Tuesday, 18 April 2017

DC Fawcett Real Estate

Virtual real estate investing:

DC Fawcett virtual real estate investing club helps people to invest in multiple markets.
Being a leading real estate investing advisor, DC Fawcett knows each and every part of it and simplifies the approach to others. He knows what current trends are and what works with this industry and how to approach it in a profitable way.

He has mastered the art of wholesaling and contracts the home with home seller. His efficient marketing tactics drags the potential buyers and he successfully assigns them the contract.

Real estate Investment tips

DC Fawcett real estate guide for beginners:

Real estate investment is becoming increasingly popular and it is considered to be a safe option when it comes to investments. But buying and owning the real estate is considered to be a complex process than other investment options.

Internet is loaded with lot of blogs, books and training classes to train the beginners and make them start investing in real estate.

Old method of real estate investing – Rental properties:

This is an old method of investment where a person will buy a house or any Property and rent it to another. Charging a rent from the tenant earns him a hefty profit. But there are lot of disadvantage in this method of investing. This is basically a long term process, you need to invest a large amount of money to buy a property and wait for long time for returns from the rent.

Eventually you may end up with a bad tenant who damages your house and create problems with your agreements etc. Permanent maintenance is also required in rental properties and you need to spend more money in such things.

Repairing and Renovating the house for profit:

Some house sellers might don’t have money to invest on major renovation or repairs of their houses. At such cases they might sell their house for low price since it needs lot of repair work to be done. You can buy such houses and with efficient sources repair and renovate them for reasonable price. After a pleasant renovation it can be sold for higher price than that of buying price which also includes the repair and renovation charges.

You need to precautious about choosing a renovation company which can work efficiently. Renovating a house for profit value is really easy and all it needs is little bit of effort.

Flipping houses for profit:

Buying low and selling high is the only way where profit flows in flipping houses. Location and condition of houses is very important criteria to be noted while flipping the houses for profit. While looking for houses, do a research on rising real estate sales, employment opportunities and other available options which boost up the sale.

While buying the houses for flipping you need to be sure that it is structurally good. Houses near excellent education institutions sell more quickly than others. A thorough inspection is needed before the decision of buying a house or property in an area.

The value of the house should be lower than the market value which makes a huge profit. But its hard to find such a house since everyone needs a profit. But by analysing the market with long term goal you can search for a property in any developing area and flip it for huge profit.
If you are a new flippers then probably the biggest mistake you would ever make is buying a property without seeing it. Do not buy house 

Friday, 14 April 2017

Risky Situations in the Real Estate Profession - DC Fawcett

Real estate is not a hazardous profession. However, there are some dangers involved in real estate. In this article, Dc Fawcett Review a real estate entrepreneur some dangers lurking in the real estate profession.

Beware of first time clients

Strangers are always to be feared and this is the same with new clients too. First time clients are new faces. You don’t know who they are. They may be stalkers, thieves, alcoholics, drug addicts, looters and big time criminals. So beware of them.

Risky Situations in the Real estate profession

Open houses are dangerous

  • Open houses are dangerous. When an agent holds open houses, he advertises on where and when he is going to hold it. There have been several incidents occurring during such home showings.

  • Some have been reported in news channels. Once when an agent was holding an open house, a laptop was stolen. He was working alone and a pair came and turned his focus away. Yet another incident was: 2 agents were holding an open house when a couple walked in.

  • The man reeked of alcohol and both of them were blabbering. The agents sensed that something was wrong with them and immediately took some steps to prevent harm. One held a pepper spray and stood at the front door while the other walked the people into the house.

  • The former agent called her husband and when he came, those two intruders ran away. There was also an incident where a real estate agent was holding a home showing alone.

  • Then suddenly the agent saw some untidy clothes in the basement. The agent called the owner and he said that there was nobody living there. Then suddenly after sometime the owners came with the police and found a man there.

