I ran into a CTREIA real estate investor at the gym the other day. He has been investing for 9 years and has 25 rental units. "John" told me that he is getting frustrated because he is hardly making any money with his real estate. He is getting "killed" with major increases with property taxes and water/sewer bills.
If you are an experienced real estate investor who has been in the market for a while, John’s situation may ring true for you. How can you add some "spice" to your real estate business?
First, I asked him some questions. Here are his concerns. He wants to:
I asked him a few more questions. And this is what we came up with this challenge:
Upon further questioning, I discovered that he has some opportunities:
Change your mindset: John discovered that he wasn’t doing so badly after all!
Determine your geographical area: Given current market prices, he can invest in "better" areas and still have a positive cash flow.
Market to the right people: who would be willing to hold the mortgage. Did you know that 30% of properties are owned free-and-clear? And many more have enough equity to make owner-financing workable?
Put a line of credit on the free-and-clear rental property and reinvest that money in real estate.
Get back into the real estate game by attending his real estate investor association meetings. There he can meet potential partners, get re-motivated, and get coaching in the current market strategies.
Find a mentor or coach who can hold him accountable for his progress as well as hold a candle to the opportunities that are right in front of him.
Even if you have negative equity or negative cash flow, you have opportunities in front of you. How can you turn around your situation to increase cash flow, equity, and long term wealth? Please comment and send in your questions to: Membership@ctreia.com .
To your success!
The CTREIA Team Coaching Staff.
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