What's Your Plan?
Ten or twenty years ago I honestly thought I'd want to work until I dropped. I love my real estate business and internet marketing... and I love making money. But as I got closer to 50, things changed. I wanted to slow down and enjoy the fruits of my labor. My cash flow was right where it needed to be so I didn't have to work. It didn't happen by accident. When I started my real estate business in 1996 I only did wholesale flips for the first year. The money was great but I basically had a job. If I were not out finding deals, I was not making money. I was routinely doing 5-10 deals a month. It was a money machine. I worked really hard!! But, I knew I needed to convert to doing real estate deals that created cash flow if I ever wanted to experience true financial freedom and security. It's hard to make that transition from making $5,000-$50,000 per deal to making $250 - $500 per month on a deal. So to smooth out the transition, initially I kept some properties as rentals and sold some houses with seller financing. When I sold with seller financing, I still got the chunk of money for a down payment and also got monthly cash flow. The problem with selling with seller financing is the buyers sometimes cash you out. Sure you might get another chunk of money on the back end but you also lose the cash flow. In one month, you can see your cash flow go down $1,000 a month. One of the sad things I'm seeing today is people who have been in their real estate business 10, 15, 20 or 30 years but they STILL only focus on getting those chunks of cash. They don't do any deals to create cash flow. So now, even though many of those people have been in business many more years than me, even though they are older than I am, they still have to work every month to make money. Hey, I thought the whole reason for starting a real estate business to begin with was to get to the point so you don't have to work! Right! Those chunks of money have a mysterious way of disappearing! When you don't generate cash flow you'll need another chunk of money and another and another ... to support your lifestyle. Don't get caught in that trap! What I want you to think about today is how you need to arrange your real estate business so it can generate cash flow so you can stop working some day? Well, maybe not stop completely... but at least have the option to stop or slow down if you want to. Set a goal. What year or at what age do you want to achieve your cash flow needs? Would you like to retire early? How much monthly cash flow will you need to meet your lifestyle goals? WRITE IT DOWN! Statistics prove that if you write down your objectives you're much more likely to reach them. If you don't make a plan and stick to it, you won't ever be able to stop working. One of these days... before you know it... you will wake up one day and decide you want to slow down or stop working. The big question is WILL YOU HAVE ENOUGH MONTHLY CASH FLOW SO YOU CAN? You sure can't count on Social Security or any other kind of entitlements from the government so you need to make plans TODAY to be self-sufficient. Don't end up like the 60,70 and 80 year old people I see working at Wal-Mart. They aren't there for the fun of it. They are working because of necessity. It breaks my heart to see so many elderly people working. One or two rental properties would solve their financial needs. At CashFlowDepot.com we have plenty of online training to help you learn how to generate the cash flow you need so someday...you can do what you want, where you want, and when you want. That's freedom!
Reprinted by Permission. The author is the founder of www.ExtremeSuccessSystems.com and co-founder of www.CreativeRealEstateWorld.com. Visit www.CashFlowDepot.com or call (972) 496-4500.