passive income investment.
All right, so number one was an airbnb business. Number two is a rolling real estate business for 2018.
Number three real estate investing strategy is wholesaling. Okay? Now for, for any of you guys that don’t know what wholesaling is, here’s what it is. Alright? It’s basically a way to flip a house without actually owning the house. So what you do is you go out and you get, you find the deals, right?
You find a deal. Say it’s a $165,000 house that you found for $120,000. All right? You go out and you find this motivated seller is willing to sell you this House for 100, $20,000 and you get this house under contract you before you close on the contract, typically 30 to 45 days.
You then go out to cash buyers and you develop this big list of cash buyers. There’s different strategies of doing that and you say, Hey, I’ve got this house under contract. Would you essentially like to buy this contract from me? So you can assign the contract to them and they can make, you know, they can sell it for one 60, but you could basically sell the contract to them for $10,000.
So if you’re following the math with me, you get it under contract for 100, 20,000, you sell the contract for 10,000, so all into the cash investor, they’re paying $130,000, but they can sell it for 160,000. So it’s a win situation for everybody.
Okay. And the, the, the really cool thing about this is there’s two different ways you could do a contract assignment or you could do a double closing where basically the cash investors funds close on your contract with the seller, with a motivated seller, and then they close with you and the cash investor.
Now why this is such a great opportunity is because you don’t have any risk, you don’t have any risk of owning the property. It’s quick nickel, slow dime stuff like it’s a, you know, you make the quick nickel, they make the slow dime, you know, you don’t have to sit there and renovate the property.
It takes 60 days or 90 days and then you know, you’ve got another 30 days on the market. Maybe it’s sales, maybe it doesn’t.
You don’t take any of that risk. You just get it under contract and give it to a cash buyer, um, and uh, and you don’t have to be a real estate agent or anything else like that. All you need to do is know how to execute those contracts and find the deals. That’s the entire skill that you need to work on.
Now, why I say this is such a great opportunity now in 2018, wholesaling has been around for a while and especially in the last five years, has gotten really popular amongst a inside of real estate investors.
Why it’s such a great deal now is because there’s never been so many cash buyers in the market. They say that one out of every three houses is bought with cash. What does that mean? Cash buyers?
You know, what they don’t want to do? They don’t want to go out looking for deals. They don’t want to go out negotiating with motivated. They would rather someone come to them and present them with an offer a, a deal. Okay? So that’s why it’s such a great, um, a great real estate strategy in 2018. Now I said passive to semi passive strategies.
Now this is more of the semi passive strategy because you do have to spend time looking for the deals, but I do have a guy that I recommend.
It’s not my own course, it’s not what I teach, but I’ve took a, you know, I’ve, I’ve pretty much watched all the courses there are for all from all the gurus out there on wholesaling and there’s this one guy who does it the best and if you want access to his teaching, uh, all either have a link on my blog for it or again, you can email me at Ryan@cashflowdadlife.com and just say I’m interested in wholesaling.
Point me in the right direction. Okay, so you the check out the blog or send me an email. All right? And then that is number three. Okay. So we’ve got number one, airbnb business to rolling real estate.
Number three, wholesaling.
All right, now the fourth and probably my favorite real estate investing strategy of all time and specifically in 2018 is what I call flip and flow. All right? So if you think of real estate, there’s essentially only two ways to do real estate, right?
There’s, there’s a lot of different methods, but it pretty much breaks down into two strategies. One is to flip, okay, and that’s where you’re doing wholesaling or you’re doing rehabbing or you’re renovating a property and putting it back on the market. So it’s flipping cash.
And in those situations you’re making, in my experience, you’re making 10,000 to $60,000…
Now, some people, I mean you’ve seen these HGTV type things where these people are making like hundreds of thousands of dollars on their flips. That’s not been my experience. My experiences tend to $60,000 per flip. Okay?
So that, that is one way of doing real estate where it’s, you basically find properties at a discount and then you, you turn around and you sell them at a retail price and you make a good chunk of money upfront.
