Hey!
Miles here, milesbecker.com this video is real estate investing versus affiliate marketing.
Specifically, I want to help you understand what is the best investment of your time and
or money and what's going to give you the best return on said investment.
flipped four houses when I had absolutely no money.
So I know personally from experience that you can do both or either of these with zero
money down, but at this point in my business, I'm generating a lot of surplus cashflow and
I'm seeking to reinvest that cash into another asset that's going to generate more cashflow.
You see, I'm a cash flow investor.
I like putting my money's away to get longterm cash flows back.
So I've been running the numbers and the numbers make a very, very clear picture on which is
the best option for me.
What's best for you is up to you, but you're going to get to analyze that a little bit
based on my kind of understanding and my realization.
So first and foremost, I do want to reiterate that you can start both options with no money
out of pocket and you can really use nothing but effort to get things going forward.
Um, I started in the dorms during college flipping houses.
I would go down to the county courthouse, I would research the list pendants filings
I would find who's late on their mortgage.
I would sit down, I would get in contact with them, I would negotiate a deal and a contract
with them.
And then I would take that contract around and market it to the local investors, attempting
to partner with those investors on those deals.
It's called wholesaling and I again was able to do it with just pure effort.
I learned how to do it by reading the books I got from the library and watching the videos
and reading the forums.
So that's a possibility.
And then affiliate marketing.
So I started making money online in 2003 doing affiliate marketing.
Essentially social media marketing mixed with an affiliate program was enough to generate
three, $4,000 a month for over a year.
Now that came crashing down because I was doing it wrong.
And today I have some videos.
I have a free video series that teaches affiliate marketing the right way to do it because since
we've kind of got our feet back under us and got it going the right way, my wife and I
have made millions of dollars online.
So those are my two options, right?
I've got, I've got some funds aside allocated for investing and it's like, which ones are
going to be a better use of the money?
So I ran the numbers and I started in real estate.
Now I'm familiar, I'm very familiar with this specific real estate market and in that market
I know that I could get a great single family home for about $225,000 now if I'm going to
do a 20% down mortgage on that, it's going to cost me about $45,000 down.
And I obviously expect there's going to be some paint, some carpet, some work.
So I'm minimum looking at about $50,000 down.
Now.
The rents in this area, the rents in this neighborhood, and let's go real quick.
The mortgage on the note that's leftover is about $900 per month on that.
So, so at one 85 borrowed, and it's about $900 a month on the mortgage on that note.
So the rents in this neighborhood could hold up to about 1500 per month.
So that's a $600 per month, potential cash flow.
But I am not physically in that location.
I travel all the time.
I already have two places in very different locations and I'm looking at a tropical place
next.
So I'm, I'm a nomad in some senses, so I'm not going to be managing this.
So there's 10% right off the top for property management, which brings my actual cash flow
down potential by $150 per month.
And then you need to have what's called a cap ex account.
That's a capital expenditure account.
And essentially on a house, you're going to have a roof that goes bad at some point that
needs repair.
Uh, the water heater is going to go out, the furnace is going to go out, all kinds of things
happen to houses and you need to be ready to have essentially the house account pay
for those kinds of upgrades, right?
You don't want to go out of pocket deeper for those kinds of upgrades.
This is a capital expenditures account and what I would do is 50% of the income of the
profits that comes in from that, it would go into a separate capital expenditures account
until I had six months of rent sitting there because once your lease is up, you never know.
You might have two or three months of vacancy in there, which means ultimately I would expect
something to the tune of about 225 to $250 a month.
Positive cash flow today in my pocket.
Okay, so that's about $50,000 in and sure it'd be building its cap ex account.
I get that, but that's not my money.
That's the house's money, right?
To keep the house going.
And I would get out of $50,000 in approximately $250 per month, maybe $300 a month.
There's probably some markets in the country where I could get 400 or so dollars per month.
Now let's go ahead and run the numbers based on a affiliate marketing site.
One of the things I love about affiliate marketing is you really can hustle it up from ground
zero.
When you're doing the world of real estate investing, you definitely need some other
people involved.
You need to find a seller.
You then need to go find some investors to buy that deal from.
As a wholesaler, you're playing the middle band game, but when you do affiliate marketing,
it can literally be you, your laptop at night, just grinding it out in the evenings after
the kids and the wife or husband goes to bed and I love that it's that you can be that
resourceful with it.
Now.
With that said, I don't have much time to dedicate to this, so I'm taking a pay someone,
a essentially a content team and a project manager to do the actual work for me and I've
been running the numbers on this and my expectation is to spend again, $50,000 to put into this
website and based on that Niche I've chosen based on the site based on kind of some longterm
averages that I've seen from my business over a very long period of time.
And also talking with some of my friends who do this professionally as well.
I'm quite confident that I should be able to get upwards of $3,000 per month positive
cash flow from a $50,000 investment.
Now, if you think about those two numbers, it's a distinctly different result.
On the other side, neither of these are passive passive income as a complete line.
Both of these are very active income.
Even me as the one who's Gip just putting money in the direction, right?
I'm essentially giving money to a project manager.
I'm giving money to a team of writers.
I still have to choose them.
I have to choose.
There's a lot of choices.
There's a lot of involvement from me.
I've just made it as hands off as possible so it's, it's very residual and it's recurring
income, but it's absolutely not passive because I do still need to be involved.
I still need to guide the ship and steer the ship, if you will, but even if I'm 50% wrong,
right?
Let's say I don't get 3000 but I only get $1,500 a month positive cash flow off of this
site, that actually means that I'm still doing upwards of five times as good if not more
compared to the real estate investment.
There's no gigantic bank involved.
My credits not on the line.
There's no real kind of liability behind the Internet based route and then you might be
thinking, well miles, but I could eventually sell that asset.
