One of the best ways I know to grow personal wealth is by creating multiple streams of income. In an uncertain economy, it is important not to place “all your eggs in one basket.” In order to protect your income long term I would suggest diversifying your investments so even in a bad economy you still have income from some of your investments.
As a real estate entrepreneur, there are several ways for you to accomplish this goal. One way to create multiple streams of income has to do with the way you purchase properties and structure your deals. You can wholesale properties for immediate income, or you can lease/option so you get some money today, some each month and a big chunk of cash at the end.
When you do a lease/option with a tenant buyer, just remember to increase the initial price of the property by at least ten percent so you realize the gain in property values over the year.
You could also invest in vacant properties and either get them ready for development which increases value, or you can hold onto them long term to realize long term gain.
Another way to invest in real estate is to get owner financing on properties, preferably with no money down and then either lease/option those properties or rent them. This is another good way to set yourself up for long term income by realizing income on a monthly basis on these properties plus the increase in value of the property.
As you begin to realize a good income from your properties you might want to confer with your tax consultant on other types of investments in order to diversify your portfolio. For example, you might want to do private or hard money lending. This is a good way to get your profit on your deals to make you even more money. Another thing you might want to do is to build some type of retirement fund, perhaps a mixture of stocks, bonds and commodities.
Investing in commodities is another good way to invest available cash. What I mean by commodities is gold, silver, palladium or platinum. These types of investments are realizing huge increases in value in our current economy.
If you are computer savvy, you can also spend time building a website, then licensing products to sell on your site. This is another good way to make income even while you are sleeping.
Ultimately, your goal should be to make as much money as possible with the least amount of effort. There are just so many ways to make money and so few people are taking advantage of all the opportunities that are available to them as real estate entrepreneurs. Many of the techniques you will be using in your business do not require credit or start up capital.
If creating wealth is your idea of fun, then creating multiple streams of income will be an important goal for you. I personally look forward to finding new ways every day of diversifying my business and my assets. I love the idea of waking up in the morning and knowing I’ve been making money while I was sleeping.
I also look forward daily to the opportunity to create win-sin solutions for sellers and being able to help them solve a problem they couldn’t solve alone. I totally believe that while real estate is a wonderful way to make money, it is also a wonderful way to help people.
I look forward to having the opportunity to help you learn how to work with motivated sellers, create win-win solution to their problems, and make a lot of money in the real estate business. For more information on Kathy Kennebrook’s products go to Marketingmagiclady.com.