WANT TO LEARN HOW TO MAKE MONEY WITH SECTION 8?
In today’s post, I talk about going about obtaining and servicing your real estate in a different fashion. Basically, accumulating the real estate first, and making a lower margin per month off of it using the section 8 program. Eventually you can convert your rental homes into Group Homes, Care Homes, Sober Homes, Transitional Homes or other Care Homes and really begin making huge margins. But for today, read on about how and why you may want to consider section 8 as a means to your financial future
FIRST OF ALL — the lady above is a section 8 client. She is STOKED! Why? She just got her voucher and NO LONGER HAS TO PAY FOR RENT!
So if she doesn’t pay, then HOW DO YOU MAKE MONEY WITH SECTION 8?
SIMPLE…THE GOVERNMENT PAYS YOU!
WANT TO LEARN ABOUT HOW TO DO THIS? KEEP READING, BUT MAKE SURE TO SIGN UP FOR MY FREE, 10-PART COURSE…
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One of my GROUP HOME coaching clients is a nurse. She travels all over the united states, but primarily lives between California and TX. We are still in the beginning stages of our coaching and mentoring sessions, but due to her travel schedule and income (SHE MAKES A LOT!) I honestly do not think I will advise her to start up a GROUP HOME EMPIRE. Here is why:#1. She already makes a LOT of money as a nurse. This is her primary VOCATION.
#2. Although she could get one set up and hire someone to oversee it, it does take time, energy and effort. Due to her travel schedule as a full time nurse, she does not have the time available!
#3. If doing a start up of any kind, you need to be HANDS ON. She is gone 50% of the time and cannot be there
#4. She doesn’t have enough money/income to subsidize paying someone to start one up for her or purchase one
What is her best option?
#2. Although she could get one set up and hire someone to oversee it, it does take time, energy and effort. Due to her travel schedule as a full time nurse, she does not have the time available!
#3. If doing a start up of any kind, you need to be HANDS ON. She is gone 50% of the time and cannot be there
#4. She doesn’t have enough money/income to subsidize paying someone to start one up for her or purchase one
What is her best option?
TO MAKE MONEY WITH SECTION 8!
I am advising her to simply purchase real estate as a cashflow investment with her discretionary funds. She needs to know the formula for buying right (which I teach), but in doing so, she can get into a rental property for $10,000 – $20,000 (or even less using my methods) and should be able to produce a decent return on her money will OWNING real estate that she can EVENTUALLY turn into a group home when she has the time, energy and desire to do so…..
WHAT KIND OF TENANTS CAN SHE GET? IS SECTION 8 A GOOD OPTION??
Great Question. Some people LOVE section 8, others HATE IT! Here is why I personally LOVE IT:
1. Guaranteed rents (MINUS THE Co-PAYS). Yes, imagine having the federal government direct deposit MONEY into your account EACH AND EVERY MONTH on the 3rd….not bad! You basically give them your routing and checking number and VOILA….the money appears! No chasing tenants for payment….let the money just FLOW ON ON
2. It is easy. Getting set up with section 8, whether you OWN THE PROPERTY OR RENT IT TO SUBLET IT is a simple process
3. THE RENTS ARE HUGE! Julian Castro the former mayor of San Antonio was also the head of HUD….he made it an initiative to allow people on SECTION 8 to live wherever they wanted. This meant an INCREASE IN VOUCHER SIZE. Often times you will have a little 3 bedroom you would normally collect $950 on and section 8 will pay $1475 or more!
4. This means you could easily rent a home for $950 and then rent it back out to a section 8 tenant for $500 per month spread!
THE BAD AND THE UGLY OF SECTION 8
You need to screen your section 8 tenants just like any other…..and trust me, you WILL have problems if you don’t do this!
Personally, I train my students to look for older section 8 voucher holders that do not have large co-payments. Remember, you dont want to be in the collection business….especially with this demographic! You will never see the money!
But if you find a section 8 voucher holder that is elderly, will take good care of the property and has a low (or no) co-payment…then this is like finding GOLD on the highway!
These are some of the alternatives to GROUP HOMES that I teach in my FREE 10-PART COURSE
I am advising her to simply purchase real estate as a cashflow investment with her discretionary funds. She needs to know the formula for buying right (which I teach), but in doing so, she can get into a rental property for $10,000 – $20,000 (or even less using my methods) and should be able to produce a decent return on her money will OWNING real estate that she can EVENTUALLY turn into a group home when she has the time, energy and desire to do so…..
WHAT KIND OF TENANTS CAN SHE GET? IS SECTION 8 A GOOD OPTION??
Great Question. Some people LOVE section 8, others HATE IT! Here is why I personally LOVE IT:
1. Guaranteed rents (MINUS THE Co-PAYS). Yes, imagine having the federal government direct deposit MONEY into your account EACH AND EVERY MONTH on the 3rd….not bad! You basically give them your routing and checking number and VOILA….the money appears! No chasing tenants for payment….let the money just FLOW ON ON
2. It is easy. Getting set up with section 8, whether you OWN THE PROPERTY OR RENT IT TO SUBLET IT is a simple process
3. THE RENTS ARE HUGE! Julian Castro the former mayor of San Antonio was also the head of HUD….he made it an initiative to allow people on SECTION 8 to live wherever they wanted. This meant an INCREASE IN VOUCHER SIZE. Often times you will have a little 3 bedroom you would normally collect $950 on and section 8 will pay $1475 or more!
4. This means you could easily rent a home for $950 and then rent it back out to a section 8 tenant for $500 per month spread!
THE BAD AND THE UGLY OF SECTION 8
You need to screen your section 8 tenants just like any other…..and trust me, you WILL have problems if you don’t do this!
Personally, I train my students to look for older section 8 voucher holders that do not have large co-payments. Remember, you dont want to be in the collection business….especially with this demographic! You will never see the money!
But if you find a section 8 voucher holder that is elderly, will take good care of the property and has a low (or no) co-payment…then this is like finding GOLD on the highway!
These are some of the alternatives to GROUP HOMES that I teach in my FREE 10-PART COURSE
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Look, you can get going right away with a GROUP HOME or alternatively, you can begin by getting all of your inventory set up (THINK HOUSES) and then little by little transition them over to GROUP HOMES……
What’s in it for you to run one of these homes? Why wouldn’t you just provide housing to a traditional renter? Watch this video to see the amazing outcome this business model will have on your community AND your wallet: