My friend started buying and fixing rental house many years ago. Ricky was twelve years old then. By the time his sixteenth birthday rolled around, Ricky could paint bedrooms in his sleep. “Painting has never been my favorite past-time”, he says — “But my paintbrush paid for my college. Besides that, I’m part-owner of every room I’ve ever painted.”

SEVEN REASONS WHY YOU SHOULD CONSIDER “INVESTING TODAY”

1. Extra family income to supplement your job.

2. Career changing — How to become your own boss.

3. Send the kids to college from the rental house fund.

4. Building wealth — Acquire assets to produce future income stream.

5. Tax benefits — $25,000 write-off against regular wages.

6. Develop a guaranteed income in order to quit working sooner.

7. Build a retirement nest egg.

Making big money in real estate can be accomplished much faster by using the copy-cat method — Copy someone who is already successful: That way you can avoid the learning mistakes that “,most investors make. – Ya got it!

In contrast, I have many students, both current and past, earning $ 1 00,000 a year and lots more. They all learned how to invest in affordable income-producing properties for about one-tenth the cost of Albert’s education. I might add that none of them ever needed a $41,000 student loan to start making money.

Am I missing something here?

Owners doing their own fix-up work will only enjoy a money-saving advantage, if they fix the right things at the right time. Both are important. Knowledge is what makes the big money. Swinging a hammer or swishing paint brushes will merely earn you average wages or save a few bucks in the short run.

As a general rule, no licenses are required by owners who fix up houses for themselves. However, if you do it for someone else, e.g. as an employee or independent contractor, it’s very likely you will need a license.

Having fix-up skills can certainly be an advantage because it’s one less thing you’ll need to learn about. But, big paydays do not come from fix-up skills; they come from real estate skills and specialized “how to” knowledge.

In my case, I did everything I could (90 percent or so) when I first started out because I didn’t have the money to hire it done. Many investors do a portion of the fix-up and contract with others to do what’s left. Some investors lack handyman skills and hire everything out.

In the final analysis, it boils down to money no matter who does what. Approximately 30 percent of every fix-up dollar goes to purchase materials. The balance (70 percent) is the cost for labor. Obviously, you can save $700 for each $1000 you plan to spend by doing the work yourself. Saving $700 is almost the same as earning that much. It makes a pretty strong case for learning how to do your own fixing.

It’s not necessary to have a lot of money to make a lot, but you must have a good substitute if you don’t. Fix-up skills and the ability to acquire bargain properties and manage them are cash equivalent skills

Do-it-yourself investors should learn everything they can about many different ways to make profits with real estate. I don’t believe you can reach your maximum po­tential as an investor until you learn to do many things well. These include buying single family houses, fore­closure properties, rundown apartments, options, wrap installment selling, landlording and buying discount paper. It may seem like a big task but all the pieces will tie to­gether to make you a complete investor.

I also feel strongly that successful investors must have a specialty-something you learn to do better than everyone else in your investment area. Your “ace in the hole” investment strategy. Something you can always count on to make you money when everything else quits working. I specialize in fixing rundown properties. It always works for me.

There’s a popular myth we’ve all heard: “It takes money to make money.” William Nickerson, author of the most widely read do-it-yourself real estate book, How I Turned $1000 Into a Million Dollars (959), started in­vesting with only $1,000 saved from his telephone sales job. Nickerson calculated back in 1980, using an inflation adjustment formula that it would take about $2,500 to start out like he did.

Today, 30 years later, Nickerson’s calculation may need to be doubled or tripled again; however, Nickerson was always quick to tell anyone who would listen: “It doesn’t have to be your money, nor does it even need to be cash!” Knowing what to do and how to invest wisely is far more important than having the money to invest.

