get to keep your entire ,000 wholesale gain.
You get more tax benefits, the benefits of long term appreciation and have hedged your money against inflation (which let’s face it we all see coming very shortly and its already happening). You also get to collect passive cash flow (income that you do not have to work for) unlike wholesaling. Focusing on cash flow investing and raising capital for investments instead of finding buyers for wholesaling can make you very wealthy and can get you to your goal much more effectively than wholesaling. Most wholesalers are full time real estate investors because it takes a large amount of time to wholesale. If you are an investor and went to 2 networking events per week I can almost guarantee you that you can raise the capital for one deal per month in order to increase your passive income and slowly and effectively cover all of your expenses with that cash flow.
Think about it, if you raised capital for 1 investment per month and you were making 2.50 per month off of each investment property at the end of the first year you would have ,950 per month coming in cash flow. And that is if you do not have any money of your own into the deals. If you had 5,000 to invest you could easily buy 5 properties and automatically have ,250 per month coming which is a 12% return on your money and that is without using leverage. If you leverage your money with a loan from a bank you can increase your returns to above 25% very easily with very low risk as well.
The moral of the story is that cash flow investing is much more lucrative that trying to flip properties full time in the long run unless you are a professional real estate investor that has 70 hours a week to commit. Cash flow is the key to your real estate success, cash flow is what makes you financially free, cash flow is what keeps you financially stable during retirement and cash flow is what makes you more financially stable during economic turmoil like we are going through in the current economy. If you are going to focus on making money in real estate, focus on cash flow investing instead of a much riskier investment type, capital gains through flipping.
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