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How I Created $243K Annual Cash Flow and $2 Million in Equity

by Jim Rayner - Jim_MA   

This story is not just about a great deal, but rather an attempt to help you realize one of many ways by which your dream of financial freedom may be achieved. To those of you who are acquainted with what I have been doing since 1995 let me say this: Thank You. You've been a great support system. To those I haven't met yet or who are just beginning down the road to financial freedom and do not know what I've been doing, this story is for you.

I wrote a previous story, Lenders Are Fighting To Give Me Money! This is a continuation of that story.

Picking up where the first story left off, I'll just say that the expected results have been achieved, although my overall goals have significantly changed. Since that first leap into multi-unit residential properties, I have acquired 27 additional units. In this process, I have succeeded in getting the full support of two local banks, I have had to assemble a much larger team to keep things flowing smoothly, and I have now reached a point where I jokingly say I'm "beating away the lenders."

I must admit that I never expected to see the day when I'd have this kind of problem, but I like life better this way. I find myself looking at everything in life in whole new way, I can't seem think inside the box any anymore. My real estate investments have taken on a life of their own, with each new acquisition driving the next. What a rush it's been getting out of one comfort zone and finding that you quickly adapt to the next.

For those of you who are into numbers here's what's happened since 1995:

Capital available in 1995 - $133K

Invested in 10 Condominiums

Cashed Out from 6 of those condos: $193K in March 1999

Re-invested the $193K in an additional condominium, an 8-unit Rehab Project and a 10-unit Rehab project and a new home in March 1999 through July 1999.

With the 8-unit Rehab only 50 % completed, but the building fully rented, we just pulled out $125K of the increased equity attributable to the increased cash flow.

The $125K has just been reinvested in an additional 16 unit complex ideal for condominium conversion.

Depending on the eventual exit from the 16 unit deal what's that original $133K doing today:

Positive Cash Flow = $243K per year, with equity of a little over $2 Million

In 1995, I wouldn't have believed it was possible.

Are you ready to get out of your comfort zone? Here's my advice for doing that:

  • Read every post in the CRE Online forums.


  • Participate in the chat room discussions.


  • Attend the annual CRE Online Convention.


  • Read every book you can on real estate investing.


  • Buy courses in areas where you wish to become an expert.


  • If you have some deals under your belt attend the workshop on How to Get Lenders Fighting to Give You Money. This is one experience that you shouldn't miss. While Ed Garcia provides you the inside knowledge on how to work lenders, Terry Vaughan, a wizard at motivation and an expert in paper. It will inspire you to take yourself out of your comfort zone, and they'll both be there with you while you find your way. And last but not least Ray Alcorn, a master in commercial investments, often is there to train you in property analysis and due diligence. You can also get benefit of Terry and Ray's knowledge at the mobile home, mobile home park, and mobile home paper workshop.


  • Read the works of Robert Kiyosaki until you understand them. Develop your investment plan and get out there and just do it.

One last thing for those who think that being a real estate investor requires your full-time attention. Listen carefully: It just isn't so.

While it's a great way of living, it is not absolutely necessary to devote 100% of your time to it. I speak from experience. I still today put in 37.5 hours per week as a member of the E quadrant, not because I have too (anymore), but because I want to. Until four months ago, it was a necessity. Now it's just a hobby, so to speak.

If I can find freedom as a part-time real estate investor so can you. Best of luck in your investing endeavors.

 
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