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Max Cash Flow Now: Rental Property ROI Improved by Taking a Different Direction

Max Cash Flow Now: Rental Property ROI Improved by Taking a Different Direction

Are you looking for a different direction to take your real estate rental property business?   It may not be wise to sell in this market – that is if you could find a buyer for the price you need to ask – and getting market rents to cover all of your carrying costs is challenging for many property holders.

Have you run out of ideas?  What if you could increase your monthly cash flow 3-4 times on your rentals holdings?  Would you be interested in knowing how?

Using your rental properties as transitional or alternative housing can prove lucrative and a lot less time consuming than you initially would think.  The first concern I hear from people is regarding their time.   Without knowing anything about having a transitional house, they are afraid that to earn an extra (yes extra) $1000 a month – or more – they are going to have to spend equal that in time managing their transitional house.

Well forget it then – who would want to make such an absurd trade?   If you knew how you could take a simple approach to this unique rental scenario and streamline the management while earning that additional $1000 or more net cash flow every month there would be little to stop the money coming your way.   Is that something you could see yourself learning more about and doing?

Download our FREE Ebook, on the right side bar, and learn more about another way to get a better than average return on your rental property holdings.

Max Cash Flow Now: New Game in Town to Increase Your Rental Properties ROI

Max Cash Flow Now: New Game in Town to Increase Your Rental Properties ROI
Is what you are doing now within your real estate investment portfolio working for you?  On the other hand, are you just waiting, tolerating the present circumstances?  Have you noticed that the same old approaches are mostly still biding their time in a wait and see mode?  How many times have you heard “I’m just waiting for the market to come back and then  . . .”?  Are you still loosing money on your rental property or just breaking even?  The name of this game is WAIT, WAIT, & WAIT SOME MORE  – and apparently, it doesn’t come with pretty girls handing out briefcases of money to the contestants.

Is your real estate business circumstance in a similar place as it was last year?  The same ole’ same ole’ game can go on and on, and next year at this time, and you could still be on an identical path – not having moved forward in your financial goals.  By now, everyone has heard the definition of insanity; doing the same thing over and over again and expecting different results.

THERE IS A NEW GAME IN TOWN. And, it’s called THINK DIFFERENTLY AND MAKE MONEY.

Even though the status quo is familiar, and your life is busy enough, it may be time to reevaluate your rental property situation especially if it means defining your bottom line every month with a grin rather than a grimace.

Afraid of change?  Then you must be a nervous wreck trying to avoid it these days, not to mention missing opportunities at making money!  You can either resist or join in and reap some of the rewards.  Anxious that making a change will take too much time?  Naturally, any type of new approach requires a different kind of participation at first.  So I have to ask – are you making money staying in the same old approach?  What if the change was painless and could increase your net rental cash flow by at least a $1000 a month, per property for about 3 additional hours a month?  Would you think it worth a look?  Why keep playing the waiting game with your investment portfolio?  It’s time to think differently, make a change and make $$$.

Download our Ebook, “Max Cash Flow Now” and discover what we’re talking about.

Max Cash Flow Now: Rental Property Income Affected by Neighborhood Associations

Max Cash Flow Now: Rental Property Income Affected by Neighborhood Associations

Rich bought a beautiful old fixer-upper in an neighborhood close to downtown, which was gradually evolving from a low income working class neighborhood to one that was now attracting young urban professionals.  He didn’t know when he bought the property that there would be strong opposition by the area’s Neighborhood Association to using this home as a transitional house – renting individual furnished rooms to former offenders of soft crime.  Rich called and asked us what we thought about turning this particular property into alternative housing.

If he went with alternative housing instead of a renting for normal market rates to a single renter, he would let 7 rooms, some private and some with two people sharing a room.  He could make a net monthly profit of a little over $1,200.  Nice cash flow!

While the money would be fabulous and very tempting, we told him to re-examine the strength of the Neighborhood Association.

Using our system we have never had a problem with a transitional house causing disruption in an area, but those not familiar with transitional housing aren’t always as open minded as we would like to give them credit.  They hear the words alternative housing and renting to former offenders, and their imaginations run wild.  Too much TV, and not enough of the facts, and Rich discovered they didn’t necessarily want the facts once their minds were locked into an opposing position.

