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One of the fundamental precepts we hold in our business is
creating multiple profit centers.

Simply put, create money coming in from as many directions
as possible without setting up multiple businesses.

Prior to having the power of the internet this was tricky to achieve.
The diversity in my portfolio consisted of wholesale properties;
rehab properties; and rentals and lease option properties.

The proliferation of the internet across America…across the world
has changed all of that. We are now able to reach a vast population
quickly, inexpensively, and almost automatically thus opening an
array of new income possibilities.

Here are five different ways that with an online real estate business
you can generate $5,000 a month each.

(1) The Conquer & Control Technique: Wholesale properties and never
buy. Control and sell your controlling interest. No loans.  No rehab.
No risk. An average deal earns $10,000, so just do 1 deal every two
months.

(2) Sharing “Their” Wealth: With a national list of investor buyers (which
you built on the internet) you have the power.  Offer to market other
wholesalers’ deals to your list for half the profit when your buyer closes.
Many people have  deals and no buyers. This service is a no-brainer
for them.

(3) The Guru Gravy Train: The buyers on your list love all things real estate.
Become an affiliate sales person for respected programs and resources and
offer these to your list and receive one half of the sales with none of the work.

(4) The 90 Minute Work Week: Simplest money you’ll earn. Invite your list to
listen to respected educators on real estate topics. Allow your speaker to sell
their product and again you receive one half of the sales with no further effort.

(5) The Boomerang Effect: Offer the various monthly membership programs
available to your clients. These are low priced sales, but the cumulative
recurring effect is spectacularly profitable.

Notice that I didn’t even discuss rehabs, rentals, commercial properties,  
or self
storage which are all other ways to bring into money to your empire.

The opportunities are abundant once you have your basic business operational.

By leveraging the power of the two greatest wealth builders of  our time – real
estate and the internet your profits will grow exponentially with minimal impact
to your time and money resources.

Expect abundance,

Lou Castillo & Josh Brown

Life’s to short to do anything that you don’t want to do! I saw this short video last week and I realized that the creator (Gary Vaynerchuk) and I think alot alike…this video is a great watch. Check it out, then click the “like” button and share it with your facebook friends. They’ll thank you for it!

- Josh Brown

I watched this video today on TED.com and thought it was very interesting. Checkout Tom Wujec’s explanation on what makes a good “team”.  After all, your business team is one of the most important things you need to develop right?

Josh Brown

P.S. Happy Memorial Day – Be safe. Have fun!

I recently saw this video from Tim Ferriss (author of ‘the 4 Hour Work Week’) give a talk about dealing with haters…I thought it was brilliant. Watch it and let us know what you think.

Tim Ferriss keynote The Next Web Conference 2010 – Love the Haters from Boris Veldhuijzen van Zanten on Vimeo.

Is real estate still a good investment option in this market?

Can you still make money wholesaling properties?

Are investors still buying properties?

The answer to all these questions is absolutely YES! In fact this is one of the best markets we’ve seen in a long time for making money in real estate. There are more motivated sellers than ever. Properties that were too high priced before to cash flow now make great rentals. And the savvy investors realize that we are approaching the bottom of the price fall, which means now is hte time to start acquiring properties and take advantage of the appreciation which will soon start.

Wholesaling is a great strategy to follow whether you are brand new looking to create a profitable business, or you’re a rehabber looking to find more great properties; or you’re trying to build your rental portfolio.

A Wholesaling business can easily provide multiple high dollar profit deals a month which in turn can fund a rather substantial marketing budget (in addition to the money you put in your pocket). As your marketing grows, so will the number of great deals you contract. As a rehabber you can pick and choose the best ones for you in the area of your choice. You will never again have a down period where you don’t have a property to work on. As a landlord you’ll find many properties you can pick up in rent ready condition that will provide not just a positive cash flow, but also signifiant built-in equity.

I have always used my wholesaling business as a means to keep both my rehab and my rental portfolios full; not to mention how nice it is to have siginicant cash coming into the business every month.

One of our clients wanted to focus on creating a huge rental portfolio. I advised him to set up  a marketing campaign to drive leads; select the deals he liked (especially those that you can by subject to the mortgage) and to wholesale the rest to create additional cash flow.

In his first year he acquired over $2 million dollars of real estate in his rental portfolio comprised of houses under $175,000 – all with positive cash flow. He also earned $70,000 in wholesale profits at the same time!

If you’re not wolesaling properties – you’re missing the boat – a huge cash boat!

Expect abundance,

Lou Castillo

Do you know exactly what each dollar in your business is spent on?

Do you know each month what money you have coming in and when?

And what money has to be paid out?

