Category Archives: cash flow

Top 3 Reasons To Invest In Single Family Homes

Top 3 Reasons To Invest In Single Family Homes

Here are 3 reasons to invest in singly family homes.  One of the incredible benefits of investing in real estate is that you can choose to invest in a number of different asset classes including:

Commercial, Multi-Family, raw land (subdivision, infill lots), Mobile homes in parks, Mobile homes on land, Single Family Homes and Duplex’s and Quads.  Which is your favorite?  Leave me your comments below.

Here are the top 3 reasons that I like to invest in single family homes.

single family homes

1. Leverage – Maximize Your Return on Investment

Learning to use other people’s money for your investment will allow you to leverage your single-family homes 100%, which provides an infinite return on investment.

Instead of investing your cash and using your credit, you can learn to buy single-family homes and invest your knowledge into your deals.

Even if you decide to finance with a bank, you’ll likely be making a 20% down payment on your single-family home.  If you buy a single-family home for $100,000, you’ll need a $20,000 down payment as your investment, but the cash flow you create will be a strong return on that $20,000 investment.

2. Growth – Equity, Amortization, and Appreciation

All investments are expected to grow.  There are a number of ways that single-family homes will grow your investment.

Houses are still relatively cheap.   On top of the overall pricing being attractive, real estate investors know how to buy houses on sale in every market. A $100,000 house can be bought for $70,000, which creates $30,000 of equity upon purchase.

Additionally, if you finance your purchase with with a bank, you will enjoy amortization that comes with principle pay-down, so you owe less on your investment each year.

Interest rates have been low for a long time now, none us can predict how long this will last but as long as they are very low it will remain a good time to buy single family homes.

Over the past few years, most markets have enjoyed nice appreciation levels.  In West Coast markets, Florida and Las Vegas there has been tremendous equity gains from appreciation.  No one knows how this will continue in the years to come. I add it as an additional potential investment advantage.  Real estate tends to be hyper-local, so every market and every sub-market is different.  In each market there are pockets of gentrification adding another form of forced appreciation.

3. Tax Benefits

As you begin investing in real estate and holding onto your investment, you realize there are a lot of great tax advantages that accompany your investments. For example, rental income is considered to be passive income and not subject to self-employment tax.

Depreciation allows the investor 27.5 years of deductions on your property and the equipment that makes them habitable (heat pumps, appliances, etc.).  Mortgage interest is typically the investor’s single biggest annual expense, but the good news is … it’s deductible. Other expenses that can provide tax benefits can include mileage, home office, repairs, etc.  The depreciation is a huge benefit to investing in single family homes.

single family homes

These are the first 3 reasons I like to invest in single family homes.  How about you?  What is it about investing that you really enjoy?  Maybe transforming houses and neighborhoods to their former glory, monthly cash flow or something else?  Leave me your comments below!

Please consider shariing this with your social media contacts!

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How to invest in hot markets with Creative Real Estate Strategies

How can I invest in commercial real estate, higher end houses or in my market at all now that it is HOT again?
 
 
 All roads always lead back to financing!
 
crazy road
Could you find a way to buy houses for close to what they are worth in your own market?
Of course you can, but investors NEVER pay full price right?
Sometimes you can pay nearly full price if you have the right strategy of course!
Recurring income 250x250 
IF your strategy is cash flow AND you can get great terms with minimal investment would you do deals?
 
 

About 40% of all houses are free & clear and if you know how to make the right offer you can get seller financing.

Are you ready to learn the seller financing secret –> Click here to learn more

Let’s say the seller is willing to sell his $400k home to you if you put down $40k and he finances the remainder at 5% interest. In my market here in Richmond, VA a nice $400k house will rent for around $2,350 per month. You can check this by doing a fast Zillow search

Your monthly payment (p & i) will be about: $1,932 per month

Are you saying to yourself, sounds good Jim, but what about the $40k down?

See it always comes back to your strategy.

Lets assume you want to cash flow without managing tenants? You can seller finance to an owner occupied buyer who has cash for a down payment, but does not quite qualify for traditional loans at the local bank.

