The Power of CashFlow in Real Estate Investing
One of the great ways to become a multi-millionaire on just a single property is by investing in an apartment. On my first deal, I bought a 144-unit apartment complex in South Carolina. The great thing about apartments is you don’t have to be a rocket scientist to make these things work. All you need to do is to make it safe, clean and affordable. If it’s in a great location that allows people to have a shorter commute to work, you can be guaranteed that the apartment will be filled 99 percent of the time.
“When apartment investing is done properly, it can put you on a course to financial freedom,” – Corey Peterson
This is real because in apartment investing, there are multiple ways to get paid. In fact, you can earn money QUICK, LONG or BIG TIME!
Quick Time Money
One of the ways to get paid in apartment investing is through something that is referred to as an “Acquisition Fee.” The Acquisition Fee is the type of fee that you get after you have closed a deal. Normally, the rate is between 3 and 5 percent of the purchase price. A sample computation is when you bought a deal that’s worth $3 million with an acquisition fee of 5 percent. With this rate, it means you can make a real quick time money of $150,000, and that’s just one deal. I call this Quick Time Money because you get the money quick right after you close.
Long Time Money
Just like with single family homes, it is possible to get cash flow with apartments, so long as you do it right. At this point, your objective in buying properties changes a bit. It’s not for the appreciation as well as for a big sale at the end. Always remember this… “Your only reason for buying a property is for SUNSETS and PALM TREES. This is what is known as “cash flow.” As you operate, cash flow is the main objective that you get paid over and over again for work that was done only once. In addition to that, this “repeating money” increases with time. It’s long term. Getting paid repeatedly for the long term earns you the so-called “Long Time Money.”
Big Time Money
The third way to earn BIG on these types of properties is when you decide to sell it. If you’re in different deals with multiple investors and you have a short term, around 5 to 10 year horizon time, and then you want to cash out, you can make what I call as “Big Time Money” just by doing this correctly and by selling a multi-million dollar property. A lot of times, you can sell a property and make that big time money. Next, you do a 1031 exchange into another property and not get hit with the taxes. Wondering how this is possible? Try that on for size. That’s big Kahuna. That’s also the reason why you want to do this business.
“I started with the dream as my goal and became the Big Kahuna,” – Corey Peterson
And now that you know the difference between Quick Time Money, Long Time Money and BIG TIME Money, I want you to reflect… If you think that this is the time for you to step up your game, YOU’RE ABSOLUTELY RIGHT! I can help you get that deal flow you’ve always wanted and help find get your best multi-family deals!
So, if you haven’t already, go to the kahunawealthbuilders.com and fill out your form. Get our download and jump right to our quick start video workshop. You’re going to get much more out of that content and a better understanding of just really how the apartment investing process works!
What are you waiting for?! Go out there and remember we’re doing this for two reasons: SUNSETS and PALM TREES!
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