Memphis CashFlow, GP

Just 4 Ways to Make Money in Real Estate

2010-11-24T11:39:00.000-08:00

As a real estate investor, are you looking to make money? When it comes to income property, there are four ways to make money. The four basic returns are:

1. Cash Flow

2. Appreciation

3. Loan Amortization

4. Tax Shelter

I am not saying that every income producing investment property will provide these returns in equal measure, but you are sure to get a mixture. Some investments may even lack one or more. For example, one property may give you a good cash flow; another may yield little or no cash for years but offer a great return when you sell one day (appreciation). The decisions you make in real estate investing will depend on your personal goals and the strengths of these returns. If you understand them and how to calculate the---you are well on your way to success!

For more information on investing in real estate, go to www.memphiscashflow.com or contact me at
natasha@memphiscashflow.com

Cash is King in Real Estate Investing

2010-10-12T21:52:00.001-07:00

Cash is king in real estate investing was a common phrase from my mentor, Hulet Gregory when he started coaching me on taking my business to the next level. This is a true statement, but the challenge for most of you is not the belief that cash is king but the lack of cash itself. So let’s go over a few sources of drawing cash and then I will suggest on how to use it as leverage:

Equity lines of credit
Credit cards
Checking and savings
CD’s, stocks, and bonds
Cash value life insurance
Cash-out refinance on properties

Depending on your situation, you may have access to all of the above or you may only have credit cards. Either situation can put you in a prime position to borrow money. Let’s face it; it is easier to get money when you don’t need it. Also, use your cash as a back up plan. For instance, you want to buy a property with no money down so you use a hard money loan only to find out you need $5,000 at the closing on your permanent financing loan. Your cash on hand is your money to bring to the table even though you didn’t expect it. Don’t say that it isn’t a great deal when you have to put up cash on a deal like this. Instead, look at your cash-on-cash return and look forward to positive cash flow every month.

Lastly, if these cash options still don’t apply to you, find potential partners who have put away cash in these vehicles to fund your deals. Cash is King in real estate investing—even if it is not yours!

For more information on real estate investing coaching and/or investing in real estate in Memphis, TN, visit or website at www.memphiscashflow.com or contact Natasha Bowen at natasha@memphiscashflow.com

Part 2: Where is the Money?

2010-10-05T19:06:00.000-07:00

Where is the money for my next deal? What about a self-directed IRA? If you are like most people, when you first heard of a self-directed IRA, you probably thought it was a scam. With one exception (who is a real estate investor), I don’t know any financial planners that know about it or recommend it. It doesn’t take a rocket scientist to figure out why, but let’s talk about what it is.

A traditional IRA is an individual retirement account that invests in stocks, bonds, mutual funds, and CDs. A self-directed IRA invests in these investment resources in addition to real estate, notes, private placements, tax liens, or private businesses without transaction, holding, or asset-based fees. So you can know transfer money you have stocked away in Roth IRA into a self-directed IRA to buy up rental properties and act as your own IRA broker/custodian—who knew?

Caution, self-directed IRAs are not for everyone. For the investor who wants to create wealth using his or her knowledge outside of stocks, bonds, and CDs, this is definitely an option.

You can learn more from regular webinars through Equity Trust Company. Just visit them at www.trustetc.com

For more information on investing in real estate, please visit www.memphiscashflow.com or email me at

natasha@memphiscashflow.com

Where is the Money?

2010-09-28T13:17:00.000-07:00

Where am I going to get the money? It’s a common question, and a natural one. It’s a question that every real estate investor-new and experienced-has asked at one time or another. The money is there, I can assure you—somewhere. You just have to know how to find it. But before we look at finding someone else’s money to finance your purchase—certainly my favorite kind of money!—let’s take a clear, honest look at you and your money.

Here is a list of options to financing your deals:

· Equity lines of credit

· Credit cards

· Cash value in life insurance

· Self-directed IRA

· Second mortgage

· Cash from savings

· Cash from checking account

· CDs, bonds, or stocks

You can use funds from any of these means to use as leverage in using OPM (other people’s money), short-term financing, or out-right purchase. Your decision will depend on your overall strategy in investing in real estate. It is always better to have options and prepare for obstacles. Just keep in mind one my favorite quotes of Norman Vincent Peale, Empty pockets never held anyone back. Only empty heads and empty hearts can do that.

Visit www.memphiscashflow.com to learn more about investing in real estate in the Memphis market!

The Most Important Step in Real Estate Investing is Taking Action

2010-09-14T21:22:00.000-07:00

Create a definite plan for carrying out your desire and begin at once, whether you are ready or not, to put this plan into action

Napoleon Hill could not have said it better especially when it comes to investing in real estate. Having a strategic plan in business is essential in any economy, but I find a great deal of real estate investors have a desire to succeed and love to learn about investing—BUT they lack taking action. So I encourage you to map out your plan of action. Starting today, I challenge you to set your goals and assign daily tasks to complete in order to reach that goal. For instance, if your goal is to buy your first investment property by December 1^st, your to do list may look like this:

· Get pre-approved for permanent financing

· Find hard money lenders

· Look at 5 properties a month

· Make offers and secure a contract

· Find a property manager

I encourage you to continue to learn, but most importantly, take action.