The problem with that is you don’t have any passive income. You don’t have this residual income that comes in every single month without you doing any work with the second strategy of real estate.
So the second strategy of real estate is simply, it’s a slow dime strategy. It’s, I’m going to buy rental property and I’m going to with that rental income, make money over time, okay?
Um, and passive income built up over time is really what you need to quit your job.
So that’s, you know, the best real estate strategy combines both that flip income where you make intend to $60,000 upfront on a deal, and that a slow dime income where you making $200 to a thousand dollars a month in passive income per deal. Okay? So the flip and flow formula in real estate is this formula where you make that quick money tend to $60,000 and that passive income a month, 200 to a thousand dollars.
Now here’s how it works. So basically step one, you, and this is where it would be good for you to go to the youtube video that I created because you’d be able to see, uh, the exact steps that I use, but step one is you basically acquire a property at a discount using other people’s money, okay?
And you use other people’s money because you can scale it if you just use your own money, unless you’ve got $4,000,000 sitting in the bank, you’re not going to be able to do this over and over and over and over and over and over and over again.
But if you do it with other people’s money, you can do it as many times as you want and quick quit your job as fast as possible. Okay? So what is other people’s money?
It could be the owner of the house themselves. Okay. It’s called owner financing. So even if they’ve got a loan on the house, you can still make that owner the bank to you. So you basically pay them and they pay their mortgage, right?
But you still actually own the property and you can buy it at a discount and basically have them give you the loan. All right?
There’s different techniques and ways to do that. So it could be the actual owner of the property or it could be a cash investor and there’s a lot of them out there and you just partner with them. Private capital equity lines of credit through banks, hard money loans, regular loans through the banks, uh, other people’s money is what you want to leverage in order to do this process over and over and over again.
So that’s the first step is you acquire property with other people’s money. The next step, and this is where it gets so cool, is you basically then turn around and owner finance this property to someone else. So you tell someone else, alright, you pay me $10,000 or $60,000 down and then you pay me whatever it is per month. $2,000 in rent, save $2,000 in rent per month.
And uh, in three years, I always say three years, but really two to five years you have to refinance it to a traditional bank. Okay? Through traditional way. Now why is this such an opportunity?
Because there’s so many people that want to buy houses that the banks won’t lend to. So you basically acquire the property and then you become the bank to someone else. So the reason that people can acquire a property that they want to be home owners, they want to buy one.
They might have the cash, but they’ve got credit issues, you know, and they’ve had credit issues in the past, they’ve had medical debt or you know, whatever it is. Um, so, uh, the banks won’t lend to them or tell you a story. When I first got started opening up the indoor sports arena, I actually had them. I had $60,000 down to put on a house. But the banks would lend to me because I just opened a new business. They didn’t like my small business owner income.
They wanted that steady w two income. Okay? So there’s a ton of people out there like that. They’re business owners or they’re independent contractors or you know, they make a lot of cash under the table, some of them and they just don’t report it to the irs so they don’t get approved for a loan, but they’ve got the cash, they got 30,000, $60,000 in order to put down on a house.
And so you basically make that money up front and then you are also making the cash flow by them essentially renting to you every single month. Okay? And the trick to this formula is you’ve got to buy discounted property. So whatever your loan is on the property, you’ve got to charge them higher than that. Alright?
And there’s all kinds of ways to analyze the deals to make sure you getting into a good deal. All right? So here’s where it gets, um, it gets interesting, okay?
And this is why this formula is the fastest way that I know have to quit your job and to create massive wealth. Okay? Is the same formula I used you. Basically you might ask yourself, what if they don’t pay? Well, your worst case scenario is also your best case scenario. So I’ve actually had this happen many times, 50 percent of the time they are able to refinance through a traditional lender and they’re able to, um, they’re able to become homeowners again, and that’s a really good feeling.
Helping people become homeowners again.
You know, I’ve helped all kinds of people as people with va loans, people, uh, a newly married couples that just, you know, we’re, we’re, um, you know, not responsible when they’re a younger with their, their credit and they had bad credit, but they had a great down payment. They had a growing family, but medical debt, you know, I’ve helped those people become homeowners again.
