Multiple Streams of Income

[allagash]

Having been here since '05...I've seen plenty of instances where people are scraping by to put a deal together.

It's all about income and expenses really.

There's no way you can have any sizeable income for investing, (in whatever area you choose), unless you've got a considerable spread between what you take in....and what you pay out.

Bluemoon is pretty good at pointing that out.

This thread is specifically focused on ideas to boost one's income.

Here's one:

My wife is a Pampered Chef consultant:

www.pamperedchef.com

If you're not familiar with it.....it's a Warren Buffett company.

Not sure...but I think that REIR has pointed out...on more than one occassion...the shackles of the typical employer/employee scenario.

What's my point here?

I'm looking for more...(controlled greed as Rookie would say)... income ideas...those that don't have the typical confines.

Not initially capital intensive like self storage units....but with potential for  sizable growth.

Thanks,
-Mike

[javipa]

That's an interesting question...

I'm not a believer in multiple income streams from diverse sources. It requires expertise across a number of field/markets and that requires a lot of brain work, attention and discipline.  Each of those is necessary regardless, but I try to focus on complimentary efforts.

For example, I'm highly diversified in real estate.  I am not diversified in stocks and bonds, and franchises, and multilevel marketing, and you name it.  That takes too much effort, and hardly an ability to live long enough to be a master at them all.  I'm not that smart, or that energetic.

If you want to accomplish this goal, then set your eyes on that one objective and narrow the focus to a pin point.  Pick your poison, as it were, and go for it.

I choose to continue expanding my rental income.  I'm very good at this.  I know exactly what I'm doing and can manage property profitably in my sleep.  I can also find and buy property that suits my objectives without wasting lots of time like amateurs do.  I know the road. 

That all said, I'm completely incompetent when it comes to making money with franchises, multilevel marketing, or stock investing.  I would die a slow agonizing financial death if left to my own devices ...if these were my only options.  Does "frog in a hail storm" paint the picture?

Become an expert in one exact field.  However, do something that taps into both your strengths, interest, and imagination.  Otherwise, you'll either get bored, burned out, or just bummed out in a short period. 

Frankly, there's some who've made it big in one field, and then got bored, burned out or bummed out...and then switched to something else ...living out a perpetual mid-life crisis.  Well, that's another issue.

Meantime, you'll have to ask yourself some probing, honest questions about what makes you tick.  If you don't know for sure, than you'll just have to find the answers the hard way.  That might mean taking some steps into the unknown to uncover that which seizes your imagination. 

You may discover that what really motivates you and gets you up in the morning has zero to do directly with making money... 

A case in point is Walt Disney.  He focused on being the best at his craft...creating cartoon shorts, and ...going bankrupt a few times...getting ripped off...cheated ...and taken advantage of in the process (not on purpose).   

However, by the time he was 55, he was able to do practically what he pleased financially, including realizing the construction of a fantasy theme park, based on his cartoons and animated features, in the middle of Anaheim, CA, which in turn made him a millionaire many times over. 

All that success came out of a focus on doing one small thing REALLY well.  Money was secondary to Walt Disney, despite getting his fair share of it, and making himself famous as well.

That's quite philosophical, but maybe it'll spark your imagination and think about what gets you excited.

 

[rookieNYC]

You can never have too many sources of income...Currently I have 37 income streams for 2011...whether it be mortgages,income properties,franchises sales,business notes,owner financed flips,income from my cash businesses,career,reits,closed end funds,,....But I will say if you arent playing with size you cant make huge income...Dont believe it takes no money to make money....Its BS

[furnishedowner]

Very interesting posts.  I'm with Javipa, I can't do multiple things well.  I have to just focus on what I am good at, and what I like to do.  Which then becomes what I am good at.

But I am branching out and working on getting much cheaper property, looking at it from a different point of view rather than "When is this gonna be ready to rent?"

So I am staying within the rental/property arena.  Nothing else, I can't even interest myself in clubs, churches, organizations.  Guess I am just a 1-trick pony, like javipa.