Are you ready to learn the seller financing secret

Learn this strategy now –> Click here to learn more

Stay with me and read this email twice if you have to:)

Your new buyer will buy this home from you as-is for $450k, will put down 15% and is willing to pay you 8% interest on a wrap around mortgage (wraps your seller financing).

You can close this transaction simultaneously (like a wholesale deal) & here is what happens:

You buyer brings 15% down on his $450k = $67,500

Your buyers monthly payment is: $2806

At closing you walk away with $67,500 – $40,000 = 27,500

You monthly cash flow = $2806 – $1932 = $874 per month

Good news —– This exact same deal strategy works on commercial deals.

 
BUT, you can not find these deals on the MLS and your local bank won’t do them.

 

Learn to structure seller financing and succeed in HOT markets & with Commercial real estate!

Here is where to go to learn more —>  


Learn seller financing deals

 

All My best (read this one twice if needed)!
Jim
 
PS –  If you really want to learn creative financing strategies like this one, you really should join me at my boot camp coming up in weeks.
 

 

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10 Must Read Investing Articles for your reading list this week

By Jim Ingersoll

The very best investment you can make is to invest in yourself!  One great way to do it that is totally FREE is to read these 10 articles that I have personally written and selected for you this week.

Grab Your FREE investing kit Now- How to get set up as a real estate investor with the right foundation.  Here is a great toolbox that will help you get started.

 Grab your kit now —->  Click here for YOUR free kit

Take them with you to the gym, read them on your mobile device AND be sure to SHARE them with your Facebook, Twitter and LinkedIn connections!

Real-estate-investment
How to renovate a house for a tenant

Should you wholesale or buy rentals?

 

How to collect income producing assets

Cash flow and equity investing case study

5 Traits of highly successful investors

How to joint venture with a retirement account

10 ways to increase your cash flow in rentals

Show me the private money!

Investing for infinite returns

How to use other peoples money for your deals

How to build a portfolio of rentals without needing a bank

Thanks for SHARING and LIKING these articles I had picked for you!

 

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How to leverage real estate and structure private lender financing with David Phelps

By Jim Ingersoll
Enjoy this 10 minute video of my good friend David Phelps talking about the importance of leveraging time and resources
when completing real estate deals.  Everyone could paint, do yard work and clean our own houses, but is that the most
effective use of your time, energy and abilities?

Maybe you could be out finding more motivated sellers and structuring more deals if you outsource and contract other
components of your real estate investing models.

David also highlights the anatomy of a deal and the  how and why to use equity financing in your investing models.  Enjoy this video, leave me comments
and please share this video.

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Are you ready for investing in 2013?

Right now is the time to get ready for 2013!

How much more cash flow do you need?

How many houses will it take to increase your cash flow to meet that goal?

“There is no better day then today to plan your future” Jim Ingersoll

That quote is on the back of my “Cash Flow Now” book and I do love it! You can get my book on Amazon, Kindle or paperback, with this link

Cash Flow Now by Jim Ingersoll

As a side note – If you have read one of my 2 books, PLEASE leave me a review. I greatly appreciate all reviews.

3 Things to begin to prepare you for 2013:

1. Read my book cash flow now and determine if you are going after transactional income (flipping houses, wholesaling) and/or  passive income (rental portfolio, private lending)

2. Join me at my Mastermind meeting this thursday December 6th. Email me for details: jim@investingnownetwork.com

3. Join me at our lunch-time webinar with Selina Stoller today as we dig into the real estate note business.

Phone number: (206) 402-0100
PIN Code: 331285#

To attend, visit:
Jim Ingersoll and Selina Stoller Free Investing Webinar

4. Email me for my special report on Private Lending, ok I added a 4th item as a freebie for you today – Enjoy!  Email Jim :  jim@investingnownetwork.com

Set your goals now and lets get your game plan together so you can hit the road running in 2013.

I have some big nationwide type announcements coming for January that will allow me to connect with you regardless of where you call home… stay tuned!

Happy House Hunting!

