A cool way to buy apartment buildings zero down, and other stuff too.

Now on to this class – this one is pretty cool –

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com.

Let’s get started…

This isn’t just about buying apartment buildings because you can use this same process to buy businesses and get shares in companies as well.  This is also how a few students have bought movie theaters as well.  But the part people love to hear is…

How to buy apartment buildings zero dizzle?

And with no credit?

… without getting a loan with no risk?

By “no risk” I mean that you won’t be on the hook for ANY expenses, taxes, repairs, etc.  The checks only go one way.  You get checks without ever being liable for ANYTHING.

You just get checks in the mail every month.

On top of that I’m going to go a lot deeper because…

There is actually a lot more than that here and I’m not only going to talk about apartments and how my students are killing it there – but I’ll also show you a couple of things…

Here’s what you’re about to learn…

How to work with downtown high rises, you’re going to see how one student is doing over 10-15k a month from pretty city skyscrapers that he never buys, steps foot in or even sees.  Plus you’ll see how anybody can do the same thing without using their credit and with no money.

How a homeless teenager in India got her family a house, saved a neighborhood and is now set to star in a documentary.  This is a pretty powerful technique and you can apply this in so many ways whether you’re starting out or if you’ve been in the trenches for decades – this is a game changer.

I did a challenge with a group of students and the worst performer of the bunch was doing three grand a week – he was “renting” conference rooms at a local real estate office and then he did something really cool  interesting with them, almost like AirBNB except much more profitable.  You’re going to find out what he did and how you can start this kind of arbitrage of our your own right now.

And a whole bunch of other stuff.

Instead of just talking about how to find opportunities with apartments and other similar kind of properties, you and I are also going to talk about what to do with them and how to make sure you make a killing on each deal that you do.  Lotsa cool stuff here.

You can watch and download it above.

You can qualify yourself with the IQ test, the psych profile and get a better sense if you’d make a good student.  It is also required that you go through this program:

http://www.23Days.com/index2.html

That will help introduce you to my stuff and help get you grounded.  Lots of powerful material there.  Okay, think that’s it for now.

As always love to hear from you – Thanks for all the support!

Azam 

Real estate investors and business owners will LOVE this class…

This is for real estate investors and real estate business owners this class is going to be something really helpful.  You’re going learn some great ways to buy apartments buildings and other assets zero down and without getting a loan.  This class and post is about a model that we invented called:

The Asset Brokering Model.

So when most people look at the truck below they will see nothing but a beat up old POS.  After today’s class you’ll look at the same truck and see millions.  You’ll also see how powerful it is when you look at ONE thing and see something when you do what we call Emotional Assignment or Emotional Investment. 

So we’ll also cover how to make an extra 15 grand from fancy downtown offices with no money and no loans, a killer way to buy apartment buildings zero down and you’ll learn about the secret way that my friends invented that allowed a homeless teenager in India to save a neighborhood.

How?

As of right now that teenager is set to star in an upcoming Bollywood documentary…

… and also you’re super good, then you’ll even get to see Eago and Zazu…

… we’ll go over all that and a lot more all right here and starting right NOW so let’s get started…

You know a while back Azam Meo did a radio interview…

… with a fellow Down Unda’, that means Canada (okay FINE, it means Austria I mean Australia if they aren’t the same thing) and the interviewer brought something up that he was making an absolute killing with. 

Since then a lot of people have asked me about it, some of you asked about it and I’ve gone over this and explained the answer a few times but I always said I would do a video about it too.  This something that kept putting off and putting it off (like an LC, not ideal I know) but now just for you guys I decided to put this up here and now whenever somebody asks about it I can send them here.

YAY!

Okay so as you should know that the way my friends buy and sell companies and when we build them, whenever these guys come up with or invent something new we categorize the brilliance into chunks.  We put into Models and the deeper we go the more phases there are to a model.

A Model = Series of Actions that Create $10,000 – $30,000 a month net.

Think of Model like an oil well.

So what I’m about to go over is part of our Asset Brokering Model.

There are a total of seven gloriously profitable phases and each phase has about 2-3 different magically monetizing parts – ha – okay there’s several phases and different parts to each phase is what I’m saying so this goes a lot deeper than what I have time to talk with you today about.  But for now let’s get into it…

The Asset Brokering Model ABM.

