19 Mar How You Could Make Over $750K in 17 Months (Our Associate Did It)
Real estate is your chance to say goodbye to the 9-to-5. But before you can make money fast in real estate, you need to understand how to do it right.
Brian O’Neill is our High 6 Associate in Chicago and also the strategy expert for Smart Real Estate Coach. And Brian’s rise to the top is truly unique.
He spent 25 years in the corporate world with zero real estate experience. And during that time, Brian worked 17 years for the same company and spent a lot of time away from his family.
By his account, he missed seeing his son grow up because he traveled quite a bit. Because he wanted to be with his family and see his kid grow up, he knew something needed to change.
Brian identified real estate as the way to spend time with his family and still earn enough to be financially free.
So, Brian came to us and we worked together to help him leave his dead-end job.
But what kind of success is he having now?
After about 17 months, Brian had made over $750,000, far more than what he’d imagined when he started. And just recently, he sold his 10th house.
The good news is that, just like Brian, you can take your real estate investing business to the next level with the following tips.
The Three Tips
Tip #1 – Do 3 Paydays™ Per Deal
Let me explain why we work on term deals primarily. In particular, why we do 3 Paydays™.
From the investor’s perspective, immediate cash flow is significant. With the 3 Paydays™, you get that cash flow through payday one. But beyond that, it’s also critical to secure ongoing cash flow, not only to take care of your overheads but to run the business.
Now, to secure either, some investors choose new construction or rehab deals. While there’s nothing wrong with that, guess what?
There are no paydays two and three. That means there’s no residual income unless you choose to rent out the properties.
Doing new constructions and rehab deals requires you to do it over and over again. That means you actually have a job that might be bringing in a bit more money, not a business.
The 3 Paydays™ also allow you to earn an average of $75,000 per deal. And if you become a veteran of this system, you can even add another payday, which means you get to earn more.
Another critical aspect is knowing how to manage your expectations. Surprisingly, some investors aren’t mentally prepared to earn half a million or a million bucks – which you can do with 3 Paydays™.
Tip #2 – Utilize Wholesaling and Rehabs
Having 3 Paydays™ allows you to be even more profitable with your deals, but you still need to know when to utilize wholesaling and rehabs. You want to know how, when, why, and where to use them so you can benefit from the market conditions.
This entails understanding how to be a transaction engineer. If you become one, you’re able to see a deal that comes into your radar and you’re likely to act on it, instead of staying in a box or a particular niche.
Now, you might be out there doing what you like and you could be earning some money. Even so, I strongly suggest you dig into other niches that you haven’t touched.
Why?
When a deal comes up, you’ve got to be able to pivot and know what to do with it.
The fact is that the real estate market constantly changes. If you know how to handle every different type of transaction that comes through your door – whether through wholesaling, rehabs, or something else – you stand to profit from it.
And by developing a keen sense of market changes, such as tightening margins, and other telltale signs, you’ll know when certain deals might no longer be lucrative.
Tip #3 – Overcome Current Lack of Cash Flow
I often hear:
“Man, I don’t have the cash flow right now. And I need cash like I need water.”
Don’t worry. We can fix that for you.
As mentioned, having 3 Paydays™ allows you to overcome the need for immediate cash flow with payday one. And you still can expect additional cash flow through paydays two and three.
Now, our goal is to get you doing 12-18 deals in your first year. When you figure out your monthly overheads and breakeven, we’ll know how many deals a month are needed.
That’s the number of deals that you need to sustain a nice comfortable living and lifestyle.
Once that’s done, we’ll help you put extra deals into an IRA or IRA-owned LLC. That alone will enable you to parlay some serious cash over the next several years.
The beauty of this isn’t only that it allows you to overcome any existing lack of cash flow. Once you get up and running, the system can sustain itself quite nicely. You can toggle it up or down depending on your schedule, desire to work, and lifestyle.
For example, let’s say you take six months off, or even a year off, your income isn’t going to change. You’ll still have paydays two and three coming in as you’ve scheduled them.
To give you an idea of what’s possible with the 3 Paydays™, you should know that we carry between 50-60 deals at any given time. These are our own deals with a payday three cashout in the $3-$4 million range.
Make Your Deals the Sweetest Possible
The opportunity to make money in real estate is there for the taking. It can lead to your dream life. But more importantly, it gives you a chance to be with your loved ones as much as you want.
Apart from the above tips, you should also know that real estate success is about collaboration and team effort. If you try to pursue it yourself, you’ll fall into some of the pitfalls awaiting novice investors.
Of course, we’re here to help you avoid that.
Get started with the Quantum Leap System, part of our Smart Real Estate Coach Academy, today and prepare to see your life change before your eyes.