Realty411 Featuring Jimmy Reed, 1REClub.com | Page 29

" Are you a real estate Investor or a Cash Creator ? Yes , you can be both but depending on the market you are in the Cash Creator may not make you a millionaire ."
" Are you a real estate Investor or a Cash Creator ? Yes , you can be both but depending on the market you are in the Cash Creator may not make you a millionaire ."
I started learning more about investing , taking more training I wanted to know what made the most return on my investment from an ROI standpoint and an over a period of years . I wanted to make as much as possible doing as little as I had to . As I looked at spreadsheets and tax returns , I realized all the money I had made came by buying and selling deals or collecting rent and mortgage payments . Then the numbers jumped off the page . Rentals that I held in great areas with strong rents over time went up in value over time . I saw a lot of equity sitting in properties and soon discovered that refinancing them was a way to pull a lot of cash out tax free to reinvest in more rentals and at the same time keeping equity in the property and not changing the cash flow much since the rents continue to go up also . Now I also tried the 1031 tax exchange strategies a few times the problem was that when I sold at the top of the market I would get a great sales price , but I only had 6 months total to find my next property which meant I was most likely paying too much because the market was so hot . I decided I need a new strategy . Now bring us forward to today . We started building new homes in a market just south of the Dallas / Fort Worth area . A little town that I have actually written about in a previous article for Realty 411 . A little town that made USA Today number one historic downtown in America and also retirement community . So here ’ s what we did we started building brand new 3­2 brick houses around a 1070 square feet all wood cabinets , vinyl plank flooring , granite counter tops all for about the same price of a smaller 800 square foot house in Fort Worth that by the time I purchased and rehabbed it I would be in it for around $ 190,000 and it looked good would rent really well but it was still a fifty to sixty year old house .
But in Granbury I could build a bigger house all new with warranty and it still rented for a great price . Also financing these were easier and the insurance was even less because of it being new construction . Now we have a list of investors who understand creating wealth with rentals , asking to purchase the houses we were building for ourselves as long­term cash flow investments .
Now we are building for them , but we let them know it takes a little longer these days due to Covid material shortages , but we still get them typically completed with in six months . Rents in our market are still at great prices . We currently rent most of ours around $ 1,600 a month . Now we do have a management company that handles all of ours in Granbury . If
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you ever decide you want a rental that ’ s brand new all brick construction , give us a shout and we will even hook you up with the management company we use . By the way I found this management company because they are a vendor with our Fort Worth Real Estate Investment Club 1REclub . com and they do a great job , they are also nationwide .
So now let ’ s bring in the answer to the title of this article , Are you a real estate Investor or a Cash Creator ? Yes , you can be both but depending on the market you are in the Cash Creator may not make you a millionaire . By the way regardless of the market you are in if you would buy just let ’ s say one house a year worth at least a $ 100k and do this every year for ten years you would have a million net worth even if the market never went up once you had them paid off . But let ’ s say over 10 years they doubled in value and you refinanced them over the 10 years you owned them to keep the balance at a $ 100k but were able to pull out some tax free cash . Now the opportunity comes along , and you are able to tap the million in equity or close to the million . You see that is the power of INVESTING ! You can create residual income as a cash flowing rental , then tap the equity for some tax­free money to invest in more properties . All of this is working for you regardless of if you work or not .
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