The more deals you can get into the least amount of money down, the wealthier you will become.
No money down deals work for everyone. They’re not just something you see on late-night infomercials.
You may say: “Where should I start? Should I start small, medium, or large? Must I do big deals at first?” the answer is no, you don’t have to do big deals. It’s a common fear: Doing Big Deals can feel at first like you’re just making a Big Mistake.
One of the things I always recommend is you should be a conservative investor, and only take calculated risks. Start where you’re comfortable. By being comfortable and understanding the systems, you’ll quickly get into the bigger deals. The best part about those big deals is the extra zero at the end of every one of those profit checks that you get. Same amount of work, but one extra zero makes a big difference.
It’s really remarkable what just that one little digit will do to your bank account and lifestyle!
The “Chunker Strategy” is this:
1. Buy a single-family property.
2. Flip it.
3. Use some of the money to live today
4. Use the rest of the money to put a down payment on a multi-family property. It will then create a chunk of cash flow coming into your house, month-in and month-out.
There are three reasons to be in real estate. Number one is money today. Money today is the money you get from flipping properties. You can flip both single-family and multi-family properties.
What you decide to do with that money will determine who you wealthy you are down the road. If you put your money into multi-family properties and start creating monthly income, that’s the second reason. The money monthly comes from that positive cash flow.
The positive cash flow equals freedom. It allows you to do what you want to do and make decisions in your life that you didn’t have before that money started coming in.
The third reason is money later. It comes when you tenants pay down the mortgages on your properties. Your tenants make you wealthier. They dig into their pockets and hand you money that you give to the bank. But you only have to give some of it to the bank. The rest of it you keep in your pocket as positive cash flow.
