Category Archives: Financial freedom

How to win as an investor

How to win as an investor

Do you like to play baseball, golf and tennis in the summer?

What fun would be if you played sports and did not keep score?

When you don’t keep score you tend to lose complete focus on your goal of winning!  The same can be true when investing.  If you don’t stay focused onto your goals, you will not achieve your goals.  You have to know where you are heading and how you are performing at all times in order to win as an investor!

Imagine rehabbing a house without tracking your expenses vs. budget.  How far over would you go?

Imagine collecting rent from your tenants without tracking who has paid and who is late?

Imagine trying to wholesaling houses without tracking your incoming lead sources and deal flow?

Why You Need to Keep Score When Investing in Real Estate

1.  Focus:  How can you focus on a game or an investment without having a clue about what the score is?  How can you win if you don’t know the score?

The ability to focus transcends just being competitive in nature. When building your investment, you need to focus on the end result or you can easily get distracted. Do you have plenty of time for things like Facebook and Twitter, but no time to focus on the actual exit strategy of the house you’re buying or on building a strong team?

focus

You see my point. Just stay focused, and keeping score will help you keep everything on track.

Focus helps against a terrible habit entrepreneurs have… The shiny object syndrome.  Come on, admit it!  You are in good company on this one!  We see something new a shiny and we just chase it hoping it is the next big thing!  Meanwhile, our core businesses lose focus and begin to suffer!  Just because you see a new opportunity doesn’t mean we should chase it!  Knowing how to keep focus is critical to success!

win

2.  Bad Decisions:  When I was playing sports and not keeping score, I found that I didn’t think at all about what I was doing.  That resulted in some bad decisions along the way.

In your real estate investments, if you make a few too many bad decisions, you’ll find yourself in a world of hurt in a record time. You need to know the score, so you can make great decisions on your overall strategies.  You also need time to think!  This is why I love mastermind sessions because we work on our businesses rather then working in our business!

Write down your goals and specific strategy and regularly monitor your course along the way, and you’ll find yourself achieving your desired results.

3.  Win:  If you don’t keep score, you won’t know if you are heading the right direction or if you’re wining or losing.

I live in Richmond, VA. If I wanted to drive to visit my friend David Phelps in Dallas, I wouldn’t just jump in my car and head west until I finally ran into a sign that points to Dallas. That would be a bad decision and would have no focus–both wrapped into one bad strategy. It would be better to map out the course from Richmond to Dallas and plan the route.

Investing works the same way. Chart your course, starting with an intense focus on what you are working to accomplish. Map out your strategy and take the map that gets you to your end goal. If you don’t know what the end result of all your efforts is, then you never know if you’ve won or lost.

how to win as an investor

Do you know what your number one goal is? 

Maybe it’s your overall net worth, or maybe it’s a monthly residual cash flow.

If you are wholesaling maybe it is the size of your buyers list.

Fix and flipping?  Maybe it is your deal flow.

Working on private lenders?  Maybe you track your ability to build key relationships.

Landlord?  Track your rents received and rental unit growth

Do you have the scorecard in place that provides you with a snapshot of the score on a regular basis? Your scorecard could be financial reports, such as an income statement and a balance sheet or maybe a simple a spreadsheet that lists your assets and the rental income that they produce.

If winning isn’t everything, then why keep score? ~ Vince Lombardi

Be sure that you keep your focus on the end results you are working to achieve. Know the road map that will lead you and that you are focusing on the score of the most important metrics you must accomplish.

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Why to stop investing in CD’s at the bank

Jim Ingersoll eistein version

In my book “Cash Flow Now,” I highlight the importance of compound interest and the difference in long term gains between 6, 8 and 10% compounding interest.

In the case of Certificate of Deposits, they do not even keep up with our inflation rate but their are Billions invested into them.  Users feel they are safe and they can preserve their capital rather then hoping the stock market does not drop like a roller coaster at Busch Gardens!

Enjoy this video on this topic!

Ready to take control of your own future?

Check out our Mastermind and Coaching at Investor Success.

Click here to check out Investor Success Mastermind

 

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Getting Started With Real Estate Investing Entities

Getting Started With Real Estate Investing Entities

plans print

The world of real estate investing entities can be very confusing.

Should you use one for tax benefits?

Should you use one for asset protection benefits?

The answer to both is “YES”

The right entities, used the right way will help on taxes and protect your assets!

Check out this training video from my recent Investors Edge Boot Camp with Lawyer David Stoyanoff discussing benefits of using entities for your real estate investing business.

 

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Real Estate Prohibitted Transactions

Real Estate Prohibited Transactions!

ok, so that title is a bit misleading!

SDIRA

I want to focus on the freedom of using a self directed IRA to invest into real estate.  The freedom comes from being able to do your own investing and making your own decisions on alternate investments outside the traditional stocks, bonds and mutual funds!

