How to Turn $300,000 in to a Million Dollars Every 3 Months

Real Estate Traders make Money Fall from the Sky

Real Estate Traders make Money Fall from the Sky!

Professional Real Estate Traders doing 10 deals a month bring in around $1million for an outlay of $300,000 approximately.

They do not make as much as you might think because although they are definitely talented at what they do they are seriously behind the 8 ball when it comes to managing their tax. Consequently they give up around $400,000 a month to the IRS. How would you feel doing that?

There are ways to improve their business model but as they are flat out doing deals most are not prepared to slow down to think intelligently and are loathe to pay a financial professional to put their houses in order. If you have $300,000 to plonk down as working capital you too could throw away $400,000 a month to IRS and think nothing of it.

However assuming you are not Scrooge McDuck and do not have that sort of money just laying around or if you do but not have sufficient knowledge just yet as to how to be a Real Estate Trader you can select the low road to start on. After all you might be asking: “What is a Real Estate Trader?” A good question to ask!

A Real Estate Trader is a hybrid between a Property Investor and a Wholesaler. Their trade is Houses – buying and selling to make a profit on a round trip deal and rarely holding a home for 12 months or more. In most instances homes are not held any longer than 3 months and many for under one. Unlike Wholesalers who screw home owners down to drastic discounts of 40% and more Real Estate Traders do not look for a dramatic discount from Sellers. In many instances full market value is given to the home owner – not all necessarily in cash on settlement, but where there might be a deferred portion full asking price is paid to the home seller. A Far Cry from the practice of RE Wholesalers.

Nonetheless Real Estate Traders are able to make good money from small margins and the use of time. A big benefit to Traders aligned with the  Real Estate Conglomerate  is their ability to borrow money at low interest – first mortgage rates for the bulk of the contract price and zero interest for the gap financing needed to complete a deal. Rarely is there a need for Hard Money – which erodes profits. Also there is an amazing financial method to turn potential tax liabilities in to capital – and then used to pay off loans.

Thus in contrast to Cash Buyers no cash is required out of the pockets of traders. This infinitely improves ROI and eclipses the returns being made by both Investors and Wholesalers. 

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Instead of needing the $300,000 to enter the ring you can start with no money today! By simply borrowing the essential working capital to do real estate deals.For example say you wish to buy a $400,000 home, the bank is likely to lend you as a maximum 80%. This means you will need a $100,000 deposit – which can be financed. This deposit is termed Gap finance and using Hard Money Lenders can cost an arm and a leg. But, Traders with Real Estate Conglomerateget it provided free of interest as part of their partnership arrangement.

Say you do 10 deals – it does not matter what the time frame is; a month, 6 months, a year. In total your gap financing would amount to borrowings of $1million (interest free). The best part here with  Real Estate Conglomerate  is you do not have to use your own money to repay the loan – as it is self-liquidating, made possible by being able to apply the tax savings on the deal to pay down the debt.

Here is the simple procedure. You are able to borrow $1million interest free to cover gap financing for 10 deals. Say it takes you 3 months to complete all 10 deals (less than 4 a month). As the deals complete you repaid only 30% of the money you borrowed to meet the gap and retain the rest as increased working capital. After repaying only $300,000 you have $700,000. Split that in to 2 piles of $300,000 and put $100,000 in to a jar. The two lots of $300,000 are what you will need to pay down loans on 2 identical sets of similar deals – and will enable you to have in cash on completion (in a further 3 months or 6 months time) two piles of cash each worth $1,000,000 – that is a total of $2million.

Now split that cash in to piles of $300,000 – you better have 6 piles so you can put the remaining $200,000 in to the jar. Now as there is $300,000 in the jar you can also use that money to pay down debt on another 10 deals. As you have 7 lots of $300,000 you can do 70 deals. It may take you a few months – or a year, even longer. What are your plans for the idle cash just laying about in your vault like Scrooge? Can you estimate how much cash you will have after doing 70 deals?

As Traders aim to quickly turnover their properties the first mortgage finance is repaid from the proceeds of sale. However only 30% of the gap finance needs to be repaid at that time. Which effectively means REC Traders are able to make $1million for $300,000 and have the $300,000 paid for them courtesy of Uncle Sam. Now it is your choice whether you use the gift from Uncle Sam or your own money.

Which would you prefer?

If that question is too hard for you then you would not make a suitable trader for  Real Estate Conglomerate.

Only serious starters should CONTACT Me with the Magic Word ” SKY