Cashing Checks From Real Estate Investing

Cashing Checks From Real Estate Investing

I just closed on a nice deal today. Over $25,000 on one house without putting up any cash or credit. It was a Foreclosure Deal that I got from the public records. I am not telling you to brag, what I want to do is to tell you what you need to do when you cash a check, especially your first check. The first thing I did was to look at all of my bills. I had most of them paid, so I looked at my debt. I used half of the check to pay off my debt. Luckily, I own a lot of rental property so I can shelter most of this income with depreciation. If you do not have properties like I do, make sure you plan to pay taxes on this amount at tax time. Luckily, I did not need to pay myelf first. What I mean is that I did not need to take money out this check to go toward my personal account. It is best to take out what you need to live on before you pay any debts or reinvest the money. That is paying yourself firts. Don't think because you made a chunk of money that you can go take a big vacation and blow it all. Reward yourself, but do it in small chunks. Don't blow the whole thing for fun and then not have anything to grow on The next step is to reinvest in the business. To have a business, you have to take steps so that you have money coming in consistently every month. Therefore, you should do what I do and reinvest in another way of finding deals. I am going to spend a few thousand dollars on a lead generating program that should bring me a few deals a year. I am also going to sign up for a Short Sale negotiation company that will help me leverage my time to find more deals. If you do not reinvest, you will not see the exponential growth and you will always stay flat or go flat broke. Be smart with your money. The money will come and when it does, you must know what to do with it. Pay yourself first and then reinvest in your business.