So what you need to get started…?

… basically nothing.

Being able to start from ZERO is always important.

Remember that every single Model is built with the idea that anybody should be able to start it and get it going from zero, with no money down, no loans, no credit checks –

NONE of that stuff.

This is a great way to create income, to buy companies, to create more income and sell that income as a business.  Yes I said “sell that income”, and I’ll explain as we continue.

This is very versatile (even the Shamwow guy would be impressed and floored) and once you get good at this it’s something that you’ll really thank me for and you’ll be able to use it nearly any situation for the rest of your life.  So before I talk about what DJ Dylan let me explain what this is –

The part of the ABM that we’re going to talk about today is very simple.

First let’s define what an asset is so we can be clear.

For today’s discussion there are three kinds of assets that you’re going to broker:

1.) First, there are tangible assets

2.) Intangible assets

3.) People

Those are the three main assets.

Now here’s the three step PROCESS to getting this going:

Step ONE: First you are going to find an under performing asset somewhere, it doesn’t have to be a business but that’s a good place to start you are basically looking for any asset that has downtime or is being underutilized in some way.  That’s step one.  Also realize that after this class that YOUR definition of “under performing” is going to be much higher and better than their definition.

Step TWO: is that you are going to identify an alternate use for that asset.

Step THREE:  you are going to control transactions, in other words you are going to determine an alternate way that this asset can be used and then you will control transactions based on this new use.  Remember the key to dictating your income is the ability to control transactions, we’ve covered this again and again so it should be tattooed in your brain by now. 

So that’s about all there is to it.

I’ll give you a bunch of examples but that is the core framework of what you’re doing to do.  First you’ll find an asset with downtime then you identify an alternate use and then, as always, you control the transactions.   

Again remember the secret to income engineering is how well you control transactions, as you get better trained with my stuff you’ll get better and better at this and you’ll eventually you’ll have as control over transactions…

… as you over your own shadow.

So we’ll go over a few examples and then you’ll see that these deals are seriously everywhere.  What’s more is they are just waiting to be picked by the right person and you’re only limited by your ambition and imagination.  Like the old saying…

What’s the best nation?

Imagination.

Word.

What’s the best nation?

Imagination.

Word.

So any “trouble”, problems, challenges, etc. and you should laugh at them, giggle them away because you’re so unstoppable.  Be so good that you feel bad – and have actual pity – for anybody or anything that tries to get in your way.   

That’s where I get my students to live.

What hinders the senses of others will only heighten yours.  You’ll draw strength from diversity.  Hardship is to you hardship is what hair is to Samson…

… THAT is where you should be, always.

Be a Champion with Office Space ZERO Down…

Okay so let’s take a real estate office, or a title company or a really nice attorney’s office or really any pretty place like that.  At a place like that they usually have a nice lobby or two and they’ll have nice boardrooms with pleasant views and they’ll also have a receptionist that answers and screen calls.

Those are all fixed costs.

That means that the broker has to pay for the pretty space, the pricey window dressing and the phone answering every month.  They have to make those payments and pay for all that stuff regardless of how or if the stuff is actually being used.

Now if you know anything about these places there is tremendous downtime with so much of the assets in these offices being underused.  Let’s just look at the space and the receptionist that answers the phone, do you think there is a lot of downtime there?

Of course there is…

… Now think about this…

Are there people in real estate, not just real estate agents and realtors but individual real estate investors too for example, are there people like that who could benefit from the use of a receptionist and a nice office space…?

Are there people like that but don’t have the money to spend tens of thousands of dollars a month to set all that up and pay for it…?

Do you see where this is going?

There is a very logical (and highly profitable) marriage here.

You see where this is going right?  Not only can a broker provide meeting space and somebody to professionally answer your phones for real estate agents but by not keeping the agents in house full time they can work with several times as many agents as a normal office. 

Let’s say that you arranged a deal where the smaller investors like the “I Buy Homes” guys who are always fighting for ways to add to their credibility, think about how this could work for them.  An investor like this could give out a number that leads to a receptionist at a well known local law firm or something like that. 

