Real Estate Investment Training - Real Estate Investors
Offer a Discount as an Incentive to Get Timely Payment - 101 Street Smart Cash Flow Accelerators #56
Aug 02 2019
Back with another of my 101 cashflow generators. I hope you'll love these. 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 discounts 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, a 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 cashflow, 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 time. I hope you like this, love this, share this and do subscribe and I will see you soon.
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…
* 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…
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.
Real Estate investors in all fifty states across Canada and fifteen foreign countries including as far away as Australia and New Zealand, have long regarded the training, systems and forms created by Louis Brown as the best in the industry, Quoted as an expert by many publications and authors, “Lou” draws from a wide and varied background as a real estate investor having been buying property since 1976.
He's invested in single-family homes, apartments, hotels, developed subdivisions and built and renovated homes and apartments. Each of these experiences has given him a proving ground for the most cutting edge concepts in real estate today. He's widely known as a creative financing genius with his deal structuring concepts.
Being a teacher at heart he enjoys sharing his discoveries with others. He has served the industry in many volunteer positions such as past President and designated lifetime member of the Georgia Real Estate Investors Association, the world's largest real estate investor group.
He is also founding President of the National Real Estate Investors Association, which serves as the umbrella association of local investor groups.
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