The Key To Survival In Your Real Estate Business

FinanceTrading / Investing

  • Author Roger Salam
  • Published November 13, 2007
  • Word count 491

The one word answer is – Ca$h Flow! Cash is still king.You can’t eat equity for dinner or pay bills with it.This is the underlying reason why so many investors cannot survive and have to go back to a job.Cash flow management is not easy.How many ways can you generate cash from your Real Estate?When things are tough and market has shifted, do you know how to create new profit centers?Pay attention to your cash flow and it will unlock the door to your survival and lead you to prosperity.

The New Strategy for 2008 & Beyond:

The Real Estate market moves in cycles.Now that we’re in a particular down cycle, we have to rethink our strategies.How many ways can you generate cash from your business?

Wholesale: This is the fastest way to generate a chunk of cash in this business without using your own cash or credit by simply assigning your contract.There are lots of deals out there to be had due to the foreclosure epidemic and the general slowing of the market, but the problem is, if you don’t have a buyer ready,you will not be able to generate cash…no matter how attractive the deal is.

Rehab & Retail: This is the best way to maximize the profit from a deal and get a nice influx of cash.But due to the sub-prime mortgage meltdown and the general tightening of the loan criteria, it’s getting harder and harder to get buyers to qualify for a loan.If you are not careful, your money will get tied up instead of generating cash.

Lease Option Deposits: This is my favorite exit strategy, but not if you need all the cash right now.Typically, lease option buyers are not in a position to negotiate, so you can get the full market value of your property if not 10 to 20% higher.The problem is you get the cash if and when they exercise their option.So, the only money you’ll get upfront is the option deposits which are typically 2 to 5%.

Rental Income: This is also similar to the above only worse, because you don’t get any large chunk of cash up front other than an extra month of rent.Renting is the way to hold on to the properties until the market turns, so you’d have to depend on other ways to generate some cash to live.

Refinance: This is a viable way to generate cash, but there are a couple of key assumptions here.First you have plenty of equity and second you have good credit.Because of the current market condition, it is getting tougher to get cash out loans.Typical non-owner occupied cash out refinancing are limited to 70% for stated and 80% for full doc.

For more details and more ways to generate cash NOW and get the full 50+ page report FREE: Go to: www.2008SurvivalGuide.com

He served as a professional speaker and trainer with the world renowned motivational speaker and peak performance coach Anthony Robbins, before joining the real estate investment field in 1999.

He's a graduate of UCLA. He invests in the Tampa Bay Area and in other parts of the country. He buys, sells, rents, lease-options, short sells, rehabs, everything to do with Real Estate. His passion is to teach others to be successful in his field.

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