Using a very simple plan, anyone who really wants to can make an extra million dollars by consistently investing in real estate. In fact, because it’s so simple most people won’t do it. All your real estate investing plan needs to do is follow these simple steps: >> STEP 1. Go out and borrow one million dollars. >> STEP 2. Use the million dollars and buy one million dollars worth of well-selected investment real estate.
>> STEP 3. Get other people to agree to pay off the million dollar loan for you. This sounds to easy, Right? Well it really is if you think about it. Let me give you some more details. If you set out to buy just two little single-family houses per year with a value between $100,000 to $200,000 or whatever price a starter home is in your area currently sells for. If you did this for just five years. At the end of those five years you would own 10 little single-family homes, with an accumulated value of approximately one million or more dollars worth of real estate. You would be able to borrow most of the money needed (in some cases all the money needed) from banks, mortgage companies, sellers, other investors, etc..
Now the only thing left is to find people willing to pay off your loans on those houses. Those people are all over the place and they are called RENTERS!
At the end of ten to twenty years, what will you have?
You will have more than a million dollars worth of real estate that somebody else bought you! Why more than a million? It's because of inflation and other factors in our economy that will increase the value and not only will you have a million dollars worth of real estate you will have an income of $100,000 + from renting them out because they are all paid for.. and your income will increase as your rents increase.
If you’re saying to yourself that a million dollars isn’t enough and $100,000 + of annual income isn’t enough, the solution is simple…. BUY MORE!!
HOW TO GET STARTED.....
>>> Learn how to get the money.
The first step to get started is that you should learn the rules of the lenders and their programs that they have available for rental properties. To do this you should spend a few hours or more on the phone calling different lenders and asking them what loan programs that they have available for investment real estate. Ask them what are the requirements to qualify. If you hear something you don’t like or doesn’t fit what you are trying to do, Just hang up and call another lender.
>>> Learn to find the houses
Now that we have an idea about financing we have to start looking for the right properties and analyze the numbers. You want to start by trying to find smaller starter home that a young family or couple would like to live in. Here is a short list of some ideas where to look and how to find properties.
1. Newspaper ads
2. Real Estate MLS system
3. Driving through neighborhoods
4. Advertise yourself
5. Tell people that you are looking to buy houses.. get the word out
6. Get business cards that tell people that you are interest in buying real estate
7. Ask real estate agents to look for you (if you are an agent, ask other real estate agent to let you know if they know of any properties)
This is a short list, but you only need to find a couple of properties a year to make this plan work and this short list will do the job. If you want to find more than a few properties a year you should expand your marketing efforts.
Once you find a property that appears to make sense you’ll need to calculate the numbers. This can be done by hand using an investment property worksheet or by using a computer software program.
After you run the numbers and everything still makes sense, it’s time to pull the trigger and make an offer to the seller.
Once the offer is accepted you now want to start the third step… Find a renter who will rent out the property.
>>> Learn to get good renters.
Get permission from the seller to allow you to show the property to prospective renters before the day of closing. You should start by advertising in you local paper and contact real estate offices to let them know you have a property available for rent.
Repeat the process to buy more and more houses until you reach your goal.
About the Author:
Dave Schneider is a professional real estate investor. As a landlord over the last 25 years he has created a real estate investment and management system that provides a step-by-step process to create more cash flow with less work. |
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