How Professional Real Estate Traders multiply Wholesaler average earnings by 5 times !

If you could make 5 times more money than most Real Estate Wholesalers would you be prepared to alter your business model to a More Professional Approach?

To ascertain whether you are suitable for a New professional business strategy and association so you average per real estate deal $34,000 after tax instead of just $6,000 - first be honest with yourself as to what you are making today.

How profitable is your real estate wholesaling business right now?

The numbers for most real estate wholesalers are pretty pathetic. Have a look at your own:

• Is it getting any easier or more difficult to make a decent income from your wholesaling activities? Make a spreadsheet and evaluate what you have been achieving - laying out each of the elements of your business model.
•  Start with the budget by which your business operates. How much are you outlaying in total?
• What did you spend over the last 6 months on Advertising, Personnel, Travel and all other operating expenses?
• How many Properties do you find per week?
• How many of those Houses did you make an Offer on in the last 6 months?
• How many acceptances did you get for every 100 offers?
• How many Buyers do you present offers to each week?
• How much work and effort - plus marketing expenses - go in to locating Buyers?
• How many Offers to Buyers do you make to get one acceptance? What is you Batting Average?
•  Over the past 6 months what was your average earnings per deal - before tax?
• What was Your average earnings after tax?

The more successful operators make provision for tax at 40 cents in the dollar. If you are not in that league yet you probably need to make provision for tax at 30 cents in the dollar. If that is all your ambitions are then this business is not suitable for you. Ultimately the competition will drive you out of the industry as the stronger players become more competitive and more professional in their approach in finding properties, negotiating with sellers, and matching houses they get under contract with buyers.

The average earn for wholesalers is $10,000 per deal. After tax that drops to $6,000 or $7,000 depending on whether you have a real business or just do property wholesaling as a hobby.

What are you making at present per deal? What did you make in total after tax last month? and, over the past 6 months?

Here is an Alternative Remuneration Plan for Professional Real Estate Wholesalers:

• Realize there is a Smarter Way to manage the money you make,
• Instead of throwing away in income tax 40% of what you make, why not defer the tax, invest that money until your investments have grown, and ...
• You decide when you want to pay tax and how much - by deferring cashing out to realize gains - only cashing out what you need to live on (and a small amount to pay tax on what you cash out)
• NOTE: There is NO NEED to cash out Investments as long as they are appreciating and/or generating income
• You can borrow against appreciating assets instead of cashing them in (where you would lose money in tax) and have their continued growth and come cover all loan interest
• A supplementary benefit of deferring tax can be dropping your tax rate from the maximum income tax bracket to merely the capital gains tax rate
• Deferring tax for 30 years and investing the savings for that period can produce Billions of Dollars - as proven by George Soros. Okay you need to make a few million dollars first as he did in order to borrow millions of dollars from the IRS to invest. But if you just make a few hundred thousand - which you easily can once you adopt the New Business Model - you can be making millions from investing the tax man's deferred take
• Regularly upgrading investments - taking out built up equity as your investments grow to leverage in to additional investments
• Instead of Netting after tax $6,000 on a Property Deal how would you feel getting $17,000 immediately with zero lost in tax and
• Another $17,000 after tax again on your retirement - for every $17,000 of deal earnings until retirement?
• Say you do 10 deals a year - you earn $170,000 whole dollars - nothing lost to income tax (How many deals a month would you aim for?)
• 30 Years down the track you receive a retirement sum (after tax) of the same amount as your earned ($170,000 or more if you do more than one deal a month with 2 months holidays)
• You do not need to keep working for the next 30 years

Say you work for just the next 10 years - making $170,000 a year, then you will have made $1,700,000. Your Retirement Drawings - which commence in 30 years - will be the same amount too!

What are your plans for the $170,000 earnings over the next 10 years?

If you are currently only making $6,000 a deal then your earnings is only $60,000 a year after tax. You could stick with spending just $60,000 a year and invest the additional $110,000 you could have. Or, alternatively increase your spending and improve your lifestyle. How would you feel about having $100,000 to spend a year with $70,000 to Invest?

As you are in Real Estate you should appreciate the fact that with $70,000 of capital you could leverage that to buy a house worth $350,000 - with an LVR of 80%. Of course you could do better. But at least you could do the simple thing - buying One House a year for each of the next 10 years.

As each property appreciates in value usually in line with inflation there should be an additional $70,000 of equity in every house you buy - which if dragged out would enable you to buy an additional property every 5 years. What this would translate to after year 5 would be one extra property being bought every year using the annual investment properties.

What you might find difficult to comprehend and to do the numbers for is there will be a compounding effect of every property purchased generating capital appreciation, enabling equity financing of more properties - which in turn will also appreciate and likewise provide additional capital to invest in an ever increasing number of properties.

For most people their head would be spinning right now if they grasped the possibilities of compound real estate investing employing the above approach. With the Retirement Income Stream you will be generating from your earnings there will be the opportunity to extend the process of compound real estate investing throughout your retirement years. Which will produce income to live on, continued capital growth at an exponential rate, and little or no tax depending on how well you manage your financial affairs.

With the prospect of magnifying your current earnings by 5 without doing any extra real estate deals, only ever paying tax at capital gains tax rates and deferring tax indefinitely to your own choosing - are you sufficiently interested to explore the possibility of substantially improving your financial position IMMEDIATELY as well as providing absolute financial security in retirement?

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