WHAT ABOUT REAL ESTATE INVESTING?

Good for me because I feel comfortable with the buyer.  Good for them because they are able to take ownership of the house with less money.

It took approximately two months to complete the purchase, do the repairs, and to sell this house.  I did it all in my spare time.  It may seem difficult to do repairs on houses, but it is mainly just coordination and common sense.  The more difficult tasks such as central air and heat or roofing can be coordinated with people who do that for a living.  I ‘m sure there are several contractors in your area that would be happy to give you prices on your project.  I completed this project nine, or ten years ago, and the house still pays me $500 monthly.  Do the math.  It was worth the sacrifice back then to have it now. 

Not bad for two months work and coordination in my spare time.  If I had not done this back then, I would not have the income and asset now.  I bet if you think back, you realize that time moves on pretty fast.  Don’t let another five years pass and then say, ‘I wish I would have done that’.  Look back and say, ‘I’m glad I did’.  You can be in control of your future starting now.

DAY 3

With a cup of coffee in hand I drive and find the house for $18,900. The house is about fifteen years old and surprisingly in good condition.  Most fixer uppers need about the same repairs.  This one needs central air and heat, minor cabinet repair, painting inside and out, toilet, vanity, and ceiling light fixtures.  The area this house is located in supports prices of $30,000 to $70,000.  Remember, I need to stay under $20,000.  I estimate repairs of four to five thousand, so I offer $15,000.  Time spent this day is one hour.

If this seems simple to you, it’s because it is.  Think positively and creatively.  Don’t make this harder than it has to be.  Get your first deal done!  With the purchase of your first house, you will begin to see future potential income.  One house is not much money monthly, but the income from seven, eight, or ten houses is.  It will take some time, but persistence could turn this into a great part-time income or even a rewarding career.

DAY 4

We’ll call this day four, but three days later my offer is accepted.  I notice a vacant lot next to the house and wonder if it is included.  At the closing three weeks later, I find out that it is.  The time I have in this property from the search to purchase is about six to seven hours.  When repaired this house will support a sale price of about $50,000 and the extra lot another $10,000.  Seven hours work with a potential $40,000 built in profit, and we’re doing it together.  Now let’s repair the property so we can sell or lease it.

BUY A HOUSE, KEEP THE INCOME

Find a house that will match your investment dollars.  Pay for at least one house so you can owner finance it.  The power of becoming the bank is incredible.  I don’t believe in buying a house and cashing out the profit, until the base income is established.  Once a house is purchased, it can provide monthly income.  Our society requires us to live month to month.  Don’t buy and sell until your base income is in place.  Buy and hold.  If you buy and sell for cash, you have to repeat the process over and over.  You will not create your monthly income base and you constantly have to find more houses.  Sure, you can sell for a quick profit, but why sell a house just to go and look for another?  You own this house, so why not sell it monthly with interest?  Create your base income first, then buy and sell for quick profits later, using leverage.