Dear Friend,
This could be one of the most important messages I ever share with you.
This one concept that I’ve learned after flipping 150 houses, owning dozens of rentals, brokering hundreds of real estate transactions, and completing almost $1 Million in repairs on a commercial renovation project in 3 months is one of the most valued secrets I can ever hand to the next generation.
I am 53 years young, and have been an entrepreneur since 1998 AD. (Sounds rather prehistoric when written like that).
Hopefully, this secret can shave years of anguish off your life and you can learn to make more money, faster.
Flipping homes is awesome. You can generate chunks of cash that you can deploy for reinvestment, debt paydown, living, etc.
Rental cashflow is great as well. Cashflow eliminates the needs of “living for the next deal”.
However, what I am about to teach you next, is profound.
This is NOT the Math they teach in school.
Because it doesn’t make any sense until you do it.
It doesn’t make any sense until you run some various numbers on real-life potential deals.
Here is the secret in one short line:
$100,000 = $750/month
That’s it.
Sounds crazy, right?
Let’s look at one or two examples.
1) Suppose you own a property and are considering building out a little Barbecue joint and leasing it out to somebody to run as a business.
Let’s say it’s going to cost you $300,000 to build out said building. Perhaps a little metal-clad barndominium type on a slab.
Your monthly debt payment is approximately $2200/month.
($300,000 divided by $100,000 multiplied by $750)
If you can find somebody to rent the building say for $3500/month…whaa-lah. Cashflow. Here’s another one.
2) If you can borrow and buy a business for $1,000,000, your loan payment on a 25 year amortized loan is going to be approximately $7500/month. (($1,000,000/$100,000) and then multiply times $750/month.)
If you can locate a business opportunity that produces income of $25,000/month, and has some operating expenses of say $8000/month…you have a positive cashflow of $9,500/month.
I used to look at everything in terms of flips and small rental properties with the cashflow.
These days…I quickly analyze opportunities using the formula provided above.
If you can borrow money and deploy it to generate sufficient revenue, then it makes sense.
This is the math that keeps my mind churning and looking at various opportunities. Developing. Buying and Renovating. Businesses. It’s all simple math.
Let me know if you have any examples to share, or if you have any questions or thoughts on that.
Make it a Great Day,
Brandon Yeager
If you have never connected up with me on Twitter (AKA X), I would love to link up. Here is what to do:
1) Reply back to this email that you are going to follow me…and then
2) Follow me on Twitter and then
3) If you are a normal human being, I’ll follow you back. But if you are a hard-liner furry who enjoys pretending like you are a cat and urinating in the corners of city streets while roaming the sidewalks…then, I’m not going to follow back. Just sayin.
