Have you ever thought about getting into investment properties or just getting a better feel for the real estate world? I want to share something you can do as an agent to increase your value and your own wealth.
When I got into this business years ago, I bought a duplex that produced $1,500 in cash flow after some renovations. This was a huge amount of money to me, but it didn’t come overnight. I made a lot of mistakes, it was a huge investment, and I had to keep investing in it.
I felt like I needed to pay off that property, and I think that is still important. However, we need to be using leverage when we invest. I had paid the property down to $150,000, but it was worth $450,000. That $300,000 difference wasn’t being used at all.
“We teach people to be excited about the cash flow from investments rather than buying things.”
I decided to aim a little bit out of my comfort zone and buy an eight-plex that was worth $1 million. I took that unused $300,000 and stuck it into that new property. By doing this, I increased my cash flow to $4,000 a month.
I could have very easily paid off that first property and stopped there. By using a strategy and changing my mindset, I was able to get so much more. We can apply that to being an agent and increasing our own wealth.
My agents have investments in the property behind me in the video above because that’s something we teach. We teach people to be excited about the cash flow from investments rather than buying things. You should be looking at the BRRRR strategy: buy, renovate, rent, refinance, repeat. If you’re able to go through that strategy and maybe share some examples with clients, you can show that you’re a lot more valuable as an agent.
If you want to talk more about these strategies, reach out to us. If you know someone who would be a good fit for our team, please share this video with them. If you need anything, give us a call; we are always here to help.