Do you have a system setup that brings in a predicable cash flow to
cover your operating costs?

If you answered “NO” to any of these questions, you need to go
below now and start managing your cash flow. You will get a clear picture
of what is happening in your business and allow you to better manage your
funds and grow your business.

Most people run their business in terms of profit and loss. The problem
with that is it is possible to make a profit and run out of cash. This
occurs when the profit margins are not significantly higher than expenses;
or when revenues are not consistent (yet your expenses are).

Your business may incur expenses every month, but revenues may dip for
a few months then soar for a month or two. A Profit & Loss (P&L) statement
for that time period may show a profit  – in other words the revenue finally
exceeded the expenses, but Without sufficient cash reserves the business
may not survive long enough to reach the high revenue months!

You also have fixed costs and variable costs. Fixed costs are those that occur
every month regardless of your volume. Variable costs are those that vary
according to your volume.

As you look at your different sources of income structure your portfolio
so that your regular recurring revenue components cover your
monthly fixed expenses.

In our business, we periodically review a list of our monthly expenses
to see what can be eliminated. Just last month, we realized we were spending
$1,147 on things we no longer needed or used.

It’s a small percentage of our total expenses, but that cash can now be spent on
marketing to generate more business without adding anything to our bottom line!
We kept our expenses flat, but increased our revenue!

However, as we told a couple of our private mentoring clients just this week,
the one expense that should never be reduced or eliminated is marketing.
Without marketing you have no business. You can manage your marketing costs
for effectiveness, but never stop marketing!

By increasing your revenue sources and managing your expenses you will not
only have a more profitable business, but you will improve your cash flow.

In our business we practice multiple streams of profits. We don’t rely
on any source of profits, but rather set up multiple methods. And we keep all of it
within the same business model so we achieve maximum leverage between the
various streams. YOu could separate business models running, but then you
achieve no synergy between the businesses.

Most importantly, we have a system that generates enough revenue every
month to cover our base fixed operating costs. Just one aspect of our revenue
funnel takes care of rent, utilities, marketing, payroll, etc. Any additional
revenue throughout the month is gravy (less any variable costs)!

Managing cash flow is simple and easy and can make a BIG difference to your
business! Once you master this concept, watch your business grow!

Expect abundance,

Angelina Brown
Chief Financial Officer
Investor Riches

Watch this entire video. It’s 100% content and will tell you exactly how you can start dominating the internet with video…EVEN if you don’t have a website!

- Josh Brown

P.S. Please also tell me what you think or share any resources you use below…

—
just added…
—

In response to a post below…

Brian, here’s a pic of one of the light’s we use. It’s  Smith Victor Raven
from Ritz Camera and you can get more details here.

I don’t know about you but I really enjoyed these 2010 winter Olympic games.

USA won the most medals ever by any country with 37 ; 9 of which were gold.

Did you watch? Weren’t you completely inspired by the athletes? They have incredible drive and fortitude!

Watching them perform I learned some valuable lessons that apply to business as well.

Here are the strategies the Olympic athletes taught us about winning the “gold” in business…

1. Focus and master one discipline – these athletes become experts in their one sport. They don’t regularly switch from one sport to the next looking for the easiest route to the top. They focus their energy and perfect the results. Compare your choices then commit to one course of action and stick to it until you reach success. If you bounce from one idea to the next you’ll never gain any traction.
2. Incredible tenacity – getting to the top requires dedication to the goal. Some of these athletes have been at their sport for 10-15 years which is incredible when you consider most of them are in their 20s.  Recognize that success in business is a process that begins with a great foundation and builds over time.
3. Failure is part of the process – the athletes did not get on their skis or their skates one day and perform at world champion levels. In fact they fall more than they succeed, but each fall teaches them where to make a course correction for improved results. Don’t allow set-backs in business to stop you, but rather to inspire you to continue progressing.
4. Passion – as I listened to the interviews the common theme I heard was that each competitor loved what they were doing. Although they work hard it isn’t hard work because they love the sport. They done chase “gold” – they pursue continuous improvement which leads to “gold”. In business don’t chase the dollar. Follow your passion and become the best at what you do; the dollars will automatically follow.
5. Coaching – not a single competitor accomplished these world class levels on their own. Each had a coach and a mentor to speed up their rate of improvement. Don’t feel that you must do it all yourself. You will cut off years off your learning curve and save tens of thousands of dollars by having the right mentor for your business.

Win the “gold” in your business by mirroring the success of our Olympic athletes.

 Congratulations Team USA!!!!

 Expect abundance,

 Lou Castillo

 P.S. Be sure to leave a comment below about this post. The person with the most informative or creative comment will win a 30  minute business building consultation with me next week!

