How to Make 10%+ CAP Rates Passively Investing in Real Estate no matter where You Live…
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Why is the smart money leaving California Rental Real Estate? Because the opportunity elsewhere is just way better, that’s WHY! I mean, if you like low cap-rates, more litigious and entitled tenants and more principle risk, then be my guest…but what investor wants all that crap? Look, most people investing in California Rental Properties know there are better options elsewhere, but typically the logistics involved seem too difficult or far-fetched to execute. However, that couldn’t be further from the Truth. What I am going to share with you in this article is not only WHAT the savviest real estate investors in the Country are doing with their money, but exactly how you can do the same thing they’re doing from your couch. I know…it sounds too good to be true, so prepare to have yourself absolutely BLOWN away by the possibilities. I know I was when I first learned this was possible…
Rule #1 investing in anything: You must put the odds in your favor. Risk/Reward has to make sense. When you look objectively at California real estate – its no longer in your favor, just too many risks for less and less reward. Hey, Live in California if you want – I DO! But put your money where it works best for you…elsewhere.
- Most investors can never get started in California because of the super-high property prices and competition with other investors.
- If you already own in CA, rents have gone up like CRAZY and STILL the ‘good’ CAP rates are 4-5%. Really?? What about maintenance costs, vacancy rates, etc? How do you make money with that kind of return over the long-run?
- Putting all your eggs in one or two properties in CA and hoping the rent continues to cover the mortgage and expenses is a sketchy strategy at best and portfolio-crushing at worst.
- The current California exodus could signal significantly lower real estate values as well, which increases the risk even MORE for these already expensive investments.
- Threat of future rent control…it’s on the ballot every single year and will be until it’s passed in every area of CA, this you can almost count on. A nightmare situation for Landlords and Real Estate Investors.
So WHY mess with any of this stuff???
If I told you it would be EASY to get 10%+ CAP Rates, turn-key, with virtually no effort on your part besides providing the capital, would you be interested? Stay with me, that’s where we’re headed. I just want you to understand the WHY and HOW so you know how SOLID this is…
Let’s be honest, it’s all about consistent mailbox money (passive income) for most investors – taking the least risk possible to keep that monthly deposit rolling in. At least, that’s what it’s ALL about for me! So here’s what you’ve been waiting for…3 ways to get it done including the way I personally do it.
1. Go to cash or money markets. The vast majority of financial advisors will tell to stay in. Of course, the money professional will tell us the same thing as they did in 2008. “Hang in there”, “Don’t worry, were in it for the long haul”, “It’ll come back”. I get it, they need us to keep the money in the market so they can make their fees.
Truth is they didn’t have answers back in 2008, and they have no new answers now. They are there to manage your money, not grow it. They aren’t active traders, and never will be. Their game is fees and that will never change. Your money staying invested is what they want and need. They can’t charge you when you’re on the sidelines – well, some firms even do that nowadays….
The problem is that if you are looking for cashflow, being out of the market only helps to preserve the golden goose for the most part. You CAN get 3%+ on some CD’s now, but I’m guessing that doesn’t get you very pumped up about how hard your money is working for you. The long-term projections just don’t do it for me. For this leg of my financial table, I want triple that and guess what…I get it and so can you! But just not with this strategy.
2. Do it Yourself. In real estate, it’s the shiny-object that is pitched all the time. A perfectly legit option, but not for the investor looking for passive income with solid CAP rates. Which also means, not in California. It really comes down to “working hard or working smart”.
Don’t overlook the biggest obstacle, which is California. The market here, especially for any kind of a passive real estate investor, is not a choice. Competition, Cost to live here, Cost to acquire and rehab, rising taxes, flattening and/or falling values, rent control concerns, etc. Geez, its depressing in every way you look at it. So, if you’re going to DIY, then you’re going to have a lot going on. Will it be worth all that work? All that time?
I remember when I started. I didn’t have the time or the desire to try find the right out of state location, plus look for right properties that wouldn’t be a rehab money pit. It was going to take too much time, and I really didn’t know what I should be looking at.
It really concerned me that I had find a contractor out-of-state to do the work – honestly and on time. I wasn’t sure which would be a bigger challenge. And even if I got past all that, I’d have to find the right property management company that would treat my few properties as seriously as a much bigger client. Of-course, there was no way I would even think of managing it myself. What would I do if something happened!?
I just wanted to get direct deposit rent checks without the headaches! I mean, is that TOO MUCH to ask???????
When I think of all the steps that could go wrong with me trying to do it myself, I knew this was not my path. I’m a hard worker, but when it comes to passive income, working smarter was much more logical and much easier with all things considered. I wanted a Done-4-U model and that’s exactly what I have and what I offer you today…
3. Invest through a Done4U® model. The real estate is handed to the investor done. Rehabbed, rented and ready to cash flow for the investor. All of the DIY pitfalls avoided. Simply put, it’s where and how the smart passive money is going for the real estate investor who wants true turn-key investing, high ROI, and diversification that shows up as mailbox money. Or, as we’ve kept up with the times, direct deposit money 🙂 We direct deposit over $500,000 worth of passive income rent into our investors accounts each month. There is no sweeter sound than hearing those clicks! CHA-CHING!
Check out some of the sample properties we’ve recently executed for our investors below. Reach out using the FORM below if you’d like to look at inventory or find out more information.
If you’d like to get more info and speak with Scott directly, please fill out the form below and he will be in touch soon!
Scott is a real estate investor, trader and entrepreneur at heart. He’s been buying outta state real estate for over 10 years. He knows the who, why and where it works best – from doing it directly. He’s interacted with thousands of active investors over the last 16 years. He now lives in San Diego and can be reached at firstname.lastname@example.org or at 858-227-6010.