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4 Ways To Make $10K A Month

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The goal to make $10,000 a month in passive income is just a long-shot dream, right?

Probably. I don’t even know why you’re reading this article…

Wrong!

If you’re looking for 5 more generic steps to take to never reach your goals, then stop reading now.

If you’re looking for “buy my program and you’ll be earning 6-figures and can quit your job” then you also should look elsewhere.

Instead, keep reading if you’re looking for some real solid steps on how to grow and build your passive income to a level that can replace your day-job.

How Can I Make $10,000 per Month?

The first question to answer is “how exactly do I make $10,000 per month?” There are really only 4 ways to earn $10,000 a month:

  • Get your boss to give it to you (earn it at a job)
  • Earn it yourself (become self-employed)
  • Create it (own a business)
  • Grow it (from investments)

This is a summary of the 4 general ways to earn income – employee, self employed, as a business owner, or through investments. It’s also called the ESBI model. The list is also ordered from least desirable to most desirable.

When you decide “I want to earn $10,000/month” you need to decide what path you are going to take first then refine it into ‘how’.

So, let’s start with the worst ways to create $10,000 and work our way up to the best.

How to Earn $10,000 a Month as an Employee

If grinding your way through life at a corporate job is your definition of success, then this section is for you. There is only a tiny bit of sarcasm in that sentence…

Your wages are loosely tied to the value of what your contribute to your company. It’s more closely tied to the supply and demand of similar workers as you.

So, to earn more, you have to be better than everyone else around you. To do that you need to:

  • Work harder
  • Work longer
  • Have a skill or knowledge that is hard to replicate

To accomplish this is easy. Work more efficiently and harder than everyone around you. Then, work twice as long as everyone around you.

Do that for 5 or 10 years and eventually your employer will recognize the work you do and you’ll probably make 6 figures. You just need to get there before a younger person is willing to work even harder and longer than you for half the wage.

It’s a bit harder to acquire a skill or knowledge that others cannot replicate, but you could pay for training courses, additional schooling, or study on your own to increase your skills in your field.

Earning $10k Being Self Employed

The benefit to being self employed is that every bit of work you do goes straight back to you.

You do not need to work extra hard and hope that your employer notices and gives you a raise. If you work twice as much, you’ll hopefully see twice as much income (assuming all of the effort you put in generates more revenue).

I think that being self-employed is a great way for people to get started building their income. Everyone talks about investing, but you probably need extra income first before you can start investing.

BEING SELF EMPLOYED, I’M LOOKING FOR:
  • Very flexible schedule
  • High payout on a sale
  • Can be automated, outsourced, or grown organically

The first couple things that come to mind are consulting and real estate.

I like consulting because it is a high payout job and also offers a very flexible schedule. It’s not something that can be totally outsourced, as people expect their consultant to be the one consulting them.

Being a real estate agent is also highly flexible and has a very good payout. It’s also very automatable (is that a word?). Almost every step of the process can eventually be outsourced to an assistant, VA, or other real estate agent.

It also costs very little to get started, has few barriers to entry, and is easy to take market share because most people don’t have an existing relationship with a real estate agent.

Another reason I like the idea of being a real estate agent is because when you do get started investing in real estate, you’ll have a leg up on other people. Hint: this is exactly how I got started in real estate.

Getting Started as a Real Estate Agent

Becoming a successful real estate agent is super simple (though it requires a bit of effort!). Just follow these steps:

  1. Take your licensing coursework (I like Real Estate Express to fast-track it)
  2. Take your tests (both state and federal)
  3. Determine your niche and ideal clients
  4. Find a good brokerage to hang your license
  5. Find clients and close deals

Taking Your Real Estate Agent Coursework

Every state has its own licensing requirements. Some are easy while others are hard, so it’s important to get the best coursework that will make you the most likely to succeed.

That’s why I always recommend Real Estate Express. They offer all of your coursework for ridiculously cheap. It’s all set up to get you through the coursework quickly and give you the best chance of passing your test.

