How You Can Use Rehab, Refinance and Cash Out as Long-Term Wealth Building Real Estate Investing
Today we are discussing a somewhat advanced strategy for you to use after you have been in the creative real estate investing business for a while. I call this “Rehab, Refinance, and Cash Out”. This strategy can lead to true long term wealth and financial independence. This works very well in a buyers market like Memphis where prices have been quite flat for some time. You need to use this to augment your wholesaling for immediate income and retailing for bigger short term profits. Rehab, Refinance and Cash Out is a long term wealth building strategy and will be something you will be glad you did as it is a long term buy and hold strategy, and those are the strategies that lead to true wealth accumulation and financial independence.
Let me explain how this works. You find a good middle to low end 3 bedroom home that you are able to buy from an out of state owner or other motivated seller that needs a little work and you buy at 60% of after repaired value. You buy the house using a hard money lender like http://www.pleaseclose.com/memphistrading and do your fix up and have a property management firm manage the property and put a renter in the house. The hard money lender will typically loan you up to 65% of the after repaired value to purchase the house which you use to buy the house and then repair it. Now that the home is repaired you obtain an investor friendly mortgage and cash out by refinancing at 80-90% of after repaired retail value and you should be doing this with properties where this strategy gives you back at least $10,000 at the refinance that you can use in your business any way you need. Do not use this money to live on, use it solely to grow your real estate business. Once you have done this strategy on 10 homes you should be able to keep finding better and better deals because you can close quickly as you have cash in hand to make things happen. More cash equals better deals and more opportunities.
By the time you repeat this strategy 20 times you should have at least $200,000 cash plus about $200,000 equity and 20 homes giving you at least $2000 per month positive cash flow whether you decide to work this month or not since you have a property management company handling things for you. With average annual rent increases, within five years that $2,000 a month should grow to $4,000 a month. In 30 years you should have $2 to 3 million plus in paid off real estate. It’s a good solid long term strategy to add to your immediate selling from wholesaling, retailing and lease options that the extra $200,000 in cash will help grow tremendously.
The rent minus the management fees and all loan and other costs must leave you with positive cash flow or this strategy should be avoided. If you cannot cash out on the property I don’t recommend holding it long term as you want to be able to use your best mortgages to cash out.
You can purchase using http://www.pleaseclose.com/memphistrading if your Equifax credit score is above 550(which is bad credit) or you have a co-borrower who has an Equifax score over 550. A good investor friendly mortgage company will give you good rates if you are at 660 middle score or above and the very best rates if your middle score is 720 or above. Your first 10 investor mortgages in your name and 10 in your spouses name are the easiest to qualify and get the best deals. After those you really need a good investor mortgage company to work with. Take the time to find the real investor friendly mortgage companies that can help you get loans for 100 properties and not just the first ten and let them have the easy ones and the tougher ones. I do recommend having more than one good lender available though, but stick to the ones that specialize in investor loans. Find out from other investors who the most investor friendly mortgage companies are to use to refinance the repaired home.
I do not advocate becoming a landlord as I do not believe this is a valuable usage of your time and energy. I highly recommend asking around and finding a good property management company that will charge you 10% or less to start out with and gradually lower that % as you add more and more properties.
I feel this is an advanced strategy as you won’t see any cash in your pocket from this strategy for 4-6 months after you find the deal which is a long time to work and not see any pay. If you are wholesaling and making consistent money each month then it shouldn’t matter. This strategy will magnify the profits you make in your investing business in ways you might not have imagined. This strategy is a natural progression from wholesaling as you are already helping others find these kinds of deals, now you will be able to get the cash out typical of probably 2 wholesale deals, just paid slower, and at the same time building a nice future nest egg.
By: David Neese
For SEO, There’s No Place Like Home or is There?
As an agency specialising in online marketing solutions, for our clients, we at LeadGenerators set particular stock in our linking strategies. Be it for ourselves or for our clients, we know that good inbound and internal links can work wonders for your link profile; let us fill you in on some of the reasons why a good links strategy is valuable to every priority landing page, not just the home page.
Improving Your Link Profile
As an agency, our online marketing solutions tend to focus on using techniques such as viral links articles, directories, WebPR (to name but a few) to ensure that our clients’ sites have plenty of good quality inbound links pointing to them, i.e. a good overall link profile. However, a good backlink profile is not as one dimensional as was once thought. Good quality and key phrase rich inbound links are still important, but it is short sighted to send them only to one page on your site – the home page. If you have more than one key phrase enriched and relevant landing page on your site, be sure not only to bring them those key phrase rich inbound links, but to create plenty of internal links that point to them as well.
