NUTS & BOLTS COACHES CORNER
STRATEGIES: REITs Think Realty Coaches
Right: Abhi Golhar discusses strategy with a coaching student at a Think Realty event.
tough, but worth it. Once you have con- sistent cashflow, you can start investing.
STEP 2 WHOLESALE YOUR FIRST PROPERTY
Wholesaling real estate is one of the best ways to start investing. You’ll learn the vocabulary and network with inves- tors without the major financial risks as- sociated with buying investment property. Your objective: pair a motivated home- owner who is willing to sell at a discount with a willing buyer and receive compen- sation for that service. I’ve summed up the process in five easy steps: 1 Find your buyers. You can find buyers at networking events, local real estate investment asso- ciations, and meet-up groups. Compile their information to create a buyers list. 2 Find motivated sellers. You can do this by knocking on doors, sending mailers to out-of-state owners, or posting bandit signs. 3 Get the property under contract. Get a home under contract using a Purchase and Sale Agreement. I’ve got some very important details about this process in my course online. Make sure your contract allows ample time to find a buyer and for due diligence. 4 Advertise the deal to your buyers list. Once you have a buyer, assign your Purchase and Sale Agreement to them using an Assignment Agreement. Use a closing attorney and title company to process the closing. 5 Repeat. STEP 3 BUY YOUR FIRST RENTAL PROPERTY Owning rentals before jumping into flip- ping will allow you to build a foundation around your core objectives of financial freedom, passive income, and wealth gen-
RESIST THE TEMPTATION:
not playing into the hype of the market. STEP 5 CREATE A BLUEPRINT It’s time to decide how you will use the extra income you created to buy property over the long haul. Here are a few options: 1 Single-Family Rentals Using income generated from Steps 1 through 3, purchase additional rental properties. 2 Flipping on the Side Expand your flipping efforts to grow a side-flipping business. 3 Buy Bigger Use income from Steps 1 through 4 to purchase duplexes and triplexes for long- term cashflow. • Don’t let your blueprint look like this: Use income from Steps 1 and 2 to buy one rental property, upgrade your car, buy new clothes, get a bigger home, and fail to execute on Steps 3 and 4. Creating a blueprint that matches your personality and goals is key to your success. If executed proper- ly, it’ll work wonders. If executed poorly, nancial ruin awaits.
eration instead of wandering off-course.
My Rental Purchase Breakdown:
A Five-Year Plan for Investing Success THINK REALTY COACH ABHI GOLHAR’S NO-NONSENSE APPROACH TO BUILDING YOUR REAL ESTATE BUSINESS FROM THE GROUND UP.
1 Buy one property where your all-in cost (acquisition + renovation) is less than $130,000. 2 Rent the property for a minimum of 1.2 percent of all-in cost and hire good property management. Note: Your all-in cost should be less than 70 percent of the after-repair value (ARV) of the home. STEP 4 INVEST IN A SMALL FLIP Now, it’s time to invest in a property that you can flip quickly (within six months) and build your cash reserves. Don’t be intimidated by a hot real estate market. My formula for flips in a hot market: Maximum Purchase Price = (65% x After Repair Value) - Cost of Repairs. If anyone disputes this formula, tell them to jump in a lake. This formula gives you peace of mind knowing that you’re
by Abhi Golhar
ou’ve decided that real estate in- vesting is for you, but there’s one problem. You need some startup capital. Here’s a tough truth about this business: unless your family has left you with a fortune, you most likely will have to spend some time building up available cash to invest. Once you have generated enough cash, however, you will be well on your way – and it won’t take as long as you fear to get the ball rolling. Warning: this plan will only work if you are: 1 Dedicated Y
STEP 1 GENERATE EXTRA CASH If you currently rent a two-bedroom apartment, find a roommate. This lowers your overall cost so you can save money. All homeowners and heads of house- hold: if you rent or own a home, offer the other rooms for rent or Airbnb to create additional monthly income! Do whatever it takes to build invest- ment capital. Find small buy/sell oppor- tunities such as buying items off Craigslist and selling them on eBay or Amazon. In college, I made extra money selling classic cars I bought off Craigslist on eBay. It was
2 Willing to put in long hours after your day job
3 Willing to get over the fear of rejection
Follow these steps, and you’ll build a stream of monthly, passive income and be standing on a firm investing founda- tion within five to seven years. I know this sounds like a long time, but good things take time. In the grand scheme of things, five to seven years really is not that long.
Abhi Golhar is a Think Realty coach, real estate developer, media host, and national speaker. You can view his Think Realty coaching courses at https://
thinkrealty.com/coaches/abhi-golhar.
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