Jim

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Case study for cash flow and equity

By Jim Ingersoll
When you eliminate the bank from your investing equation, there are only two relevant parties in the transaction–the investor and the private lender. The real estate investor is the “catalyst” who does all of the work for the investment including:

  • Find the property and negotiate the sale at a great price
  • Manages the closing
  • Completes the property fix-up to make it “rent ready”
  • Manages the property (landlording)

The private lender is completely passive and does no work, but supplies all the money for the investment up-front at closing for the catalyst.  The funding includes all closing costs, all repair costs, and all funds required for the acquisition, so the catalyst has no money out of his own pocket.

When the catalyst works directly with private lenders,you have a winning combination for cash flow using a joint venture arrangement.  The best part of this joint venture is that both parties are critical to the overall success of the investment.

A Case Study for Cash Flow & Infinite Returns

The catalyst markets and finds a great deal on a 3 bedroom, 2 bath home at a 40% discount price point (60% loan-to-value ratio).  What that means is the purchase price and all fix-up costs will not exceed a total of 60% of the after-repair-value of the home.

Purchase price: (includes closing costs) $ 40,000
Fix-up costs: $ 20,000
Total investment required: $ 60,000
After repair value: $ 100,000

The total investment required is $60,000 and the after repair value of the property is $100,000, which leaves $40,000 of equity once the fix-up is completed on the property. The catalyst found the deal, negotiated it, and performed the fix-up, while the private lender funds the entire transaction expense of $60,000.

In my market here in Richmond, VA, a house like this one will be a typical 3 bedroom, 2 bath house in a working class neighborhood. This house in Richmond will rent for $950 per month creating a nice income stream for the joint venture investment.

The catalyst used none of his own money to get monthly cash flow and an infinite return.

The primary on-going expenses associated with holding real estate are taxes and insurance. In Richmond, the taxes and insurance combined will be about $150 per month for the house in this example which leaves $800 net rental for the on-going monthly income stream for the joint venture.

The $60,000 investment has now been used to pick up $40,000 of gross equity and a $800 monthly income stream. I hope you are wondering how this gets applied back to the members of the joint venture because the answer is… any way that the Private Lender and Real Estate Catalyst come to terms.

For simplicity sake, let’s assume that the two joint venture members agree to a 50/50 split in this venture.

With a 50/50 split, the $800 monthly income stream is split so that both members receive $400 each month; along with this monthly income stream both members also will share the upside equity at some point in the future.

What Did Each Member Earn?

Let’s make one last assumption to show how the ultimate return can be easily calculated for both members of this joint venture.

Let’s assume that both members hold onto this investment property for five years then sell it for $100,000, which is today’s value of the house. What did both members earn on this joint venture?

Private Lender earnings:
$400 per month for 60 months: $ 24,000
Upside equity split of the total $40,000: $ 20,000
Total return over the five years: $ 44,000
Total investment made: $ 60,000
Annualized return for private lender: 14.66%
Real Estate Catalyst earnings:
$400 per month for 60 months: $ 24,000
Upside equity split of the total $40,000: $ 20,000
Total return over the five years: $ 44,000
Total investment made: $ 0
Annualized return on investment: Infinite

Everyone Is Happy

The private lender made a very strong return of 14.66% annually and his $60,000 investment turned into a $104,000 at the end of the five years.

The real estate investor (catalyst) used none of his own funds, enjoyed $400 per month in cash flow and an overall return of $44,000 over the five years. The catalyst enjoyed an infinite return because he used none of his own money in the investment.

How many houses would you want to buy and hold this year and earn $400 per month on each house? I challenge you to establish a plan and invest in yourself, so you can easily structure investments similar to this one.

 

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Cash Flow Now Kindle Edition – FREE gift from Jim

I have some great news for you today!  Through Amazon Kindle Direct Publishing I have set up a promotion of my latest book, Cash Flow Now, where I can give away copies for FREE.  This promotion is for TODAY only so you need to act now in order to get it.  The normal price of the Kindle edition is $4.99 so get the FREE copy now using this link:

Cash flow Now on Amazon by Jim Ingersoll

 

In this book I write about multiple streams of real estate income in an easy to read format and cover a lot of strategies including wholesaling, flipping houses retail, private lending and investing for retirement using self directed IRA’s.