Could that change with more financial freedom?

Furnishedowner

[fdjake]

I look at it like this....

You only have so much time in a given day...If you WORK for someone else that TIME is even SMALLER...

So..........What has given ME the most consistant, REPEATABLE, source of revenue over 20+ years???

REAL ESTATE INVESTING!!!!!!

You can spend a lot of time TRYING different things....All the while that TIME has been taken away for FINDING PROPERTIES....And what type of return did that time get you????

How much product do you have to sell for Pampered Chef to put $25,000 in your BANK ACCOUNT??

I'm not knocking it Mike....Not at all...I give your wife credit for time and effort it takes.

My ONLY point is this.....DO NOT forget how POWERFUL a well run marketing plan can be. 

RIGHT NOW......THIS MORNING.....How many people KNOW you want to buy OLD, OUTDATED HOUSES????

If the answer is NONE.........You need to REALLY spend some time and MONEY fixing that.  The more people that KNOW you want to buy these properties, they more  you'll BUY!!!
It's not exciting work, BUT.... the pay off is HUGE once you get it up and running.

REMEMBER.......People need to KNOW you want to by it, REMEMBER YOU, and then most important...

BE ABLE TO FIND YOU  A G A I N  when they NEED you!!!!!!!!!!

If you're not marketing for properties, you're not REALLY seeing the best deals, because the BEST DEALS are NEVER listed on the MLS.   Those are the properties you can buy, DO NOTHING to, and then LIST THEM and let all the LAZY INVESTORS slug it out!!! 

[Hoosier4life2005]

Jake I got a question for you.

You've said multiple times "old outdated houses."  But then you say you buy houses that need just cosmetic stuff, you stay away from full-rehabs because it takes to much time/headache.

Maybe Im just not understanding, but "old outdated" houses implys to me.... bad wiring (electricity) throughout the house, possibly needs new plumbing, insulation, ect... which is what you would want to stay away from. 

I thought from a previous post, that you directed towards me, I should be looking for houses that need cleaned up on the exterior, new carpet, new paint, and
just cosmetic stuff.... then sell it off quick and go to the next, instead of spending alot of time on ONE property.

Does "old-outdated" not imply all these serously fix ups? Can you explain?

[allagash]

You only have so much time in a given day...If you WORK for someone else that TIME is even SMALLER...

assume, for a moment, that you don't work for someone else....

the purpose of this post was to generate income stream ideas....

flipping homes doesn't fit the bill of being a reliable....like clockwork....stream of income.

that's what I'm getting at.

here's another:

lawn mowing....especially with efficient equipment.

what others are out there?

really....I'm not trying to debate here.....as I know you've had a high degree of reliability with the flips....especially during this downturn.

I'm just mining for income stream ideas right now....especially those that are need based....with minimal expenditure of labor, time and capital.

Thanks,
-Mike

[javipa]

allagash,

You're asking a question that presumes a good answer.

If you insist on trading your time for money six ways from Sunday, then you're limited by time and energy.

Evidently, you have no real desire to master anything, but simply be a generalist.  You know, the hills of Kentucky of full of self-described "generalists" that do their own farming, harvesting, whittling, varminting, and marrying their own cousins.   That's fine when the options are limited.

But you're asking about multiple streams of labor trades on a real estate related forum.  Honestly, you might get better, more applicable responses going to the source of your topic, Robert Allen's "Multiple Streams of Income" training.  Just saying.  Good luck with that (and I mean that sincerely).

[fdjake]

I understand Mike...and it's a good post!

Try buying and selling CARS!!!   You can specialize in a certain make or model and EASILY make $1000/car while investing only $2000 or even LESS....Craigslist list can sell anything that runs and it's quick money!!  It's also a GREAT training ground for REI....You can WHOLESALE to dealers, or sell to end buyers.  I know guys that specialize in air cooled VW's....Vintage MG's...TRIUMPHS...even MOTORCYCLES!!  If you LET PEOPLE KNOW YOU BUY IT.....THEY WILL CALL YOU!!!!  EBAY is another GREAT way to sell vintage cars.  AND.....don't think for a SECOND that these cars have to RUN...I see vintage fastback Mustangs pulling crazy money on EBAY with no motors just rust free bodies.

Javipa I think started in the car business too and EVERYONE of his comments about that business is TRUE....It becomes a DRAG after a while....But it's a lot of FUN at first!

Hoosier.....I use OLD and OUT DATED because it makes the phone ring....My idea of OLD and OUTDATED can be VERY DIFFERENT than a CALLERS!!!!!

I want people to think I SPECIALIZE in these homes so they are COMFORTABLE calling me.

The calls go like this:

CALLER: Hi, I was calling because I have an old outdated house....It's really bad and I'm a little ashamed of the condition.

ME:   Are there any dead cats in it????

CALLER:  Laughs and says NO....

ME:  Then I can guarantee your house is better than the last house I was in!!

You're breaking the ICE with these people...Putting them at ease...You want them to RELAX and be comfortable with you....REMEMBER...If they LIKE YOU and TRUST YOU, they will sell the property to you!!

As far as major repairs...

Hoosier,

There's an @SS for every seat out there....I just made $65,000 in 10 days on a failing down DUMP of a house that I purchased for $9000 and sold for $74,000...It needed EVERYTHING.....BUT...It was in a GREAT neighborhood and it sold in 3 days to a contractor who will spend 6 months rehabbing it.  I've done that.....It's a lot of time, a lot of money, and a lot of BULLSH*T....So I don't do that anymore...I SELL my seat to another @SS and walk away with a lot of profit for very little work!!!

[Hoosier4life2005]

I gotcha, I gotcha.

This is where you do things differently than most people Jake.

You find a REALLY good deal, and basically sell it to another investor who still gets a good deal (when he buys it from you).  Buy lowest, sell low, get your cash, and move.

Most people find a REALLY good deal, and work on it and only sell when its "move in condition."  This ties their money up for a while and requires much more effort/headache.

I understand Mike...and it's a good post!

Try buying and selling CARS!!!   You can specialize in a certain make or model and EASILY make $1000/car while investing only $2000....Craigslist list can sell anything that runs and it's quick money!!

Javipa I think started in the car business too and EVERYONE of his comments about that business is TRUE....It becomes a DRAG....But it's FUN at first!

Hoosier.....I use OLD and OUT DATED because it makes the phone ring....My idea of OLD and OUTDATED can be VERY DIFFERENT than a CALLERS!!!!!

I want people to think I SPECIALIZE in these homes so they are COMFORTABLE calling me.

The calls go like this:

CALLER: Hi, I was calling because I have an old outdated house....It's really bad and I'm a little ashamed of the condition.

ME:   Are there any dead cats in it????

CALLER:  Laughs and says NO....

ME:  Then I can guarantee your house is better than the last house I was in!!

You're breaking the ICE with these people...Putting them at ease...You want them to RELAX and be comfortable with you....REMEMBER...If they LIKE YOU and TRUST YOU, they will sell the property to you!!

As far as major repairs...

Hoosier,

There's an @SS for every seat out there....I just made $65,000 in 10 days on a failing down DUMP of a house that I purchased for $9000 and sold for $74,000...It needed EVERYTHING.....BUT...It was in a GREAT neighborhood and it sold in 3 days to a contractor who will spend 6 months rehabbing it.  I've done that.....It's a lot of time, a lot of money, and a lot of BULLSH*T....So I don't do that anymore...I SELL my seat to another @SS and walk away with a lot of profit for very little work!!!

[fdjake]

That's it Hoosier!!!

You don't FIND these deals through the MLS or from realtors......You find them by LETTING PEOPLE KNOW YOU WANT THEM!!!!!