Taking Your Tests

There are two tests to take – the federal and the state real estate exam. They aren’t hard, but you do need to prepare for them.

I recommend scheduling the test as soon as you’re done with the course and taking it as soon as possible.

A lot of people schedule it several weeks or months away to give them “time to study” but I don’t think this is generally true. Generally, you know the most the day you complete the course, and every day after that you lose some of it.

So just get it over and done with asap!

Determine Your Niche

There are hundreds of niches to choose from, so be selective and master one or two.

I personally think that being a residential agent for real estate investors is the perfect niche. Here’s why.

Being a commercial broker is really hard, especially for new agents. The top producers have been doing it for years and everyone knows them. Taking market share is next to impossible for a newbie.

Being a retail agent that works with new home buyers is fine, but they are a dime a dozen and setting yourself apart is really hard.

Being an agent for 1-4 unit residential properties, but working exclusively with investors is the perfect mix. You have a good niche that is focused yet broad enough.

Additionally, investors are logical rather than emotional. They also buy on a regular basis (every year or more than once a year), and don’t care what the place is as long as the numbers work.

So, they are far easier to work with and buy more often. The only drawback is they tend to buy less expensive properties, so you need to do more transactions.

Find a Good Brokerage

The key is to remember that you are interviewing the brokerage, not the other way around.

So, shop around to find one that fits your goals and niche in real estate.

Find Clients and Close Deals

Finding clients is tough! It’s especially tough for the newly self-employed.

Fortunately, there is a service called Agents Invest which connects you to your ideal client. Agents Invest has a boat load of active investors who are looking to buy properties.

You just need to contact them and see if it’s a good fit. So go check them out!

How to Earn $10k per Month as a Business Owner

This is really simple.

Step 1 – Start a business.

Step 2 – Grow your business

and… Step 3 – Earn $10k/month.

Alright, it’s not that simple! I’ve started 3 different businesses and there is a lot that goes into running and growing a business.

If you already have a business, there are two ways that I have found to help you grow. The first is to find whats working for you, and double down on that. The second is to find new revenues sources on the fringe of what you’re doing, or through upselling.

Most people that want to grow a business tend to focus on doing more, but that often ends up with earning less.

I recently had a conversation with a mortgage broker. He said the issue with most brokerages is they want to do every type of lending (multifamily, retail, manufacturing, etc). The problem is, they become just like everyone else out there and nothing sets them apart.

They are not an expert at anything.

Instead, by focusing in on one specific type of lending and becoming an expert at it, the business grows faster and earns more.

Now, if you don’t already have a business in real estate you want to double down on, you might want to start one.

Starting a New Business

If you’re going to be investing in real estate, it probably makes sense to have a business in the real estate field too. There will be synergy between the two and it will ultimately help you invest in the future.

There are a ton of different real estate related businesses that you could start. Literally, dozens or even hundreds of niches to choose from.

If I’m choosing to start a new business I want it to have a few basic criteria.

  1. I want to be able to automate it (though I can do the work myself to start if I choose)
  2. It should be scalable
  3. It should be relatively inexpensive to start

While there are a ton of options available, I’d probably choose to start a wholesaling or lead generation business.

I like this because it hits all 3 of my criteria and it also ties in well with real estate investing. Any time I want to buy a property for myself, just take the best leads and keep them for myself rather than sell them.

Here’s how to get started

Determine Your Niche in Real Estate

It’s important to decide what niche you want to be in. Here are a few popular niches:

  • Multifamily
  • Single Family
  • AirBnB
  • Vacation Rentals

There are more, but those are probably the top 4.

It’s important to know your niche so you can tailor your content and lists to this area.

Build Your Funnel

It’s important to figure out how you will generate leads. This is how most wholesalers fail.

Remember, you have to get your name out there and be the first to find the potential seller before others do. That’s why I love using the internet.

Most people go to Google before ever making a buying or selling decision. That’s why if you can rank your website on Google, people will probably find you first!

If you want to be first to find them (by having them come find you) then what you need is a lead generation website.

For that, navigate to Investor Carrot and put your info in on the next page to get a free trial.