Here are some of the endorsements I received:

“Cash Flow Now offers a simple but powerful approach to generating real estate cash flow in today’s market. Author Jim Ingersoll does a great job showing how anyone can generate monthly cash flow from today’s real estate opportunities. I’ll be strongly recommending Cash Flow Now to our 70,000 Newsletter subscribers.”

J.P. Vaughan, J.D.
Publisher, Creative Real Estate Online

Financial security, before anything else, is of paramount importance. Cash flow, when secured by hard assets, is the basis for creating multiple streams of diversified income that leads to security, options and finally, financial freedom.

“The Dallas Mavericks owner is famous for his business advice and said, “sales cure all.” Another way to could be said is “Cash Flow Cures All.” If you don’t have cash flow, you have stress. This book is a must read for anyone looking to plan for the future and enjoy life more.”

Ron White – 2 Time USA Memory Champion –

“Cash Flow is the life blood of any business. Simply put, generating a healthy cash flow from you real estate investments not only allows you to quit your job, it also allows you the ability to live an enviable lifestyle. Jim Ingersoll does a wonderful job of showing you how you can do this for yourself and your family. A must read for every real estate investor or anybody contemplating getting into this fascinating and very profitable field.” – Scott Britton

Scott Britton, Realtor
“Creative Real Estate Solutions”

If you already have a paperback copy, you may want to get a copy for your Kindle today using this link:

Cash flow Now on Amazon by Jim Ingersoll

 

If you have read my book, please leave me a review on Amazon or Barnes and Noble.  Both sites have a super easy review capability for users.  If you leave me a review, please “share” it with your social media contacts as well.

That is it, super easy and a FREE GIFT from Jim!

Enjoy and spread the news by sharing with your social media contacts in facebook, linked in, twitter and Pinterest!

Cash flow Now on Amazon by Jim Ingersoll

 

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Getting off to a great start

By Jim Ingersoll
Getting off to a great start is always important.  The summer Olympics are coming up this summer in London, England.  The athletes are preparing now and will be ready to roll.  The track and swimmers are especially keen on the importance of getting off to a great start.  When their starting gun fires, they are flying out of the gate!

 

My new book, “Cash Flow Now: How To Create Multiple Streams of Real Estate Income” was just published and it is off to a great start.  Have you got your copy?  If not, follow this link to get it Now:
Cash Flow Now by Jim Ingersoll

If you have already read my real estate investing new book I would love to hear from you, drop by my facebook page, send me an email or leave me a review on Amazon.  Leaving the review is a big help to me and much appreciated!

When you buy a house are you ready to roll like the Olympic Athletes?  Day one you should be working on the house, starting the repairs and renovations to get it ready to rent or sell.  DO NOT wait, instead start immediately.  Have the dumpster delivered if needed, have the utilities already turned on and have your contractors lined up and ready to attack their new project (your investment).

The real estate market is the same way.  I believe we have already bottomed out and now is the best time of our lives to invest, DO NOT hesitate or you will miss it and in a few years you will look back and WISH you had bought more houses!

To Your Success!

 

Happy House Hunting to you!

Jim Ingersoll

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Extra, Extra – Read All About It! Start YOUR Cash Flow Now!

It is official!  My new book, Cash Flow Now: How To Create Multiple Streams of Income is now PUBLISHED and available on Amazon and soon will be on Kindle, B&N, etc

Buy Cash Flow Now on Amazon

I present a number of different income streams that can be produced using real estate including:

Flipping houses retail – Fix, renovate, sell

Wholesaling houses – Find, sell and make money in the middle of the deal

Buy and hold – Ultimate plan for everyone for residual income and wealth

Be the Bank – Private lending income streams

I have chapters on “Everyone Has Money Problems” and “What Would Albert {Einstein} Do” and more!

You will love the subject 2 chapter by Michael Jake and the Intro by David Phelps!

