I’ve discussed some of the different ways to generate quick cash in real estate, as these techniques or niches can provide attractive and convenient way to get your foot in the door as an investor. Some of the same techniques also apply to larger buildings like apartments.
I quickly learned that doing a deal with a multi-unit or apartment building took just as much effort as doing a single family home deal, but there was one big difference that made me really excited. In almost all cases, when I closed a deal, there was an extra “0” at the end of the profit check!
How had I missed this before? It made perfect sense, looking back. Bigger deals, bigger prices, bigger profits. What had shielded me from this realization until then was fear. Fear of the larger deal, fear of making that big mistake, and a simple lack of confidence in my ability to handle something that big. Sound familiar? If so, then I’ll help you quickly and effectively get past this hurdle.
Think about what you have been comfortable doing in real estate up until now. Most investors love the median priced homes that are abundant, can be picked up for reasonable discounts, and that can usually be turned for $3,000-5,000 on a contract assignment or flipped as a rehab for somewhere in the neighborhood of $20,000. These numbers seem within grasp to most people and that lulls them into an unnecessary comfort zone.
There’s really nothing wrong with this but, to be honest, it’s only the shallow end of the pool! I found that, with the same amount of effort I could assign contracts on large multi-unit buildings for $30,000-50,000 and could purchase and then flip these same kinds of properties for $200,000! In either case, it was 10 times what I was making on single family homes and it didn’t take me long to decide where my focus really needed to be.
I started focusing more of my marketing on multi-family properties because I wanted more of those really big paychecks! After all, they really didn’t require much more work than wholesaling or flipping single family homes but the reward at the end was huge. I was no longer afraid of those extra zeroes, but rather looking forward to seeing them on my closing checks.
If you were to interview 100 real estate investors, a common goal you’d hear was to become a millionaire. Can you do this flipping single family homes? Sure, but it might take you a while to do it. How about flipping a handful of multi-units instead for the same gain? It does seem to make a lot more sense, doesn’t it?
Can you see how much faster your empire can grow when you embrace those extra zeroes, instead of running away from them? Can you see how much more efficient your business can be when you work with larger deals? Most importantly, can you see how the differences between larger and smaller deals are less about complexity and more about putting much more money in your pocket at the end of the day? I hope you do and stick with me, because I have a lot more to share with you.