Grabbing Extra Traffic
Online marketing solutions tend to focus strongly on a business’s priority pages. However, your site may have one page that is slightly askew from the rest of the site and not part of your main marketing objectives. That doesn’t mean that this page need be forgotten. Work on generating some good inbound links from relevant sites to this page, and you will not only give the page a boost up the rankings, but you’ll also gain some traffic from new and varied sites, that your other pages may not have previously attracted.
Ramp Up Those Ranking Results
The chances are that the anchor texts used to link to your home page are succinct and specific key phrases, but these are unlikely to cover all of your marketing objectives. Why not use some longer tailed phrases that are also important to your marketing focus, to point towards other important subpages and help to ramp up their rankings?
Au Naturel
Occasionally, we get so caught up in engineering online marketing solutions that we forget that generating links is supposed to be an organic process. You can help your linking strategies to come across as a lot more random and neutral by ensuring that you are not just achieving inbound links to your home page, but to other pages as well.
Each to their Own
As Wikipedia has proved, it is not always the website with the most backlinks that gets the top spot in Google. In fact, it relies on wielding its authority through internal linking. By allowing people to navigate through the encyclopaedia using almost entirely internal links, Wikipedia has ensured good rankings without ever worrying about offsite links. Why not replicate the Wikipedia way of linking by putting plenty of inbound links in place on your site?
Split Personality
Finally and arguably most importantly, online marketing solutions should always take into account the fact that websites require a split personality. Yes, they must be set up in a search friendly manner, but they must also cater to the human searcher. Being unable to navigate a site is one of the primary reasons for a high bounce rate. However, a good internal linking strategy connecting subpages to your home page can make it much easier for a visitor to find what they are looking for.
So if you notice your online marketing solutions becoming too focused on just one page, take a step back and remember why it’s important to share out both inbound and internal links amongst your priority pages. True, there’s no place like home, but it’s much less use on its own.
By : Frank Orman
Are You A Golf Addict?
Are you like me in checking the weather forecast every day, in an attempt to work out whether you are going to be able to get out onto the golf course or not? I managed to play four times last week which was just fantastic, after almost two solid weeks of rain. I just checked the forecast for this week and it looks like the rain is returning. Blast!
Although I am a self disclosed golf addict, I do these days draw the line at playing in torrential rain, hailstorms, extreme winds or upon seriously muddy fairways. I used to play in all conditions, so long as the course was open, but have come to realize that this type of discomfort does, for me, outweigh the enjoyment.
I play golf for fun. A lot of people lose sight of this ultimate aim however in their single minded quest to master this game. Golf is an undeniably tricky game and often your mental focus gets conned into a state of inappropriate tunnel vision.
For example, how many times have you played with someone who mutters away about every shot they have played, providing you with a running commentary of what happened (or not) with their back swing, their head, the way the ball bounced, whether they hit it square, topped it, hit it fat, or whatever else?
Now, I’m a great believer that you do indeed need to understand what happened in your application of club onto ball and to be able to interpret the balls flight; without this insight, you would not be able to improve. But it really is not necessary to provide this journalistic commentary to your playing partners, especially whilst they are trying to play their own shot! In this case, silence really is golden.
But this sort of thing does happen to some golf addicts. You try so hard and become so focused that all you think about is your score, which involves constant analysis of each and every shot. This however, is not likely to work to your advantage. Instead it acts to tie your mental focus up in knots.
The picture becomes blurred. If you are thinking about your last shot, and calculating your score at the same time, you simply cannot be fully focused upon the shot which you are about to play. Your thought energy is fractured and therefore wasted upon unnecessary detail.
In golf, you need to train your mind to focus in a very specific way so as to conserve your mental and emotional energy. Immediately prior to every shot, think clearly about the task in hand, choose your shot and your club, visualize the shot, and get on with it, following your own consistently used pre-shot routine. Immediately after the ball has landed and it has come to a halt, it is important to follow a consistent post-shot routine; if it was a good shot, enjoy it – give yourself a mental pat on the back. If it was a less than perfect shot, rub the image from your mind and imagine a great shot instead.
In this way you have good clear mental focus prior to taking the shot, and your post-shot routine is designed to train your golf mind to create great shots in the future, instead of building an expectation of hitting bad ones. Your emotional energy is not wasted in beating yourself up or in damaging your playing partners’ ear drums or sabotaging their focus and concentration. As an added bonus you also get back to enjoying your day out on the golf course, walking between shots in a state of emotional balance and relaxed calmness.
Roseanna Leaton, specialist in hypnosis downloads and author of the GolferWithin golf mind training system.
Has your addiction to golf got the better of you and completely taken over your thoughts? Is golf still as much fun for you or has it instead become a frustration?
With a degree in psychology and qualifications in hypnotherapy and NLP, Roseanna Leaton is one of the leading practitioners of self-improvement. You can get a free hypnosis mp3 from http://www.RoseannaLeaton.com and learngolf mind training with GolferWithin golf hypnosis.
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By: Roseanna Leaton