How 3 beginners became winners with great deals blog by Larry Arth for personal real estate investor magazineI sometimes think I have the best career available.
I get to meet people from all over the world, and I am always inspired by the goals and objectives people have. A very common trait that the winners all have is a long-term vision about what they really want.
Often I hear people simply say, “I just want to buy anything that makes sense,” or “I want the really, really good deal. “
To me this is code for, “I really do not know what I want.”

How 3 beginners became winners

No. 1 — Investor diversifies

Investor bought this cash flow property blog by Larry Arth for Personal Real Estate Investor Magazine

A Malaysian investor bought this cash flow property.

Many of our foreign friends win the prize when it comes to having strategic investing plans in place.
This friendly little lady from Malaysia called to tell me she had purchased a couple of properties in the Midwest and wanted to diversify her portfolio. She was already cash-flowing nicely with her first two purchases and wished to invest in at least one new investment each year.
Diversifying her portfolio was important to her. She had two properties in the Ohio and Indianapolis markets and now wanted another one in a new market.
I connected her to this nice cash flow market of Memphis, Tennessee. A nice single-family turnkey property that she picked up for a great price is generating her close to $600 per month in positive cash flow.
As she was very motivated to diversify her investments, her next investment was a real estate note in the Birmingham, Alabama, area. This investment intrigued her, as it was different than the turnkey properties in which she had been investing. With the note purchase she essentially played the role of the bank. The investor used her money to purchase the property, pays her a fixed 8.5 percent interest rate each month and after five years they sell the property and split the equity growth 50/50.
As the note (original purchase price was $58,000) and the anticipated value in five years will be $78,000 she will receive 50 percent of the equity growth, or $10,000. Essentially this investment was extremely passive, generating her almost $500 per month without any management headaches whatsoever and a nice safe equity position as well. Needless to say, she is now eager for her next investment and is enjoying the journey to get to it.

No. 2 — A single woman buys three turnkey properties:

This young woman from Michigan called me one morning to learn more about real estate investing. I found the conversation most interesting, as the opening statement seemed a bit premature. She started her conversation by saying, “I would like you to be my mentor.”
I was curious, so I asked her to elaborate. It turns out she had wanted to invest for some time. She said people either made investing sound too detailed or complicated, which scared her away, or they over-simplified it — making it seem unbelievable.
She has been reading my posts and liked my no-nonsense, no-hype, only substance and common sense information and believed I could help her get up and running with investments.
While I was not in the business of doing one-on-one coaching at that time, I loved her spirit and was compelled to help her.
Over the course of about six weeks, we spoke a couple of times each week. She was perhaps one of the most coachable people I have met. We ended every call with an activity for her to address that would create clarity for her. At the end of six weeks she was prepared both mentally and financially. Within the six weeks she identified exactly what she wanted to buy, why she wanted to buy it, what her short- and long-term goals were and the exit strategy she wanted.
This woman was a saver, and over time she was able to generate a saving account that would afford the opportunity to buy and pay for one single-family rental property in cash, or she could leverage it and buy two or three.
Based on her circumstances and risk tolerance, she opted to finance the property. She put down 30 percent and leveraged the other 70 percent. She ended up buying three different turnkey single-family homes. Each property had three bedrooms, two baths and a two-car garage with a three-year tenant in place. She has generated a net positive cash flow now for the past year of roughly $700 per month. She has done the smart thing and bankrolled that into a future down payment on her next property. She is well on her way to creating a solid passive investment for her future, and she now has better clarity to truly set investment goals to propel her forward with a pre-established end game.

No. 3 — Island dwellers take to investing: I love it when investors have a plan

Investors bought this cash flow property blog by Larry Arth for Personal Real Estate Investor Magazine.

Investors from the Republic of the Maldives bought this property.

One of my favorite clients was a couple from the Republic of the Maldives. They make a decent living and wanted to invest for their future.
Living on a small island, they really had few options to actually go and spend their money, so they have been able to save plenty. They saved enough to purchase a home for cash every year to year and a half. Their plan is to buy at least 12 properties over the next 15 years.
Their first purchase was a newer, 1,500-square-foot turnkey home for around $90,000. This three-bedroom, two-bath, two-car garage single-family residence is generating a nice positive cash flow of about $700 per month and is leased for three years. Reinvesting this cash flow back into their savings pool is now preparing them to make their next purchase. Again, this will be a cash purchase and will generate another $700 or better each month.
The goal of $10,000 per month in positive residual (passive income) is very much a reality. Not only will the monthly income be there, the value (an estimation of 15 properties at $100,000 average price) of $1.5 million in assets — along with the equity of these properties — will be there and growing in value each year as well. Indeed, this couple has a plan and is executing it well.
I find that investors who do not simply want to buy an investment property but actually have a bigger picture in place are always the action-takers.They do not deviate from the plan and do not get caught up in chasing the shiny object. These action-takers work through the diversities of investing and become winners.

Visit Larry’s site here.

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  • Larry Arth

    Larry Arth is the founder and CEO of Equity Builders Group, a Florida-based real estate investment group. A 36-year veteran of real estate investing, Arth also is an international consultant and speaker who each year assists hundreds of investors, both foreign and domestic, in realizing their investment potential. He analyzes locations for economic strength and for the largest and most sustainable returns and, most importantly, sustainable turnkey investment. His focus is offering turnkey investments to the passive investor. Visit his website at www.howtobuyusarealestate.com.

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