Max Cash Flow Now

Max Cash Flow Now: Real Estate Profits with Alternative Housing
There is a method, which increases your net monthly income or cash flow on your rental properties substantially while you’re waiting for the market to rebound. At present many property owners are holding rental property and are either in a negative cash flow position, breaking even or perhaps making a modest profit.  They are waiting and holding on for the market to revive.

Waiting – why wait?  Why wait with a negative or measly cash flow? It is not for everyone, but some more entrepreneurial types find creative approaches to making money in a down market.  Is a return on your rental of a $1,000 a month net or $12,000 a year, worth exploring?

I’m talking about Alternative Housing; renting out individual furnished rooms to maximize a property’s FULL income potential.  It does require more time up-front, but after about 3 months, with the right coaching, this approach actually has the potential to become more of a passive income source.  That will depend on your ability to listen to other creative minds!

How do you find tenants who are not students, the elderly, handicapped or Section 8 who will agree to rent a private or semi-private bedroom?  There are many sources, all of whom work to find affordable housing for their clients.  All you need to do is let them know what you are offering and the referrals will be steady and constant.

Many individuals have skills and jobs, but just cannot raise the necessary funds to cover rent on their own.   They could however cover a shared rent with the privacy of their own room and communal living spaces like kitchen, living room and laundry.  You can offer a real home at a fraction of the cost to them, but 3-4 times more monthly cash flow to you!

There is a need and you can supply the answers for yourself and others.  Download our free Ebook, on the right side bar, to learn more and then give us a call or email so we can share additional insights about an opportunity that is perfect for the times.

Max Cash Flow Now: Rental Property Profits Maximized by Avoiding Mistakes

How many times have most of us taken on a project only to have it turn out to be a total learning experience?  Going in, we may have thought we talked to the right people, asked many of the right questions, researched enough but in the end still were hit with surprises and costly mistakes.  No one has the time or money to spend on a hit and miss investments strategy.

We were talking with a small group of people at our Local REIA (Real Estate Investment Association) meeting who were interested in using their rental properties to make $1000 net profit every month through our system of transitional housing.  One member joined our small discussion group and said he had tried transitional housing with the specific tenant population we work with, with a program he put together himself.  He was disgruntled and said it was not working for him.  His biggest problem was vacancy rates. We suggested meeting with him later to find out what he was doing and offered him a free consultation.

He was the first of two transitional house landlords we met recently who were having difficulty with their properties.  Neither of them were our students and both were doing poorly because of avoidable pitfalls.  During our meeting, we discovered if he wanted to turn things around it was necessary for him to approach areas of his property and tenant management differently, along with how he marketed.

Transitional housing may appear simple to figure out, and it is not rocket science, but there are caveats to every unique business venture.  Don’t confuse learning something new with unusual time commitments or more work, but with simply knowing how to use tried and true choices. Why re-create the wheel?  Get the job done efficiently the first time around instead of on a live and learn basis.

How can you know what you don’t know?   To learn more download our FREE Ebook, “Max Cash Flow Now,” from the right side bar.

Max Cash Flow Now: Rental Property Income Increased When You Know What You’re Looking For

“Location, location, location” that’s the mantra for real estate investors.  But what qualifies as a good location for transitional housing?  (To learn about transitional housing, download the free Ebook, “Max Cash Flow Now” from the right side bar.)  The best properties are those that are within close proximity to public transportation and other conveniences, e.g., convenience stores, grocery stores, and banks.

Your location can greatly affect a transitional single-family residence (SFR) or multi-family unit’s vacancy rate.  So be aware when you are evaluating a property you already own or one you are considering purchasing to convert into transitional housing.

Google Maps is great for finding out how close the subject property is to bus stops, and should be no farther than half a mile away. In colder climates, we recommend that any transitional dwelling be no more that .3 of a mile to public transportation.  In warmer climates, public transportation, for stores and banks can be a bit farther out from the house. Keep in mind the closer you are to these services the better.  Here is a tip; free bicycles can sometimes be obtained for this tenant population from faith-based organizations in your community.

