CashFlowExperts.Biz

From the desk of Tom Kish.

I got up early this morning and felt totally out of sorts. I didn’t really have to get up but I am just conditioned as a dad to do it automatically.

And I didn’t have any work to do, other than looking at the betting lines for today’s games and races.

So I turned on some old Pat Green, grabbed my cup of tea and made a list of everything I am thankful for…

Of course I’m grateful for all the material possessions, a wicked cool house, money and all the great things that come along
with being a business owner and investor. That’s pretty much a
given.

And of course I’m thankful for all you amazing friends and clients that I’m lucky to have gotten to know over the last year. Believe me, the best part about my business is what you teach me through your experiences.

But I’m utterly blown away and most thankful when I see my son James sit up in bed and smile at me, ready for another day of adventure!

Happy Turkey Day, Tom.

What is the best way to make money in real estate? Buy quality properties without using any of your own money!

I don’t mean that you should take over a lot of Junker houses using no money down techniques. Many of these techniques are simply gimmicks that make you the owner of an over-priced property that nobody else wants.

I mean use proven techniques to leverage business lines of credit to buy good property. If you are using unsecured lines of credit to get money, you can buy a lot more real estate than you can buy if you only used your own cash.

Seems like a no brainier to recommend that people buy 2 houses instead of one, but you will meet people that still believe that it’s a good idea to use ONLY their own cash buy real estate.

How much real estate could you invest in if you never needed to use your own money?

The rich get rich because they control more assets than we do. They buy 5 good investment properties to every 1 that we buy.

Everyone historically makes money in real estate – the rich just make a lot more because they own a lot more. And they buy all this real estate using lines of credit.

This is simply called using leverage not cash to invest in real estate. But the opposite of using leverage is to pay ALL cash for property and own it free and clear.

Why do some people still want to own real estate free and clear?

Because they believe that they are making more money if they borrow as little as possible to buy it.

But lets look at 2 examples to see which example makes more money.

Example 1.

Use $40,000 of your personal savings to buy a house with 20% down and get a mortgage for the rest.

You may cash flow $400 per month with this scenario.

And on this one house you will also be getting -

A. equity build up like a personal saving account as your tenants help you pay down the principal on the mortgage each month..
B. appreciation as the house goes up in value, which good real estate has always tended to do.
C. great tax deductions that will lower your personal tax bill in many cases.

Example 2.

Use a $80,000 new business line of credit instead of your own CASH and buy 2 houses.

You may cash flow $200 per house per month for a total cash flow of $400 a month.

And you are making money on TWO pieces of investment real estate instead of one.

Your also getting -

A. Double the equity build up.
B. Double the appreciation.
C. Double the tax deductions.

AND YOU NEVER USED A DOLLAR OF YOUR OWN CASH. The entire down payment came from an unsecured new business line of credit!
  

Leanne  Mikka asks -
Tom, I have been approached by many companies telling they could build my credit – they want a pretty big upfront fee for that service – which they want me to fund with my personal credit… doesn’t that seem to fly in the face of what I’m trying to do!

Tom says – you always have to use some of your own money to start a business before you get your first business line of credit. Then your business can reimburse you when you get the business credit. Think about it. You need to personally pay the costs just to get your business name registered with the state because you don’t even have a business yet. Then when you are set up and get approved for the business lines of credit, your business pays you back for any costs you fronted to get started.

Paul Chou asks -
I already have a Duns number established and want to get corp. credit. I’m looking for seed money to get my business going. How much time frame do I have to get it going?

Tom says – most people have a few of the pieces in place for building business credit off their business image, but they usually have not done all the steps. You could be ready to start using my recommended lenders immediately. But you should plan on an average of a few months to build up over $100,000 in new business credit.

Dan Black asks -
Does one have to buy a shelf corporation to speed up the process since a new entity will have no credit initially? And are we applying directly to your recommended banks for the credit lines?

Tom says – you do not need a shelf corp. to build business credit. Most of them are over-priced. I can show you how to use a new business with no proven history to apply directly to my recommended lenders for business credit.

Curtis Mobley asks -   
I have a business line of credit but the lender keeps lowering the limit as the balance is paid.

Tom says – then you need 10 more of my business lines of credit so you are not dependant on just 1 lender. Curtis, there are thousands of business credit lenders I recommend if you will just take the time to ask for more business credit!

If you have any hesitation about the value of enrolling in any of these business credit programs, just remember this…

You are all allowed to write off these kind of business expenses as a tax free deduction.

So you will immediately get about half of your investment back in tax refunds since all our various tax rates add up to about 50% of our income.

That is real money that every business owner get back when they take deductions for this kind of expense which the IRS calls professional development.

So this program is effectively half price to you after taxes.