Posted by Don(Az) on August 09, 2001 at 20:20:31:
Hi Trevor,
I live in Arizona would like to chat with you.
Don(Az)
Making a career on lease options? Longevity? - Posted by Nathan(oh)
Posted by Nathan(oh) on August 09, 2001 at 17:35:51:
I have finally got my LO machine cranking about 1-2 houses per month signed and sold. I am finally making money. My first fear was being able to get deals. Then it was being able to get rid of them. Now my fear is that this fortune may not continue especially into winter. I know many people such as Lori Samson, Matt B, JohnBoy, etc make a good living off of lease options, but I am wondering if there are any tips too safeguard a down time or to increase chances of longevity. My ads are my only source of income so to speak. Does anyone have any suggestions for building passive income and for having some sort of investment vehicle to fall back on in case my ads stop pulling or it gets slow? Thanks for all of your comments.
Nathan
Re: Making a career on lease options? Longevity? - Posted by JPiper
Posted by JPiper on August 10, 2001 at 08:39:35:
Your post puzzles me…makes me feel like I missed something.
If you’re doing sandwich leases (my assumption), then you should know that you have at least 3 profit centers: 1) upfront cash 2) cash flow 3) backend profit.
If you’re doing 20 deals per year, then i presume that your cash flow might be $3K per month from that source alone.
What did I miss?
JPiper
Why not try rentals? - Posted by ken in sc
Posted by ken in sc on August 10, 2001 at 07:32:38:
Rental houses are a great way to make phenomenal returns on small amount of monies invested. And you already know houses, contractors, your market, etc. If you buy 2 rental houses per year properly leveraged, in 10 - 15 years you will have a high net worth (over a million $). In 4-5 years you should have a good positive cash flow to carry you through the slow times if any in your ls/op business. That is my plan, in fact I look at it as my ls/op business must support my family until my rentals will, not that my rentals take me through slow times. Managing 20 rental houses is not near as much work as ls/op’ing 20 houses per year, take my word for it.
John Schaub says that many investors can point to property that they used to own, but it is what you own and let get paid off that makes you rich.
Ken
Re: Making a career on lease options? Longevity? - Posted by JT - IN
Posted by JT - IN on August 10, 2001 at 06:38:36:
Nathan:
The key is to Diversify… Both in what you invest in and how you invest. Meaning , as you become more successful, (not that you are not now), and create surplus cash, you may want to consider investing some of your cash into other investments, outside of RE.
Likewise, you should Diversify within RE, meaning, explore other types of RE investing, in the event that your fear of L/O downturn, etc., actually occurs. There are so many ways to make money in RE investing, and obviously, you can’t do all of them successfully, but mastering another method, or two, may not be a bad idea. As for which one, well find what fits your personality and desires, then forge ahead, all the while keeping your L/O machine cooking “full steam ahead”.
Just the way that I view things…
JT - IN
You can do what I did. Move to Arizona. - Posted by Trevor
Posted by Trevor on August 09, 2001 at 19:03:58:
He he he.
Re: Making a career on lease options? Longevity? - Posted by Nathan(oh)
Posted by Nathan(oh) on August 10, 2001 at 18:05:56:
That is assuming I can get 20 deals per year. I am on pace for that I am pretty sure, but what if my market slows or investors increase or both. I am just looking for a way maybe to fine tune my lo plan as well as create more passive income, close to 2k-3k a month. I don’t know much about rentals or other options besides lease options. I have tried flips, but can never get offers accepted. Thanks.
Nathan