  • It turned out that he was living in the basement for some months without the knowledge of anybody. Such incidents show that home showings should be done alertly. Agents must call neighbors, family members and relatives to be present at the open houses lest anything happens.

  • If they cannot stay till the end, they must be there at least at the beginning and the end. They can alert the security guards of the home. If nobody can come from your family or friends, at least inform them about the open house. Also do an open house with a companion – a fellow agent. Inform brokers, fellow agents and others from the office.

Foreclosed or empty homes

Such homes may have previous owners refusing to vacate. They may be badly illuminated and have deadly animals coming inside. Such houses may be occupied illegally by people who specialize in doing so.

When you show homes of strangers

You may sometimes have to show the homes of people whom you don’t know. This is dangerous since you don’t know the homeowners. Even if you have just met them a couple of times and don’t know them really well, it is still a problem.


These are some of the dangers lurking in the real estate profession as reviewed by Dc Fawcett. For tips on how to encounter them and safeguard against them, read Fawcett’s article on tips to safeguard against real estate dangers.

Tuesday, 4 April 2017

DC Fawcett tips for - How to Get Started in Real Estate Investing Flipping Houses

Although the so-called gurus might make you believe that real estate investing is an easy money career, it is, in fact, a hazardous business if you use your own cash or credit and requires proper planning avoid losing any money. If you don’t know what you are doing, you’re going to lose your investment. DC Fawcett says that However, like every business, virtual real estate investing has the potential to grow, but many new real estate agents don’t make it, though, usually because they treat it as a hobby instead of as a profession.
 Dc Fawcett Real Estate Flipping  house

Instead of talking about real estate investing in general, in this article, we are going to focus on how to get started in real estate investing by Flipping houses but before we talk about techniques to ensure you get success as a newbie in real estate, let’s find out what exactly Filliping houses means?

What Does House Flipping Mean?

Flipping Houses is a business strategy that real estate investors use to earn profits within a margin of days to months. Usually, they buy a cheap but potential property, renovate and resell it for some profit. Although there is tremendous potential to make a lot of money filliping houses, it is also possible to have losses on your investment when rehabbing which is why it’s important to not use your own cash or credit to flip houses.

Getting Started in Real Estate Investing Flipping Houses

Honestly, the best way to become an expert at house flipping is just to do it; make mistakes and learn from your mistakes. However, you can reduce the risk factor by following few steps given below while you are just getting started in real estate.

How to Avoid Flipping Disaster -  Dc Fawcett Real Estate

1. Analyze your Financial Situation

Like every other business in the world, Real Estate, especially flipping houses require a good amount of cash first to buy cheap houses and apartments and then renovating them to resell for some profits. Analyzing your financial situation will help you reduce the risk factor of the business. You can invest your money (NOT Recommended), partner up with someone or take a loan from a private lender (private individual that lends money on real estate).

2. Find a GOOD house to flip

Flipping is not about just buying a house, renovating it and reselling. It requires a hell lot of research to find an excellent property that has the potential to earn you some profits. Imagine buying a house for 300K investing another 100K on it and when then no one buys it because of the neighborhood?
Although it is necessary to buy a cheap house, it is more important that you consider factors such as location, good schools in region, value of the home. Moreover, you also need to make sure the house is in sound condition. I mean you don’t want a house that all you can do is tearing it down and rebuild it (unless you’re in a neighborhood that warrants that). You need to find a house that needs renovation.

3. Do some Math to find out After Repair Value

Doing some math before making an offer to buy the house is very critical. You need to find the after repair value (AVR) to determine your profits. AVR is the estimated value of the home after buying and renovating it.
You can subtract your expenses of buying and renovation from after repair value to determine your profits. Even though it is just the estimate, you will get the projection of the benefits early.

4. Personally Supervise Rehabilitation of The House

Although you would need to hire a professional contractor for rehabilitation and renovation before flipping houses, it is critical you or your partner supervise everything personally. It makes it important that the house you are flipping is closer to your residence because you need to go there often to make sure everything is going as expected. This is why it’s critical to have a partner when rehabbing in virtual markets.

