Transformation’s a big part of what we work on with our clients because, let’s face it, no one was born a successful business person. Let alone a successful real estate investor.
At Creating Wealth USA, we teach something called the Financial Freedom Blueprint.
It’s sort of a leverage progression plan. What do I mean by that? Well, you constantly want to be building your leverage to grow a bigger business if that’s your goal. Now not everyone has the same goals and objectives, and that’s what’s really good about the PACT Program is that it’s not a one size fits all, but it’s a one size fits one kind of program.
We work with you to achieve your goals, your objectives. Some people want multimillion dollar businesses, some people want to build their retirement plan, others just want to produce some extra income.
Whatever it is you’re looking for Creating Wealth can help you achieve it.
This leverage progression plan I talk about has five components to it.
We typically start people out with the idea of learning how to wholesale properties.
It’s finding bargains for bargain hunters. One of the things with wholesaling is that it creates a single payday. I’m not a big fan of single paydays, but for a lot of people that’s a good place to start.
The Second Level is being able to buy, fix and sell.
To do renovations. Not everybody wants to do renovations, and I have to be honest, when I first started out I swung a hammer and a paintbrush. I was never very good at either one. Today, I use a pen and it can solve every problem that a rehab project needs. But, you have to learn how to do it. Leverage progression plan step number two, we learn how to buy, fix and sell properties. Again, it creates a single payday, but that payday is a lot larger than you might get when you’re wholesaling.
Level Three, or step three, is learning to do lease options.
That’s how we can control properties without necessarily having to own them, and create multiple income streams from a single property. When we do a lease, and couple it with an option, we have the right to rent the property. We also have the right to buy the property sometime in the future, and we can also use it as a good exit strategy with properties that we might all ready own or control. We can rent the property to somebody, help them get qualified for a mortgage over time. In the beginning we’re going to get a fee for our option agreement. We’re also going to get some cash flow because we’re going to lease the property. At the end, we’re going to get our backend payday when the house gets purchased by our future buyer, our tenant buyer.
Next, in Level 4, we want to move on and be able to start to buy and hold.
Because that’s really where wealth starts to be built, because you’re going to benefit from amortization as you pay down debt on a property, you’re going to also potentially enjoy appreciation as markets follow rise, and you’ll be producing cash flow in the meantime. Buying and holding is another great strategy.
Now, if you start to employ these first four, something is going to happen at some point. You’re going to throw off more income than you can actually absorb. Yeah I know, we can all spend lots and lots of money, but if you’re looking to build wealth you really want to think about what you spend money on and how you spend it.
Level 5 is becoming the bank.
When you have more capital than you need you might choose to do some private lending. Once you are the bank you’ve got a lot of control. Not only can you do private lending, but you might start to sell some of your properties on terms. So you actually become the lender. Again, not for everybody. Not everybody wants to do all five of those things, but if you know how to do all five one of the huge benefits you get is that whenever a lead comes in you have multiple ways to handle that lead. Remember I said this is not a one size fits all, it’s a one size fits one kind of scenario.
If I get a lead that’s a good rental but I don’t want rental properties, maybe I can sell that deal to a landlord. If it’s a buy, fix and sell deal and I’m only looking for cash flow properties, maybe I can wholesale that to a rehabber. Lots and lots of different options appear. As we go through these five various ways of producing income with real estate, we also talk about things like private lending, asset protection, how to manage our business effectively.
These five elements of the Financial Freedom Blueprint all begin with five simple steps that we teach.
We have to learn how to market to generate leads, to find opportunities. Now once we find that opportunity, how do we really know it’s an opportunity?
We need to learn how to determine whether we have a suspect or a prospect. You don’t want to waste your time on suspects, but you want to work very diligently with every prospect that’s a legitimate prospect because you want to create a win-win transaction. Something that’s good for them, something that’s good for you so everybody comes out ahead.
Yeah, there’s some math involved in this but using the right kinds of formulas and the right financial disciplines, you can guarantee that you’re going to do what’s called safe, profitable investing. That’s the only criteria I have for my transactions is that they are both safe and profitable. Granted it’s going to be a win-win, but I don’t want to put myself in the seller’s shoes. If they’ve got a problem I don’t want their problem to become my problem. So I’m going to create offers, and I’m going to create usually more than one offer.
4.Present those offers.
How do we present offers that are going to be compelling. How are we going to be influential and persuasive. Well, we also teach communications. Communications can help us become more effective, more articulate, and get us to step number five.
5. Closing or controlling the transaction.
We want to either control the property or own the property, those are the two ways we make money with property. Five steps, we locate, we pre-screen, we create our offers, we present them, and then we close.