New Internet Venture - Make Extra Money
- a couch reupholstered
- fitness classes for my students
- large dents on my car repaired
- driveway resurfacing
- carpet replacement at my cottage
- plumbing repairs
If you get a chance to read this little book written after World War I, you'll be happy you did.
There are so many ways to make money, it's unbelievable! As this global economy turns more and more to entreprenuerial rhythms and moves further and further away from the long-term loyal employee/employer relationship, we will need to look at alternative forms of generating income.
Obviously one such way is to ensure our real estate purchases can 'pay us monthly'. If they do, we have just learned to generate additional income. In more advanced real estate circles, these are called cashflow purchases.
Another way is to find a real estate property that can generate seasonal cashflow income, such as a recreational property in Muskoka, Collingwood (Blue Mountain), or Wasaga Beach. These properties can be rented on a seasonal basis and generate some income - at least enough to subsidize their money extraction from your pocket. All the while, these properties that will NEVER REALLY go down in value (they're not making any waterfront property anymore - but they are making some new city properties by encroaching into rural land bases!), continue to go up, up, and way up.
A third way is to create a secondary business on the side from your regular day job (notice that I didn't include your day job as a way to generate income, as most of us who have a day job generate only enough income to live paycheck to paycheck. You can even get your name out there for free these days! (www.kijiji.ca)
A fourth way is to create an internet business that will add passive income to your cash base.
A fifth way to generate income, which is often overlooked, is the reduction of expenses - without having to change your lifestyle and comfort level. It's incredible once we actually spend one full day going through everything, how much we can save by making simple changes, all of which have little or no impact in our lives.
Making changes in your life to generate additional income on your road to financial freedom is the way to go! Do it today! Take Action! Generate Wealth!
At first, it seems a little scary - so most people are leery of it. But, if you delve a little further, you’ll realize that leasing properties to ‘owners to be’ is a great idea for everyone.
Let’s say you buy a ‘fixer upper’ for $80k. It takes you about $15k to fix it up. You get it reappraised, and now it’s worth $120k - that’s an equity increase of almost $25k for just a little bit of work and creative thinking. You just made yourself instant equity of $25k. But, what do you do now?
Let’s think about the facts. Now you have a property that’s worth $120k, you’ve invested $15k, plus your original 25% of $80 (let’s assume you did this traditionally). Why not re-finance and pull out the equity increase of $25k to purchase another property which in turn will also cashflow.
But, what do you do with the property? It may not sell quickly, or you may want to hold on to the equity in the home. So you decide to rent. Then, the inevitable happens: your tenants don’t pay, they wreck the house, the cat stains the wooden floor with that horrible stench, the kids have a fight and now you have a load of drywall repairs, and they leave garbage in the garage to build up instead of throw out. These are all the concerns most people have that block them from getting into rental investment, right? Haven’t you heard all the people with different versions of the same line: "I don’t want to fix toilets in the middle of the night?" or "I don’t want to deal with tenant problems."
Let’s look at how the Lease-to-Own ideas answers many of these concerns:
• My tenants will call me to fix the toilet in the middle of the night.
With lease to own, they are ‘practising’ owning the home during their lease contract, so the problems are theirs to deal with.
• The Landlord and Tenant Act gives tenants all the chips in the card game.
With lease to own, you and the lessee are partners in a contract, not landlord and tenant, so the same rules do not apply.
• I need cash flow to survive, as I am struggling myself in my own business and cannot afford to add cash when necessary.
You’ll get more cashflow monthly, instead of less, as you’ll be receiving monthly the market value rental amount, PLUS their monthly contribution to their downpayment. You can use the extra cash monthly to throw at another investment (perhaps a capital gains one that is losing a little each month) or to pay for a toy you just bought.
• I’m worried that I can’t recoup the money on equity lost at the end of the lease.
you’ve included in your contract a small reasonable amount of equity buildup (asset appreciation), for example 4%,
• What happens if, at the end of the lease, the lessee has had credit problems or doesn’t qualify to buy the house, even with the down payment accumulation?
Actually, this is not a bad situation at all, except for that fact that you’ve lost the chance to help someone who couldn’t have otherwise, buy their own home. You still have the house, you get to keep the extra accumulated downpayment, and your house is in much better physical shape than it would have been otherwise.
There are many other bonuses to lease-to-own:
You might now be convinced that a Lease-to-own program might be one of the best ways to get great cash flow and reduce tenant problems on a small home. Don’t be afraid because other people are leery of it. More often than not, the one who does well is the one who is not afraid to go beyond their comfort zone. Lease-to-own is the positive cashflow property of the future!