5. Race against the Clock

Flipping houses is a race against the time. The longer it takes to renovate the house, the more money you need to invest. Even after renovation, if it is sitting there, you need to pay for utilities. Try to do the whole processes of buying and renovating to reselling as soon as possible to increase the profits. Use the Virtual Rehabbing Process to Leverage Your Time.

A know-How for flipping houses? by Dc Fawcett

The internet is abundant with puzzle pieces about flipping houses: Here are few words that form the puzzle in real estate scenario:
  • ARV
  • Staging
  • Hard Money
  • Contractors
The above words listed in bullets are pieces to the house flipping puzzle, and those pieces are highly important. However, If one is new to flipping of houses. These small pieces of information can appear like some jigsaw puzzle. That amounts to 1000 pieces which have to be assembled together.
How  for flipping houses - Dc Fawcett Reviews

An expert in flipping houses would not want anybody to look at flipping houses with the same hatred as looking at puzzles.
  1. Stay committed to the flip:

The initial step in any real estate venture is to stay committed. Abundant number of people would like to get into flipping of the houses.  Or they may desire being landlords, and get really excited about the very idea of becoming a landlord.  Flipping of houses is not just a hobby; it is a business that can influence your future in the economic scenario.  Be decisive that you are going to do the flipping.  Also, decide on learning everything inside out.  Only then, one should move on to the step two.
  1. Have a sound knowledge on flipping houses:

Education is pursuit for the lifetime.  Before, one takes up flipping of houses. One should be well-educated regarding the concept.  Of course, it is not recommended to go to some class for an exorbitant amount of money. The only suggestion is that one educates himself well and be keen to learn the basics of the trade. Start teaching everybody with what you know, because that is the best way to digesting what you have learnt?. Do not just skim through the surface – try to go in and make out how it works.
  1. Have a sound knowledge on the flipping mathematics

When proper calculation is not done to a flip. You will not possibly get the exact amount of money coming out of it. In a successful flip,understanding the appropriate math is the most important feature.
  1. Research of the market:

Most importantly, you will need to observe the market and decide on the appropriate place to flip.  In some vicinity, $200,000 for a home would be deadly cheap, whereas in yet other areas the $200,000 would be a very exorbitant amount. Each and every market is different, so one requires sound knowledge on the market that one flips into  Raise. These below mentioned questions to yourself:
  • Rate of average house go for?
  • How much does a bank REO go for?
  • Speedily are the properties being sold?
  • What are the places which sell speedily?
  • What types of property, size, and layouts are selling speedily?
Do a thorough study of making out and honing in on the local market. Just have a walk through the open houses, and have a meeting with local experts to make out the state of local finances.
  1. Arrange for the Flip Financing:

At this juncture, one might be excited enough to begin.  But before that, you need to raise a basic question to yourself:
In what mode you are going to pay for the flip?
There are many different strategies you can exploit to put finances into the next flip. Here are a few of the viable methods:
  • Everything as cash 
If one has the cash in the bank, one can simply write the check.  This might be the easiest way, but for majority of the people, it is not the best option.
  • Partners/Private Money
If there are people who can lend money, they may be drawn to partnering or lending money at a certain rate of interest.  Money that is private can be affordable, although getting to have private money can be arduous and legally difficult.

Dc Fawcett Pros and Cons of House Flipping

Dc Fawcett Pros and cons of house flipping

Flipping houses – Is it as easy as it appears? by Dc Fawcett 

One might have come across advertisements showing how making money through real estate is a very easy task.  One might also have come heard seminars in radio which guarantee flipping of houses without one’s own money.  Also, there are sponsored posts in the Facebook which say that it is very easy to flip house with no money at all. DC Fawcett says  When one comes across the word ‘Easy’, one needs to be very cautious.  One who is well-versed in realty might know that real estate is not that easy as one thinks.  As a matter of fact, if one has to become wealthy, and successful, it is not an easy task.

