Should I Start Flipping Houses Or Multifamily?

Wholesaling real estate is pretty mainstream today. Bear in mind, in the early 90’s it was a revolutionary concept.

“Can you really do that?”

The odd instructor (“guru” wasn’t a term used back then) would try to distinguish themselves by claiming "flipping" was illegal. Then Ron Legrand came along and clued us all in. Not only was it not illegal, it was actually the smarter way to be in real estate.
Image Credit: The Real EstatePreacher.net

Do less, make more, never touch the property.

Fast forward twenty odd years and there is still a little skepticism around flipping houses. Can you really do it? Where do you find the deals?

Then as now, wholesaling real estate is misunderstood. It is as viable as ever, and the opportunity is sitting there, waiting for whoever wants to come and do it. (more…)

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Real Estate Cashflow From Value-Add Multifamily

If you are looking for solid, stable, consistent cashflow from real estate, multifamily value-add opportunities provide the biggest bang for the buck you are likely to find anywhere on the real estate investing landscape.

When thinking of cashflow from real estate though, “turn-key” single-family properties may come to mind. These are expertly promoted packages for the ‘retail’ investor, and do indeed provide good returns. The single-family home is very simple to understand, and the investment returns not hard to know.

As Chris Clothier of MemphisInvest notes in his article, 6 Pieces of Expert Advice on Single-Family Rental Properties:

In real estate investment, there are a lot of variables. Sometimes it’s hard to know if you’re making the right decisions for your financial future. It can all seem uncertain when you don’t know if you’re picking the right properties or the right markets. When it comes to investing in single-family properties, you can rest easy in this: you can always trust the numbers.

Unlike gut feelings and even logical rationale, the numbers always speak for themselves. At the end of the day, you always ask yourself whether or not a deal makes financial sense. Will this property yield the positive cash flow to make it worth it? How much wiggle room is there?   Read full article here …

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Real Estate Cashflow Without The Real Estate

If you like the idea of owning real estate and generating cashflow from tenants occupying that real estate, then advancing technology has just made things a whole lot more interesting for you.

Thanks to the quantum leap in information sharing made possible by the internet, the sharing economy has sprung up. First with Priceline.com for airline seats, but now with AirBnB for individual rooms, apartments, and houses.

You may have though this was a “neat” way for property owners to make a bit more money on vacant units and spare rooms, but it is much more than that. 
Image Credit: Airbnb.com

 If you have been in the house flipping business, buying houses “subject-to” and selling on lease-option, AirBnB has made it possible for you to remove 99% of the hassle and magnify the cashflow.

Brian Page has shown how to create a virtual real estate cashflow business that can get into the six figure range inside a year, using AirBnB to fill other people’s properties.

"After personally experiencing the spectacular real estate crash of the mid 2000’s, Brian Page set out to find a NEW way to earn income from real estate. Starting over, he launched a profitable Airbnb business without debt, mortgages, or even owning his own properties. He earned over six figures in his first six months using Airbnb™ and over $300k his first year."

AirBnB is, to say the least a disruptive technology. And it is the hotel industry being  disrupted here. But as Clayton Christensen showed in the Innovators Dilemma, it is when industry incumbents become so successful they start serving their own interests over the interests of their customers, either by complacency or the evolution of their industry, disruption of the industry is ripe to happen.
 Image credit: Realestateinvestingmastery.com

Think Blockbuster Video (and their late fees) being disrupted by Netflix. More choice, more convenience, less cost.

The same is happening with the hotel industry and AirBnB. There is incredible over capacity with vacant units and spare rooms, and individual owners have the flexibility to make arrangements with occupants on a “makes sense”, win/win basis, often bypassing stringent rules and procedures hotels insist on, at a lower price.

Dollar for dollar, the value received for the renter of living in someone’s home for a short period beats the hotel experience 9 time out of 10.

Plus, the economics of renting by the day rather than by the month put monthly cashflow through the roof.

All of the marketing, negotiating, creative financing and business management chops you acquired and a real estate entrepreneur can now be put into and AirBnB rental business to create a highly automated, low risk, cashflow business.

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