Then when the investor wants to meet his clients or close deals he can meet them at a board room in some landmark office building downtown while you find alternative uses for them.

You see how this works right?

Investors eat this stuff up and if you help arrange this for them and only charge them a few hundred dollars a month they’re thrilled.  They have NO other way of making this happen.  Now if you split that with the main company (who has the space) you are creating income from NOTHING and with virtually no extra expense.

From zero, with zero.

There is NO way to overstate how powerful this.

There is NO way to overstate how powerful this.

The company is able to increase their income (and thus their value) with ZERO cost.  Being able to do that will keep you drowning in opportunities.  Companies will come flocking to YOU and be eating of the palm of your hand, doing jumping jacks and cartwheels hoping you pick THEM to work with and agree to get equity. 

For example…

We had a student’s daughter who was a young lady that started college (here are some reasons you SHOULD go to college and some reasons you should’t) but she only had the money to go to school every other semester.  Just by doing this ONE model, she was able to go to school full time and graduate with no debt. 

She got tenants for her boss.  All she did was call the “I buy homes” ads (even the “professional/pretty” ads are good to contact because they don’t get any response and are desperate for help) in her local paper.  Then she helped them get access to her boss’ nice office space.  Another student did something pretty cool, if you ever start running ads for discounted properties you’ll usually get a lot of investors calling you…

So what do you do about them?

In this case he used those investors and converted them into shared space tenants, he was making an extra $8,000 – $9,000 a month.  This is easy when you know what these tenants want and how to get the most bang for their buck and avoid tenant mistakes.  In less than 60 days he was making over $15,000/month and it has only grown since then.

Renting out places you never SEE or step foot in…

This is all extra cash on top of his normal deals, and you know it is good when your side business is producing more than the “real” business.  This is basically income that is pulled out of thin air.  See how that works?

So yes you really CAN pull money out of thin air…

Deals like this should show you that it really IS possible.  I love these deals because he never stepped foot in the fancy downtown offices that he was making money with. 

I LOVE IT.

There are also large companies like Regus that you can work with and get tenants from and send tenants to.  The possibilities are endless when you know where the power lies – in growing the income.

You see the process in action right?

Easy breezy…

You see the process in action right?

Easy breezy…

First, find an underutilized asset…

… Second, identify an alternative use and then…

… Third you just direct the transactions.

And you know there are so many other ways to work real estate deals because usually the relationship between investors and agents is like a mailman to a pitbull.  Watch the video and there are some great pictures of pitbull doggies, we love them all.

Plus there are pictures of MY BABIES Eago and Zazu.

So my point was that investors and agents don’t usually get along and because almost none of them know what they heck they’re doing, there is a huge opportunity.  So you can also start doing more than just one side of a transaction but you can take this even further…

… and that’s the key…

… you want to be the driving force.

I see so many students who let the ambitions of others determine theirs.

Don’t the limitations of others be contagious to you.

Fix yourself first, and don’t ask or expect others to bring or perform with brilliance until you do, get your own house in order first.  This includes not letting them get to you.  Your passion should spread to THEM. 

Don’t scratch yourself with somebody else’s hand, deal with your issues yourself and then lead by example.  Trying to show opportunity to the willfully blind is like trying to find knees on a penguin, so before doing anything lead by example first.

Otherwise you’re looking for knees on a penguin…

I’m telling you that now because I’ve seen a LOT of folks go out and try this and they want OTHER people to perform and execute brilliantly with a model while they do nothing… or even worse wonder if it REALLY works in their area (NO, it doesn’t) HAHA…

Another example…

Another example…

Millie and Max worked on this with a student…

… let’s say that you use a meeting space at a real estate broker’s office and you do a free workshop on how to sell your home if your mortgage is upside down or if you are behind on payments or in foreclosure, or you can’t afford a realtor or whatever…

… there are a lot of different titles and classes that you can do.

Now to teach the workshop you are going to reverse hire a real estate agent.  Remember Reverse Hiring is where you “hire” somebody and instead of paying them they pay you.  To get the audience, you have a few choices.

