It’s no secret how much pride I take in my 3 part process of making money going into any deal, making money during the rehab process of a flip property, and maximizing how much money I make during closing.
I love this process so much because I’m able to get paid up to 7 times from 1 property ALONE.
Imagine going to your 9-5 and receiving 7 different paychecks without putting in overtime or adding any additional task to your workload… who wouldn’t sign up for that?!
I’ve been asked on plenty of occasions how I do it, and that’s why I decided to break it down for all of my clients, mentees, supporters.
MAKING MONEY GOING IN
I begin making money at the very first stage of acquiring a new property at the closing table.
As a licensed real estate agent and a property buyer, I’m able to earn a commission every time I purchase new real estate.
If I wasn’t licensed, another real estate agent would get that commission. But as an investor, I believe in maximizing each money-making opportunity. That’s actually why I decided to become licensed.
Why pay someone else to do something I can do myself?
MAKING MONEY DURING
When I purchase a flip property, I tend to utilize an Acquisition and Rehab mortgage. I use this mortgage type because as my own general contractor, this loan covers the cost of the rehab project and pays me and my team for the labor.
Once again, If I wasn’t my own GC that money from the Acquisition and Rehab loan would be going to a third party.
If you haven’t noticed, I cut out the middleman every chance I get. Especially, if it’s going to eliminate unnecessary costs.
Not to mention, if I fall under the budget for any cost, that additional money goes into my pocket.
Please note, this method does not work if you receive an FHA(203)k loan. With that mortgage option, you can’t be the GC and the owner of your project. FHA(203)k mortgages have their own requirements for contractors – FYI.
MAKING MONEY COMING OUT
Once the rehab process is finished and it’s time for me to list the property, I’m able to make & save money again.
Instead of paying me a realtor to list my property, I’m able to list myself. What this means is, instead of paying a 6% commission rate, I now only have to pay 3% to the buyer at closing or I can play a flat rate.
I get paid when I sell or rent out the property. This is the very last step of my 3 step money making cheat code to real estate investing.
If I sell the property ALL profits go to me.
However, if I decide to keep the property, I’ll refinance it and get paid… again. After refinancing, I’m able to rent out the property, which creates passive income for me.
As much as I enjoy property investing and flipping homes, the ultimate goal is for me to create passive residual income that will later on transition into generational wealth for my family. I know I can achieve this by working smarter and not harder, hence how I maximize each deal as much as possible with my 3 part process.
If this article has helped you in any way, shape, or form, be sure to leave a comment telling me how. And don’t forget to share this article with someone who could benefit from this life-changing blueprint.