Cashflow. For everyone just getting started in creative real estate investing, and especially those doing this full time, it's critical. We all know that success in this doesn't come overnight, and that regardless of how hard you work, this isn't a get rich quick business. So cashflow, keeping money coming in while building your business, is critical.
When I was laid off from my last (not previous, but LAST - ever) job, I was already looking into investing in real estate. I had not joined a Mentorship program yet, but was reading and studying quite a bit.
My first thought was - how in the world am I going to pay my bills? I was going from a nice six-figure job to unemployment. Granted, my wife and I were part of the minority that lived below our means, saved diligently, and invested in our IRAs. So we had about 4 months income liquid. Not really that much considering I was a well-paid VP for an internet company, and IF I found a new job it would most likely take over a year.
So the first thing I did was think about what to do to increase my cashflow. Some of the following are things I personally did, others I got from other investors, others I thought about but never tried.
1. File for unemployment. Just don't list yourself as an employee of your company, and don't pay yourself.
2. Deliver newspapers. I did this up until fairly recently. One day a week, delivering our local community newspaper pays about $25/hr. And, technically my wife did it, so it didn't affect unemployment. Also, you can put your flyers in the papers every once in awhile.
3. Have a garage sale. Okay, this is a one-time thing, but it can bring in some cash for emergencies.
4. See a good (no, great) accountant. You'd be surprised what kind of a refund you can get by using a good accountant.
5. Have kids. I love my little tax-deductions! Okay, I threw this in just to be funny, but I have 20 more to go!
6. Wholesale. Find deals, and flip them to other investors. One deal every other month can keep your entire investing career going.
7. Be someone's birddog. Find deals for other investors, without signing them up. Post on your local REIA board that you'll do this.
8. Put up signs for other investors.
9. Show properties for other investors.
10. Telemarket. There are a number of companies where you can do this from home part-time.
11. Be a part-time customer rep. One company I know of, Alpine Access, allows you to take customer orders and calls from home part time. The pay isn't fantastic, but you work the hours you want.
12. Find Tenant/Buyers for other investors.
13. Deliver the phone book. Once a year opportunity, but quick cash.
14. Work the holiday. Christmas season is notoriously slow for real estate - why not use that time to pick up some extra cash?
15. Buy creatively. On a BMCC, agree to pay the seller less than you take out on the loan. Put cash in your pocket.
16. Manage Property. We're in contact with so many landlords as it is. Offer to manage their property. If you have a good handyman in your pocket, your work is 90% done.
17. Deliver milk. Okay, sounds weird, but it's very early morning work, leaving the remainder of the day for investing.
18. Rehab. If you're good with your hands, offer to help other investors rehab a property. You'll gain very valuable experience, and earn some money in the process.
19. Be a spammer (well, not really). Sell articles ("advertorials") on the internet. Better yet, write them - topics like "ways to increase your cashflow".
20. Stuff envelopes. Really. I know of a number of investors that will pay you to handwrite envelopes, and stuff them. Just don't get roped into the ones where you have to pay to get a list of people looking for envelope stuffers.
21. Wait tables. Actors and Actresses do it, why not you?
22. Sell stuff on e-bay. This takes a little cash and knowledge, but I know people that do make money by buying junk at garage sales, cleaning it up, and reselling it on e-bay.
23. Get a home equity loan on your existing house. Just remember to pay it back as quickly as you possibly can. Don't stay in debt.
24. Trade Options. A good friend of mine makes his living doing this. Takes cash to do it, and some knowledge, but it's safer than trading stock.
25. Do Network Marketing. Kiyosaki believes this is the next wave.
26. Deliver Flyers. Here's your bonus cashflow method. If you're going to deliver your own flyers, why not get someone to pay you for it.
Okay, a lot of these are beneath you. They're certainly beneath me! Gosh Darn It, I was a VICE PRESIDENT, I had 50 people underneath me, I made critical decisions. Yeah, right up until the day when I became expendable.
If any of you have read The Cashflow Quadrant, you know that Robert Kiyosaki lived in his car for a time when he was building his business. This was AFTER being a top salesman for Xerox.
Don't let your ego slow you down. Remember, no matter how lowly the task, you're doing it so you can realize your dream. Who cares what people think? Or how difficult the work, or how degrading (okay, to a point), or that only teenagers or retirees do this kind of work. Remember that you're doing this so that you can build a business that runs itself, has multiple streams of income, and earns you a great living while you lounge on the beach, or tee off on the 9th.
Keep going, never give up. |
Index Page