Dc Fawcett Reviews - Flipping houses is it easy

One might have acquired millions of dollars, but it demands work to manage the wealth and retain it.  That is the reason why majority of people who acquire huge wealth turn bankrupt in a matter of years.  One might be waiting for the easy way to succeed, but you will just keep waiting for a long time to achieve the success.  Investing in real estate provides wonderful opportunities for people to acquire wealth, but it is not an easy task.

Variety of real estate investing techniques – How easy is it to make money - DC Fawcett

There are umpteen ways to make money in real estate.  There are some very easy methods to put money into real estate, but those methods will not make one rich.  They can give you a decent value in return for the money that is already saved.
  • Real Estate Crowd Funding:

One of the most noted ways to invest is through crowd funding.  One can put in small amounts of money via crowd funding companies.  These companies then pool the money with other investors to make a larger investment.  This investment changes hands to flippers or other developers in real estate.  One may be able to get huge amount with crowd funding, but there would be a lot of money to get affluent via that return.  For those who are starting up, crowd funding can be comparatively easy.
  • Putting money into REIT:

There are the turn-key rental properties.  These are rentals that can be purchased and are already rehabbed, managed and rented by a property manager.  These are particularly situated in high cash flowing areas and demand less work.  However, there are difficulties with occupants, repairs and bad turn-key companies.  One might own a turnkey property. Purchasing a turnkey property could be easy, but one should be intelligent enough in selecting the company.
  • Being partner with other real estate investors:

Yet another option to put money into real estate is to partner with active investor.  One among the partners may lend money for a particular deal, while the other partner fixes the deal, completes the rehab and disposes the property.  One could lend money or retain equity position also. Partnering can be an easy way to put money if one is just into providing the money.  One has to be discreet enough in choosing the right partner and the appropriate properties to lend on.

House Flipping In Real Estate - By DC Fawcett 

Dc Fawcett Real Estate Tips

Money earned by means of real estate flipping houses drastically changes everyone’s lives. For some, it is their profession and for others, it is a hobby. However, if you are making your career in this endeavor, it is the surest way of earning a steady income. A person can earn without going anywhere near the office or industrial park. Even if a person works for the entire month, their income does not match with real estate income. DC Fawcett warns against the bad investment or money invested in wrong areas which results in huge losses.
Mistakes made when flipping a house

Mistakes to Avoid while Flipping - DC  Fawcett

Paying more than actual price

The purpose for doing house flipping business is to make profits. However, when you pay more than the actual price and fail to negotiate, at the time of buying it, the profit reduces when you sell them. To turn it into real profit, one needs to study the real estate market. A lot of research has to be made before buying the property such as comparing at what price your neighbor had brought.

Excess Investment

Another common misstate is investing too much money for personal finances. Even if the property is purchased at the said price, you lose out on your savings. Instead of that if you go for loans, there person need not repay the entire amount in one go.Down payment assistance program.

Incorrect cost estimation

After getting financial assistance, make sure that project lasts long as you would need a good budget to cover for the renovations and little left over for contingencies.

Leaving important upgrades

There is a saying that one should be shrewd with respect to money matters. However, keeping this thing in mind, people tend to go in for cheaper options, though certain upgrades cannot be ignored. The buyers focus on kitchen, bathroom and master suite. At the most, you can reduce the cost on stops on these rooms.

Neighborhood Ignorance

Neighborhood awareness plays a very important role in house flipping. If your house is surrounded with ugly houses & surroundings, flipping becomes difficult.
Getting into the deal without house flipping team – Though, it is possible to do it independently, having a team is even better to guide you when you are new in this line. You can trust
  •    Real estate attorneys
  •    Certified public accountants
  •    General Contractors
  •    Real estate agents
  •    Lenders

Fear due to bad experiences in this endeavor

Many fear to go from house flipping either due to bad experience because of becoming a scam victim or getting nervous at the time of purchase. However, one should overcome the fear and change their mindset.

