Now I'm going to show you the Trifecta Profits concept at work in a deal.
(DM DISCLAIMER: I should note that this is a real deal. However, you should never assume that the numbers I give are a guarantee that you'll get the exact same numbers. Oh, and make sure you hire the right professionals to help you because I'm NOT a lawyer. You're smart enough to know that already but I'm obligated by law to tell you! -- wink).
So, you've read that amateur investors leave a lot of money on the table. And you've read that the Trifecta Profits method is the ONLY way that I invest in real estate.
Once again, the Trifecta Profits concept is to get paid 3 times on one deal…
- Cash Up-front (from when you buy the property)
- Cash flow (from rental income)
- Trailing cash (from when you sell the deal to someone else)
Now let's see this in action. (By the way, PLEASE don't read this and think "that's nice" and then go do something else. This concept can completely change your business and ensure the future success of your real estate investing. Read and re-read this blog post and take action to apply it into your business). And be sure to read all the way to the end for a really powerful way that you can learn more about Trifecta Profits and apply it in your investing business.
Let's imagine the same deal we've been looking at for the past couple of days – a house in the Midwest valued at about $75,000 with the following numbers:
$19,000 – the price we can get it under contract
$6,000 – the price to rehab it
$2,500 – the closing costs (1% of $25,000).
So our total is $27,500
We do some research and we see that it will rent for $900/month.
So what do we know about this deal?
- On paper it shows a $47,500 in equity (Note: I don’t buy for equity ever, but I do pay attention to it and want to get the property as low as possible)
- Just from basic math you can see that this property will cash flow every month as a rental at least $400 bucks (If you had $27,500 in the deal and brought in $900 a month)
So I go to my investors/partners and I ask for $50,000.
Yup, I ask for $50,000 from my investors. Many of them will not do the deal but that's okay with me. I'm not looking for what many will do. I'm looking for what just one investor will do. Many might not invest but one investor might (and often does).
So here's how the numbers worked on this deal. (By the way, it's a real deal and this is the house the deal was done on).
Here are the numbers:
This house was bought and rehabbed for $27,500
We borrowed $50,000
The property rents for $980 a month
Mortgage - $375 a month (this is what the investor is getting paid every month)
Taxes - $90 a month
Insurance $60 a month
Property Manager $98 a month (This is a must-have on all your properties and I'll blog more about it in the future)
Plus, we set aside 5% for vacancy and repairs: $49 (Note: this only goes until we reach a 3 months reserve)
Total $672 in expenses
And since the rent is $980, that leaves $308 a month NET cash flow to me…
...Without lifting a finger.
...Without worrying about the "what if's"
... All while I suntanned in the Gulf of Mexico, sipping margaritas and listening to a mariachi band play nearby. No joke!
But what about all that extra money?
Some of you are working on your calculators and thinking: "The DM collected $23,500 over and above what he needed… why???"
The answer is simple: I did that so I have money to invest in more properties and to grow my business. PLUS when we sell this deal for more than $50k, I make even more money on the deal. (And if I can't get more than $50k for this house, I keep the house and enjoy the cash flow. Easy!)
So I have zero money on this deal and zero credit on this deal... and I have the potential to get cash 3 times in the deal:
- I made $23,500 up front in spendable CASH to do as I wish (I recommend invest it in more cash flow performing assets)
- I make $308 a month in monthly cash flow
- I stand to make $12,500 when we sell the house for $75,000 later on down the road, if I ever sell it... although I'm not in a rush as it makes money every month doing nothing. While you are reading this message this deal is making money for us right now! That makes me very happy. (How many deals like this do you need to retire rich? It’s way less then you think … Be on the lookout for more on this topic in a future blog post).
I want you to understand that these deals are out there everywhere and only the smart investors use this technique so re-read this often and start understanding that this is real and you can do it if you apply the steps.
This works sooo well that I hope you take this and run FAST with it... heck even if you got 40k from an investor that’s still a nice chunk of cash in your pocket: $13,500 for overages and other monies to do as you wish.
Your Trifecta-Master Friend and Mentor,
Mark Evans, DM, DN
PS, I've only just scratched the surface in this blog post, but there is SO MUCH MORE to share about Trifecta Profits. I want to help you go deeper and learn more about this opportunity to profit three times in every deal. So I've written a book about it: Trifecta Profits: How To Make 3X More Than The Average Real Estate Investor Makes On Every Deal
Click here to learn more about the Trifecta Profits book