4 Tips for Becoming a Better Negotiator
When Christina and I started flipping houses, we really didn’t have much in the way of savings. To get our real estate investing business off the ground, we started working with investing partners and private lenders. Just like you, we were looking for ways to invest in real estate with no money, so we put in the sweat equity while our investing partners put in the capital. Then, as we started selling more flips, we found that we had some capital of our own growing in the bank.
As the years have gone on, we’ve continued to work with investors because it’s a great way to make connections and sometimes they’ll have liquid cash for a house flip that we don’t have on hand. When we do this, everyone wins, so we’ve kept it up to help us grow our business. After all, when we’re flipping multiple houses at once, we need to have a substantial amount of investment capital ready to go.
All that said, we’ve definitely put our own money into some of our flips. Doing this can be really profitable for us because we don’t have to split our earnings from our flips with anyone else. As a result, we get a lot better margin when we sell houses that we’ve invested our own cash in.
So, what’s the best strategy for growing your wealth and reaching financial freedom now and for your retirement? You have a few options.
Saving It All
First, you could save all of the extra cash you get from flipping houses. You could put it in a savings account and keep it there for your retirement. The problem is, as the years go by, the interest you earn in a savings account won’t keep up with inflation, and your money will be worth less and less.
While I like to keep some money in an accessible savings account, it’s really not a good idea to keep your whole nest egg in the bank like that. It won’t earn as much interest as you need it to, and it won’t have any chance to grow.
Investing in Your Flip Business
You don’t have to have any money to get into flipping houses. But, once you’ve started to build your real estate investing business, you’re going to gain some wealth. Figure out what it’ll cost you to maintain the kind of lifestyle you want to live, and then start putting the rest of your cash into an account that you use for your real estate investments. Keep an eye on how much that account is growing, and dip into it when you find a flip that you can afford on your own, using those funds.
Within a few weeks or months, you’ll have a lot more money to put into that account, and you’ll be able to buy even bigger and more lucrative flip houses with your own cash later on.
Investing in Other Real Estate Opportunities
You don’t have to invest all of your money in your own house flipping business. You can work on your own flips and also keep an eye out for other house flippers looking for investing partners, as well as other real estate investing opportunities.
If your money is sitting in a savings account, then it’s losing value and not doing much for you. If you reinvest it in your house flips and other real estate investing opportunities, you can make it grow at a much faster rate so that you can live the lifestyle you want now and retire in style, too.
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