Is Now The Good Ole Days Of Real Estate Investing?
February 16, 2009, Writen by: Chris Anderson, Ph.D
Follow Us On |
Linkin Profile
 |
Are The Good Ole Days Here Again?
I was thinking the other day, boy, do I miss the good ole days…… You know, like back in 2005 during the heyday of the real estate bubble.
At that time, it was actually very simple to buy & sell houses and put a six figure income in your pocket. I personally was doing this and will even share my “secret, can not fail, so easy to do it my dog makes money” GURU System. And I won’t even charge you.
Here were my steps from back then:
|
Step 1: |
Be located in a hot area; |
|
Step 2: |
Convince a good local realtor that you are in position to close houses fast, all you need is deals that are “below market”. In my area, these are referred to as “back pocket” listings and they were not on MLS yet; |
|
Step 3: |
If the property was in good shape but maybe needed a LITTLE cosmetic work, then buy it and get permission to market and do alterations before close of escrow; |
|
Step 4: |
As soon as people moved out, order a “mow & go” which was a quick yard clean up, maybe do some touch up paint, etc. but keep expenses below $1,000; |
|
Step 5: |
Have the same realtor from Step 2 start “spreading the word” that they have a hot new listing coming on the market; and |
|
Step 6: |
Sell & close in about 45 days. With a small market discount, a little clean-up, good remarketing, and 45-60 days of appreciation, this was a little goldmine. |
While there were fancier methods to avoid some of the expense and risk, this approach was easy and could be implemented by the realtor, my wife, and about 2 hours total of my time per home.
Net Profit Per Home? About $15,000 to $20,000.
Boy I miss the good ole days…..
One interesting note here is that while this was QUIETLY going on, most other investors were whining about they couldn’t find a good deal anywhere.
Are The Good Ole Days Here Again?
It does not take a rocket scientist to know that we are in a very unique time in real estate history, although depending upon your age and experience, you have also probably witnessed some other “interesting times” like in the RTC debacle.
Like during every other real estate market, I am hearing reports of some individual investors “slamming it” and a bunch of people saying, it’s impossible to get anything done (some things never change). The people that are really making hay during this market (no, not the ones trying to sell you guru courses) all have systems in place that are working in their market.
The ones that are saying its impossible are saying
- Banks are being uncooperative;
- Takes 4-5 months to get a short sale approved;
- Everybody is upside down with no equity;
- As soon as somebody shows up on a pre-foreclosure list, they are hammered by every realtor and would-be investor in town;
- Etc, etc.
Even with these issues, there are a few people that are putting 6 figures in their pocket annually and some of them are doing it monthly…..
For them, THESE are truly the good ole days.
This Approach Is A BUSINESS, Not A Hobby
I have to laugh every time I hear a “Guru” advertise their latest product or coaching course as “work only a few hours and make XXX/Month”.
In actuality, they are right about that but only AFTER you have the business set up and IF YOU set it up correctly. Let’s return to my example of the good ole days. If you look, I was averaging $7,500 to $10,000 per hour of MY TIME.
With that statement and the proof I could provided, I could have gone out and sold courses, coaching classes, workshops, etc. But here is what I know (and the Guru’s know it too), that to get to that stage usually takes a heck of a lot of work.
Nothing wrong with that but to generate active investment income like this, you will need to be IN THE BUSINESS of real estate.
Usually what this means that you take somebody else’s concept, you adapt it to your market (lots of trial and error), you then assemble an external team around you, and then you are in a position where hopefully this is highly profitable.
Right now, I see a few people that seem to have a “good system/business” for making great money in this market. Each has there own little twist, and many of them have learned it from a guru. However, they have then worked hard to adapt it to their market and style.
I can assure you that there is very big money to be made in this market given all the turmoil that we are in. However, you need to decide “are you looking for just a couple of investments” or “are you looking for an active business”.
If you are looking for a way to make active income and are willing to put in the effort to establish a good business, then there are great opportunities out there right now. If you do not want to take on this much activity, then you may want to consider looking at what we call Assisted Active or Passive investing. These topics will be covered in detail in our next two e-mails/articles.
Related Real Estate Investing Posts
- Foreclosure Investing - The Fastest Way To Get Started Foreclosure investing is actually quite another world when people have finally taken that risk and go for it. This...
- No Bull Real Estate - What’s That? What do we mean by NO BULL REAL ESTATE for investors? That is a frequent question that we get...
- The Risks and Rewards of Investing in Foreclosures There are many different things to invest in these days. One investment route which individuals take is with regard...
- Go Zone Real Estate: Let Uncle Sam Pay Your Bill Since I have been immersed in the Katrina Go Zone for the last two years, it amazes me that...
- Florida real estate crash means Tampa Bay homes are too cheap, report says - St. Petersburg Times A new article lines up with what we are seeing on the ground in Tampa with probably some over...
Related posts brought to you by Yet Another Related Posts Plugin.
Thank you for visiting www.NoBullRe.com. As always, your comments are welcomed below:
Comments
Got something to say?
-
Who Is "REALLY" Making $ In Today's Real Estate Market?
Our 29,689 Members Tend To Agree...
It's Usually Not The GURUs
Have you ever noticed that every "Guru" real estate pitch sounds the same........
They once were poor, but now are rich working only 5 hours per week, and you can be rich too if you just buy their "can't fail system".
Or have you noticed that every property promote has a can't miss proposition, if you just buy TONIGHT.
At the NoBullRE club, we are huge believers in real estate investing...... but we also know that every approach has two sides: Nothing is perfect.
If you want unbiased ("No Bull") facts of who is making money, how are they doing it, and where do they get their knowledge, then you don't want to miss joining the NoBullRE Club
IT'S FREE (FOR NOW)
SECURE & CONFIDENTIAL
Your info will never be shared
CONFIDENTIALITY GUARANTEED