For one, you can have all the realtors go to their clients and let them know about the workshop, this is a great way for them to look like heroes and they aren’t losing business because they don’t know how to work deals like that with those kinds of sellers anyway.

So then the investor comes in and does the workshop…

… and at the end they will pick up a few deals from sellers who want help in working with the bank, or loss mitigation or doing a rehab, a fire sale, or a terms sale, or something else that usually none of the agents know how to do or are good at doing.

So this only HELPS the realtor.

They aren’t losing any business and they look like heroes to their clients.  There is no negative impact on them.  So you agreement with the investor is that they pay you let’s say $1,000 or $1,500 for each deal that they do.  We have some students who get paid over $10,000 for each deal that’s signed, so that’s where you want to be and then beyond that.

Stack of Checks Models.

These are Models that result in you getting a stack of checks at the end of the day.  So in this case you want to get paid as soon as the people leave, the investor writes you a check right then and there.  This does NOT include whatever else you’re going to make on the deal.

So you want to work with a few different investors at once so at the end of the day you want a stack of checks for $3,000, $5,000, $7,000, and so on.  Also think about the cost to the broker, is is basically ZERO…

… the cost to you is also ZERO…

… and the “cost” to the investor is nothing because instead of spending thousands on marketing and talking to dozens of sellers and going on appointment or having to screen hundreds of people…

So an investor can do more in a few hours than most investors will do in several months or even years and he’s only paying for business that he actually DOES.  We’ve had a lot of students do this.  Sunny did an experiment where he took a group of eight students and they all did this, in 45-60 days the worse performing student (and we still tease him about this) was out of the country on a family emergency…

(we don’t tease him about the emergency obviously)

I mean what a thing to do tease somebody about, right? 

THANKFULLY everybody is okay.

THANKFULLY everybody is okay.

The point is that even with limited time then he was making $3,000/week, and remember he was the worst performing student.  There were some other students in that group that were doing a few times that volume.

They were ONLY working with a few different brokers and doing a workshop once a week or once a month and then cycling back through the list of brokers (like I mentioned in the signs class here) that he had a relationship with so once the initial work is done this can turn autonomously.

So think about what you can do here.

Every Saturday or Sunday you can reverse engineer just about any size paycheck you want.  In that case specifically one of the assets your leveraging is the intangible asset of the relationship of the agents with the broker.  So that’s an example of an intangible asset, there’s also other intangible things like software that could be another type of deal that I might get into later if we have time but for now let’s keep moving…

Okay let’s look at another example, let’s say we’re looking at commercial real estate like an apartment building and they have a handyman who they pay full time.  Often he’ll have a comped room and board too so he is “living free” in a unit, in either way they are paying him regardless of how much work he does.

Situations like this are BIG opportunities…

So this is another chance to schedule more jobs for him and the work is “free” or at least doesn’t cost the apartment complex anything more.  Now if and when you get swamped you want to revisit how much he’s getting paid but to start with it is a fast way to get going – and that’s an example of using the people asset – you can have the handyman even do unrelated things like putting out signs too.

Another example with commercial real estate…

… We’ll use a tangible asset with a storage unit for example or a mobile home park, those are both crazy profitable and most people don’t know about them.  Everybody freaks out about apartments buildings because they think it’s so much different when really it’s all the same. 

Let’s say an apartment building has some big trucks that they use to haul furniture and clean out old units and for other small jobs like that.  It may just be a standard pick up truck.  In almost every case they almost never use the trucks very much and there is a lot more downtime than time of use.

Just like with the handyman, see?

So let’s say you arrange for those trucks to be used as moving trucks.  You can rent them out and maybe even use the handyman from the complex to work as the actual movers.  Working as movers is just one example, it could be anything.

Now let’s say that every weekend the total extra profit is $500.

How far can you make that $500 go?

How far can you make that $500 go?

And that $500 is very low by the way, also for those of you know where I’m going you’ll recognize that $500 per weekend is a fraction of what the students who did this were pulling in.

But even at just $500, that’s an extra $2,000 a month that you profit.

If you split it with somebody that’s STILL an extra $1,000/month.

Is that a big deal?

Think about it for a second…

… was the deal I just described something to write home about?