I can sell that rental property.
You can and you will absolutely pay capital gains on that unless you 10 31 exchange it
and there is a huge second hand market for profitable affiliate websites.
You can sell them for 2030 even sometimes upwards of 40 x your profit multiples, which
is kind of a crazy number.
So you can easily sell these things for a hundred to $150,000 or more for these website.
There's a really big market place for those, so it is also a saleable asset, but again,
I'm not in it for the big hits.
I want to get that longterm consistent cashflow that can pay off beach houses in the tropic,
right?
That can be reinvested in essentially a portfolio of websites, let website a pay for B c, D
and build a portfolio of seven or eight sites that together generate 20 $30,000 additional
cashflow for me, my family, my business, et cetera.
That's my ultimate plan.
So to me, the numbers clearly point to affiliate marketing.
Now, I also have an affinity for the world because I've been working online, I've been
making money online since 2003 the good news is that affiliate marketing today is probably
a better opportunity than it was back in 2003 when I first got started.
There's billions of people connected on social media now.
That was not the reality in 2003 youtube is a thing that was not a reality.
So number one, to train yourself on how to build an affiliate marketing website, the
youtube tutorials are there to help you to learn how to do content research, to learn
how to write SEO content that ranks fast.
I teach that for free right here in Youtube.
That was not an available resource, but on the other side, you could even leverage video
marketing for your affiliate marketing game, which obviously was not an opportunity back
then.
Also, one of the big changes that's happened, excuse me, since 2003 when I first got started,
everyone now has super computers in their pocket that are always connected to the Internet
and we are now realizing that the world of the Internet offers us these extremely specific
answers to all of our extremely specific questions.
If you look behind me, you might notice that this Green Hill side back there, that's about
a quarter acre on this side, and I've got about 21 acres behind you.
Uh, there's a lot of mowing to be done here.
So I go on a research, what's the best mower, what's the best riding mower?
And sure enough there are specific websites, review based websites dedicated to helping
me choose what the best writing mower is, which is upwards of a 2,500 to $3,500 purchase.
And that affiliate who actually connects me with the mower that I want, that's going to
be best for my land and my current situation where I'm at, that person could earn a five
to 10% commission and that's a pretty big commission on that sale.
So what I'm getting at is the world of these micro niches is absolutely exploding from
racing drones to horseback riding saddles to English, horseback riding boots.
There's all kinds of interesting ways that one could build an affiliate site in something
they enjoy or something they have to deal with anyways.
Right.
I have to deal with mowing this multiple times a year anyways, so I could, if I wanted to
build a brand around that now potentially.
And you need to have a good accountant on your side potentially.
There's an opportunity for me to buy lots of riding mowers, lots of weed, whackers,
lots of lawn care equipment, do reviews on the different lawn care equipment by being
out here doing something I'm already going to be doing anyways and I may very well be
able to write off all of those expenses because I'm creating review based content on each
and every one of those pieces that is not required.
That is a potential perk.
And again, you need to have an accountant on your team who understands how this game
works and how the whole kind of research and development side of being an affiliate works
because theoretically that very well can be a deduction.
So the world of Internet marketing, affiliate marketing can open you up to a lot more, uh,
business deductions as well, which is kind of just a nice little icing on the cake for
the right type of person.
I hope you found this video to be helpful and interesting.
I think that both are great ways to grow wealth.
I know for a fact that real estate investing is one of the long strategies that has been
absolutely proven to create wealth in our world and if you're good at it, if you have
trades based skills, if you're handy, if you know your market in your area and you've got
a surplus of cash that is still very well may be a great opportunity for you to reinvest
your cash along with a team who's going to manage that and run that for you or you might
want to keep that extra 10% and play landlord yourself.
It is a business, so treat it like a business.
Don't think it's passive because it's not.
You need to be actively involved to manage, maintain, improve your asset to find those
right kinds of tenants who are going to be around for years and years and they are going
to improve your property for you.
Then on the other side, the affiliate marketing game, you can start from nothing but if you're
in a position where you want to just throw money at it to really grow the asset.
There are teams, there are places you can go purchase entire websites that are already
built.
You can hire entire teams to do all of the work for you.
Ultimately creating a pretty good residual cashflow stream and in my numbers and running
the numbers for myself, I see massive potential in the affiliate marketing side compared to
the real estate side, which is exactly why I'm starting an affiliate marketing division
within my business that's going to go create and market these new types of sites.
They're basic review sites.
I'll be explaining more about what I'm doing, the exact costs involved, where I'm going
to purchase these websites, where I just purchased the one that I'm running with, where I'm getting
all my content written from.
I will be sharing that in the future and if you want to be sure to get those updates,
hit the subscribe button and more specifically once you do that, hit the bell so you get
notified.
When my new videos come out, my team and I are finishing up our writeup of month one
from this project where I'm going to detail out all of the different numbers and where
we went to get all of the bits and pieces, so this was the framework.
This was the big idea of which option do I choose and now we're going to start the process
of documenting growing the site.
I'm going to track it each and every month, how much I'm investing.
Well, my total investment is and how much money it starting to kick out on the other
side, and we're really gonna track this to see, can I get to that three grand a month
positive cash flow mark for under $50,000 even if I get to $2,000 a month or $1,500
a month for around that 50 grand number, that is going to be a wildly successful investment
for me in my brand.
Is that right for you?
I don't know.
You need your own investment strategy.
I'm not an investment professional.
I'm just telling you what I do and I'm telling you the numbers that work for me.
I appreciate you.
I thank you for your time.
Give a thumbs up, share like do what you do, engage.
I appreciate you and be sure to subscribe.
Hit that bell.
I'll catch you on the next video till we meet again.
Be well.
Cheers.
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