How To Generate Cash Flow In Real Estate

How to generate cashflow in real estate. So I love this one and I would consider myself an expert in it because I know how to make money everywhere in real estate. And so many of you, you focus on the wrong world. So we're going to talk about your role. Before that, we're going to talk about numbers, how to run numbers, how to really know what you're there to do. And do you really want cashflow or do you want the appreciation? Do you need both? What's your tax plan? And then I want to talk about how do you get started with little or no money? Because a lot of people don't know how to do that. And I can tell you right now that answer, I'm going to give you at the end of the video, which is how do you do that? So how do you generate cashflow in real estate? Well, you got to look at the whole thing. So first let's look at the numbers. What kind of real estate are you buying? Are you buying residential? Would include duplexes and fourplexes? Are you going commercial? Five units or more? Are you going big? What's your area that you want to run the real estate in? Do you want to do storage? You want to do RVs? Like where do you want to do it? You just want to start with fix and flips, which is my favorite. A lot of gurus are going to say, start with wholesaling. The reason that I don't like to start with a wholesaling is you have to find the seller. You have to find the buyer. You have to find and structure the deal in between. To me, that's a lot more sophisticated deal structure than most of you have the capacity to do or know how to do or have the databases of the sellers or the buyers. So fix and flips are easy. You're going to find something that's kind of run down. You're going to find it in a mid or lower income market. You're going to fix it up. If you have good credit, we can help you get $100,000, $150,000 of zero percent financing. That means your financing is free, which means you zero percent to get in, get your rehab done. When you sell it, you pay off all those cards. You stay at zero percent and you're pretty much working on, you know, hard money that you've earned because you have good credit versus real hard money is 12, 15, now almost as much as 17 percent. So money is expensive right now to go get. Even interest rates are expensive. So run your numbers, run for cash flow. Then what do you want? So the reason I don't buy on the coast, I buy in the Midwest is because you can actually force appreciation to cash flow by doing very unique fixes to each of the apartments or each of the units. So for those of you who haven't run numbers before and haven't run compounding calculators, I'm going to give you a free gift. Check out the link below and just start running some numbers. There's also just easy, free cashflow real estate forms that you can get online. So you can start running numbers. You want to start looking at what, as you go into the project, not only what the cost is, what's the fixes, what's the tax, what's your insurance. Insurance is a big variable right now. So many insurance companies because of the fires, because of the storms, there's so much going on. A lot of insurance companies, and I'm not going to name who they are, but they are pretty popular. You'll see them in almost every sports person is being sponsored by them. There's two of them. They're dropping a lot of people's insurance, homeowners to investors. So let's talk about that. What role do you want to play? Do you want to be an investor passively, which is what I am now? So that's why I invest in the Midwest. I have some great partners. They find the deals. I put in the money and we buy apartments. And before apartments, I did do single family. I did duplexes. I did fourplexes. I did a lot of the smaller unit stuff. I still love Airbnbs, still love short-term rentals. So I think for a lot of you is what's the strategy you want. Cashflow across the board in the last several years, Airbnbs and short-term rentals have proven to be where the game's played in the most cashflow. But if you look at an overall strategy and if you're in the business of real estate, which means you're actually on the ground doing all the work, you're finding the money, you're finding the deals. Here's other areas of cashflow that I see left behind all the time that I was just referring to earlier. Why aren't you owning the construction company or at least being a partner in it? Why don't you own the property management company? Why don't you own the cleaning company, the staging company, haul the stuff away company? All those, why do you outsource and pay other people, even the landscaping, own the landscaping company? The more you own and can control and do, the more you keep the cashflow. And a lot of you don't want to do that. You really want to be that passive investor. So then where do you find the money? I'm going to come to that next. Before we do that, I want you to subscribe to this channel. I want you to click that notification button, be here five days a week. And if you want to really go deeper in real estate, I have hours and hours and hours. So go to the search bar and look for our playlist in any of the real estate categories. Also look at corporate structure, look at reducing taxes, living corporate life, like look at all of those areas and the use of credit cards. Use of credit cards while you're doing fix and flips is super valuable. You can get 0% financing for up to 21 months with our teams. So there's lots of ways to get started, but the ways that I would, if you had no money, little money, which is where I was in 1999, I had a database. I had a database of people that I went to because I taught them cashflow for years and years and years, because I was part of the Rich Dad Poor Dad team. And I went to them and I said, I'm going to Oklahoma. I'm going to buy a bunch of real estate. How many of you want to go with me? We put on a huge tour, raised $16 million, and we all went shopping. Actually, we didn't go shopping. We had very specific people in Oklahoma City and Norman, Oklahoma, which is my millionaire market, go shopping for the best apartments and they became partners. See, instead of paying the brokerage fees, put the broker on the team. Instead of paying a lot of these fees, you want to orchestrate your team where the broker, even the lenders, the other people's money, other people's credit, other people's IRA, combined in a team as a way that you can get in with very little money of your own. So partnering is the way to go. And if you don't know how to do it, I do. So I'm going to give you a link to my Real Estate is Leveraged course. It is a phenomenal course. It's eight hours with about 186 pages of how I became a millionaire in real estate. You got to pick a strategy. The other mistake I see people make is you're a little bit of everywhere. You want land, you want RV parks, you want storage, you want single family. Pick a lane and stay in it, get really good at that lane, then expand to another lane or transition to a lane. So I see a lot of my successful millionaires in real estate, they'll start with picks and flips. They'll move to short-term Airbnb holds, then they move over to commercial and they start buying apartments and they buy doors. And then my more advanced actually go up to A-rated apartments, big stuff, expensive, but they're making huge, huge gains on the appreciation within one year. So pick a path, make a plan. Let us help you. If you have questions, go to asklaural.com, A-S-K-L-O-R-A-L, and ask a question, make a request. We'll be back here tomorrow.