If you don’t think so then I’m going to change your life in a second because you aren’t trained very well with my stuff – but I’ll come back to this – just remember this $1,000/month and we’ll come back to it okay?  Okay…

What about the whole reason we started this?

Okay before I talk about him let me say something about what he did and what these other students have done, all of these examples are NOT typical.  Most people are way too lazy and way too eager to quit to ever change their life like this…

RESULTS NOT TYPICAL

What he did is impressive because well first of all he was a great student but secondly because when he learned about this he said that he couldn’t sleep at night, and THAT is what it takes to get things going.  If you want to know what kind of student you’d make that’s a good example and model to follow – when you learn about this stuff it should open your eyes, give you butterflies and ignite a fire in your belly…

You should feel that RIGHT NOW…

… if you don’t feel like that right now, or if you have a bunch of dumb ass questions, or even statements like “that doesn’t work in my area” – or whatever – then you’re probably an LC.  In that case you would make a terrible student.

Please test yourself…

Based on how you feel RIGHT NOW you can find out what kind of student you would be and just how fare you’ll go with my stuff.  You should feel the same way that he did about this being your destiny, your calling, etc. 

If you don’t feel like that then you should go through my other classes on creating “Champion Thinking” and being an overall badass.  You need to get yourself in that space mentally before you do anything else because bringing the RIGHT version of yourself to this party will change your life.

So if you’re not there – GET THERE…

… you’ll THANK me later…

… and never stop…

Okay so he worked with the recording studios, so studio time can be crazy expensive especially for new artists and groups that don’t have the money for a good producer.  That is usually why people pay studios in the first place, to get professionally produced they pay for the technician and the producers to make things sound cool.

Now he determined that a lot of times when everybody was in the studio there were often large gaps in between scheduling sessions, often several hours.  During this time where everybody is there waiting in between appointments… also I’m including a class on how I bought my first apartment building using this same Model and better pet policies below you can go through the full post HERE.

… There is a major opportunity…

This is a major opportunity for SMART real estate investing business people…

The studios usually didn’t know about the downtime until right before it happened, that’s why they didn’t fill the space.  Also for the full post on how I bought my first 16 unit apartment building with pet policies go here.  So our superhero of a student arranged a deal where they would let him know about the downtime and then he would go to a group of local acts and he would auction off that time via mass email/text. 

So they get to have quality time with serious people in a studio and it might not be at the most convenient time but it would be at a REAL discounted price.  This would be based on the winning bidder through this auction that he conducted basically over his phone, he would send out the alert and text back and forth until he got a winner.

That’s all he did…

And that is he more than doubled his income from his job…

As the very good student that he was, he did exactly what we talked about and now when he said that his income is secured permanently what he meant is that he started taking the money he was making and he applied right back into buying these studios.

So now he OWNS pieces of a few these companies around town and he gets checks in the mail (yes REAL ones) every month.  So he was able to take this simple Model and build a business and income around it.

You see how this works right?

You can do this with anything…

… Movie theaters for example…

Movie theaters don’t make money on the movies, it’s the $9 dollar candy bars and $15 buckets of popcorn they sucker you into buying.  They also have the fixed costs to consider, they are paying the same whether every one of the 12 screening rooms are packed or if there is just a single customer in the entire building.

We’ve had a lot of students who will got to a theater and rent a room for a private screening of a movie, then go to a group like their church group or something (remember this could be ANY group).  Now this group will buy tickets at a premium because you are splitting the money that’s made with the church.

This is how to support your groups AND making money at the same time.

Eventually you don’t want to pay anything out of pocket to the theater because you’re getting so many people there buying candy and popcorn, etc.  By the way how much extra does this cost the theater? 

Just about ZERO.

Remember anytime you can provide a fresh mob, the leverage you have is limitless.

You can apply this to gyms you know big franchises or local Miyagi dojos, restaurants, etc.

Most people have been so uninspired, their brilliance so buried and watered down, their ideas as colorful as a corpse…

… and you’ll realize this on a new level and appreciate this so much more when you go out there and actually execute on these ideas because…

NOBODY IS DOING (or knows about) THIS STUFF!

NOBODY IS DOING (or knows about) THIS STUFF!