Watch this video for tons of info on what you can and can not do using what I call
Real Estate IRA’s

Click here for the video blog

Start your path towards learning financial information and you will head towards the financial freedom your seeking!

 

Click here for the video

 

Jim

 

 

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Stop thinking & Start Making Money on Real estate

ok, I get it!

I am trained as an Electrical Engineer and
I was taught all about variables, formula’s and
how to take your inputs and optimize your
outputs…

katie flip

If you over analyze your real estate deals, you
will NEVER do a deal!

Enjoy this training videos I put together for you today!

How to make money on a real life deal

8 Ways to avoid the risk of real estate

How to find a real estate deal

How to manage contractors when rehabbing houses

Leave me your comments and share with your contacts!

OK, one more so you can save thousands…

How to save thousands on your next rehab

 

Happy House Hunting!

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2 Biggest Investor Hurdles – Finding Deals & Funding

The 2 toughest things investors face right now are:

 

1.  Finding deals

 

2.  Funding deals

 

Investors know that we have an incredible real estate opportunity right before us

but so many are stuck in the mud right now

 

because it is hard to find deals and it is hard to fund deals!

 

If you can clear these 2 hurdles, you will do extremely well creating wealth and cash flow!

 

You KNOW you are working hard looking for foreclosures…but where are the results?

 


You KNOW you need to use private lenders…  but where are they hiding?

 


You KNOW this should be easier, but what is it you’re overlooking?

 


You KNOW there has to be an easier way to fit all the puzzle pieces together!

 

 

People ask me all the time,

 

Jim, what is the one thing I need to do get my investing to the next level

 

I am so glad you asked!

 

Jump-start to finding deals not on the MLS – just $7   ——>  Click here

 

Jump start buying houses with no cash, credit or banks – Just $29—> Click here

Ultimately you want to get yourself focused onto residual cash flow that results from buying income producing assets!

Focus intensely, like a laser, on your cash flow!

Cash flow that can sustain you for the rest of your life and sustain your next generation (even tax free)!

 

Cash flow to pay off your debt
Cash flow to pay for your kids college
Cash flow so you are set for your daughter’s wedding
Cash flow for your LIFE
Cash flow for your retirement
Cash flow for your own medical coverage
Cash flow for your NEXT GENERATION

 

You’re going to LOVE this Cash Flow Creator!

 

It will shift your investing 180 degrees.  I mean it.

 

 

Are you ready to create cash flow? 

 

 

Click here

 

IF you are tired of spinning your wheels and getting no where — Join us!

 


If you are about to miss the best market of our generation — Jump on this one!

Do NOT look back in a few years and wish you learned to create cash flow Now

Check out this systematic approach to building your Cash Flow and Long Term Wealth.

 

1.  Strategic Aquisitions

2.  Strategic funding

3.  Strategic rehabbing

4.  Strategic Property Management

 

That’s right…

 

Once you have the right education and strategy you will be ready to create your cash flow!

By the way, there are a ton of amazing bonuses with

 

The Cash Flow Creator

I look forward to seeing you in the Members Area Today!

 

All My Best

 

Jim

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State of the union market updates… Replay Link!

We had a TON of great feedback on this call & a ton of people ask for

this replay link

http://bigmoneyinvestor.com/state-union/

We talked about:

1.  Dodd-frank – Is this the end of seller financing?

2.  Finding deals – No more low hanging fruit from the MLS

3.  Funding – Funding without needing banks

4. How to inherit a Roth IRA

2 hours of pure content with myself, David Phelps, Daniil Kleyman and Walter Wofford

Here is the replay link, enjoy this 2 hours of pure investing

content!

http://bigmoneyinvestor.com/state-union/

 

In case you have not taken my FREE gift yet, here is the link to download my Cash Flow Now book for FREE:

http://www.bigmoneyinvestor.com

 

All my best to you as you increase your cash flow!
Jim

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Cashflow for Christmas?

A lot less people send formal Christmas Cards now they did several years ago, but

I am sure you still received some cards from family and friends that

tell all about their year, family events and vacations they took….

Holidays are all about connecting with family and friends – I get that.

My question and challenge to you this year is this…

What do you want your Christmas Card to say next year when you mail it out?

Are there places you want to go?

Family and friends you want to see?

New memories to make?

It may sound crazy, but this week write out your Christmas Card for next year!

It will cause you to begin to reflect on 2013 and look ahead to your goals and results you

want to achieve for next year.

A lot of people ask me what my focus is each year, so here is mine:

CASH FLOW

Positive, residual, passive cash flow that comes from investing in

hard, local assets that produce income each and every month.

The rental market is very strong right now and we are finding great tenants

recently making this the best time ever to build a portfolio that will produce

income for a very long time!

Merry Christmas!

IF you take my challenge, send me a pic of the Christmas Card you write yourself and I will

send you a FREE gift!

Email them to me at:  jimingersoll@comcast.net

Happy Holidays!

Jim

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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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