By: Jay Long
Q: Dear Jay, I recently quit my job to go full time in real estate. My business is buying and selling for cash profits. I’m doing good, making much more money than I use to on my job, but I’m killing myself with the hours I keep. I never know when there will be more money. I’ll get a huge payday and then nothing for weeks. It’s like riding an income rollercoaster. If I don’t hit it hard everyday I’m worried the money will run out. Is there anyway to keep the high income from buying and selling but also have some consistency in my finances? Burnt Out in Boston A: Dear Burnt out, You and I are kindred spirits. I did the exact same thing you did. After six month on a job I hated and with a few real estate deals under my belt, I walked in after lunch on a Wednesday and quit. It was a wonderful feeling. But that feeling slowly waned after a few months working fourteen hours days for myself. I more than tripled my income with houses but it was still work. Work for myself but none-the-less work. Lucky for me I had several older street-savvy mentors who coaxed me into buying a few rentals with all the money I was making from buying and selling. I would buy and sell several houses over a couple of months and then buy a good quality blue collar neighborhood rental house. Since I was making so much money, I could write a big down payment check if not pay for the whole thing in cash. Each of my rental houses had great cash flow. With in three or four years I had a passive income from my rentals of more than double what I was making on the job I had quit. This really took the edge off the financial rollercoaster because I had a steady income stream to support my lifestyle and when I felt like it I could chase more deals for cash profits. I still keep to the same game plan today. I’ll buy and sell several houses for cash and then when I find a good one to keep, I’ll cherry-pick that one for my portfolio. Some months I’ll do six or eight deals and other months I’ll do only one or two. I don’t care. I have a steady income so I do whatever seems like the most fun. If I were in your shoes today, just like I was over a decade ago, I would do it exactly the same all over again. I would focus my daily efforts on buying and selling for cash and slowly take some of that money and build a high cash flow rental business. There’s no better self-confidence booster than knowing you’ll have an income every month even if you’re tired and take a few extra days off. Jay Long is an expert real estate investor and national speaker. He’s also a licensed real estate broker, author of several real estate courses, seminars and a monthly newsletter, and former vice-president of KREIA (Kentuckiana Real Estate Investors Association). If you would like more information about Jay’s courses, monthly newsletter subscriptions, or if you would like to have Jay speak to you group… contact him at: JAY LONG PO BOX 20025 LOUISVILLE, KY 40250 PHONE (502-893-3313) FAX (502-893-3384) EMAIL Jaylong7@aol.com or www.JayLongInnerCircle.com
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