If you’re like most people you have ALOT to do and very little time to do it in.

I get that.

6 years ago I was the same way, but then I figured out how to automate many of the
parts of my business that took up most of my free time.

After I implemented these changes in my business I almost immediatley spent less
time working in my business and more time enjoying the profits I was bringing in.

…Is that what you want?

I thought so.

I recently counted up more than 39 ways I’ve used the internet to automate my business.

Since, I don’t have all day to share every way (and since my clients pay alot of good
money to get the same info), I’ve decided to share 4 of the ways you can Easily automate
your business today using the internet.

So here you go, enjoy…

Easy Automation Tip #1: Sellers come to me. I don’t go to them.

You can use a simple motivated seller capture page to easily and quickly have your motivated
seller leads flowing into your business.

I can sift through and cherry pick the deals that I want to spend time on.

Easy Automation Tip #2: 24/7/365 list building.

By using simple online traffic strategies that you can setup once and walk away from you can
start building a list almost instantly that grows and grows everyday, while you’re doing
other stuff!

(HINT: this is something every major player in the real
estate game is now doing, so you better start!)

Easy Automation Tip #3: Become an expert in just a few seconds!

Using a simple little script I had created I can easily create customized reports for both
my buying and selling businesses in a matter of seconds.

Wanna try it? No cost. Just fun and a great tool

Create your own customized buyer & seller reports here: http://complete-domination.com/customizer

Easy Automation Tip #4: Create a virtual team to do the HARD/BORING STUFF for you!

You can use services like 1800callnow.com to answer your incoming seller calls LIVE and
talk to your sellers. Then have them email you a complete detailed info sheet on each seller.

This allows you to spend 10 minutes or less evaluating a property and the rest of your
time having fun!

There are tons of other ways I use the internet to automate my business, most of which have to
do with making money day after day using the power and speed of the internet!

Over the next few days I am going to give you access to all of my internet marketing for RE investor
secrets so make sure you keep your eyes peeled.

Expect abundance,

Josh Brown

An easy way for you to obtain all of the funding you need for all of your deals is to build a portfolio of private lenders. This will quickly become an unlimited source of financing for your projects not because you are necessarily working with the super wealthy, but because you can recruit an unlimited number of private lenders – individuals who want to make real estate loans to you and your business.

Finding these individuals is simple. You don’t need to market to the super wealthy. In fact, these would be the wrong prospects because they already have money managers that are able to earn them high returns on their investments. Instead, market to everyday individuals who have money in low yield vehicles such as Money Market Funds, CDs, savings accounts, and even IRAs.

Typically they are earning under 3% interest on their money and you will be offering them the opportunity to earn 6%-8% secured by real estate at a very reasonable 70-75% LTV (Loan-To-Value) ratio. The chance to double  – even triple – the return on their money will motivate many prospects to jump at your offer.

With full disclosure to your private lenders, you’ll be able to not only finance your real estate purchases, but all of the other costs as well. In other words, you can fully fund the entire project and have no out of pocket expenses. Private lender funds are also great to fill in the missing holes on projects.

Let’s for a moment assume that you used some other financing techniques from the earlier training and you purchased the house subject to the existing mortgage but still need to come up with $5,000 to bring the loan current and to give the seller some walking money. In addition, the rehab estimate is about $15,000 and you figure that you’ll have another $5,000 in miscellaneous costs associated with the project. That’s a total of $25,000.

Coupling the subject to technique with a small private lender results in a fully funded project. No cash needed on your part. Can you see how valuable private lenders are to your investment business?

But we’re not done. You can also use them to purchase REO properties and short sales – even when you’re wholesaling. Let’s say that the bank selling the REO will not allow you to wholesale the property. In other words, you must close on it first. You can still set up your buyer to close on the same day; and use private lender funds to purchase the property, then repay the funds the same day after the resale. Most private lenders would be thrilled to make $500-$1,000 on their money for 1 day, and that’s a whole lot less expensive than use a transactional funder.

The greatest advantage of a private lender is just that: they’re private. They are not in the business of making real estate loans. They have built a relationship with you and only want to make loans to you. You don’t have to go through a qualification process for each deal; the loan will not appear on your personal credit report; and the funds are generally available within a day so you can react quickly to opportunities you find in the marketplace.

If you are currently not using private lenders, you really need to add that strategy to your arsenal of tools for your real estate business.

Tomorrow we’ll be reversing this same topic and making you the private lender. You’re going to love that information.

Please don’t forget to leave me comments about this article. I love to hear from you. Just click on the “Read More” button below.