Public transportation is a major factor in evaluating a property.  Call your local public transportation district, or find their web site, and search for the specific route that stops close to the target property and determine that routes hours of operation.  You’re in good shape if the hours of operation are early in the morning to late into the evening, so tenants can get home after working long shifts, or coming home from night school.

Whenever you have a house that meets all of these criteria, you will have a more stable tenant base.  Your tenants will not only appreciate the close proximity of these conveniences, but will reward you with longer stays, a well run house and a reduced vacancy rate.  To you that means maximizing your profits!

Max Cash Flow Now: Income property can have very stable, respectful and reliable tenants.

Yes, that’s correct!  It all depends on product, location and first rate tenant screening.  If you don’t have all three, your vacancy rate will be elevated.  Let’s talk about product first.  We recommend to our students that they furnish their properties with clean serviceable items, new linens and art work on the walls.  What you are creating is an environment that is very agreeable to the tenant, one that not only the tenant will look forward to coming home to, but also one, through pictures on flyers, web sites and word of mouth, will draw new inquires.  We are all for building and keeping a pipeline.

Many furnished rooms for rent are not clean and be full of old, thread bear chairs, sofas, and soiled mattresses.  Would you want to stay any longer than you had to in a place that does not support a good sense of self-esteem?  Nicely furnished rooms generate good paying tenants, who stay for long periods.

Our preferred tenant populations  normally do not have their own transportation so proximity to public transportation is necessity.

Key to this equation within our system is good tenant screening, which strangely enough does not include credit or traditional background checks.  Our tenants are referred to us, so we gain knowledge about them and their history though direct questioning of people who are familiar with each possible tenant individually.  We discover personal background information and work experience.  This type of screening done methodically will produce good paying renters who stay for long periods creating a stable house.

To discover more about setting up transitional housing, please download our free Ebook from the right side bar.

Max Cash Flow Now: Property Management of income property done differently with transitional housing.

Some of our students have found unique ways to reduce the time needed to manage transitional housing.  Transitional housing is defined by renting out individual furnished rooms in a single family or multi-family dwelling to those persons who are in transition. We are not referring to migratory workers or students, but to an additional vastly underserved tenant population. (Download free Ebook on side bar at our main blog site to learn the tenant population we’re talking referring to).

All tenants share common areas like kitchen, dining room, living room, laundry conveniences; and both private and semi-private bedrooms are “let” on a weekly or monthly basis.  The income benefit for creating this type of rental dwelling is extraordinary.  A large master bedroom could generate $750 per month rented as a semi-private (two beds) room; smaller private rooms could rent for $450 a month.  Take any rental unit you own and add it up.  I think you will quickly discover that you have effectively doubled the gross rent you could be collecting for the unit.

The model is for our real estate investments to provide us with passive income, right?  But how passive is it really?  If you are an veteran rental property owner, you either do the property management yourself, to maximize your net rental income, or you hire it out to a property management company.  You pay them to advertise, screen tenant applicants, collect rents, do credit and background checks, perform property maintenance/repairs, and handle evictions.  The cost for those services will reduce your net cash flow significantly.

Property owners doing transitional housing concern themselves with all the same issues, but in a different way.  Once the house is set up and fully occupied, the cream will come to the top.  By that, I mean a particular tenant could become your property manager.  For a small discount in their rent, they would carry out many of the same functions of a property manager.  Check in tenants, perform minor maintenance, carry out property inspections, and even handle evictions, which are a cinch with this type of housing; (see Ebook).

A virtual assistant can even deal with advertising of your property to established referral sources when you have vacancies.  All that is left is tenant screening, which does not include traditional background or credit checks.  Just a chat with one or two individuals that are informed about the candidates background.

To learn about offering alternative housing, please download our free Ebook, on the right side bar.

ROI Calculator

Max Cash Flow Now: Rental Property Cash Flow Wizards meetup.

A group of alternative housing landlords got together recently at a local neighborhood bar to discuss a range of common concerns.  They were anxious to re-confirm a collaborative coalition rather than a competitive one.  There is such a need for this type of work and everyone brought important questions and answers to the get together.  The group was made up of of experienced property owners and others that were just opening up.