To find out more about creating wealth in real estate, visit us as www.memphiscashflow.com.

So you want to invest... but where?

2010-09-03T09:01:00.000-07:00

Our last blog post discussed how you must abandon your fear of a "bad market" if you want to dive into investing. The first step to building wealth is, well, taking a first step! So if you are ready to start investing, you must decide where. Or, if you already are investing, why not consider Memphis? For those who already invest here, these facts will make you feel even more secure that you made the right choice. So, why invest in Memphis? Because...

...Memphis hosts the world's busiest cargo airport. That statistic greets you as you walk out of the terminal and head towards baggage claim at Memphis International Airport. Such an active airport has an impact of $28.6 billion on our local economy, and one-third of the jobs in Memphis are directly or indirectly a result of our airport.

...Memphis is the 18th largest city in the United States and the largest city in the state of Tennessee. 650,000 people live within the city limits and there are 1,200,000 residents in the Metro Area.

...Based on our strategic geographical location, Memphis truly is the United States' Distribution Center! This geographical location will forever be an asset to Memphis and a reason to invest here.

...Therefore, when looking for a wise investment, look no further than a city who's transportation assets, size and geographic location create the staying power of a vibrant economy.

Become A Real Estate Investor—Right Now!

2010-08-26T15:09:00.000-07:00

Step 1: Abandon Your Fear

It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. So if you want to build wealth in real estate, why wouldn’t you start right now! I know every time you turn on the television or open your newspaper (or Kindle), the world is coming to an end. No wonder you are shaking in your pants every time you even think about looking at a property. Well I have some good news to share. Today is the best time to invest in real estate. I would have told you this fact in 2005 and I will tell you the same thing five years from now.

The majority of self-made millionaires have acquired their wealth in real estate. The secret is that you don’t stop investing in real estate when the economy is suffering; you simply change your strategy. So I challenge you today to face your fears and the media and become a real estate investor. The next series will guide you step by step to making this dream come true. Please post your comments along the way and feel free to ask any questions about investing-especially about investing in Memphis!

Visionary Real Estate Investing

2010-08-10T15:15:00.000-07:00

Charles Schwab is noted for saying, a man, to carry a successful business, must have imagination. He must see things as in a vision, a dream of the whole thing.

As a new or experienced real estate investor, do you have a clear vision for your future? Or are you just waiting for something to happen? You work hard every day at a job, but you don’t always see the fruits of your labor. You give more, dream big, but cannot get ahead. You feel like your life is a treadmill. You go, pick up speed along the way; however, when you look around you are in the exact spot that you thought you were leaving even though you have a burning desire for so much more.

One similarity among all human beings is that we want more and dream about a better future. The difference: Successful people act on those desires. Successful people live their dreams by taking needed actions to accomplish well thought-out, measurable goals. Others just daydream and wait for something to happen. These are the ordinary ones: those who want their lives to be different but are not consistent in acting in ways that are positive and progressive to change their situation. Assess your current state to see if you are capable of living a different future.

Are you really all that unhappy with the way things are? Are you searching for a feeling instead of a state of mind? These questions are important, because in order for you to thrive as a real estate investor, you have to able to handle uncertainty, ridicule, and much discomfort. Any time a person experiences new situations that are difficult or unfamiliar, it is human nature to resort back to familiar patterns or an environment that is comfortable even when it is self-destructive.

Trying something new is challenging enough. But when you add the negative comments of friends and family along with self-doubt of wondering “should I be happy with what I have because I am really blessed,” you may continue on your path to nowhere. I am sure you have done it countless times. You decide you really want to improve your fitness level, so one evening you start out on a brisk walk. Just as get into your stride you approach a steep hill. Your confidence and determination gets you up the first 200 feet of the incline. Halfway up, you feel the sweat dripping in your eyes, your heart is racing, and your shoes feel like they’re glued to your feet. You can feel the calf muscles tightening and your arms struggling to swing to give you the momentum you need to keep going. This is the time that your mind tries to soothe your aching body. Your mind tells you that in this hot weather you can have a heart attack or nobody is watching so you can stop when you want or you can always just try again tomorrow. What you decide in that instant will determine whether you make it to the top of the hill where you will have a new sense of accomplishment. At the top of the hill, your view is a clear picture of how far you have come and the newfound strength you have to get you over the next hill. On the other hand, in that instant you could decide to remain at the bottom of the hill, where a lot of people attempt to make the climb but remain in the same spot for whatever reason holds them back.

Successful people have a vision. Forming and focusing upon a clear vision helps you choose which opportunities to pursue. A clear vision means you don’t waste time on things that don’t fit with your goals. Vision-driven real estate investors have discovered that there is a good, bottom line reason for charting a direction. They are improving the odds that they will be successful. Having a vision will help you to choose among many paths and make faster progress toward your goals.