http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "How can I make $5,000 per month consistently and reliable without risk?" -- Angela Cambridge, Boston, Massachusetts Joe: There are two ways that you make money in real estate. One is by active investing and one is by passive investing. If you want to make money through passive investing, you have to have money because money is what makes you more money. Everything else is active investing. Joe: If you have money, then you'll want to buy some good rental properties that bring you good income and brings you 8% to 15% or more return, depending on whether you set up the deals or buy them from somebody else. Joe: I sell properties regularly that bring in 12% to 16% return on a passive investment, properties that we've bought, rehabbed and we have property managers for and have tenants already in. We've done all the work on them and I've used my infrastructure. I sell those properties. I take a profit off of those deals but it still gives a return to passive investors who have the money to make it worth their while. Joe: And, I also know that when I buy those properties, I don't have to worry about whether or not I'm going to be able to sell them because if I can't sell them, I can just hold onto them and I'll be able to get that return and it will be a little bit higher because I paid less for it than somebody that I sell it to. You can do the same thing when you have cash to invest. Joe: You have to learn how to buy these properties and how to build an infrastructure. I had a learning curve even after experience. When buying into a new area, it takes a while to learn that area, to learn what works and to find good property management in those areas. Joe: The key to owning passive investment property is having good property management. So you have to pay attention to make sure that your property manager is paying attention, and you do that by getting regular reports you look at once a month or every two weeks, which is what I do. Joe: My people spread out the numbers in front of me and I look and see what's vacant, what the cost has been, what the repairs are, what income came in, what my expenses were, I see what my cash flow is, and I'm able to do that and touch base once a month with it and not really have to worry about it other than that because I have good people who are working on it. Joe: It didn't happen like that from the very beginning; it took me awhile to get it up and running, but now that it's up and running, I don't have to worry about it nearly as much, and it's a pretty nice situation. Joe: If you want to make $5,000 a month, passive investing is one way, but you have to have money to do that. Active investing is the other way and the way that most people have to do it. If I were just getting started today, I'd have to do the same thing. Joe: Then, you can buy properties and put them into a portfolio. So, let's say you buy them "Subject To" and each one of them brings in $200 or $300 a month -- you're going to have to buy a lot of properties before you get up to $5,000 a month if you're just counting on that $200 or $300 a month of passive income from that property. Joe: If it's $1,200 a month income and you have $1,000 a month in expenses, that means you have $200 a month in cash flow on that property, so you'd have to do an awful lot of them. You'd have to do five of them just to get $1,000 a month and that means with 25 properties, you could have enough money to be able to get to your goal. It's not that hard to get 25 properties, actually; you could probably put together one a month of these Subject To's. Joe: You also have to worry about vacancies, because when you have vacancies, then you have $1,000 a month going out and that can eat up five months of profit if you have one month vacancy. You'll probably have one month of vacancy every year. A 10% vacancy rate is not uncommon.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-can-i-make-5k-per-month-without-risk/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
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Duration: 9m 31s
Rating: 44