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As business owners and Real Estate Investors, our greatest concern on a daily basis is covering our monthly personal and business income requirements. Unfortunately, far too many Investors don’t realize this until it’s too late! For this reason alone, most investors are not in Real Estate Investing very long because they are hoping to bag the BIG ONE. For most of us, the big one doesn’t come until after we’ve been investing for a while.
Last December, I was attending an event in Florida where I met a woman that was stressing out because of not having enough cash flow. She told me she had 6 properties that she was controlling through Lease Options. The backend payments, or her cash-out amounts, were all substantial. However, she told me her first cash-out wouldn’t happen for at least another six months. Her problem, as she began to tell me, was that she was close to filing Chapter 7 because of her lack of income to cover her car and mortgage payments. So, was her problem an issue of too much debt? Absolutely Not! Her problem was that her business model didn’t allow for consistent monthly injections of cash. And unless the cash injections are consistent, you can’t count on them to cover your bills.
Predictable cash flow is why most people will never be self-employed. Most people need to see their paycheck from their employer every week or every month. They want the false sense of security that comes with being an employee. But shouldn’t we, as self-employed business owners, want, and even expect, the same when it comes to getting paid? Now you can control your Cash Flow more by incorporating Forbearances into your business model.
Most people in Foreclosure don’t want to lose their home and they don’t want to sell you their home either. So, if you’re currently marketing to the pre-foreclosure market and you aren’t trying to help the homeowners keep their home, then you are throwing away a TON of money every month. And that’s money that you can use to help cover all of your personal and business needs! Besides, when you help people save their homes, many of them still won’t be able to keep it for one reason or another and as a result, you’ll get even more short sales. In other words, by helping people keep their homes from Foreclosure, you can make more money, get more short sales and help cover your monthly Cash Flow needs.
This article was provided by Mike King of Fresh Start Property Solutions. Mike King and partner Steve Telford have been a customer of ours for a long time and I believe that they know more about negotiating and making money with Forbearance Agreements than anyone out there.