1. You will have to work several years to build your portfolio of properties before you start to make any real money. How many houses do you need to own that bring in $200 a month in cash flow before taxes to replace your income? You might have some equity in each house but you cant deposit equity in the bank and in most cases you will only be able to leverage 70% of the value to keep it in a positive cash flow but there a some ways to get all your equity out and maintain a good cash flow if you know the tricks of the trade especially if you own multiple properties. 2. You have to maintain a solid credit score which is hard to do if you are constantly borrowing money and using your credit unless you know a few little known secret techniques. The way the system works it actually punishes the most credit worthy borrowers, people that own a lot and pay off mortgages on a regular basis. 3. Cash can become an issue unless you have unlimited resources or know of someone who does, if you dont have no fear because we can show you the secrets to raising unlimited funds for your real estate deals. Most lenders will only give you 80%of the cost or appraised vale of the house. You can borrow up to 100% and sometimes even more but you will have a difficult time trying to cover your payments. 4. You will have to manage the property on a daily basis and if you think you will not have to be involved on a daily basis just wait, you have a real eye opener coming. Tenants can be your worst nightmare and they can cost you plenty if you arent careful. There are some very good methods for eliminating problems with tenants and guaranteeing yourself a profit but thats a whole other story. I am a strong advocate of flipping houses because it works and its relatively simple to do. You buy a house fix it up if needed sell it fast. You put the cash in the bank right now today. Done deal end of story no problems no waiting for the check to come in the mail no late night phone calls or wasted time spent in court. Remember cash is king and there is no better feeling than a knowing you have a big fat bank account. |