You can also read more about building out your Carrot site on this recent article I posted.

Decide What To Do With Your Leads

Once leads start coming in, you’ll need to decide what to do with them.

If you want to chase them down yourself and put deals under contract, great! If not, you can easily sell your leads to wholesalers in the area. That’s what I do.

I think working an agreement with another wholesaler for a profit share is the best way to do it as it requires the least amount of effort for the most return.

Making $10,000 A Month as an Investor

The one we’ve all been waiting for, drum roll please…

Making money as an investor is all about building up multiple streams of passive income. One of the best ways to do that is with real estate.

Every property you buy is another stream of income to add. Every unit, every tenant, it all adds to your goal.

The biggest risk to real estate is the lost revenue during a turnover or eviction. But, as you buy more property, this averages out.

For example, if you have one house you either have 100% occupancy or 100% vacancy. So, you do great some months and terrible in other months.

But if you own 10 units and 1 is vacant, you’ll have 90% occupancy.

If the vacancy rate in your area is 10%, you can expect to always have 1 vacant unit. At this point, it just gets built into your normal operating budget.

Here are the steps to getting started in real estate

Get an Education

The most important part is to learn everything you can about real estate investing. You need to understand how to estimate market value, repairs, rents, your operating budget, etc.

To do this, I recommend this inexpensive eCourse to help you get going.

It’s too easy to make mistakes in real estate, but that shouldn’t stop you from getting started.

Instead, learn from others mistakes first, and the best way to do that is to take their course.

Get an Agent

You don’t need an agent to invest in real estate. If you have build out a lead generation website, then just use those leads to buy deals.

But, if you don’t have any source of leads, the best place to start is with an agent.

For this, I recommend the service Agents Invest, which connects investors to investor savvy agents around the country.

Make Offers

A lot of people don’t ever find a deal because they are afraid to make offers. If a deal is listed too high, simply make an offer for less.

Don’t be scared of making offers!

I once offered less than half of what a property was listed for (and got it). So, it happens. Just recently a good friend of mine negotiated over $150k off a deal that was only listed around $500k to begin with.

That’s a 30% savings!

So, it’s totally possible to do, even in a hot market!

Do a Combination to Earn $10k/month

The last option is to do a combination of the above to get to $10,000 per month.

If you are self employed, own a small online business, and also have some real estate with some passive income, that combination might get you to your goal as well.

Your Turn

What are you doing to reach the goal of $10,000 per month? If your goal is higher or lower, tell me what your goal is and what you’re doing to achieve it.

This article originally appeared on IdealREI. Follow them on FacebookInstagram and Twitter.

Real Estate Investing

REAL ESTATE: 20 Ways To Find Off-Market Deals

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As the market heats up, it becomes more and more fashionable to find off-market deals.

But, not all “off-market” deals are worth buying. In fact, a huge portion of off-market deals aren’t on the market because… you guessed it, they want more than the property is worth.

But, it’s also true that most on-market deals will sell at or above market value in today’s hot market. .

So it’s a catch-22. Most off-market deals want more than the property is worth, but if it goes on the market, it will definitely sell at full value. So what do you do?

Even if 90% of off-market deals are a waste of time, that other 10% of the deals might sell well below market value, whereas anything listed online will definitely sell at market value. So, there is still some opportunity for money to be made.

So, today we’ll cover different ways to find the coveted “off-market deal.”

1. Pocket Listings

This is a deal that an agent or broker has but hasn’t brought it to market yet. This is more common in commercial deals and also residential deals that aren’t very marketable.

There are a few reasons why a seller may not want to openly market the deal. The biggest of which, is they do not want to spook the in-place management or tenants. If tenants are afraid their rents will jump, they will start to move which lowers the Net Operating Income of the property and makes it less marketable. THe management

Here’s why:

It sells the deal almost immediately, the broker can probably get near the asking price (or they would put it on the market), and it sells virtually instantly which makes the broker look good.

So get to know some high-powered brokers and get on their buyer’s lists.

