Thursday, April 05, 2007

Get The Landlord’s Advantage Using Wholesaling

“Less is More. . . . .” Most investors who have the goal of owning rental properties usually have one thing in mind – “Accumulate as many rentals as possible!” They lock onto this goal without any regard to the negative effects it could have on their quality of life.

They make the all too familiar mistake of over-leveraging their properties and their time. The objective for owning any investment property should be for the sake of it serving you, to make your life easier.

Instead, what happens is the reverse. The investor starts serving the investment. This is especially true of rental property owners. Ask me how I know? You guessed it! I made the same mistake, and I learned my lesson – the hard way! Now I try to share with with others what I learned to avoid them having to make the same mistakes.

Think about this for a moment. Wouldn’t it be more appealing to own half as many rentals, but earn a higher return? of course it would. This business should be fun. It should make our lives more enjoyable not miserable. Attention, land lords! I’m about to share something with you that will turn you into believers!

Instead of owning 20 properties leveraged up to 75%-90%, I’m going to share with you what I call “The Landlord’s Test”. Some of you will have to see for yourself before you are believers. So, take a look at the example below:



Example 1
20 Properties Owned $100k value each
$80k 1st @ 8% / 30years = 587 PI
PI $587 + Insurance $20 + Taxes $75 = $682 monthly costs
Rent $900 ($900 - $682 = $218 x 20 properties = $4,360 monthly

Example 2
10 Properties Owned $100k value each
6 properties (same financing as above)
PI $587 + Ins $20 + Taxes $75 = $682 monthly costs
Rent $900 - $682 = $218 x 6 properties = $1,308 monthly

Example 2 continued
4 properties (owned free and clear)
PI 0 + Ins $20 + Taxes $75 = $95 monthly costs
Rent $900 - $95 = $805 x 4 properties = $3,220
10 properties $1,308 + $3,220 = $4,528 monthly




In this example, I used properties with the same values. Most property owners follow Example #1 and are always scrambling to keep up with their properties. They’re consistently in “Catch-Up” mode. Owning less properties, affords you more time. Time for yourself, time to carry out the “Twice A Year” preventive maintenance. Before long, you’ve saved money on your overall expenses.

The way to accomplish this is to wholesale properties. If you wholesale consistently, you can pay the loan balances down on your rentals until you own a few properties free of debt. Keep this up and before you know it, more of your rentals are paid off.

Just because my example shows the ownership of 10 properties with 4 owned “free and clear”, shouldn’t mean you stop there. My only emphasis is on quality versus quantity. You should continue, your goals should be accumulating rental properties at a pace where you keep quality ownership along with maximum profits. Learning to wholesale will certainly enable you to do just that.

This strategy is straight out of my Wholesaling manual. If what you just read makes sense then you ought to have the world’s best Wholesaling system called “Fast Track To Cash.” In it you will find this and many other simple to understand money making strategies, minus the hype.

As a matter of fact, your timing is perfect since I’m including with the purchase of my “Fast Track To Cash” manual, a five week, get you started coaching program which starts April 14th. I will help you get on the Fast Track to Cash.

Take Action and go now to this link

http://www.thewholesalewizard.com/

Take Action!

Ken Williams aka The Wholesale Wizard

P.S. Get involved with my 5 week coaching program you need to Go to this link now: http://www.thewholesalewizard.com/

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