The great thing about real estate is there are a number of ways to achieve your goal.
I HATE renting residential homes…HATE IT!! I’ve done it. made money doing it, just lost all patience dealing with MORONS. I completely respect the guy’s who do it. It’s not easy, and as Propertymanager correctly points out in his book…It’s not for everyone.
Having said that, you can still achieve your million dollar goal… If your willing to sacrific for it. Here’s how…
Buying and selling homes can be VERY profitable. Even when housing is falling like now, you can still make incredible money doing this.
Ask yourself how long it would take with your current job to save $40,000???
Depending on your market (in mine the median home price is $225,000)
That’s the average. I buy between 4 and 8 homes a year. I buy houses that need cosmetics, 3 bed, 1 bath minimum, in good neighborhoods, basically starter homes. The beauty of the starter home in this kind of market??? It’s low priced, And…NO ONE HAS TO sell ANOTHER HOME TO BUY MINE!!! In this economic enviroment that is HUGE.
I will not buy a home that I can’t make at least $40,000 on net.
Finding them involves telling EVERYONE you can…I BUY HOUSES!!!
I also include BIG finders fee’s for people who bring me deals. I have absolutely no problem giving someone a check for $5000 for a deal that nets me $40K. By doing this you just hired a RABBID house hunter for your business. I tell these guy’s all the time…" My goal is to see you get enough of those $5000 checks that you no longer need me!" They LOVE it!!! If they bring me 5 deals they end up with $25K and at that point they start doing it themselves…BUT…I’ve made $200K on the deals they found.
Now let’s assume you start out buying and selling. The first house you buy should be a grand slam, out of the park, into the streets, HOME RUN. Your learning, by being patient, leave enough money on the table to make a few mistakes. The NEXT house you do will be MUCH EASIER. Back to the plan…
Let’s say you make $25K per home. You get your marketing machine up and running and your steadily buying 4 houses per year. At $25K net per you are putting $100K a year away. The money should be realtively liquid, because in this business when it rains, it pours. I NEVER get one house at a time. For some reason known only to the gods, these things ALWAYS appear in mulitiples. You buy one, GUARANTEED your getting another home that week! Having CASH on hand is a beautiful thing!
The pitfall for most new investors is…
THEY QUIT THEIR DAY JOBS!!! DO NOT DO THIS. By keeping your job, ALL that profit goes into the pot. As the pot grows it BRINGS in MORE MONEY!
You quit your job when your job COSTS YOU MONEY TO KEEP!!!
I tell people this and they don’t get it. “But I HATE my job, that’s why I’m getting into real estate.” My answer is always the same…
Does your job suck so bad that you can’t USE IT to make yourself a millionaire??? Think about THAT!!! Your nit wit boss is actually PAYING you to become RICH!! Your living on HIS money while you put YOURS to work for YOU!!! That usually puts things in a completely different light for most people. Going into work everyday with $500,000 in the bank is TOTALLY different than the guy next to you who has NO WAY out and $500 in the bank. You’re a SHORT TIMER. USE IT TO YOUR ADVANTAGE!!
With this simple strategy you don’t deal with tenants, the selling is left to a well chosen realtor (who better be bringing you some of these deals) and you just fine tune it year after year. As the pot grows, it gets easier, and easier, and easier and…
At $25K minimum per home, doing 3 or 4 per year, within 8+ years your GOING to be a millionaire. You’ll learn a TON getting there, but THAT is the fun part.
Another GIGANTIC benefit???
Think of what you’ll be teaching your CHILDREN while you do this. You think my kid is going to have to work some crappy job for a pay check every week??? HE WILL NEVER HAVE TO…If…IF he’s willing to just copying his old man.
Go for it…you’ll never regret it!