Today I’d like to talk about an issue with real estate investors that I hear a lot about: how to get their properties free and clear as soon as possible. I, personally, don’t care as much about this, as long as the properties cash flow every time. My tenants are paying for the debt service (the mortgage) on the property by paying rent every month.
If you’re trying to build your wealth, start by purchasing 4 income properties every year for 5 years. That will get you 20 properties altogether after the 5 years. Once you have your portfolio, go ahead and create a wholesale deal. This is going to give you more money to live on.
In year 6, continue to do another 4 or more wholesaling deals and once you sell the contracts, use that money to pay down your properties. Repeat the process for another 3 years and use the profits to continue to pay down the mortgages on your income properties. In this way, this is how you’re creating your “money machine”; creating income from rental property and extra income with wholesale or fix ‘n flip properties.
This is an incredibly simple process to pay down your properties FAST and putting more money in your pocket. You don’t need to wait the full 30 years for your properties to be paid off, but can reap the benefits sooner.
Be sure to visit me at LarryHarbolt.com for all your real estate investing education needs.
To download my “Negotiating with Sellers By Phone” cheat sheet, visit LarryHarbolt.com/Phone.
Good Luck and Happy Investing!