Article 3 in a series
A successful business that is sustainable over the long haul has multiple streams of income. Typically this means diversifying into different businesses. I believe in Multiple Streams of Profit where you create bonus profit streams within the same business instead of having to create a brand new business.
Obviously the first additional profit streams that you think of as a wholesaler would be to renovate and resell home and to build a rental portfolio. Absolutely. These should be added to your business.
You should also expand how you think about your business. Don’t limit yourself to just being a real estate investor that finds property and sells them. What is the most profitable asset you have in this business?
It’s your list of investor buyers. If you have an active list, you can always make money. So let’s look at how else we can make money with them. And remember, everyone has to benefit in order to have long term success.
As you build your list size, their demand for properties to purchase will exceed your capacity to supply. This is a perfect opportunity to create a joint venture (JV) with someone who is finding properties. Many investors can find good deals, but they cannot sell them. They don’t have a list. That’s where you come in.
You offer to market the deal to your list as a joint venture (their deal & your list). You will bring all offers to them. They can accept or reject. If they accept, then you split the profits on the deal. If they reject, there is no cost to them.
This service benefits all parties. Your buyers are happy because they have access to more deals. Your JV partner is able to sell his deal and make money; and you make money from just sending out the deal to your list.
Expand your thinking about your list. The investors are not just interested in rehab and rental properties to buy. They are interested in real estate investing in general. You can sell them products and services as an affiliate marketer. Many of the training products and other services related to real estate investing offer an affiliate program where you can sell their products for up to 50% of the REVENUE (not the profit). So if a product sells for $1,000 you make $500.
Here’s the best part: they provide all of the marketing and the sales pages; they collect the payments; they fulfill the order; and they handle customer service issues. All you do is send out some pre-written emails to your list. You can even load these emails into your auto-responder so the marketing is automatic as new investors join your list. What an easy, passive method to add revenue to your business without incurring additional expenses – that’s known as pure profit.
Expect abundance,
Lou Castillo
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