In upcoming articles we are going to look at how to profitably invest in real estate of many kinds, starting with the old fix and flip. Stay tuned in coming weeks if you would like to enter that business or simply add some solid real estate holdings to your wealth portfolio.
My first love is real estate investment because it took me to levels that I could not have achieved without getting to be an expert in that arena. Before I bought my first property I was in college for two years and before that I was a juvenile delinquent and high school failure.
Your life can change in 30 minutes
My second year in college my grades were respectable. I was not winning any awards but I was doing far better than I had ever done in high school. The main reason was a reality check from my mom who told me in no uncertain terms that if I received the same grades in college as I received in high school that she would be cutting me off from my education funding. I couldn’t blame her as who wants to waste big money on someone who is not taking it seriously? Even though my grades were fine I hated every second of my two year college career.
Then late one night I watched an infomercial (brand new marketing strategy in the late 80’s that has now become common place) and it was talking about buying properties with no money, no job, or no credit. I had all of those so I figured I could make it happen. After some research and investing in that home study program I decided my second year at college would be my last. I jumped into the real estate investment business full time and eventually would also be a loan originator and real estate agent, in addition to an investor.
I found out that you could indeed buy properties starting with nothing if you had some cutting edge knowledge. I spent years and tens of thousands of dollars acquiring that education through books, tapes, and live seminars plus the real life education I learned on the streets. I want to pass that real world information to you as much as possible in these next articles and in my book Wealth Without Stocks or Mutual Funds.
I then went on to train people all over the country in multi-day seminars where people spent thousands of dollars to attend these weekend events. I really love teaching people the power of real estate and how it changed my life. I obviously don’t have time or room to put all of those trainings into this article or the upcoming articles but I am going to load them with top notch real world information that you can put to use right away in your own life.
Who knew there were TV shows in flipping houses?
My young son loves to torture me with Real Estate “Reality Shows” because for some reason he is fascinated by the housing business. This will likely change as he gets older but if he wants to go into that field he sure was born into the right house! I am going to write these articles as if I was gone and trying to teach my sons the down and dirty of how to make money by fast turning or “flipping” houses. If they do what they learn on those “reality” shows they will certainly go bankrupt quickly.
Reality shows meet true Reality
I rarely watch these shows but when I do it becomes obvious they have little to do with the actual business of real estate investing and much more to do with drama and before and after photos. By the way, there is nothing wrong with this drama because people are tuning in to be entertained and not to be educated. The only problem is when people don’t know the difference and believe the televisions show is actual how to education. So let’s cut out the drama and get down to making real money.
Big paychecks are very possible in this business and are even possible starting with nothing. You see “no money down” does not generally mean there is not money in the deal it just means that it does not have to be our money. My first property was bought as a rental when I was 21 years old and did not require one dime of my own money. I used two strategies combined that allowed me to use a partner and seller financing to accomplish this first deal. My second deal was also no money down and I received about a $7,000 paycheck on the resale. Now $7,000 isn’t all the money in the world but when you are starting from scratch with none of your own money at 21 years old $7,000 was a windfall! Thankfully the deals and checks got bigger but those first two deals were critical to my future success in real estate.
I want to take you through the 5 steps of any profitable fast turn on a single family home. The 5 essential steps are:
1) Find a good deal
2) Analyze deal quickly
3) Make offer and close on accepted deal (or follow up on deals that didn’t get done but were close)
4) Repair for maximum profit
5) Sell Quickly
Seems simple enough doesn’t it? Inside of each one of those 5 steps are the details that will make you be successful or struggle in this niche business. Tune in next week when we further examine each step in more depth.