All of us want to get wealthy quickly and easily and if it could be done by doing less deals, that’s the way I wanted to do it. That’s when I came to the realization that there were certain deals that brought me in 10 times the amount of profit as the other deals, even though I was doing the same amount of work and taking the same amount of time. From the fattening of my bank account I realized that there is one investment that is far more profitable than anything else in Real Estate investing.
The most profitable investment in Real Estate today, is buying, selling and holding Multi-Family properties. Did you know that you could buy a Multi-Family building using the same no money down techniques that you use buying single family properties. I’ll bet you didn’t know that there were even more creative ways to purchase Multi-Family properties than there are for single families! Think about it. When you dealing with single family properties, you’re usually dealing with the home owner, someone who is emotionally attached to the property.
When your dealing with a Multi-family property, your usually dealing with an investors. Just like you, investors care about the numbers. Would you now agree that investors are more apt to do creative deals?
Successful people profit from the mistakes of others. I learned that doing a Multi-family deal took just as much effort as doing a single family deal, but there is one big difference…there is an extra “0” at the end of the profit check when I closed the deal! That means that the single family property that I flipped and made $20,000, with the same amount of effort I was flipping multi-family properties and making $200,000! As soon as I realized this phenomenon, I focused more of my marketing on multi-family properties! When you start getting those big paychecks you’ll realize that you don’t have to work so hard, you’ll have more time (a lot more time) to do what you want, where you want, when you want and with who you want!
Most people have a goal of making $1,000,000. If you were flipping single family houses with an average profit of $20,000, you would have to flip 50 houses ($1,000,000/$20,000) to reach your goal. How long do you thing that would take? A year? Two Years? Five years? If you were flipping multi-family properties, you would need to flip only 5 properties ($1,000,000/$200,000)! How long do you think that would take? Certainly a lot less time! And remember, it takes just as much work to flip a single family house as it does to flip a multi-family but as you can see by the numbers, it really is going to take you 10x the amount of work and time if you want to earn a million dollars flipping single family houses!
Here’s the another bonus, sometimes when you flip a single family property you hit a home run and make anywhere from $40,000 - $100,000 and more. When you hit a home-run with a Multi-family property your profits are in the $400,000 - $1,000,000 and more range! That’s one deal….same amount of work! How many of those do you have to do before you stop worrying about your retirement?
A student of mine, Rose Morris from Columbus, Ohio is going to profit over $2,000,000 on her first large multi-family deal! One deal.
Justin Anderson from Augusta, Georgia will profit close to $900,000 when the sale is complete on multi-family that he’s flipping!
Does this mean if you’re flipping single family’s that you stop immediately and go after only multi-family properties? Heck no! You can if you want to bu I still flip singles…not as many as in my early years…why do I continue to do it?...because I can! I’m not one to pass up any good deal and I like getting those small chunks of cash coming in for $20,000 - $30,000 a pop but I focus most of my time on multi-family properties because I learned the more multi-family deals I do, the more and better choices I have as to how I can spend my time!
Head these words, the faster you start flipping Multi-Family properties, the faster you’re going to become wealthy. I will already say “Your Welcome” in advance for those of you who take the advice of someone who has been there and done that!
Sunday, August 31, 2008
Real Estate Investing: How To Profit From Foreclosures & Avoid Wasting Your Time, Energy & Money
If you were a real estate investor watching the real estate boom of early 2000s closely, you could have predicted the foreclosure investing opportunities that would become available today in virtually every real estate market in the country.
In the last two years mortgage lenders have been reporting dramatic increases in defaults and foreclosure rates nationwide causing many sub-prime lenders to go under. But that's just a tip of the iceberg.
Will You Be Able To Capitalize On This Foreclosure Boom?
On the surface it seems easy enough. Get a list of properties in default. Contact homeowners. And get the deal done at a juicy discount, before the bank takes the house. Then you can fix it up and flip it, or keep it as a rental with an instant built-in equity profit. Right?
Well, not quite.
Getting into the foreclosure investing game could be an extremely lucrative move that alone could not only feed your family but pay for lavish lifestyle and vacations. Or it could turn into a big black hole consuming all of your time, energy and marketing dollars.
Very few real estate investors actually succeed in foreclosures on a consistent basis. Why? Because, they're using the wrong approach in a very crowded market.
How Will You Differentiate Yourself in a Crowded Foreclosure Investing Field?
To say it's crowded is a huge understatement. The field of foreclosures is probably the most competitive area of real estate investing. It routinely gets more attention from mass media. So more people flock to pursue it. Hundreds of investors in your metro area are mailing to homeowners facing foreclosure. They're even harassing homeowners on the phone and knocking on doors.
In short, if a homeowner is behind on payments, you can be prepared for a major fight for his attention. Just imagine for a moment that person sitting at his kitchen table plowing through a pile of letters from lawyers, bill collectors and investors.
Your mailing piece is just one of many that goes straight to the garbage can. You must find a way to differentiate yourself from the investment crowds. Here's an idea that will put you ahead of the competition.
The Only Ethical Way To Approach Foreclosure Investing
Truth be told, for most people who are behind on mortgage payments and in danger of losing their home - talking to a real estate investor about selling the home is the very last thing on their mind. They often perceive foreclosure investors as sharks taking advantage of their situation.
So, if you want your phone to ring with people in foreclosure, contact them with an offer to 'keep the home'.
Here are 3 Reasons Why You Should Offer Homeowners Facing Foreclosure the Chance to Keep Their Home, Even if You're Really Interested in Buying it
- First, trying to help a family in financial trouble is the ethical thing to do. You'll be preserving the American Dream.
- Second, you'll actually make money doing it. You can help them negotiate a repayment plan with their current lender (the process is called Loss Mitigation) and collect a fee for your service. There're several companies nationwide with an in-house list of Loss Mitigation department contacts for literally every lender in the country that will do all the work for you. So, even if you never buy a single home, with tens of thousands of foreclosures in your hometown, offering Loss Mitigation services could turn into a lucrative income stream by itself.
- Third, this is the most profitable approach. In many cases you will end up buying the home. Remember, the Loss Mitigation process will only work for those owners who got behind, but now recovered their ability to pay. Most won't qualify for a repayment plan because they can't prove their hardship is behind them. And they won't know it until you helped them to pencil their income and expenses on paper and submit it to their lender. Now they have undeniable proof they can't keep it. Once the reality settles in, they'll start talking 'sale'. Who will they sell to? You, of course. You have now earned their trust and it's the only next natural step to take.
Subscribe to:
Posts (Atom)