Yesterday, I met a guy who owns a large property management business. In fact, he manages over 600 units and has been investing in real estate for many years. During our conversation, I asked him how he handled the big market crash of 2008.
He said, “I lost everything.”
He went on to share how he had previously owned large apartment buildings in several cities throughout the states. One of these properties was in Detroit, Michigan. The majority of his tenants in this property worked in the auto industry and many lost their jobs when auto sales declined. His rental income at this property evaporated quickly and he couldn’t rent out vacant units because there was no demand for housing. He lost the property and the lender ended up taking everything he owned.
I shared my personal challenges with him and said, “I’m so thankful for the crash. I’ve learned so many valuable lessons.” He agreed saying that he will only buy real estate with cash today. He’ll never borrow money again (SAME)!
He also shared how his family downsized from a very large home into a smaller home. He won’t make the mistake of buying a large unnecessary home again. He used the crash to significantly decrease his living expenses making life a lot less stressful.
He even said that he decided to focus on property management because of the market crash. Property management, although extremely challenging, allowed him to create monthly income from real estate without borrowing a penny. Today, he uses the income from property management to flip homes in our area. On average, he flips around 50 homes a year. He buys them for cash, fixes them up and sells them for a profit.
There are three reasons why I’m sharing this with you:
1. He’s a very smart guy who rebounded from financial failure very quickly. He didn’t allow this situation to define him and is doing much better financially today than before the crash.
2. He created massive monthly cashflow through his management business without borrowing a penny AND without having any money to invest.
3. I written more about how to invest without money in the June Cashflownaire Newsletter, which will be released next week. Many of us in the real estate industry got hammered in the crash. Some have recovered and some haven’t. If you haven’t recovered, you need to realize that you don’t have to continue accepting the imaginary limitations that your situation is hopeless because you don’t have any money to invest.
You simply have to create the money you need to invest.
And yes, money can be created out of thin air.
If you’d like to get a few ideas on how to create money to invest, become a Cashflownaire Member here:
P.S. If you become a Cashflownaire Member this week, you’ll get the May Newsletter immediately. Plus, you’ll get the June Newsletter next week when it’s released! It’s almost like getting a two months for the price of one! If you wait until next week to become a Cashflownaire. you’ll lose out on the May Newsletter. 🙁