Real Estate Investing
4 Ways To Make $10K A Month
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…
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:
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:
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.
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:
- Take your licensing coursework (I like Real Estate Express to fast-track it)
- Take your tests (both state and federal)
- Determine your niche and ideal clients
- Find a good brokerage to hang your license
- 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.
- I want to be able to automate it (though I can do the work myself to start if I choose)
- It should be scalable
- 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:
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.
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.
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 Facebook, Instagram and Twitter.
Real Estate Investing
How to Invest In Real Estate Through Your IRA
Investing in real estate can be a great way to grow your wealth, but did you know that you can use your IRA to invest in real estate? An IRA (Individual Retirement Account) is an investment account funded with pre-tax dollars and can be used to purchase investments such as stocks, bonds, or even real estate. Here’s what you need to know about using your IRA to invest in real estate.
Rules & Regulations
First and foremost, specific rules and regulations must be followed when using an IRA to invest in real estate. You must adhere to IRS guidelines regarding the types of investments allowed and how much you can contribute each year.
The most important rule is that you cannot use the funds for personal benefit; any money used for personal benefit will be subject to tax penalties.
Additionally, it’s important to note that the money in your IRA must be invested into a qualified trust company or custodian before it can be used for any investment, including real estate.
Benefits of Using an IRA To Invest In Real Estate
One of the major benefits of investing in real estate through an IRA is that all profits from the investment are tax-free until retirement age.
This means any profits gained from rental income or appreciation won’t have to be reported on taxes until you withdraw them at retirement (typically 59 ½ years old). Additionally, since a traditional or Roth IRA allows for up to $5000/year ($6000/year if over 50) contributions without triggering taxes on those amounts, this could provide more capital than if investing with after-tax dollars alone.
This could give you more buying power when looking for a piece of property and create larger returns down the road with compounding interest.
Drawbacks of Using an IRA To Invest In Real Estate
There are some drawbacks associated with investing in real estate through an IRA, such as using the money after retirement without incurring taxes and penalties on withdrawals before then.
Additionally, IRAs typically have higher fees than other investments because they require custodians or trustees who charge annual fees for managing the accounts. Also, since IRAs can’t borrow money against their assets or partner with outside investors, acquiring larger properties is challenging due to the limited capital resources available through an IRA account alone.
With proper research and planning, investing in real estate through your IRA may help increase your wealth while avoiding taxes on those profits until retirement age making it a potentially attractive option for many investors who want access to capital without being taxed prematurely.
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.
(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
There’s the 1031 exchange, of course, which I’ve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.
But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
So I thought I’d share it with you guys. 💎
You can check it out here.
Let me know what you think. 😎
PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
How I run a $300M+ business from the beach…(and how you can TOO!)
Yes, you read that right.
If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲
This is my office for the day…
I am actually running our business from the beach, typing this from here.
It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while I’m asleep. That’s the 🗝)
So how did we get here?
We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳
As a result, we shut down our main office and set EVERYTHING up to run remotely…
SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)
Here’s what we were able to do since then:
- Gained 6M+ followers across all platforms 📈
- Add 1500+ new apartments to the portfolio 🤑
- Grow to $300M in real estate 🚀
- 105% investor returns 🎉
- 700K+ community members 🤝
And here’s the best part…
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. 🔥
Let me repeat that…3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.
All the while giving YOU GUYS wealth hacks and daily content. 🔥
OK, so how can you do it?!
Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…
Let’s get to work. 🙌
PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥
How to Invest In Real Estate Through Your IRA
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
How I run a $300M+ business from the beach…(and how you can TOO!)
How To Launch Your Business In 30 Days Or Less
EXCLUSIVE: This Entrepreneur Built A $7B Business Without Outside Funding. Here’s How He Did It
How Mark Cuban Invested $640k In A Company That Started…As A Prank
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