I have written a great deal about the dangers of speculating and its most devastating side effect – GOING BROKE! Rampant appreciation tends to mask this serious flaw for many inexperienced and naive investors who seem to believe that it’s almost impossible to lose with real estate. Downturns and a crashing market provide a harsh reminder that speculation often works in the wrong direction. Least I give you the impression I’m totally against speculating or throwing the dice every now and then – I’m not! However, I will only gamble when I’m investing the profits I’ve already earned from my cash flow properties. That’s my advice to you as well!

Investors should think long and hard about their reasons for investing. For example; investors who already earn adequate income from a good job they intend to keep, can invest differently than someone like me who needed grocery money to begin with. Investing for cash flow now is different than investing for growth appreciation I’m a firm believer in doing both – but what’s very important is the sequence!

By investing in cash flow properties first – you can establish a predictable income which protects your future! After that, faster growth properties with more potential for appreciation can offer a stronger hedge against inflation. With money coming in every month, investors have choices. Retirement may seem very distant to some – but when it finally arrives, it’s a lot more enjoyable with more money

There’s never been a better time to join ranks with “do-it-yourself’ real estate investors than right now – TODAY! From a pure financial standpoint, owning income-producing properties could easily turn out to be the smartest security decision you’ll ever make.

Tens of thousands of traditional jobs have simply vanished into thin air, while savings and retirement funds are siphoned away for everyday living expenses. Creating a long-term financial backup plan makes more sense today than ever before! And as you shall learn, the skills to make it all happen are quite easily learned by average working folks willing to make the effort.

Millions of people have thought about real estate investing and many have even given it a fair try. What most haven’t done, however; is to learn enough to develop a serious business plan that brings in foldin’ money every month! I’m talkin’ about a wealth plan that nearly every investor is capable of building and operating themselves. Right now is a perfect time to “wake up” – and release the ”financial genie” inside yourself!

The investment business I’m talking about will allow you – the investor; to enjoy almost absolute control over all your earnings and future profits. This is extremely important! It’s the real key to investor success. Look around you today! Most workers have almost no control over their jobs – or their earnings. They must live in constant fear about the decisions of others – not a great confidence builder for your future, I’d say!

What caught my attention however; was a stem warning to his audience –­”Don’t ever allow yourselves to become landlords”, he told us. “You’ll end up fixin’ toilets in the middle of the super bowl!” Wow, what are odds for that happening!

Years ago, watching Jackie Gleason and Art Carney on the popular TV show; “The Honeymooners”, I learned that toilets are flushed 14 times a day on average! Now Mr. Carney understood toilets ’cause he spent his whole career working 5 days a week in the sewer pipes. Based on Carney’s flushing knowledge, I quickly applied some mathematics to my own rental properties. At the time, I owned 186 units, apartments and duplexes – 12 with two toilets each, all flushing every day. When you multiply 198 toilets by 14 daily flushes, you’ve got twirling water 2772 times a day. That breaks down to 115 flushes per hour, which means my tenants are pulling the handles two times every single minute.

The point is – I know about flushin’ toilets just about as well as anyone. Not only that, but I’ve been personally involved fiddlin’ with toilets for nearly 50 years now! In fact, I probably have more toilet seniority than Mr. Carney! In all my flushing years, I’ve never once been called out to fix a toilet during the super bowl. Can you just imagine the odds? So from my point of view, the TV guru on my cable channel is completely full of baloney. I’m even thinkin’ about getting’ a new cable. Let me say this loud and clear, especially to all the new investors who read this — There’s nobody fixin’ toilets on Super Bowl Sunday. That would be totally sacrilegious! Don’t you agree?

” … nothing comes ahead of cash flow!
”
In my opinion, nothing comes ahead of cash flow! If you have it, you can continue to grow. You can transition from smaller properties to larger ones or fixers to pride-of-ownership. You can use your cash flow to buy mortgages for passive income or take a trip around the world every month when the rents come in. Cash gives you choices!

Join Jay and associates learn big profits from discounted mortgages at Fixer Camp Oct 15, 16, and 17th 2010

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.