Personal Finance Resources

Working on potential real estate investments is totally fascinating, and finding deals that fit a profitable formula is both extremely challenging, and extremely rewarding. Currently, I am working on a deal with a local realtor who is also a real estate investor here in Belton/Temple TX. He is trying to get out of the property management business, and owns a number of properties in the area (maybe about a dozen properties).

These properties are single and multi-family homes, and are in different areas throughout town. He has a few problem properties in the Temple market, which are a risk to me and my investors, remembering that location is the most important factor in real estate. But overall, he has a good spread of properties, and I am interested in about 3 of those properties. One is a duplex located just across the street from a property I already own, and therefore I am totally convinced of the neighborhood and the ability for this property to produce.

All in all, I am looking to put two properties (which includes 5 rental units) under contract, with the attempt to achieve a total payment of around $1,100-1,200. These properties gross around $2,200-2,300 per month, which is really good money for the risk. So this is just as word of encouragement to y’all out there, as you can get into good deals, you just have to keep looking.

One point I will make, I found this guy just by checking the MLS for some multi-family properties for another potential client. I saw a good price on a duplex, good location, and knew it would cash flow. If you have a little time, drive the neighborhoods you want to do business in, and just look for some “For Sale” signs. Farm those markets, and find those deals. To make it big, you are going to have to do a little more than the next guy.

‘Til next time, sign up for my RSS feed, and get the updates as they happen on this project and more to come in the future.

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Anyone that knows anything about business, wants to make passive income. Many folks would like to have a primary, or secondary source of passive income in real estate.  I am one of those people. Currently, my passive income in real estate is around $500-$550 per month (including signing a lease agreement just this past Tuesday). Not much, huh? Well what could you do with an extra $500 per month? Today, I would like to present a high level overview of my plans for passive income in real estate. But first, let me define “passive” as I see it, for you.

There are lots of definitions out there, but to me, passive income is “hands off” or “almost hands off” income streams.  The real estate investing that I do, coupled with property management, has great potential for current and future benefits. However, investing in real estate takes a lot of initial work, with some additional work down the road. Likewise property management requires a lot of startup effort, with a lot less in the future. I don’t believe there are too many highly lucrative, true blue, do nothing type income streams, unless you are planning to hire someone else to manage your businesses (BE CAREFUL!).

Bottom line, the income streams I am building should prove to be low maintenance in the future. So now, I want to give you a guide that I am using to create passive income in real estate:

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Now don’t misunderstand me here. I am not trying to say that having a partner(s) is a bad thing when investing in real estate, in fact, many times it is a great thing. Partners help to limit the risk of a particular real estate deal, and can provide alternate opinions, and bring needed capital to the deal. In fact, I am still using a partner today, even though my first experience with a partner was a disaster. The pitfall occurs when you pick the wrong person to do your real estate deal with. Here are a few things to remember when it comes to choosing the right person to partner up with:

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Sound too good to be true? It isn’t it. The concept and recipe for success in real estate investing is very easy to understand, but very difficult to do. Forget everything you have heard from the “gurus”, and the promise of making sweet deal after deal with no money down that is going to pay you thousands and thousands of dollars. These late night infomercials are only after one thing - sell you their system. The one thing that you absolutely have to know and care in real estate investing is this:

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