Best Laid Plans of Mice and Men

Here it is May 3rd and I have not posted a blog since Day 1 on this website.

The same thing that inspired me to get back into Real Estate investing led me down a very different path.

A friend inherited a property. He could not afford the extra payment or the expense to fix it up to rent it out. He wanted to keep it as a rental property but it didn't work out for him.

An investor bought it and after the bank was paid off and all the debts and taxes paid my friend ended up with $70,000 from a house worth $195,000.

My wife is a Registered Agency for a group that pays a
return of 6% per month on cash held in a client's own account. Yes, 6% a month.

The group has a 23 year history in the business and an exemplary record with approx. 6600 clients worldwide.

I always thought of their program as something for individuals with cash who want passive income, that is until I worked the numbers and came up with a concept that would work for Real Estate investors.

Bingo! What was born out of one man's problem led to
the birth of a concept that I will share with other investors.
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My friend looked at buying a $100,000 property for $70,000
and renting it for $1000 a month.

The alternative:
On $70,000 cash in his own account he could cash-flow
$4200 at 6% a month, every month. You do the math.
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At a local Real Estate club I listened to a speaker talk about the number of properties he owned outright. He talked about cash flow and net worth. The example he gave was a $1 million portfolio generating $10,000 a month cash flow.

If he sold his portfolio at 60% or $600,000 and put the cash to work at 6% a month his cash flow would increase to $36,000 a month. That made me think and I began to ask two questions.

1) Would I buy a cash flow property at 60% of value?
2) Would I sell a cash flow property at 60% of value if it tripled my monthly cash flow?

The answer was yes to both questions.
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My niche is identifying property owners who are ready to cash in on their equity and triple their cash flow.

As I identify those individuals I am confident I can help them identify investors to buy their cash flow properties at 60% of value.

It is a win win situation for all concerned. That is the way to do business... where everyone wins.