NO ONE but YOU and the SELLER even know the property is AVAILABLE.....Once YOU buy it...THEN you turn it loose on the MLS and let the BIDDING begin...With all the BULLSH*T banks make rehabs guys go through on short sales and foreclosures these guys LOVE the fact that my properties can be purchased in DAYS not MONTHS.  I always have it listed on the MLS.....NOT A SHORT SALE/NOT A FORECLOSURE.

ONCE AGAIN.....

Doing the OPPOSITE of what the HERD is doing can make you a BOAT LOAD of $$$$$$$$$$$$$!!!

[Hoosier4life2005]

The only thing I cant wrap my mind around is..

What kind of person, regardless of the situation, would sell a house for 9000, that could easily sell for 40-50-60K, or even 70K as you sold it?  Are their really morons out there that just want rid of a property that bad that are willing to sell for 20-30% of what its worth, when they could get more?  Are they uneducated about what its worth or what?

Like the person you just bought that 9000 house from..

When you offer 9000, why do they accept when they can just put it on MLS and probably get a offer for 20-30K in a few days?  Just wondering, because when Im making lowball offers and dealing with these people, I want to know whats going through their heads!

[allagash]

If you insist on trading your time for money six ways from Sunday, then you're limited by time and energy.

I'm not insisting on anything....this is a great model:

http://www.netflix.com/Default?mqso=80026981

Evidently, you have no real desire to master anything, but simply be a generalist.

Actually, most of my time is spent in front of (4) 22” monitors that track the financial markets.

The major indexes are rolling over right now:

http://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p77954334193

TNA is a great financial tool…it combines the inherent leverage of small caps with the 300% leverage of the instrument.

Fund Summary:

The fund seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 2000® Index. The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is non-diversified.

Honestly, you might get better, more applicable responses going to the source of your topic, Robert Allen's "Multiple Streams of Income"

Think I’ve got that book…..wasn’t impressed….but will give it another look.

Dead serious about the lawn mowing…10 minutes can devour a fairly large lawn when using the right equipment.

Fdjake…

Great suggestion on the used vehicles on Ebay.

As you know I have that mechanic contact in South Texas….I like it, (the idea).  Transport time/expense is the biggest killer.

btw...hills in Kentucky are atrocious.

Keep the ideas coming.

Thanks,
-Mike

[fdjake]

Hoosier,

WHY would a person sell a Colonial era Newport built table at a YARD SALE for $35 that would later sell at CHRISTIE'S for $450,000????

Why would a person sell a a vintage Rolex watch for $50 that later sells for $45,000???

People sell these things for any number of reasons.......In my case the property in question was left to a drug addict.  The City was on his case for housing code violations and he owed back taxes.   I'd bet you $1000 that the $9000 he got from me has already been SMOKED!!

MORONS HOOSIER can make you R I C H!!!

My second favorite saying is......

NEVER UNDER ESTIMATE THE STUPIDITY OF PEOPLE!!!!

[javipa]

Hoosier,

I'm feeling like my leg is getting pulled here... 

Like fdjake already pointed out beautifully, people sell for different reason(s) than you or I might consider smart.  However, I don't consider these motivated sellers as MORONS.  They're just solving a problem in their heads the most efficient and fastest way they know how.  Money isn't everything to everybody.  Thank goodness.

I would say, "Get that stinking thinking out of your brain, or you're gonna handicap yourself something awful."  I'm talking about assuming every seller who gives us what we want is somehow a retard.

I bought a huge house recently with a huge equity from a couple that purchased two homes at the same time, thinking they were "instantly in the real estate business."  After they discovered they couldn't manage a house if their lives depended on it ...or get the rents they expected, I happened to be the one they knew that bought houses like theirs.

Long story short, I took over their payments, got the deed, flipped it for about six month's worth of (my) income, and everyone lived happily ever after.  The seller saved his credit and the buyer's wife was living her dreams ...and I got paid to put everyone together.

Nobody was a "moron" in this situation.  Everybody was sober, too!  However, none of this would have happened without me.  That's why it's good to specialize ...which I'm trying unsuccessfully to persuade Allagash to think about...
 

But... Morons can make you rich, too!  Yay, for Morons!