This post is part of a series:
Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX
When we left off yesterday, we were talking about how to find properties that match our investment criteria. And we discussed the need to plug into an established investment network.
Here’s why…
The network’s job is to bring vetted properties to us. Vetted being the key word.
That means we have all the pictures and financial projections for each property. This includes market rents, estimated principal and interest payments based on current interest rates, estimated taxes and insurance, as well as property management fees.
These numbers demonstrate very quickly whether a property is likely to match our criteria or not. Then we need to do our own due diligence to verify the numbers. That’s the only way we can know for sure.
In addition, we’ll have a single point of contact in the network. That person can answer any questions we may have about any property available.
To paint you a picture of what this looks like, our network down in Dallas operates via email and phone calls.
When we get allocation to a new construction development, our contact emails us all the information on the properties that will be available. Then we do our individual due diligence and determine if we would like to reserve one or more of the properties under construction.
It may be simple. But this approach works just fine when you work with professionals you can trust.
I also invest through a larger network. It has a presence in more than a handful of major cities.
This network maintains an online investment portal for investment properties. We can simply hop online any time to see what properties are available. And we have all the financials and the pictures right there to go through.
So what we’re talking about here is really deal flow. We want the deals coming to us.
But it doesn’t stop there.
These investment networks also connect us to every professional we need to execute our wealth strategy. This is the “Who Not How” principle.
It starts with vetted lenders in a given market – both conventional and asset-based. When we decide to move on a property, our network will line us up with the best lender for our circumstances.
Our networks also connect us to insurance agents who focus on rental properties. My larger network even maintains a master insurance policy with our insurance provider of choice. This gives us access to materially cheaper insurance coverage.
Then there are property managers. This is the big one.
Remember, we’re not taking phone calls or handling maintenance requests for our properties. In fact, most of the time we shouldn’t even be buying properties in our own area. Not unless they match our criteria.
Instead, we hire professional property management companies to do everything for us.
They screen and place our tenants. They collect our rent. They take all phone calls and handle all repair requests.
In short, our property managers take care of our properties and make sure that they operate optimally as an investment.
In exchange, we pay them a small percentage of gross rents. It’s 6-8% in most markets.
So plugging into existing real estate networks takes all the guess work and the grunt work out of it. It provides deal flow. And it connects us to the professionals who can make everything happen.
This makes building monthly cash flow as simple as sending a few emails. No kidding. We can go from start to finish with each property without ever leaving our home. Then the monthly rent starts showing up in our bank account at the first of every month.
And we always have a point of contact within the network who can help us with anything. That makes the income we’re building about as passive as it can be.
This is how we systematize our wealth strategy. And it’s how we can juggle so many moving pieces without too much headache.
Leveraging existing networks like this puts us on the fast track to $10,000 a month or more in passive income. But we’re not quite done.
We also need to implement a tax strategy that will work hand-in-hand with our wealth strategy. Remember, debt and taxes is the name of the game.
For this, we’ll need to find a CPA who specializes in real estate. And again, the best way to do this is to get references from an existing real estate network. Easy as that.
So the only question that remains then is this: how do we go about plugging into existing networks?
And the answer is The Phoenician League.
Our new membership provides both the core training and the connections we need to go from zero to $10,000 a month in passive income.
We can provide personal introductions to CPAs, LLC strategists, and asset protection attorneys. And we can get members plugged into existing real estate networks to make building cash flow simple. Who, not how.
For more information, please see our membership portal right here: https://membership.phoenicianleague.com