Max Cash Flow Now

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: Quadruple Rental Income with Multi-Family

Multi-Family is the way to go when considering transitional housing.  Transitional housing is defined by renting out clean affordable individual furnished rooms on a weekly or monthly basis. It’s a departure from the usual way of renting to individuals or families and there are things to know that will save you from making unnecessary and costly mistakes. (To learn more about transitional housing download our free Ebook “Max Cash Flow Now” see right side bar.) If done correctly the cash flow return on multi-family dwellings can be awesome. In addition, because you are renting to a particular tenant population you can adjusts the requirements as the property owner in ways that otherwise would be out of your control.

Consider a three bedroom one bath duplex in Denver, Colorado.  Market rents for this one unit is $850 or $1700 for both sides.  If this were transitional housing, the same duplex grosses $3,999 every month.  Would you say that this was worth looking into?

Take a smaller, 2 bedroom, 1 bath per unit fourplex.  Renting at market rates would yield $650 per unit or $2,600 for the entire structure.  Converting it to transitional housing, this exact same fourplex grosses $1,483 per unit or $5,932 for the entire fourplex.  Want to learn more?

Deduct your PITI payment, and a portion of the utilities (regarding utilities – there’s plenty of room in the deal, and it is actually to your advantage to pay.)

Another person we coached who has decided to have transitional housing has a triplex that he was getting the usual market rents.  One unit was a 1 bedroom, another unit was a 2 bedroom unit and the last one was a four bedroom.  He was grossing $1,975 with normal rents, but now doing transitional housing, he grosses $3,140. Can you say — sweet?

Are you beginning to get the picture?  If you are a real estate investor who is holding or considering rental property, you really should consider this system for your real estate portfolio.  With a minimum investment, right guidance and coaching to avoid any pitfalls you can earn max cash flow now.

Max Cash Flow Now: Take Yourself on Vacation with Increased Rental Property Profit

Take yourself on vacation using your increased rental property income.  I was driving home in 11-degree temperatures from a meeting with one of our rental property owner/students.  He was telling me about his upcoming vacation to warm and sunny Mexico.  While some of you reading this are in warmer climes, most of us have been hit by an unusually cold winter and our minds go on vacation more often than our bodies!  We all could use a vacation to break up the winter months.

Our student mentioned that he skimmed a little off his rental income every month to add to his vacation fund.  Not a bad idea I thought as I watched the snow blowing along the side of the road.  In most rental situations, the property owner does not have anything at the end of the month to skim. What I heard our student/rental property owner say was “Before I worked with your program my gross rents were barely getting the expenses paid; now it does that twice over and leaves me a little play money.”  Oh, the joys of having a little play money – practically unheard of in this economy.

Not everyone would take this approach with the additional income they generate from their rental properties.  I understand.  Some would even think it bad business not to put the entire added profits back into their investment, but then again . . . live once and enjoy it!

There is so much room in the deal after transforming your rental property with our unique approach that considering taking a little every month and padding your vacation fund may not be such an imprudent idea.  How many rentals do you have right now that would help pay your way to Mexico or Hawaii this winter?

To learn more about our method download the FREE Ebook from the right side bar.

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!

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.

Max Cash Flow Now: Rental Profits quadrupled with great tenants.

When I blog about renting out individual rooms the usual thinking on the subject goes to a rental population of students, seniors and the mentally and physically challenged.  I say think outside the box – it’s a great time to be unconventional and observe your rental properties cash flow like never before.  As written in yesterday’s post, on average a $1,000 a month in net cash flow per dwelling unit.

Our preferred tenant will not fit into any of the above-mentioned categories.  We have found that the renters we work with – ex-offenders of soft crime – can be less of a hassle and less expensive than those most people think of when renting out individual rooms.  With anyone on parole or probation, finding a place to live is often challenging at best and forces men and women into shelters where they are apt to experience the same issues that got them into trouble in the first place.  Those who want to make a change and make their lives work are in need of clean affordable housing that reinforces their goals.

