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Creating Long Term Income article by
Bryan C. Wittenmyer |
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Landlording has become a negative word these days in many
chatrooms and investment circles. It seems that landlords are often viewed as
dingbats, who enjoy getting abused by tenants for a few lousy bucks at the end
of the month. Frankly, I've met a few of the above and probably have fit that
description on more than one occasion.
When done improperly, landlording can be a grind. But let me tell you, there are
few opportunities for energetic people that can be as rewarding as Income Stream
ManagementTM.
Let me offer this first bit of advice. You can use the term landlording in
common interaction with others, but in your own mind begin to reframe the way
you see landlording. You control and manage an income stream. A cash flow. A
simple concept with profound meaning.
With all of the knocks landlording takes, few business or investment
opportunities provide the potential freedom and long-term income that owning
income properties will give.
Key #1
The first key to making Income Stream management rewarding is very fundamental
and basic. You absolutely, definitely must buy well below fair market values. It
must be what some would call an outrageous deal. This type of purchase will
provide cash flow almost immediately. Next, this type of purchase typically will
payoff in 5-10 years on a mortgage. When paid, you have basically creating a
small lifetime annuity. The net income each month will be $250-375 per month.
Key #2
The second key is you must know and understand proper fixup and repair
techniques, because this will keep you from being frustrated when tenants
mishandle your property. Also, you will avoid burying cash into the deal. Don't
bury your cash. If your not the handy type, don't despair, neither was I. The
concepts and methods are learnable by anyone, male or female. You don't have to
do the work if you have either the time or patience. Just learn the concepts and
direct others. I do.
Key #3
Thirdly, you must be able to manage the revenue coming in to your checkbook.
This is done two ways. You must select the right tenant profile. The right
person to pay you. Choosing the right tenant can eliminate 70% of all misery.
The second part is achieved by handling your cash flow wisely; paying mortgages
strategically so you can get the property free and clear as soon as economically
feasible. Last in revenue management, you must handle the administrative details
of the paperwork flow that accompanies all real estate ownership.
I've met literally hundreds of real estate investors, and the ones, who seem to
ultimately prosper the most and create the most wealth, are landlords and real
estate owners. Buying and selling has its place, but developing income via
income producing assets is the place where long-term income is creating along
with large equities.
Let's get back to reframing the way you view yourself. You aren't a landlord.
You are an income stream manager. You manage cash flows just like a multitude of
other industries. You are in reality not much different than a banker. Banks
control capital and then re-lend or rent that capital out in the form of loans.
You control capital also. You also re-lend that capital out in the form of
shelter. The user pays a fee called rent. This control of capital and renting it
out is the same whether you are a banker or landlord. It is income stream
management.
The big companies that own cable or wireless phone service are income stream
managers just like you. When AT&T buys a cable company they aren't interested in
the entertainment industry. They are buying an income stream. Income streams are
assets that are totally salable and measurable. Rental income from houses,
garages, rooms, or mobile home lot rent are all measurable income streams.
Your first job is to start changing your mentality. From landlord to income
stream manager. Once you do this you'll start to respect yourself more and make
better decisions.
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Tips for developing Real Estate Technician skills
article by
Bryan C. Wittenmyer |
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If you're a serious real estate investor, one of the best things you can do is
work towards becoming knowledgeable in what we call Real Estate Technician
skills. To review, a real estate technician is someone who understands the
legal documents and flow of paperwork that accompanies a real estate transfer,
or more technically, a conveyance.
There are many types of transfers: Legal title, equitable title, a real estate
interest like an option, a leasehold transfer, assignment (transfer) of note
or some other contractual interest.
A real estate technician also has the knowledge to draft basic real estate
documents like deeds, notes, assignments, options, and a host of other
documents. The technician will use his own research and the aid of various
legal form software to handle his documents, but he always is smart enough to
have a knowledgeable lawyers or title company professional to review his work,
especially in the early phases of his experience.
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