It was a great sharing of ideas, solutions, and experience.  Things discussed were; the state’s early release program, vouchers to property owners that pay for up to two months rent, newly discovered tenant referral sources, a free bicycle program, and a group marketing initiative.

Everyone is doing so well.  One property owner commented that even with 2 out of 7 beds opened for a while, she was still making great cash flow on her property.  Presently with a little attention given to her referral sources, she has filled the 2 beds and has 2 guys waiting in the “pipeline.”  The experienced landlords all agreed that it doesn’t take much once a house is established to keep it full and they were all loving the income their properties generated every month.

If you’re a first time reader of this blog post, it’s important to appreciate that these property owners are renting individual furnished rooms to a definite tenant population thus creating great rental property income – on the average of $1000 a month NET.

Learn more about transitional housing by downloading our FREE Ebook by inserting your email address on the right side bar.  And feel free to contact us anytime with questions.

Outstanding cash flow for new student!


Newly opened transitional single family residence is producing outstanding cash flow for new student.

“We opened a 7 days ago, and we already have 2 renters. Both of these fellows were referred directly from the DOC and we can already tell they’re good guys who simply need a nice place to call home. The income potential on this place, even after paying the mortgage and utilities and maintenance is in excess of $1400.00 net profit per month.”

“Thanks Alf & Jeannie for talking with us initially, then educating us, and through your outstanding program. Your expertise, knowledge, experience and compassion are making a difference in peoples lives’. The benefits are not just the money, although great and needed, it is the heart that throbs and lives with excitement knowing everyone comes out a winner in using your method.”  Charlie Jackson, Sonrise Properties LLC

Here are some pictures of Charlie’s new home in Arvada Colorado.

The students we coach increase their net cash flow by as much as a thousand dollars in most cases.  Learn more about our method by download FREE Ebook, “Max Cash Flow Now” on the right sidebar.

Max Cash Flow Now: Rental property profits are greatly increased by establishing a variety of referral sources.  The referral sources I’m suggesting are not the usual suspects, e.g., newspaper ads, yard signs, or promoting your rental property through Craig’s list.

We promote alternative or transitional housing (download FREE eBook, see sidebar), which offers you a way to market your rental property that you would not normally consider.  There are organizations, e.g., non-profits, faith based, for-profit programs and government institutions, which will collaborate with you to refer your rental property to potential tenants, while not actually marketing you.  These are the stakeholders in reducing homelessness, and helping particular tenant population find affordable housing.  They introduce and make available your property features and benefits for FREE.  But, you have the last word when approving any tenant for your property.

We’ve done it in Colorado and have helped others create incredible income streams on their rental properties.  Can our system duplicate the same results in other states?  Sure, but first; a few things need to fall into place, and there are some key factors, for example;  proximity to bus stops and grocery stores, type of neighborhood, zoning compliance and a major one – the number of referral sources for the type of housing you are offering.

I was speaking to a government institution in another state recently, who had not heard of a program like ours before, and they were very enthusiastic about sharing the resource our students offer with 60 offices around their State.  This is not only GREAT for property owners in that state, but could be duplicated in many other areas throughout the country.

Use our contact page to call or email us to find out how we can help you increase your net rental cash flow three to four times.

Max Cash Flow Now Tip #4:  Location, location, location.  As with all real estate investments location is key.  In our system, it’s a little different.  The best properties are those that are within close proximity to public transportation and other conveniences, e.g., convenience stores, grocery stores, and banks.

Your location can affect your vacancy rate.  So be careful when you’re evaluating a property you all ready own or one you’re considering purchasing.

Google Maps is great for finding out how close the subject property is to bus stops, and the other conveniences mentioned above.

Public transportation is a major factor in evaluating a property.  Call your local public transportation district, or find their web site, and search for the specific route that stops close to the target property and determine that routes hours of operation.

You’re in good shape if the hours of operation are early in the morning to late into the evening, so tenants can get home after working long shifts, or coming home from night school.

Whenever you have a house that meets all of these criteria, you will have a more stable tenant base.  Your tenants appreciate the minor conveniences.  Learn more about what gives you and your tenants the best value for the money by downloading and reading our ebook.