Investors buy real estate because they hope to make money. Unfortunately, some investors screw it up.
You see, there are lots of investors who get into real estate with the intention of making money but as they work on the deal, they unintentionally leave tons of money on the table.
They leave money on the table by focusing on profiting only from one aspect of the deal or by not having a good exit strategy or contingency plan.
Lots of people do it but it's wrong! (It seems right because the investor makes some money but it's wrong because there is so much more profit potential that is completely wasted).
I want to reveal how to make a lot more money on every deal. But first...
Let's look at the WRONG way to invest
It's always a good idea to look at the wrong way to do something before you look at the right way. So here's how the majority is investing in real estate and it's pretty much what you don’t want to do.
Let’s say you find a deal: Let’s use a single family house for example.
We will say the house is worth $75,000 (if you're in California you might be thinking "yeah right a house for $75,000!?!" But trust me, they're everywhere in the Midwest... and we're just using it as an example anyway to illustrate an important point.)
You like the house. It’s solid. You have done your homework. You realize it would rent out for $900 a month and the best part is you can get it under contract for $19,000 bucks.
The deal seems good so far and many amateur investors would look at this and think that someone smart enough should put this deal under contract ASAP before anyone else finds out about it.
There is about $6,000k in repairs needed, such as new kitchen appliances, new doors, and painting and re-finishing the hard wood floors. Otherwise, it's a nice all-brick house in a cul-de-sac.
Seems to be good so far, right?
Let's do some quick math:
You can get it under contract for $19,000
You need to add another $6,000 for repairs
The sub-total: is $25,000.
We should also factor in some closing costs – say 1% ($2,500).
The total is $27,500
With me so far?
So we are in the deal for $27,500. You're giddy.
The deal seems like a great, big win. (After all, it's worth around $75,000.)
If you buy that house and sell it, you're going to make some money but you could have made more money!
Sure, you'll get a quick hit of income but believe me when I tell you that those spikes and valleys in your income are not something you should focus on. They will come but it's hard to run a business or budget your grocery shopping when you've got lots of cash one minute and nothing the next. It's stressful.
Believe me, there are way better ways to invest.
Okay, I've showed you the wrong way to invest. The way that many investors think is good but leaves plenty of cash on the table.
I'm going to show you a system I call...
Trifecta Profits is a way to make money at 3 different times in the same investment! When you adopt the Trifecta Profits method, you'll...
- Get paid to buy properties
- NEVER use your credit
- Get paid monthly on the property
- Get paid when you sell the property (if you ever decide to sell)
You're probably thinking to yourself: How is this even possible?
Well guess what. It IS possible. The Trifecta Profits method is used by the most successful real estate investors for years (and The DM swears by it as the only way a smart investor SHOULD invest).
I want to show you how to get paid today, get paid monthly and get paid when you sell the deal, all the while keeping everyone happy! (And I should warn you: There's a lot of material here and it could seem overwhelming at first but don't worry. Read it, re-read it, master it, and you'll transform your real estate investing business. I'll talk more about Trifecta Profits in the future).
Trifecta Profits allows you to make money in 3 different ways
- 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)
Most amateur investors expect to get paid from only ONE of these (usually the trailing cash option, which is what I gave in the Midwest deal earlier in this blog post).
But imagine what a difference it will make to your success if, instead of making money at one point in the deal, you make money at three different points in the deal!
Better yet, you get two different types of income (and both are great to have!). You get the spikes of big money from cash up-front and from trailing cash. And more importantly (yes, I said "more importantly") you get predictable ongoing income ("cash flow") from rental income.
In the next blog post, I'm going to show you exactly how I use Trifecta Profits in nearly every deal I do.
Your Trifect-Profits-Loving friend and mentor,
Mark Evans DM, DN