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5 Ways to Ensure You Net More Money in the Next 12 Months

by blogger1
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on Thursday, 31 December 2015
BestTransactionFunding

Have a goal to make more money in 2016? Here are five strategies to make that happen…

1. Do More Real Estate Deals

Increase your deal volume and you should increase your income. Realtor.com predicts 2016 will be an even better year for real estate thanks to a surge in buying and selling activity. Know how many more deals you need to complete to hit your annual income goal. If you’ve tapped out your local market, expand the amount of map you are using.

2. Slash Taxes

Savvy real estate investors know that more gross income doesn’t always led to more net income. Taxes can be a significant part of this equation. You should already have a tax plan for the year. Know when you’ll make specific purchases. Know how much you should plan to max out on real estate education and travel, how much you’ll donate to charity and give to nonprofits, if upgrading your personal home can help, and how much you can contribute to your IRA.

3. Increase Per Deal Net Profit

For those not so eager to increase deal volume, at least increase the net earned per deal. Set the goal now, build it into your numbers. This can be done by increasing your cut or margin on wholesale deals by say 10%, or by finding bigger deals that can deliver more cash per deal.

4. Flip Houses Faster

The faster investors turn deals the less they bleed in holding costs and interest charges, and the less risk that is involved. For those that haven’t been wholesaling 2016 is the year to add it to the mix. For current wholesalers this is the year to really tighten up that timeline and presell deals in advance.

5. Make More on Alternative Investments

Make sure your reserves, emergency fund, and alternative investments are working hard for you too. Don’t let them drag down your total returns for the year. Put that capital into private lending, startup investments, tax free college savings, better paying CDs, and IRAs.

Add up all of the above and even with modest improvements in each area investors can substantially boost their net income in 2016.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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