How I made $24,000 on one real estate deal — without selling

by | Jun 4, 2017

I must admit getting a check for $24,654 was nice.  But, what made it super nice was that fact I didn’t have to pay any taxes.  If you made that same amount on a job you would lose over $9,000 to taxes.  Since I didn’t have to pay taxes on the money, the Mrs. and I were able to take a pretty nice vacation.

But, how did I do it?

I used something called a cash-out refinance. Chances are you’ve probably never heard of that. I hadn’t either.

But, I listened to the message in Proverbs 15:22, which tells us plans without advice fail, but with advisers, they succeed. Because I sought guidance from mentors and an accountant I was blessed.

Most people who make this kind of money in real estate, do it by holding a property for a while and selling it for more than it’s worth. Or they buy the property, fix it up, then HOPEFULLY sell it for more than it cost to renovate.

I don’t like to sell any real estae. I prefer to hold it as long as possible and collect rent, which is why neither of the above options would work for me. So, I researched, sought counsel, and came up with the following strategy.

Here are the exact steps that allowed me to pull in more than $24,000 on one real estate transaction — and pay zero taxes.


I found a property in a great location and put 20% down. To determine if the property is in a good neighborhood check schools, crime rate, historic appreciation, and median household incomes.


Most people are impatient and try to go after the quick dollar.  The Bible reveals that patience is a rewarded.  So, instead of rushing to renovate and sell, I collected a year of rent to increase equity and saw the property value rise almost 10% due to appreciation.

Step – 3: RENOVATE

I added a new backsplash and countertop.  I replaced the appliances.  Lastly, I replaced the painting and flooring throughout.   Having a high-quality property will allow you to attract the best tenants.


Now, that I had a property that was worth $80,000 more than what I bought it for, I decided to take $24,654 out through a cash-out refinance.

I didn’t use the money to buy a boat or a new car. I used the money to buy another property to do it all over again!

This strategy works well for me, but I can’t say it’s the best thing for everyone’s situation. There are a couple things I need to point out…

1) I had to have good credit. To get strategies on boosting your credit score watch my Bible Money Makeover. The first video is all about increasing your credit score.

2) I had to have money for the down payment. If you’re trying to save a down payment in a bank savings account it’s most likely going to take you a very long time.  Or you’re going to be living with your parents for a while.  There’s a much better way to save up for property quickly.  I made a video discussing the exact strategy in detail.  Enter your below information and I’ll send the video to you.


Bible money makeover

3-part video series that will help you increase your credit score by at least 100 points, create side income, and start investing — the right way!

Buy your first rental property in 6 months or less

Owning a rental property is a lot easier than you may think.  This essential guide will help you get started — step-by-step.

How to use your 401k at 25, instead of 65

Don’t wait 40 years to start using your own money.  In this short video, I’ll show you how to start using your 401k, now — no taxes, no penalties.

Here’s a legal disclaimer: This blog is a resource to be used for educational and informational purposes only. This does not take the place of professional financial advice.  No information on this blog creates an advisor-client relationship between us.  If you’d like to get professional financial advice visit or give me a call at 424-253-6486.

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