2. Direct Mail

Some people hate it while others swear by it. Essentially you buy a mailing list, write letters to the owners, mail it out, and hope to get a call.

The response rate is low, around 0.5%, but people who direct mail look at it another way – for every 1000 homes they mail to, they get 5 calls and probably close one deal.

That’s really not bad if you think about it.

I personally sent out a direct mail campaign this year and had a response rate of over 3%. I closed a 20%+ cash on cash deal and sent less than 1,000 letters. So, it’s totally possible to create a great campaign with great results!

3. Driving Neighborhoods (and following up)

This works for both residential and commercial. Choose a market, drive around, and write down all the properties that appear to be in distress.

Then find the number of the owner and call them.

If the property is in distress, the owner is probably motivated to sell.

4. Cold Calling

This is related to #3, except you are just calling a list of properties instead of driving them first.

5. Property Management Companies

They will probably be the first ones to know when an owner wants to sell. They may be able to make an introduction between you and the owner.

6. Eviction Court

Look for houses with recent or pending evictions. For multifamily, look for a property with a large caseload of evictions which could signal a property in distress.

Owners with eviction problems are more likely to entertain an offer to sell.

7. Create a Website

People always take you more seriously if you have a professional looking website. In fact, it’s gotten to the point that lack of a website will actually hinder you from succeeding, even if it doesn’t generate much traffic or sales.

7a. Create Great Content for Owners

Having a website is a requirement, but if you want it to generate traffic, name recognition, and leads, you need to create content for your target audience.

People tend to talk to other people like themselves, and that’s true for how they write as well. That’s why accountant and attorney websites are usually so terrible because they are focused on impressing other attorneys and accountants!

Flip it around and focus your content on your target audience. If you want to buy single-family homes, create content for people who are trying to sell a single family. Same is true with multifamily.

8. Title Company

They probably know all the major groups that are buying/selling in your area. If you have a good connection here they might be able to make an introduction

9. Landlord or Apartment Association Meetings

You want to be the first to know when a current owner is selling. So, go to their professional meetings.

Photo by Antenna on Unsplash

10. Real Estate Investing Meetings

If another investor knows about an off-market deal but doesn’t have the money to get it done, they may be willing to tell you about it.

11. Start a Podcast

Similar to creating a website, a podcast is a great way to meet other real estate professionals and start building those relationships.

12. Tax Delinquencies

If an owner can’t pay their taxes, they are probably motivated to sell.

13. LoopNet or MLS

A lot of people believe LoopNet or the MLS are terrible places to find deals. There will undoubtedly be a good deal here or there on these services, you can also use them to get to know some of the brokers in a new market.

Ask the brokers for references to good property managers then ask those managers for references to more brokers.

So, internet listing services are a good way to get a conversation going, even if you don’t ever close a deal from it.

14. Tradespeople/Vendors

They tend to get around and know all the major communities and property owners in the area. You could ask for some insights into different areas, which are full and which are vacant, and which ones have problems.

15. BiggerPockets

BiggerPockets is focused more on the single-family side, but may also be a great place to find other professionals.

16. Networking

Relationships rule everything in real estate. Do we really need to go into detail about why you need to be at every networking event in your city?

17. Create a YouTube Channel

YouTube is the #1 video search engine. People often search YouTube because it’s a lot easier to convey a message in video than in writing. So, if you are trying to reach a target audience, it’s a great idea to create video content for them.

18. Bankers and Brokers

Mortgage brokers and bankers may not know who wants to sell, but they will know all the major owners and sellers because they’ve probably worked with a lot of them.

19. Craigslist

Look for properties that are for rent. A listing means there is a vacancy. It’s usually just part of ordinary turnover, but if you see a property being listed a lot, there may be a problem.

20. Start a Meetup

People love networking. In addition to attending other networking events, you can create your own. Since it’s your event, you will have the stage which builds your name.

21. Find a Bird Dog

Take any one of the categories in this article and get another person to do it for you. In return, you’ll compensate them for every deal closed.

 

Featured image: Photo by Harmen Jelle van Mourik on Unsplash

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