How To Replace Your Income With 12 Rental Properties (Part 3 of 9)
After coaching so many people through the process of buying cashflow properties and replacing their income…
I’ve arrived at a “framework” that I have my clients follow.
This 9 step process is the most logical and effective way to build your portfolio.
So far, we’ve covered:
Step #1 - Pick Your Market
Step #2 - Build Your Team
In today’s post, I’m going to cover Step #3 - Getting Setup
Getting setup is a bit technical and boring, but it’s CRITICAL to having this whole thing automated, and to protecting yourself.
Here are the steps:
Create Your LLC - Set this up so you can open a bank account under it afterwards. Consult with a RE attorney if you need help. I’ve set them up myself before, it’s not too difficult. You may need an operating agreement in some cases, too. The LLC is basically your insurance policy, it will protect you if you get sued or something. You will buy all your houses inside this LLC.
Open Your Bank Account - Open a business bank account under the name of your LLC. Get checks and a check card. Get access to your admin person and your bookkeeper. Run EVERYTHING through this account from now on, whether rent is coming in or expenses are going out. This keeps everything organized for tax time.
Get Access To Property Data - You will need something more robust than Zillow to really know what’s going on with the properties you are buying. I use a service called “CRS” but it doesn’t exist in most areas. It’s a paid service but well worth it. Find out what realtors use and see if you can get “investor access”.
Hire Accountant & Bookkeeper - These people are critical to have in place BEFORE you start doing things within your bank account. Have them ready to go, so as soon as you start doing business they can do the bookkeeping on your account, provide you with Profit and Loss statements, etc. It’s much easier to do it this way versus go back in time and “catch up” on all your bookkeeping. I’ve made this frustrating mistake many times before I finally learned.
Once you have done the above steps, plus steps #1 and #2, you are getting very close to buying your first house!
If you are interested in a more comprehensive training on how to get your business “set up” for success, check out our 12 House Masterclass which includes not only includes a module on this, but also:
- A comprehensive 50+ video training course on how to get your first 12 houses
- Monthly group coaching calls with me
- Access to our private, closed Facebook Group where you can ask questions to your heart’s delight
- Access to my private money lenders
- Coaching Call Recordings
- A “Freedom Artist” T-Shirt
- And much, much more!
In my next email, I’m going to cover Step #4 to getting your first 12 houses, which is…
Find the Money!
This is a crucial step. Knowing that you have access to funds is a HUGE confidence booster.
It’s also possible for ANYONE to do, no matter how much cash you have..
Or whether or not you have any experience.
I’ll show you how in my next post.