Poor planning

Though you get innovative things in your mind, you need to chalk out the plan and get ideas about different types of renovations, budget and schedule. Lack of planning postpones the renovation which makes you lose more money.
There are many more mistakes that are being committed which when mentioned becomes a long essay.

Mistakes that new house flippers do and what they should know:

When you involve in flipping house real estate property you purchase it for a low price and then eventually resell the property for a higher price. DC Fawcett says This is done within a short tenure. While in some instances you enhance the house you may also leave the property as it is in other instances. In the second case another investor gets interest in the property.
Property flipping is a famous practice in the world of real estate. Flipping should be carried out in an ethical and legal manner and all the representations of the house condition should be correct. The value of the property should also be accurate.

Now let’s go over certain aspects of flipping:

  • At the initial stages of flipping several flippers doesn’t have sufficient knowledge about the cost it takes to renovate a house. So they budget an amount that may not be correct. The problem is estimating repair costs in the most correct manner.

  • Repair costs may spring suddenly when you have started to renovate the house and you have to contemplate upon the hidden repairs in the initial stage itself.

  • You would have spent lot of time in flipping and would have expended a huge sum. So it is natural that you desire to sell of your property in a swift manner.

  • You may think that through flipping is a get-rick-fast method. But you have cognizant of the fact that similar to other type of long-term investment it requires perseverance.

  • Sometimes several house flippers will associate with another investor while in the process of flipping houses. It may be that while one investor deals with the cash transactions including paying the sum, another one will scout for the deals. In fact, the second person will be carrying out maximum work. Partnering can be a viable option if there is clarity of job and written agreement is available. Why do real estate investors endeavor in partnering? This they do so to share the risk. Having said that, it is not wise to enter into partnership on a real estate deal. When the partners have well-defined roles then this can be considered.

  • One should get the help of the right contractor while flipping. See to it that the contractors don’t raise prices, get the help of wrong individuals etc.

  • We should supervise the contractors and see that they are efficient and working in the limit of the budget. Ensure that you keep a watch on them in a thorough manner and before paying them more money see to it that they have done the previous work correctly.

There was a time when there was no problem with the legality of flipping. House flippers were in a position to make lot of money finding property bargains and also taking them to the notice of prospective buyers. Owing to the usual stagnancy of the market certain individuals made huge sum flipping properties. Then the home market value started rising in a sudden manner and wrong people entered into real estate field.

If you are very particular about flipping houses, just do not go through the blog alone. Educate yourself much with the concept of flipping houses.There were also certain people of the real estate flipper industry who involved in illegal activities including making the appraisers to raise the value of the property in a false manner. Also they involved in faking the required documents.So the key is to carry out the flipping activities in the right manner.
Dc Fawcett, the founder of Virtual Real Estate Investing Club, has written on the real estate in his blogs. One could go through the blogs and get a fair idea regarding flipping houses.

Friday, 31 March 2017

DC Fawcett’ Loan Modification Scams


When a company or an individual asks for a fee to work with one’s lender to modify one’s loan and do nothing to save one’s home from foreclosure, it is called as a Loan Modification Scams.
DC Fawcett says that Loan modification is usually used to forestall foreclosure of homes. But scammers take advantage of loan modification.”There were about 35000 loan modification complaints  recorded by Neighbor Works America from the period of 2009 to 2013,” says DC Fawcett – a real estate investor and educator.
Loan modification scam

