Multifamily Legacy Podcast 085: How to Create Cash Flow without Banks
The real estate market is very competitive. Yet, people overlook deals because they lack huge equity spreads. Instead of letting deals pass you by, leverage them to create cash flow on properties that nobody else wants.
Today’s guest is Zack Childress, who teaches and trains others about real estate investing. He describes how a lease option control (LOC) creates cash flow when you can't get a bank loan.
Topics on Today’s Episode:
- Stabilization Money: Cash flow is money you can count on
- Denied: Not everyone can get a bank loan; lean into LOC
- LOC Segments:
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- Straight Lease Purchase/Sale: Involves you and/or one other
- Wholesaling: Property held onto for cash flow, or flip to tenant-buyer
- Sandwich Lease: Unlimited cash flow model
- Master Lease: Lock in property with rights to purchase and fill with tenants
- No Equity, No Problem: Pulling in all people that every other investor can't help
- Right Areas, Markets, Price Points: Avoid low price-point neighborhoods where renters want to be owners, not owners who need help to improve properties
- Dream Deal via Domino Effect: Why rent when you can own a home?
- Disguised Sale: LOC doesn’t follow Dodd-Frank Laws; it's not seller financing
- Short Sale: Other options don’t mess up your credit score and report
- Specialized Knowledge: More you do, more you learn, more to share with others
- Copy Your Way to Success: Corey’s soon-to-be-published book; someone who has already been there, done that, and knows everything
- Commitment: Don’t waste time and capital; slow down, do one thing, do it right
Links and Resources Mentioned:
- Zack Childress
- REI Success Academy
- Unlimited Cash Flow System
- The Richest Man in Babylon by George S. Clason
- Rich Dad Poor Dad by Robert Kiyosaki
- Warren Buffett
- Dodd-Frank Laws
- Kahuna Investments
- Multifamily Legacy Podcast on Facebook
- Corey Peterson on YouTube
- Cashflow HQ
- Kahuna Boardroom
Quotes:
“You’ve got to be creative. You've got to be able to find a way to make some money.” Corey Peterson
“When I started really diving into the sandwich lease option, that was my thing. I built up cash flow.” Zack Childress
“They don't have any cash/fresh money to fix it up for sale. They’re tired of the headache. A master lease option is a great way to get control.” Corey Peterson
“If you're doing it in the right areas, the right markets, and the right price points, these owners actually improve the properties.” Zack Childress
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