Real Deal REInvestor Network

As you are getting started in commercial real estate investing, or residential flipping, ask yourself, “Do I run a house-flipping business?  Or, is it a real estate business that flips houses?”  Are you working for tips? Let these commercial real estate investing tips help focus your approach to investing.

There are a few  key tips for you to consider as you are getting started in commercial real estate investing, or residential flipping.  Ask yourself as you begin, “Do I run a house-flipping business?”  Or, “Am I running a real estate business that flips houses?”  Do you see the difference? I can teach you how to do one deal, but what is that going to do for you? You just make one deal, right?  Let the following real estate investing tips help focus your approach to investing.   

 Create a Business with Systems:

 HIS Real Estate Network teaches creating a business that has a “system” that will generate residual income for you. That’s the difference. What I want you to start thinking about, the need for you to see residential and/or commercial real estate investing as a business. That’s what this is. You are not flipping houses; you’re in the residential and/or commercial real estate business.

 If you operate your real estate investing like a business, guess what happens? You don’t do just one deal a year or one deal a quarter; you do a lot of deals consistently. Why? You’re running it like a business. That’s the difference.

 Whether you are involved in residential flipping or commercial investing, it is important to know that you are running a business.  And, if you are focused on residential, you may want to look at the viability of adding or shifting to commercial ventures.

Determine your income needs to meet your obligations, reach financial freedom?

 Now I don’t know what your income stream is right now, if you make $4,000, $5,000, $6,000, $7,000, $8,000, $9,000, $12,000 or $20,000 a month in payments so that you can live. In other words, what amount of income do you need to come in every month so that you can pay your bills, and be free?

 If you just did a couple of deals and every month they were paying your bills, even if it was just $6,000 a month, would that be financial freedom? Financial freedom might mean you could just roll out of bed and be like well, “Today I don’t feel like working. It’s okay because my mortgage is paid, my kids have food, we’re going shopping and we’re going to Disney.” That makes a big difference.

 A residential business with solid systems can do a portion of that to a degree, which is one way to maximize the returns quickly because that’s what the vehicle is there for.  But, what we really want to do is take that money that we’re repeatedly making on the residential flips, and take a portion of that, right now, and put it to work for us long term.

Ask yourself if you are “working for tips?”

 Does anybody know why commercial is so sexy to us?  Money for trailing dollars… Passive income. Residual income. Commercial market crash. That’s definitely a door for it right?

 We used to just be residential and we had it down pat to a science. We could do a webinar and flip 20 properties in that webinar. It was good. We had the system down and I was bragging about it to some older guys who couldn’t stop laughing at me. 

I’m offended. I’m literally offended because I’m doing deals so I’m a player, and these guys are laughing at me. I asked, “Why are you laughing?” And, one said “Because you’re working for tips.” Think about that concept for just a moment. I’m working for tips. I’m making money, right? Yes, but the moment you stop working that business, guess what happens? You stop making money.

Then he said something that really hit me. “When was the last time you flipped a house and the house deal paid you every month after that?” I had no comeback for that. I just had to bow out, put my tail between my legs and say “okay”.

 Well, what happened was I saw the light.  I bought one commercial deal, I made money when I bought the deal, and I’ve been making money for the last 11 years as a result of that one deal.  You can’t compete with that. Do you follow? So the rate return may not be your 30 or 40% on a flip, but at the end of the day it’s an infinite return that’s paying every single month.  Do you follow that?  Every single month!

Now we are getting that residential income flow every single month. It only takes two or three deals before all the sudden you’re like hey, I can be picky now. I can relax because every month there’s a check coming in the mail. How many of you would like to do that? Absolutely! Me too!

So as you are getting started in commercial real estate investing, or residential flipping, be sure to run your investing as a business with systems, know how much income you need to generate from your system to reach financial freedom, and stop working for “tips” as you transition to commercial real estate investing, if you’re not already there.

Rick Melero

  P.S. If you’re serious about making money NOW in commercial real estate, while building long-term wealth, all by learning how to re-position yourself to achieve INFINITE returns then you must attend our next live educational online webinar with America’s #1 Real Estate Network™. Register here, right now as a guest of Rick Melero and unlock the secrets to 6-figure paydays and awesome monthly cash flow per deal:

http://www.hisrealestatenetwork.com/383