Many loan modification scams begin with a voluntary call to offer services for lowering mortgage payments or to completely escape from foreclosure. In case of mass re joinder law suites against unscrupulous money lenders, the caller usually asks for fees in advance. This fees is the indicator of a scam because while there are mass re joinder law suites, lawyers don’t take money until a legal decision is taken.
Some scammers offer to review your foreclosure documents to check if the moneylender is complying with local and state laws. They usually demand fees for that. In worst cases, the deed or title to your home is usually surrendered unknowingly or with the hope that you can rent out the home in future or purchase it back. These occur in scenarios known as bait and switch ploys.
Seven suspects were charged of loan modification scams in 2014. They fleeced desperate homeowners who were trying to keep their homes during times of crisis. They told them that they had contacts with money lenders who would lower the monthly payments. Homeowners  were told that they would obtain a refund if they were dissatisfied with the terms. These suspects charged upfront fees for that .

How to avoid loan modification scams

Any company that guarantees loan modification or foreclosure is a prospective scammer. Generally, attorneys and lawyers only promise to do their best to help. Modification of a loan depends on many factors such as financial position of both the borrower and the investor. Those who guarantee outcomes without considering the implication of these factors are cheats. So one should look out for them.
Any company or individual who asks one to sign blank documents is a scammer. Lawful companies and authentic lawyers will never ask one to sign something without reading and comprehending. This is done only by scammers who will add information later and DC Fawcett give many suggestions to maintain rental properties.
Some individuals may pose as a forensic loan auditor. They are also scammers.It will offer to review documents related to one’s loan. To tell one that this report can be used for loan modification purposes and the charge fees for that but will often not do anything in return.Often phony seminars are scams. These seminars offer one free tickets initially. But when one goes there, one finds out that those free tickets were given to make one purchase tickets to additional seminars. The scammers make it sound as if these seminars are amazing but they usually have nothing great.


One must always be cautious of scams as they result in heavy losses. These tips above, by DC Fawcett will surely help in identifying and avoiding scams.

Wednesday, 29 March 2017

DC Fawcett - A Look Into Real Estate 2017

DC Fawcett says that Life is full of surprises, so is the industry of real estate! Seeing that, political disconcerts, social ambiguity, and international instabilities have had a plunge in 2016, real estate enthusiasts and home buyers are frantically looking forward to a change in the year of 2017.

a look in to real estate 2017

We’ve crossed a month and half-way through March now, so let’s have a look at how this one and a half months have been.

By now you would have heard this several times, 2017 is going to be the best year for investing in real estate, real estate activity is taking heads. The question now is whether or not the increased real estate activity reported in January, February and March will continue through the year.

During the month of January it was predicted that you can expect transparency in the property market and in the month of February it was said there will be a decline in the interest rates.

This is a rough data, most importantly this is not the thing that exactly happened, so it is always good to be on your guard and be double cautious because even the slightest mistake in real estate can bankrupt you.

  • Choose a healthy market
  • Study the location carefully
  • Look for growth drivers
  • Pay the right price
  • Don’t follow the herd
  • Have a strategy
  • Do the paper works right
Irrespective of the kind of real estate activity you are involved in, it may be selling a property, buying a house or investing in a commercial or industrial property, you should make sure that you are tagging along the housing trends and know about commercial real estate that could have an impact on your real estate activity.

A keen watch on the pulse of the real estate market is said to help steer clear of being left out in the cold by growing interest rates or a widening gap between supply and demand.

Now let’s see some points for purchasing a home in 2017.

  • There are a few fortunate people who can make the entire payment in cash. But for the others, financing comes to the aid. But, you need to furnish a decent credit to avail the mortgage.  Your ability to furnish a good credit score makes it possible for you to avail a mortgage.  When you cannot furnish a decent credit score, you might be turned down the mortgage.

  • When you avail of more loans, there is every possibility that the debt outweighs the credit. There are lucrative mortgages which would come up, and you should not miss it just because you have severe debt damaging your credit score.

  • You can get a fine picture of how much you can afford through the process of mortgage pre-approval. Just see to it that your pick of property caters to your budget.  Being conscious of every penny that you spend, you can ignore the properties that are beyond your affordability. Thus, you can avail of the option to purchase a property in the community that best suits your financial stand.

