Fixer Jay’s Mom & Pop Millionaire Blog

Why is it that very few people ever achieve their financial dreams and what do the few successful ones do differently from the ma¬jority who fail? Could it be they plan to fail? I don’t think so. More likely they fail to plan. Many waste much of their most valuable resource, their time, trying to figure out ways to make money quick and easy without much effort. These people are only fooling them¬selves. Nothing worthwhile is accomplished without a plan and without some hard work.

Often hard work can be greatly reduced by smart work; but generally this doesn’t happen until you are well into a plan and have reached a certain level of experience. Seldom can one get the experience without the hard work initially. It just so happens that this is one of the rules for success -like a Law of Nature.

Big money is made in real estate when you can consistently get the highest investment returns. Which do you think is better, buying houses for $25,000 each with average down payments of $2000 to $3000 and rents after fix up of $400 per month – or houses that cost $60,000 each with $10,000 cash down and rent for $550 per month. If you own both kinds, you already know which are best. If you don’t know yet, by all means study the numbers.

Just remember, cash flow is good. The opposite is not.

Join us at Fixer Camp Oct. 15, 16, and 17 we will teach you the difference!!!

Tags: Develop a Business Plan First by FixerJay
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When you own the houses, you have your own personal money machine! Obviously, you must maintain the property and provide the necessary management– ¬But, in exchange for doing that, you control the money’ It’s yours to spend any way you choose. Owning your own widgets is the surest path to financial independence. The basis for wealth behind nearly every rich person can be traced back to the ownership of a patent, a copyright or a deed! Owning income real estate puts you in with the right crowd.

Well-Financed Houses Are Very little Risk

In terms of investment risk, I’m talking about the risk of losing your assets – Colony houses, like the ones I own, are about the safest kind of investment you can make. Naturally, you must avoid paying too much and taking on too much mortgage debt. Residential renters are a much easier bunch to attract than commercial tenants. Also, everyone needs a shelter. Houses are considered a basic necessity of life. The danger of anyone taking your investment houses, with any equity, is almost nil! If you buy them right and structure the financing so your tenants can pay them off, you’ll be very well rewarded for your initiative.

Tags: The Big Picture by FixerJay
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Operating rental properties and dealing with tenants are inseparable parts of landlording. I owe my real estate success to my landlording skills. Some folks argue that professional property managers get paid a handsome percentage of the gross rental income to relieve owners of this thankless task. So what’s the big deal, they say?

Proprietorship is the “big deal”. No one shares the same level of motivation like the owners. Remember, its owners who borrow money against their homes. Its owners who invest their entire life savings trying to make a better life for themselves and their families. Owners have a much greater interest in their own success than anyone else. That’s what proprietorship is about. Management fees paid to others simply won’t buy it.

Try to picture if you can your professional property manager racing out on a repair call Sunday afternoon to fix the handle on Sally Mae’s toilet. Nothing serious-the handle just broke off and the lever fell down inside the tank. You can see the flapper chain lying in a coil right there on the bottom. It’s easy to fix, but still, Sally and the kids can’t flush. Naturally all the grand kids are there on Sundays. She needs help right now or she’ll never speak to the owner again. That’s you! I’ll make you a little bet if that toilet ever flushes before Monday morning, then an owner went over to fix it. That’s proprietorship.

Tags: Fixing For Money, Landlording Success by FixerJay
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Daniel Webster said: “The world is governed more by appearance than by reality.” And, that’s exactly how your customers will judge your fix-up job.

If you spend $5000working under the house, you can consider that money to be mostly a gift for the next owner. If instead you can spend that money for beautification like exterior paint, carpets, new lawns and a white picket fence around the front, you’ll not only be in harmony with Webster, but you’ll also be adding sizzle items that both buyers and renters are willing to pay you for!
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My Mavis property consisted of 11 older rental houses on a two acre lot. It was completely overrun with weeds and bush when I bought it. About 50 percent of my fix-up profits were earned by simply cleaning and hauling.

Avoid the Two Deadly Sins

Whatever else you do DON’T PLAY HOUSE WITH YOUR FIX-UP PLANS and DON’T SPEND OVER 10 PERCENT OFYOUR ORIGINAL COST ESTIMATE.

Both of these DON’TS are not the easiest advice to follow! I don’t expect you to get ‘em both right on your first attempt. That’s exactly what I did and I don’t know of any shortcuts to help you! It simply takes practice!

When Mavis sold, I had made a $150,000 profit. The profit cost me roughly $20,000, which I think you’ll agree, is not very much to spend for that much profit. This is fix-up lever¬age! For the Mavis job, I’m talking about 7.5¬to-t leverage. That means for every dollar I spent doing fix-up and clean-up, I got back $7.50 when I sold the property. 1 might add that during the 14 months I owned Mavis the monthly rents were increased over $1200. Natu¬rally higher rents equate to a higher resale value.

Tags: Fixing For Money by FixerJay
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