 

When  you buy a copy, please do so this weekend and help with the following:

1. Click the “Like” tag

2. Click that you agree with the Amazon “Search tags” at the bottom

3. “Share” your purchase socially

4. PLEASE leave me a short review (reviews do not have to be long, but help authors way more than most people ever realize 5. LAST – Please share this link to your profile and group pages with a short message like “My friend Jim Ingersoll just published his second book, check it out, and find your financial solutions!” THANK YOU SO MUCH!

Alright, go start your Cash Flow Now!

Thanks to everyone

Jim

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Investing Now, Cash Flow Now, Freedom Without Banks, Warren Buffet & More…

Can you believe we are at the end of April already?  This year is 1/3 OVER so I am asking how is your progress on achieving your goals for 2012?

Are you on-track?  Need a little adjustment?  Need some red-bull to prime your pump into motion?  The good news is that you have 2/3 of the year still ahead of you & you can make the necessary adjustments to meet your goals!

Remember  what Warren Buffett recently said during his interview on CNBC

“If I had a way of buying a couple hundred thousand single-family homes… I would load up on them because single family homes are very cheap right now”

This book focuses on several income streams, both passive and active, including:

Wholesaling, Fix and Flips, Buying rental properties, Private Lending income streams (and more of course)!    My new book, “Cash Flow Now: How to Create Multiple Streams of Real Estate Income” should be available within 3 weeks.

Have you heard our FREEDOM Mantra?  I have scheduled a Freedom Boot Camp in Richmond, VA with my good friend Doc. Freedom (aka Dr. David Phelps).  He rings the Freedom Mantra louder than anyone I know.  We will show you how to gain your freedom from debt, freedom from your boss, freedom from a declining 401k (you get the picture)!

Plan to join us for the “Ultimate Freedom Without Banks Boot Camp.”  Everyone would like more passive cash flow that works for you, rather than you working for the cash flow and that is what the weekend is all about.  The main focus of the boot camp is about finding and using private lenders to buy as many houses as you want (without banks, without cash, without credit), real estate joint ventures, asset protection strategies to keep you off of the radar and creative seller financing deal structuring!  We have a lot of bonus’s set up for you when you make an early commitment to join us.  Are you ready to invest in yourself and into your own financial freedom?  Register now at:

http://investingnownetwork.com/investing/

Once you commit to registration, you can immediately jump into our monthly coaching program and enjoy it from now until the boot camp for FREE as my special bonus!  The normal price of our monthly coaching, with David Phelps and I, is $97 per month…  so enjoy it for FREE with your registration!  There is a 100% money back guarantee with all of our boot camps, so if you sign up early and your summer plans change, we can refund you with no problem!

Our Mastermind Coaching is really starting to take off and catch the interest of a lot of people.  Follow the link below to see a short video that was taken from last weeks mastermind.  They are set up to focus on income streams presented in my new book and all masterminds use the premise to eliminate banks, buy houses and generate income:

1.  Wholesaling

2.  Fix and flipping

3.  Buying rental properties

4.  Using your capital to create fantastic returns

YouTubeMastermindVideo.com

Want more info on masterminds?  Follow this link and then complete the short info box on the bottom and I will send you back a short application with more information.

http://www.investingnownetwork.com/coaching/

Finally, I am speaking twice in the next couple weeks, check it out and join me for a great time!

April 25th in Richmond, VA at RREIA

http://www.facebook.com/events/272361456188539/

6600 W. Broad St Suite # 150 (Keller Williams)

Richmond, VA

 

Charlottesville, VA

Tuesday, May 8, 2012
6:00 PM

Courtyard Marriot
638 Hillsdale Drive
Charlottesville, VA 22901

http://www.meetup.com/CvilleInvestors/events/60161612/?a=co1_grp&rv=co1

Well, that is it for this monday morning!  Warren Buffett is right!  Real estate is on-sale, readily available and the time to capitalize is right now!

I trust each of you are on-track or will make the needed adjustments so you can enjoy the market we are in!

To your success

Jim

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