Real Estate Flipping

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Author:
Dr.Phil Speer

If you already own your home, you will probably make money in real estate without ever buying another property.

The home you are currently buying with a mortgage is probably one of the most valuable appreciating assets you will ever own.

You are making money by living in your own home, even if you never buy any additional property. This, within itself, makes you a successful real estate investor.

I have been fascinated with real estate investing for many years, but it all began with a startling discovery 35 years ago.

In 1970 I had bought a little house for my family in the Green Hills area of Nashville. It wasn't much, but it was adequate and it was home.

In 1978, we decided to sell.

We sold that little house for $67,000.

That's when the light bulb went off in my head.

I was shocked with a discovery that led me to fall in love with real estate investing.

I suddenly realized that we had made $40,000 profit in 8 years JUST LIVING IN THAT HOUSE!

We had not painted it. We didn't add any rooms. We built no patio.

We just lived in it!!!

We had made $5000 a year simply living in that house.

I began to think to myself: what if I had two similar houses that generated $10,000 a year profit? Or, five houses that generated $25,000 a year profit? I began to fantasize the possibilities. This awareness launched my real estate investing career.

Soon I was buying millions of dollars in real estate.

But the real challenge was buying real estate without any capital. I had just experienced a serious business failure, and had no cash reserves and no credit. I learned how to buy a house with only a $10 bill. I never walked into a bank to ask for a loan, and I never applied for a mortgage. But conquering the challenge led to buying $10 million in real estate in only four years.

That whopping $40,000 profit that went into my pocket from simply living in that house I sold in 1978 was just the tip of the iceberg.

I still live in the Green Hills area of Nashville. I pass that same house every day that we owned in the 1970s. It recently went on the market again, and it quickly sold.

This time that same house sold for $200,000.

I don't know what's been done to improve the interior, if anything, but no exterior changes have been made to that house. It's still about 2000 sq.ft. The lot is the same size. But the value has increased significantly.

Discovering this concept has made real estate investing very exciting to me.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. With no credit and using only a $10 bill, he purchased $1 million in properties his first year, and accumulated $10 million in properties within 4 years. http://www.CashinHouses.com/

He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement. He won a Caribbean cruise as top investor of the year. In his hometown of Nashville, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. Anyone can profit in real estate investing, even without cash or credit. http://www.CashinHouses.com/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" at http://www.AAREIT.com/

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Real Estate Flipping... Flipping Houses: Make $30,000 a Month Flipping Real Estate Okay, you know the drill: purchase a house below the current market rate, make some repairs and improvements to it, and then turn around and sell [flip] the house to generate big profits. While the concept of flipping houses is nice, the reality is that so much more is involved in flipping real estate. Without the proper knowledge on how the process works, you could end up being saddled with a house you really do not want to own or end up taking a big loss on the sale of your property. The real estate market has the potential to create huge profit windfalls for the savvy buyer. Here are a couple of tips to help increase your profit margin when flipping houses: Buy low and sell high. How do you find homes to buy below the market? 1. Create a free brochure titled "3 ways to avoid foreclosure and get cash NOW for your equity". Then, distribute your brochure to people who are currently in the foreclosure process and homeowners who are currently 90 to 120 days behind on their mortgage payments. By the way, one of the helpful tips in your brochure should be to call you for a quick sale. You can obtain foreclosure information from your local court house. For a list of homeowners who are currently behind on their mortgage payments you will need to contact a credit agency - Experian.com, Equifax.com, or TransUnion.com. 2. Contact divorce attorneys in your area. Offer your home buying service as a resource to help clients liquidate their homes quickly at a fair price. Now, before you get into house flipping there are five main points you must take into consideration prior to closing on your deal: Acquisition Costs - Every home will cost you money before the deal is even finalized. Plan on writing out checks...