  • For the first time buyers, there is no inkling of a doubt that, for the financing to be done, a mortgage lender has to be approached for consultation. You need to come to terms with the money you can afford and then get into the process of buying a home. You need to have a sound knowledge of the market in the vicinity.  You know your priorities better when you work with a realty agent.

    Purchasing a home:

  • Always there is a prevalent uncertainty about the value of the houses, but when you make an informed decision to purchase a home, you are happily in the home thereafter.

  • The Price you have to pay for financing the home buying generally exceeds the home’s actual value. Be versatile regarding the mortgage alternatives and other expenditures.

  • The House may be offered for a certain price for which much care is given. The proposal to purchase a home involves both the cost and the terms.  The terms require much additional amount to be shelled out in certain instances.

  • Retaining a property without insurance is one of the most foolish things that one could do. The insurance acts as a shield during untoward incidents that affect and damage the property.

  • The Closing process comes with different terminologies as Settlement or Escrow. It is no more manual in most of the places, and there is increasing computerization of the process.

  • The process of home purchase requires you to be financially sound. Following the steps that are listed above will make things easy for you to purchase a home.  A bitter surprise should not spring on you, and you need to take every measure to see to it that you clear the process in a hassle-free manner.


    Get the inside track on forthcoming opportunities in commercial, residential and industrial real estate with DC Fawcett at his seminars and webinars.

Sunday, 26 March 2017

Strategies To Avoid Negative Cash Flows In Real Estate Investing - Dc Fawcett

Achieving a consistent cash flow is the ultimate goal for the real estate investors’ ad it is fair on their part to expect it as an investment will be pointless without it, and they end up losing whatever they have. Though negative cash flow is not always bad, you need to plan well to salvage the property by that means. DC Fawcett discusses some of the strategies to avoid negative cash flows in real estate investing.

Strategies to avoid negative cash flows in real estate investing

Negative cash flow is basically the excess of expenses over the property revenue. However, it does not always mean that negative cash flow is the red flag for the investors as many smart investors have ridden it out till the property value had appreciated. Purchasing the property with negative cash flow has been popular. Even the billionaires utilize the negative cash flow in order to avoid paying tax unnecessarily. However, you cannot blindly go for the negative cash flow. Here are the strategies to avoid negative cash flow in real estate investing.

Negative cash  flow in real estate investing

Make a full-proof plan for your business

Planning is very important for any business to succeed. However, when it comes to real estate, you need to plan your finances such that you don’t get into the problem of negative cash flow and at the same time, you can minimize your tax. Apart from the good investment plan, you need to be flexible as well so you adapt and change according to the needs of the investment

Keep all your options open

If traditional model of renting is not enough to work put your negative cash flow; you need to work on other alternatives to overcome it.

Bed and Breakfast

If you have a big property, you can convert it from the run of a mill single family home to cozy desirable bed and breakfast. This is one f the options which you can go for.


In this strategy, you allow the tenants to rent your house to other tenants which are helpful when they are struggling for mortgage approval. Rent to own generally takes 1 to 5 years in the short run. Tenants pay the amount according to the market rates.

Short-term rental

If your property is located near a hospital, business district or university, your short-term rental offers can turn the negative cash flow into positive ones and provide the service that you need the most in your area.

Have cash reserves ready

  1. A cash reserve comes handy when you are handling long-term investments. If you don’t have sufficient reserves, that will automatically lead to negative cash flow. This is the mistake that most of the investors make.

Utilize positive cash flow in the best way

When you have a good positive cash flow, utilize them in the best possible way such that you never go out of pocket. Most of the investors utilize them in on new items or on the vacation. Very few of them keep them for the future. You need to be among the few to store the positive cash.


DC Fawcett is the creator of Virtual Real Estate Investing Club. There are many ways to avoid or overcome negative cash flows which when mentioned will bore the readers.