Session 4: Your 7 Essential First Steps

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1 How to Get the Most Out of This Session The fact is, scientific studies have proven time and time again that you will simply learn better and retain far more of what you learn when you are actively engaged in the learning process (rather than just passively listening). This is exactly why I ve brought you this training by way of audio, video and these study guides. If you re serious about learning and retaining as much as possible (and why wouldn t you be?), then I highly suggest you avoid multitasking (checking , working on other projects, etc.) and set aside a quiet time and space to take in each module of this material. I also highly suggest you print this study guide and fill in the blanks as we go along. Pay attention and you ll see each item you need to fill in clearly underlined on the video slides as we go along. Don t cheat yourself! You owe it to yourself to get the most out of this! Session 4: Your 7 Essential First Steps { Study Guide } Step 1: Educate Yourself on Buying Apartment Buildings The Knowledge Gap Been there Don t know what you don t know Get in the game on Apartment Buildings If you ve done real estate deals you know a lot more than you you do. This program is designed to most of the gap. Step 2: Open a Post Office Box Why Use a PO Box? You will need a place to have your rent checks mailed to You DO NOT want your renters to know your H A Gives you a place to send business mail Provides a level of A to your business Cash Flow Mercenary LLC Page 1 of 5

2 Step 3: Incorporate Your Business Decide If you plan to buy more than one Apartment Building, consider creating an company. Otherwise create a company to your property. You need a place to B E : Protect Yourself Mileage Lunches This program Cell phone, fax machine, business cards, etc. What kind of company is A? LLC S Corp C Corp I am not an attorney, so please ask one if you have questions or need more information on which is appropriate for your needs. How Do You Form a Company? In Michigan: www. Other States... DIY or hire somebody to do it for you Incorporate in 3 Easy Steps at www. The most important thing... DO IT! Cash Flow Mercenary LLC Page 2 of 5

3 Step 4: Get a Federal Tax ID Number (EIN) Wait until your Company name has been approved! o Check status at Google EIN www. o The first entry is the IRS site o Make sure you enter your corporation EXACTLY as was approved with the state Request the letter or save the pdf file Start a for corporation and EIN docs Step 5: Open a Business Checking Account Find one that s. { Most are } Look to build a long-term relationship with the manager and employees. Some banks that are small-business friendly: N C C W F Use your business name and Step 6: Get a Biz Address, Biz Fax Number and Biz Cards It s All About Separation For, you must have a clear separation between your business and personal activities You need a separate fax number because real estate is still largely in the dark ages in terms of As much as I have tried to drive traffic solely to, I m shocked by how many realtors, inspectors, insurance agents and title companies still rely primarily on. Cash Flow Mercenary LLC Page 3 of 5

4 Step 6: Continued s and Fax Numbers For , use. Period. Don t use Yahoo, Comcast or other free service NEVER use Hotmail. Ever. (It s an issue of and deliverability.) Use your real or some variation For your fax use or other RELIABLE free service until you start generating cash flow Then switch to a dedicated fax line Step 7: Assess Your Resources! You Must Have CASH Down Payment Inspections Fees Closing costs Working capital after P How much money do you have access to? TIME Are you going to your building yourself or hire a property? o Rent collections and banking o Repairs and maintenance o Evictions and other tenant issues Think about your A Determine how many hours per week you have available? Cash Flow Mercenary LLC Page 4 of 5

5 Step 7: Cont FAMILY SUPPORT Your must be on board He/she will be involved { No way to avoid it } Your family will be impacted o Time away o Missed events o Last minute issues Homework 1. Complete Step 7 Assess the three categories. Do it in writing. And bring your spouse into the discussion about family. 2. Buy the book Winning through Intimidation by Robert Ringer. Read it. 3. Complete Steps 2-6 Cash Flow Mercenary LLC Page 5 of 5