I’ve helped a lot of people become homeowners again…
Okay. But if they don’t pay, this is what ends up happening. You, if they’re not able to refinance with the bank, they lose that option. Okay. And it’s never a bad situation as you think that it’d be so hard to kick somebody out of a house. It’s never a bad situation because you basically say, hey, listen, if you’re not able to do this, you’ve got equitable interest in the property, you can sell it yourself.
So they typically get out of the house and they cleaned it up and they try to sell it so they don’t lose their down payment. But eventually if they do sell it, great. You know, your contract is honored and you still make your money. But if they don’t sell it, typically they, they’re like, look, I just can’t do it anymore.
I’ve got to turn the house back over to you guys. It’s happened to me 50 percent of the time. So I’ve got houses that I’ve literally made $20,000 the first time the guy got in an argument with the girl, they got out of there, they try to sell it. You just had it priced way too high. And then, uh, he just turned the house back over to me and it was no problem.
There was, he was just like more like, hey, just, I just don’t want my credit screwed up.
I’m like, yeah, that’s fine. Um, and then the next one they gave me $30,000 down and I was making $900 a month in passive income cash flow and then they got a divorce and the guy called me, apologized and said, I’m really sorry, I’ve got to turn the house back over to you. Okay. And I said, look, you know, you could sell this. He’s like, I just don’t even want to fool with it.
Okay. I just want to give it back to you and be done with the situation with the wife and you know, everything else. Okay. So now I’m up to $50,000 in the downpayment. Plus I was making $700 a month in passive, a passive income cashflow per month. And on the second guy was making $900 a month in passive income.
So I turned around and I did it again and this time it was a $40,000 down payment.
So at this point I had made in downpayments $90,000. Forty, 30 and 20. Okay. This is my math, right? Yes. Okay. Yeah. $90,000 in down payments on this particular house within like a three year timeframe and the current couple that’s in there now and I’m making $900 a month as well and the current couple is in there now it looks like they’re going to be able to buy the house, which will be great. But altogether on this House I’ve made $139,000. Okay.
And by the time it closes with this other couple of, made $189,000. That’s on one house. Okay. Imagine doing that over and over and over again to 10, 20, 30, 40, 50 houses. Okay? So that’s what I call the flip and flow formula. Alright, so those guys, those are my top four real estate investing strategies of 2018, number one, the airbnb a business.
Number two, the rolling real estate business. Number three, wholesaling in. Number four, the flip and flow formula. If you’re interested in learning more like the exact strategies on how to do this stuff. Okay? These guys do have courses available. Okay?
These courses do cost money. Okay? It’s an investment in yourself.
When I first got started with making passive income investments, I bought all kinds of courses. Okay, you’ve got to be willing to invest in yourself in order to get ahead. All right?
But at the same time, they’re cheaper than college courses, which don’t show you a strategy that you could use in order to create a skillset that provides for you for the rest of your life. Okay? So if you’re interested in checking out these courses, you can, even if you don’t buy them, uh, I definitely recommend going to the free web trainings because it could give you an idea and you could try it on your own.
You could do it on your own without actually buying the course if you just Kinda wanna, you know, trial and error and just kind of take the concepts and learn them. I actually did that with a few courses as well, to be honest. Um, so if you’re interested in that guys, go to, um, go to cashflowdadlife.com or go to this blog and I will put links to those courses on the blog for this particular podcast. And, uh, and also feel free to email me, Ryan@cashflowdadlife.com . I’d be happy to send you back, um, these, uh, these free trainings on how to do these four different real estate investment strategies. Okay guys. So those are my top four for 2018. I will see you guys next time.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode because each episode will have an idea or a strategy that changed my life. It could change yours. It only takes one for more information. And for some great passive income investing resources and more info about real estate investing strategies, check out my website, cashflowdadlife.com. Until next time, my name is Ryan Enk and this is Cash Flow Dad Life.