Learn how to generate cash flow in real estate using the best strategies! There are a lot of ways to make money in real estate, but some strategies are riskier than others.
How can real estate increase cash flow? It’s absolutely amazing how many different ways there are to profit in real estate.
Today I’ll answer your question, although not completely, but enough to get you started, on how to generate cash flow in real estate. I’ll give you cash flow solutions.
I’m Ted Thomas, and I’ve been involved in real estate for decades. I started as an investor in single family homes which I rented to others. During the past 30 years, I’ve specialized in tax liens and tax deeds.
Want to learn how you can make big profits from deep discount real estate? Would you like to buy homes for pennies on the dollar and without a mortgage? Or earn double-digit interest rates? Get started today with this FREE mini class!
HOW TO GENERATE CASH FLOW IN REAL ESTATE – CASH FLOW
The discovery of tax liens and tax deeds changed everything for me because I could find and purchase property with large margins for profit. Most of all, there were many eager buyers available who were willing to wheel and deal.
I’ll tell you more about cash flow tax liens and deeds, and I’m going to give you examples of real money transactions. I’ll explain how you can transition into being a real estate property investor with small dollars and make big profits.
So let’s talk about how to generate cash flow in real estate. Keep your mind open.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – INSTALLMENT SALES
There are dozens of unique and legal ways to generate cash flow.
You’ll see and understand that buyers are everywhere if you can learn how to structure and put these tax auction properties into situations with a low down payment and maybe even installment purchase payments.
Americans overall buy using installment sales. The market and the customers have become accustomed to using credit cards.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – CREDIT CARDS
Some people even brag about how many credit cards they have. Others brag about gold cards, black cards, and silver cards.
These consumers purchase household appliances by making installment sales. They purchase automobiles with 5 or 7 year installment sales. Why not sell to them the way the bank does?
In today’s market the little guy can have a new house, a car, and all the furniture using credit cards.
If you’ll consider installment sales, you can wholesale real estate you buy at auctions. While they’re making their payments, you’ll have security to live well and travel. Your road to wealth will be paved by someone else paying for it.
I’m fond of saying it’s not a sprint; it’s a marathon. For example, an attractive way to sell tax deeds, and what I’ve taught for years, is buy low for cash and sell low for either payments or cash.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – TAX LIENS AND TAX DEEDS
What attracted me to the tax lien and tax deed business was that I was low on cash.
I had earlier succeeded in business and built a portfolio of $200 million along with other investors, but the market inflated and then crashed.
My properties were over leveraged, too much debt. They crashed in value 40%, 50%, and 60%. I lost my assets.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – TAX DEFAULTED PROPERTY
Now let’s look at the government auctions of tax defaulted property. These properties are sold at huge discounts leaving large margins between the purchase price and the upside potential.
The auction process allows bidders to buy as low as 10 cents on the dollar and resell for 40 or 50 cents on the dollar or higher. That’s real margin. That’s cash flow immediately.
Here’s how to generate cash flow in real estate. The easiest method is buy low, sell low, and use the cash to buy the next deal. However, that’s not the only way to make cash flow.
So, let’s grasp a simple way to make cash flow work monthly for you.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – MONEY
Let’s put this discussion in a different but positive perspective for you. Your problem could be solved with money.
You may not feel happy because you don’t have enough money, even though everyone says money doesn’t make you happy.
Here’s what I will say to that. If you don’t have money, you will be miserable. So I’ll make some suggestions and give you some solutions.
I have a free gift for you, a 1-hour, streaming-video mini course that will teach you the secrets of one of the safest high yielding investments available and how to generate cash flow in real estate.
If you’ve decided it’s time to take charge of your financial future, then this Free Course is the best way to get yourself started on the road to success!
HOW TO GENERATE CASH FLOW IN REAL ESTATE – A MASSIVE MARKET
There is a massive market for people who need help. Maybe they are just divorced, or maybe they’ve been exposed to bankruptcy, or maybe they just made poor decisions.
Thousands of people who are potential buyers are struggling with poor credit scores. Bankers and loan brokers won’t help and have no sympathy.
You could be the problem solver.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – EXAMPLES
How do you create a cash flow in real estate? Let’s take a used and abused, not-so-hot property purchased at a tax defaulted auction.
For our cash flow real estate example, this mythical property has a value according to the tax assessor of $70,000.
The tax deed auctions sell properties with no mortgage for low prices, and the highest bidder receives the deed to the delinquent property.
Let’s look at 2 scenarios on how to generate cash flow in real estate from selling tax defaulted property.
EXAMPLE 1 – BUY LOW, SELL LOW
First, we’ll talk about generating cash flow by purchasing low and paying the back taxes at the tax defaulted auction. We’ll use the example of a property valued at $70,000 purchased for 20 cents on the dollar.
$70,000 purchased for $14,000 at the auction leaves a massive amount of equity, $56,000. However, we’re going to sell into that massive market that has little cash and poor credit.
We bought low at $14,000. How about if we sell low at say, $50,000? No, we are going to sell low at $34,000. That generates a $20,000 profit.
Buy low and sell low. $20,000 will pay a lot of bills around your house.
My experience tells me banks don’t want these buyers or the small loans. However, the banks do like down payments and installment sales. So, another alternative is the same deal.
EXAMPLE 2 – SELLER FINANCING
Let’s sell with a small down payment of $5,000, and then we allow the buyer to pay us monthly.
The monthly payment is $650 after collecting the $5,000 down payment.
We don’t need a mortgage. We can have a simple contract.
$650 a month for 10 years, that’s cheaper than renting a house, and the new prospective client with a not-so-hot credit score is in a used and abused house for only $5,000 down and monthly payments of $650.
$650 a month is $7,800 a year. In less than 2 years, you, the seller, will have all your money back that you invested at the auction and payments on the contract of $650 a month for 8 more years.
HOW TO GENERATE CASH FLOW IN REAL ESTATE – PROFIT
Either way, you have cash flow.
Buy low, sell low works.
Buy low and get a down payment and cash flow for years also works.
In one instance, you, the seller, make a fast $20,000 profit.
In the second example, you’ll make more than $70,000 over a 10-year period.
The choice is yours.
We hope you learned a lot from Ted’s lesson, “How to Generate Cash Flow in Real Estate”
What is the main generator of cash flow for most real estate investments? A big one is profit margin. A large profit margin can generate a lot of cash flow, especially if you buy and sell using Ted’s system.
How do you get a large profit margin? You buy low, and at a tax defaulted auction, you can do exactly that.
You can purchase real estate for 10, 20, or 30 cents on the dollar of the assessed value at a tax deed sale, and you get the property without a mortgage.
Then how do you sell it? If you want quick cash flow, then buy it low, sell it low, and move on to the next property. You got the property at a big discount, so you can sell it for well under the market value quickly and still make a nice profit.
Another option is an installment sale. Draw up a contract, accept a small down payment, then collect monthly payments. Since you bought the property at a big discount, you often make your money back quickly then receive an income stream for many more years!
If you’d like to know more about how to make huge profits in bargain real estate, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
Get started today at no cost with Ted’s FREE Master Class, that reveals the incredible opportunities available in tax defaulted real estate. The class is only about 1 hour of streaming video and contains life-changing information! You can’t afford to miss it!