Statistics show that nearly 95% of our fellow citizens will retire at or
below the poverty line by the age of 65. These people will be dependant on
friends, family and the
Federal Government for financial support. If ours is the land of opportunity,
why does this startling reality exist? The answer can be traced back to our
upbringing.
From our early years we are taught that the correct path in life is to go to
school, get good grades, and get a "secure" j.o.b (Just Over Broke) with
benefits. Sound familiar? And let's face it folks, you won't ever get rich
working for someone else! With "Job Security" a thing of the past, thousands of
people are looking for alternative ways to make money.
Real estate investment continues to be one of the largest wealth creation tools
in America. It remains one of the fastest and proven ways to amass a fortune,
and more importantly, once you understand the basics, almost anyone can do it.
Incredible profits can and are being made by purchasing run down homes and
improving their value with a quick makeover. The strategy is quite simple: Buy a
run down home below market value (wholesale), fix it up, and sell it for full
retail price. Newcomers to this field are advised to devote considerable time to
research and study. Before you test the waters, there are four factors that you
should consider:
1. You must know something about remodeling and get an idea of how much it will
cost to get the house back into shape. Consider what you will be able to do
yourself and
what it will cost if you have to have it done.
2. The location and design of the home are two of the most important factors to
consider. Study the neighborhood, shopping and transportation facilities.
3. You make your profit when you buy. Therefore, you must learn how to calculate
your ideal purchase price.
4. You should always finance the project in the most inexpensive way and use
very little if any of your own money.
Why is it a smarter way to invest? Traditional buy and hold is too slow for my
liking. Buying a home and relying on the market to go up is one of the riskiest
ways of
investing that I know of. I call it the buy and hope strategy!
I prefer a method that will give me my profits up front, and any increase in
value from market forces should be seen as a bonus.
Still not convinced? Well, here are another four powerful reasons why:
1. Fast track your capital growth: The biggest advantage of the buy, fix-up and
hold strategy is that you can make instant capital gains of 10 to 30 per cent
over and above
any gains made from market forces.
2. Make $100,000 plus per annum: If your objective is to buy, fix-up and sell,
then a six-figure income is not out of the question. The equation is quite
simple really: Five
properties flipped at a $20,000 profit each equals $100,000!
3. Sack your boss: Depending on your financial circumstances, you may be in a
position to generate enough income and stop working full time.
4. Get a life: You have probably heard the saying that the day you find a job
that you love doing, is the day you stop work. If, like me, you enjoy rolling up
your sleeves and
getting your hands dirty, then this may be the greatest career move that you
make.
As you can see, fixing up old homes does have its advantages over traditional
strategies. Sure it may take more work, and things don't always go to plan. But
as anyone who is wealthy will tell you, their level of success has a direct
relationship with the effort they put in.
Sal Vannutini is a successful real estate investor and author of the best
selling "Fixer-Upper Fortunes".
Free e-book and 6 Part mini-course reveals how to make a fortune in real estate.
http://www.fastfixerupperprofits.com