You’ll be even more grateful for how much a superhero I am for training you like this.  So I should say “You’re welcome” in advance…

Now let’s talk about taking this to another level let’s go back to the tiny example, the seemingly least impressive example that we went over the apartment complex that makes an extra $2,000 a month, remember?

Remember I said we could come back to this…

Whether we are talking about commercial real estate or a company or business…

Remember this ONE sentence:

Whenever you increase the income, you increase the value.

… now that we tattooed that on your brain…

Let’s focus on the key to increasing income, the key to creating income and making more money not just for yourself personally but for any asset like a business, what’s the secret?

It is all in the transactions.

You have three choices and options:

More transactions…

… More profit per transaction…

… Acquiring of transactions.  (like buying another business)

So when we look at the extra $2,000 a month that you added to the apartment building, let’s look at what that really means…

It is natural to look that $2,000 a month and think no big deal right?

Well you’d be as wrong as, come on now say it with me…

… as wrong as bestiality…

Remember that commercial real estate is basically just a business.

So remember with ANY business we have a multiplier so if a business is selling for or worth $1,000,000 all we need to know is the multiplier and then we can calculate the cash flow.

So if it has a multiplier of 10 for example then

$1,000,000 / 10 = $100,000 a year cash flow.

What if the multiplier is 5x?

That means the company’s cash flow MUST be $200,000 a year in order to be valued at $1,000,000.

A multiplier of 2x means?

Cash flow of $500,000 a year, right?

That is $1,000,000 / 2 = $500,000.

You may have heard of P/E Ratios before, that’s how stocks are valued.  You take the stock’s price over, divided by, the earnings.   

In the world of commercial real estate there is an equivalent of the multiplier and it’s called a capitalization rate, or a cap rate.

This is usually expressed as a percentage and it basically means that if you bought the property with all cash that is how much you’d make as return per year.  So let’s say there is a cap rate of 10% that means you would make 10% on your money if you paid all cash.  The property makes back 10% of the value/price.

You NEED to know this stuff.

Check out my other class on 38 ways to buy apartment buildings zero down with EPIC PET POLICIES for more on changing these values, cap rates, valuation methods and also being able to do this math in your head.  I’ll put that video below as well, remember it is an epic FOUR hour long video with a lot that you can learn from.

Real estate investors – YOU really NEED to know this stuff.

Check out my other class on 38 ways to buy apartment buildings zero down with EPIC PET POLICIES for more on changing these values, cap rates, valuation methods and also being able to do this math in your head.

Knowing this is important because even if you or your people don’t buy these things cash, if you get a loan and your interest rate and payments are let’s say 8% that leaves you with 2% in cash flow if the cap rate is 10%. 

Or at least that’s the idea…

So let’s say a building is selling for $1M with a 10% cap rate…

That means the cash flow is $100,000 a year right?  That is $1M times 10% or times .10.

If the cap rate is 5% then the cash flow is $50,000.

You see how that works right? 

So we have three things here, three LEVERS to determine value:

The earnings…

The cash flow…

… and the cap rate.

That is what we need to know in order to value any business or piece of real estate.  Remember we only need to know TWO piece of information to figure out the third.  So let’s say we are looking at a…

Let’s say a 30 unit building that is worth $1M with a cap rate of 9%.

That means that the cash flow is $90,000 a year but let’s work backwards let’s say that all we knew was that it was cash flowing $90,000 a year and we have a desired cap rate of 9%.  So if we had to figure out the value or how much we would pay for it we would do the following:

You take the $90,000 and divide by 9%.

Why?  Remember that if are multiplying the value by 9% to get the cash flow then we divide the cash flow by 9% to get the value, right?  Basic math from the math class right?  Right.

So if we divide $90,000 by 9% what do we get…

A value of $1,000,000

So we can divide the earnings by the cap rate and come up with the value, that makes sense right?  This is all clear and you are following right?  Please let me know if ANY of this unclear so far.