With respect for the NA, Rich decided to use this particular property investment as a potential flip rather than as a transitional house. Why swim upstream?  There are many neighborhoods that fit the requirements for good location, zoning and where the neighbors stay to themselves and appreciate others doing the same.

A primary consideration when deciding to buy or use an existing property as a T-house – stay away from HOAs, NAs, gated communities, townhomes and condos.  A small and simple 3×2 in a quiet working-class neighborhood can bring you a $1,000 or more net monthly cash flow. The deals are still out there and the best are not in restricted areas.

Discover how you can maximize your rental cash flow by downloading our free Ebook on the right side bar.

Max Cash Flow Now: Real Estate Profits with Alternative Housing

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.

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

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.

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Max Cash Flow Now: Rental Property Cash Flow Increased – Providing Transitional Housing Gaining in Popularity

Max Cash Flow Now: Rental Property Cash Flow Increased – Providing Transitional Housing Gaining in Popularity

Converting a conventional rental into alternative housing can be quick and simple.  We have created a method that keeps conversion costs to a minimum.  Most multi-family and many single family residences (SFR’s) can be transformed into a much more profitable venture.  One important point is to make sure you check with your local zoning authority first.  You will want to find out how many un-related individuals are permitted per unit, within your property’s particular zoning district.

Why check out at this option?  Profit is the answer.  $450 a month for a private room, $750 a month for a semi-private room adds up quickly.  How many bedrooms does your rental have?  How many are at least 144 sq. ft. that can be made into semi-private bedrooms?  Then there are family rooms and porches that could be converted into an additional bedroom?  Use a calculator and add it up.  You will be amazed to find that in most cases you could be earning at least $1,000 a month in NET INCOME.  With the particular tenant population we rent to, we never run out of tenant applicants and our students are looking for more residences to buy to fill with an on-going stream of tenants.

One in 6 Americans knows somebody or have themselves served time for a crime – That’s a heck of a statistic.  Many of those imprisoned are serving time specifically for a “soft” crime. Soft crime, while still an offense is defined as a crime that is non-violent or not against a person.  When that person is released and working to get on with their lives, they require reasonably priced housing that supports their hard work. We rent to fellows who are released from half-way houses or work release programs.  These individuals have served their time, have jobs and need to find affordable lodging.  The stereotypical idea that all former offenders are thugs just is not true anymore.

As a result, many questions remain.  All of these questions are answered in our FREE Ebook that can be downloaded by inserting your email address in the box on the right sidebar.  Come on – the times call for thinking about making money in new and different ways!

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

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.

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Max Cash Flow Now: Don’t let your rental property become a charity shelter.

Max Cash Flow Now: Don’t let your rental property become a charity shelter.

I just read a blog by Donna in NM, who has had the most dreadful experience with a Section 8 tenant. She wrote that she did not have Section 8 housing experience and her tenant had 10 years of experience scamming the system. No rent has been collected and now she has a squatter and is unsure how to correct the situation. Several good remedies were written in response to her questions and I don’t want to repeat her options here. I can not imagine that this is an isolated case. Probably not your specific circumstances, but even so, many real estate investors, who are holding rental property are making costly mistakes.

Depressed real estate prices and the profusion of very good deals on distressed properties are drawing many new investors into real estate. The smart ones look for coaching or mentoring from others more experienced. The majority most likely feel they can figure most things out for themselves, and then there are areas that they are inexperienced in and can have a harmful effect on their net monthly income. Getting good counseling can save money and headaches.

With our method and transitional housing, our landlords and I have never had these troubles. If the rent is overdue by more than 3 days, I just make a phone call or two, change the locks and wait for the tenant’s family member or friend to set up a time to pick up any personal belongings. I do not return their damage deposit. Within a few hours or a few days, I have the room occupied by another tenant from my waiting list.

It’s just that simple. It doesn’t involve an expensive eviction process and a minimum to no loss of rent. Squatters are absolutely unheard of, there are no legal fees, no court fees, and no fee made to local law enforcement.

Discover how I can get away with this by downloading our FREE Ebook from the side bar.

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

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.

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Max Cash Flow Now: Outstanding cash flow for new student!

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.

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