Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.
* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…These are exactly the kinds of deals he does day in and day out. Most ‘investors’ are getting it wrong. It’s not about the property, it’s about the buyer. Buying right and buying cheap is what you’ll do after you have the buyer.
* How to have a buyer or renter before you even buy property…* How to have them already pay you money before you sold them anything…
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Hey! It's Lou Brown. I'm back with another of my 101 cash
flow generators. I hope you love this. This one is about the discounted rent.
Now, years ago I invented this idea and the thought was, Hey, if we set the
rent at a certain amount and then we Mark it up, say $100 per month, then when
they pay on time they earn a discount down to the amount that we would actually
like to collect. And if they don't pay on time, then what happens is they pay
the higher rent, they didn't earn their discount, so it's an earned discount
and the way they earn their discount is agreeing to pay on time. And so when
they pay on time and they pay the lower amount of rent, which is actually the
amount of rent that you would like to get for that property, and when they don't
realize that you're going to have to spend time, energy, you may have to even
spend resources to collect that.
flow generators. I hope you love this. This one is about the discounted rent.
Now, years ago I invented this idea and the thought was, Hey, if we set the
rent at a certain amount and then we Mark it up, say $100 per month, then when
they pay on time they earn a discount down to the amount that we would actually
like to collect. And if they don't pay on time, then what happens is they pay
the higher rent, they didn't earn their discount, so it's an earned discount
and the way they earn their discount is agreeing to pay on time. And so when
they pay on time and they pay the lower amount of rent, which is actually the
amount of rent that you would like to get for that property, and when they don't
realize that you're going to have to spend time, energy, you may have to even
spend resources to collect that.
It takes time. It takes money. And so therefore the
markup, so to speak, in the collection is to pay you for that additional
energy. Now, I want to emphasize that this is not a common occurrence. Only
about 10% of your residents don't pay in any given month on time. And so
whereas you are building your portfolio, and as I say, one property at a time,
you're building up your cash flow, you're building up your retirement, you're
building up your equities. Then recognize and realize that collections are part
of our business. And it's important that you have certain incentives built into
your agreements so that it incentivizes your resident. If they only have a
certain amount of money that they're going to pay you first because it makes
sense to pay you first. And maybe they defer payments on someone else if they
only have a limited amount of funds to work with. So this is one of the many,
many different ways that we have been able to coordinate receiving our money
timely.
markup, so to speak, in the collection is to pay you for that additional
energy. Now, I want to emphasize that this is not a common occurrence. Only
about 10% of your residents don't pay in any given month on time. And so
whereas you are building your portfolio, and as I say, one property at a time,
you're building up your cash flow, you're building up your retirement, you're
building up your equities. Then recognize and realize that collections are part
of our business. And it's important that you have certain incentives built into
your agreements so that it incentivizes your resident. If they only have a
certain amount of money that they're going to pay you first because it makes
sense to pay you first. And maybe they defer payments on someone else if they
only have a limited amount of funds to work with. So this is one of the many,
many different ways that we have been able to coordinate receiving our money
timely.
I hope you like this. Love this. Share this. And do
subscribe. And I will see you soon. Yeah, baby!
subscribe. And I will see you soon. Yeah, baby!
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