The 24-Week Challenge: Week 6 - Four Profit Centers in Real Estate
We’re tackling a big question with the 24-week challenge, and now we’ve hit week 6. The question is: How do real estate investors build real wealth and freedom without access to millions of dollars in capital? Zack Childress is leading us through the steps to the answer.
Our topic today is the Four Profit Centers in Real Estate. The 4 profit centers can be represented as a set of 4 stairs. Each step builds upon the next—and each step adds a little more complexity and requires more resources.
You need to determine which profit center suits you best and you’ve got to make sure you are in line with that profit center. If you have no money and bad credit, you need to focus on Profit Center 1, which is wholesaling.
See, wholesalers don’t need financing or proof of funds. You are not going to close on the house. Rather, you negotiate a contract with the seller and sell the contract to a buyer for cash. You are out of the end deal based on language in the assignment agreement. This is a great strategy for starting an investing career.
Profit Center 2 is creative deal structuring, and we also go into detail about Profit Centers 3 and 4. The journey from Centers 1 to 4 can be quick or it could take a few years… it all depends on your knowledge, resources and support.
If you don’t feel confident that you can execute properly, you need to keep learning, build your resources and use the guidance of an experienced mentor.
Lots of great info in this episode.