You know my family never let me use a calculator when I was growing up but right now I’m going to give you permission to use on if you have to.  So if you need to then PLEASE do it because you’re going to want to follow along and do this with me when you see the craziness that’s about to happen…

You need to see it for yourself…

Okay so let’s use this current example of an apartment that is cash flowing $90,000 with a 9% cap rate.  That means $90k divided by 9% gives us a value of $1M.  Remember you added $2,000 month which sounds like a not big deal to the uninitiated but NOT you and if so then that’s about to change for you…

So $2,000 a month…

… multiplied by 12 months = $24,000 a year.

So now the MILLION dollar question is…

How much is that $24,000 worth?

Now we have a formula to figure that out right?

Now that you have added income you have added value, right?  The only question is exactly how much value have you added to the apartment building?

If only there were a formula, some sort of mathematics that we could use to calculate this…

OH wait a second…

So now let’s plug this back into our formula:

So $90k divided by 9% gives us a value of 1M…

NOW let’s add the $24,000.

$90,000 + $24,000 = $114,000.

So now we take $114,000 and divide it by our 9% cap rates gives us a value of…

$1,266,666.

We’ll say over 1,250,000 just to be safe…

… Do you see what just happened?

We just created value.

We just built something from basically NOTHING.

This is a real estate investor’s most valuable skill:
Being able build something from basically NOTHING.

You have been able to add over $250,000 – a quarter of a million dollars – and you have added it in real world VALUE.  This is NOT opinion, you will have bankers, investors, owners, etc. who will all agree on the value that you just added. 

It is just MATH.

Follow? 

You are basically CREATING a spread of over 250 grand…

… and you are creating it out of NOTHING.

One reason that you are able to add so much to the value, one way to see how dramatic this change can be is if you do NOT change the value but instead we change the cap rate.  So if we adjust the cap rate to represent the effect of the new cash flow that you added, we see a big change.

Here’s how to do that for the new cap rate…

You can take the same $114k and divide by the $1M, so instead of the P/E to get the value multiplier we put the earnings over the price or E/P.  So it is the earnings or cash flow divided by the value or the price and we do this to get the cap rate.

So $114k / $1M and NOW our…

New cap rate of 11.5%.

This changes the deal entirely.

It WAS a deal with a 9% cap rate, which meant that if you had debt service of 8% you only have 1% left.  NOW you would have added about 3 and half times as much cash flow, but we’ll still use the 9% cap rate and instead adjust the new value so the more conservative approach is to keep using the same 9% cap rate…

There are so many plays that you have when you can do deals like this.

For one thing imagine if you wrote an option on this property at $1,000,000…

It would’ve been easy to do since that was the value and asking price at the time.  If you wrote this BEFORE you did any of the work and upgrade on the cash flow and value, now you would have $250k in equity. 

So you COULD turn around and sell that option and make a quick $100,000 or something and you’d be in and out of the deal. 

OR…

You could take an equity position and use that $250k as a down payment and actually buy the apartment building yourself.  If you did it this way you’d be doing it with the generated income, you would use the created value and cash flow.  You would be controlling and owning these apartments without ever going into your pocket for any of the money or credit or anything.

OR…

You can also take your $250,000 and trade it for a bigger deal.

This is a great way to get the use of the entire amount without liquidating or selling it. 

Remember the less you need money the easier it is to multiply.

(read that again)

So once you use my stuff and hit your $30,000 a month (the smart way) you don’t want take the money from deals like this, instead just RE-invest it and watch it multiply.  You leverage that 250k and trade that position for even more assets.  Trading is a great way to do this, or just about anything really.  

In fact Anna made a video about how she was leveraging and trading a position like this (it wasn’t in an apartment building but with a Model, the L/A Model) for a mansion.  I’ll put that video below the whole post is HERE.  Make sure you check it out, brilliant stuff.

The plays here are endless and these numbers that I just went over aren’t hypothetical…

… that $1,000,000 deal with a 9% cap rate and you adjusted the number and got it $250k when you added/created a moving company to it that was added an extra $2,000 a month…

This is a REAL life example that explain in the video…

Also below is a video from my post on how to get an apartment building to pay you $500 a week, you can watch it below and also go to read the full post HERE.

Now he a handful deals like this that he buys or sells as he wants his cash, equity or income to change.  So far he has never made less than $30,000 with this ONE model.  These are the examples and why it is so important that you start looking at deals you are doing through lens of building a business or better yet…

We Build Empires.