Every tenant comes in knowing that in order to take advantage of this opportunity a set of “House Rules” must be agreed to.  They are a set of living requirements handed down by most States Department of Corrections, as part of the individual’s parole or probation agreement.  They are not impossible to follow and they keep your house safe and healthy.  Who enforces them?  The individuals themselves and their parole or probation officers.  Former offenders don’t want to violate the conditions of their parole/probation requirements and if the House Rules are not being maintained there is always someone waiting to take the room.  This is just one of the reasons why this tenant population is so wonderful to have as renters.

Download our FREE Ebook on the side bar at right, to learn more about what makes these tenants some of the best renters you could ever have.

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.

Blog Intro 12-22-09

Max Cash Flow Now: Discover how to give back and increase rental cash flow this holiday season.  Increasing rental property income is what we have been writing about since the start of this blog.  It is what initially attracted us, and each of our students, who have implemented our system. However, there is an equally important aspect to the system we teach that makes a tremendous impact on the property owner and the tenant population they serve.

It all came about when another real estate investor, told us that he was making incredible profits on a couple of properties he owned.   He was presently looking for more houses to continue growing his strategy (and his bottom line).  He went on to describe that he was renting out individual furnished bedrooms for $400 a month.  Some of the larger bedrooms he let as shared, two to a room. While the idea of a shared room may be a put- off to some, other tenants came into his houses wanting to save money and knew they could upgrade to a private later if they wanted to as one became available.  By offering shared rooms, $700 a month split between two people increased the landlord’s cash flow considerably.  This real estate investor’s gross monthly rent on one little 3 by 2 was $1900, and another duplex was totaling $3,600 a month!

Because the tenant population is derived from particular sources and they agree to a set of house rules and don’t sign leases the idea was even more intriguing and attractive.  Here was a way we could add a fix-n-hold strategy to our existing fix-n-flip one.  This approach would allow us to profit on future higher real estate values, and at the same time pocket $1,000 or more on each rental while we wait.  Equally attractive was letting rooms to a tenant population, which could otherwise be homeless.  We could truly have a positive impact on someone’s life and make a profit at the same time.  Sounds like a win- win all the way around.

Are there really people who would consider such a living arrangement?  YES, and who are grateful and appreciative of the opportunity to have this option over a shelter.  Men who easily pass our screening criteria and who have skills, jobs, but don’t have the funds for a furnished or unfurnished apartment.  Most apartments either way require one month’s rent up front and a damage deposit equal to a month’s rent. ?

What we offer is called transitional or alternative housing. Read what one of our students has to say about this system.

It’s a wonderful feeling to be able to incorporate this work into my successful real estate business and earn great positive cash flow along with the personal satisfaction of knowing I have an opportunity in making a difference in someone’s life.”

Matt Gerace – Freedom Choice Properties

Discover more about transitional housing by downloading the free eBook, see sidebar.

Max Cash Flow Now: Maximizing rental property profit for one our investor students has allowed her to discover a great new sideline.  After she retired as a high school Principal last year, Phyllis was looking for something to do where she could give back to her community, as well as contribute financially to her family.  To fulfill her financial goal she started doing fix-n-flips in the Denver area with some success, but that kind of investing wasn’t completely satisfying her personal aspiration.

Phyllis called a week after hearing us speak at a local Real Estate Investment Association (REIA) meeting, quite excited about learning more about our system.  She was days away from putting the 3 bedroom 3 bath SFR, she had just rehabbed on the market, which would have netted her a modest profit.  After our initial meeting, we drove to the home and found that it would work perfectly for our program.  We also discovered that she could convert a family room into another large bedroom.  What a bonus!

Market rents for this neighborhood would have placed this home in the $1,250 to $1,350 monthly rent range.  However utilizing our method, she now grosses over $2,600 per month.  And what’s equally important is that she really enjoys managing the unique tenant population.  It is now fulfilling her desire to give back to her community and has become a “hobby” rather than just another flip or rental.  Read Phyllis’ full testimonial at http://bit.ly/6EUhIG.

Phyllis with tenants

This is a prime example of the private sector having an influence on public safety, the re-integration of entire class of renters back into the community, and the eventual reduction of tax dollars allocated to his tenant population.

Please join us and learn about our program by downloading the FREE eBook on the side bar.