We Build Empires.

For the full post about the video and getting an apartment complex to pay you $500/week go here.  You know I could go back through each deal that we talked about and show you how there are actually millions to be made when you understand the importance of transactions and controlling them… and I will later and elsewhere but for now…

We’ll stop there for today…

I could keep going over more and more examples, but we’re running out of time and I try to pack as much as possible in each one of these classes by also making them digest-able in a single sitting.  You guys kept asking (BEGGING!) for more so we’ve made the classes even more epic and involved lately…

See, I listen to YOU.

Why?

Because I love you.

For realz.

So from now on (remember those are magic words) you should be looking around and seeing opportunity everywhere.  In fact, that’s your first assignment just start finding potential applications for the Asset Brokering Model all around you.

When you see something as ordinary as a truck you should see millions…

… And THAT is when you’re good and reaching special levels of real estate business genius…

When you look at the ordinary and you see the extraordinary.

(that’s what you should see in people)

By the way I use to drive a big truck around once upon a time, and the guy that let me do it must’ve been drunk because I had no idea what the hell I was doing.  I hit bridges, speed limit signs, mailboxes, etc.  One time I accidentally took the wrong truck 200 miles out of the way I thought I was hauling newspapers but I opened the back and found a bunch of…

… cheese and immigrants.

There were PEOPLE in the back and some even sleeping quietly in sleeping bags, so apparently the guy whose truck I took was smuggling people.  It was crazy, I almost got arrested for human trafficking.  Thankfully I charged them double and we kept going… 

I’m kidding, I’m kidding… sheesh.

Of course I didn’t do that.

I charged them triple.

Okay so keep today’s class in mind and as always I’d love to hear how this helps you and how it changes the way you’re looking at all the opportunity that we are drowning in.  You know to most people business is as fun as a funeral and that is because they haven’t been trained on making these kinds of connections. 

So remember, approach opportunity with the grace of a falling axe – go crazy.

You know Sresh Patel is a Bollywood director and we just signed the rights for him to produce a documentary about a student of ours.  A 14 year old homeless girl in India who used this ONE model, the Asset Brokering Model with local bus lines.  That’s how she was able to leverage the transactions to finance electricity and water for an entire neighborhood.

In exchange she got housing for her and her family.

What a badass.

What a badass and something ALL real estate investors can learn from.

There’s no question this stuff is changing the world, the only question is if you’ll use it to change yours.

(mind blown emoji)

… And finally remember this…

You know I always try to leave you with something to think about and a while back a Homey sent me something hilarious that I printed out and put on a wall.  That’s right I said “a wall” as I have more than one… because things are going well for me…

 This is something that’s been on my mind a lot lately…

It is a quote says:

I want to be that guy who gets out of bed and soon
as his feet hit the ground the devil looks up and says:

“Oh Shit, he’s awake!”

I love it.

Hope this class helps, as always this all been just the surface if you want to get trained. if you want me to work with you one on one and take you by the hand and show you every step then you need to close your eyes and hope that I’m accepting applications when you go here:

https://www.WeBuildEmpires.com

Also I’m posting the video below again.

Much Love Homeys and THANK YOU Forever,

– Azam and Indy Anna

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

Wanna Create Generational Passive Income Buying Real Estate and Small Businesses?

Here's a class on exactly how to make $30,000 in passive income as an out of state Indy landlord.  Exactly how many Indiana rental properties do you need to make 30 grand a month.  Anna can you help me invest in Indianapolis turnkey real estate investment properties?

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list. 

Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys - this is a FREE list of EVERY possible contact that you'll ever need to build a real estate business in the Indianapolis or the Midwest.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

When I first go started I thought wouldn't it be great if somebody put together ONE list of every possible contact that I would ever need to build a passive income with Indiana real estate - or any Midwest real estate?  Well that's exaclty what I did with our “People Page” here it is:

A totally FREE list of every possible real estate professional contact you’ll ever need to do unlimited deals, start and scale your real estate business and create generational passive income with real estate anywhere Indiana or the Midwest.

Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
408-430-7417 (YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)