Refreshing! Home Values First Annual Increase In Nearly Five Years


“There was a surge in real estate this spring”, I answer to the question,”How is real estate?” I’ve been asked the question many times lately and that was my response. Really the response was just a gut feeling. Until I read the following article:

The housing market has finally turned a corner. In Q2, we saw continued momentum in the housing recovery, despite of some economic turmoil, like flagging job growth numbers and sovereign debt issues in Europe. Nationally we hit a bottom in the first quarter of the year, and the Zillow Home Value Forecast shows that 67 of the 156 markets it covers will experience an increase in home values over the next 12 months. Nationally, Zillow forecasts home values will rise 1.1 percent……………………………(Click to Continue Reading Article)

My final thought summed up in one word, “Refreshing”.

 

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Published in: on July 26, 2012 at 8:05 am  Comments (2)  
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Negotiating a Get Rich Slow Scheme


by Dave Miller

The easiest way to get rich quick is to accumulate wealth slowly. Well then, how does one accumulate wealth slowly?

First you need a plan. A solid, well thought-out, practically applicable plan.

This requires a solid plan, to preserve your precious capital, as you do not want to go backward. The retaining of capital is a key element of moving toward your goal. If you lose your initial capital you must not only gain it back but also recoup the lost time.

It must be well thought-out; you do not want to be jumping on some quick get rich band wagon that is ready to go bust.

The plan must be feasible. Over the ages three areas have proven successful; real estate, gold, and businesses. Most wealthy people own one of these three.

Don’t put all your eggs in one basket, just like your Daddy told you. But nevertheless get some baskets and fill them with eggs. Many people use that line to delay saving and investing.

The real estate basket is the topic of discussion today.

Enter John Schaub and his book Building Wealth One House at a Time.

Building Wealth One House at a Time – John Schaub

This book focuses on strategies for creating wealth through real estate by starting small – and making the right moves. Nationally known real estate expert and speaker, John Schaub, learned his craft in the best way possible–on the job, and through every kind of market. He published a great book titled Building your Wealth one House at a Time. In it he shows you how to buy homes with little money down using private or owner financing. By doing this he eliminates the whims of the banking world. The lender he says, is more concerned about getting his money back than earning high interest. In Chapter 6 he tells you to do what it takes to make the lender happy, over secure if you must.

Click this link to read an article I also wrote on keeping the your lender happy.

He recommends only single family dwellings, no fancy shmancy highfalutin projects. Just solid homes the typical family desires and can afford to live in.

The part that hit home for me was that he says buy one home a year. No more. He warns of the dangers of diving headfirst. By waiting a year to purchase your second investment property you will learn innumerable lessons before plunging in.

John uses two people to accumulate wealth; his renters and his lender or investor. His lenders allow him to buy the home and the renters pay for it. In the meantime he is accumulating wealth. Renting to long-term tenants, with financial incentives to pay on time.

By using leverage, i.e. owner financing, investors or the bank, he can purchase a home that otherwise he would have needed to walk away from. This then allows him to have a renter paying down on the mortgage. But remember, leverage is a two-edged sword. It can help you accumulate faster and it can take you down even faster. You must carefully consider the amount of leverage you are comfortable with and what makes sense in your situation.

Building Your Wealth One House at a Time is very concise yet an easy to read book. It lays out a blueprint that is easy to follow using graphs and figures.

Unique is his approach to focusing on buying houses in good-quality neighborhoods while simultaneously creating positive cash flow properties. John uses the Goldilocks theory when choosing a neighborhood: not too expensive and not too cheap. Go with a neighborhood where prices are just right.

Buy his book today. Read it. Implement a plan. Take the first (I know this is the hardest one but do it anyway) step. You will not get rich quickly but you will most definitely be headed in the right direction.

Now for the good news! John Schaub is coming to town. Well, rather to a town in New Jersey. Iselin.

John is presenting a one day class called “negotiating secrets of a Professional Buyer”. Saturday June 23 2012 from 9:00 to 4:00pm. You can register here: http://www.eventbrite.com/event/3199047437 I plan on being there so I hope see a few of you there. If anyone is interested in carpooling from Lancaster County just call me. Cell number 717-656-0749. Currently four of us are heading there. Join us.

A quote from John’s site:

John has survived, prospered, and helped his students to make money in every market since 1975. Come learn how to recognize which opportunities are right for you today and for the next five years at this most interesting time in our history. Get ready for an exciting and profitable future!

You can subscribe to my blog on the right side bar for farther updates. If you do so, you will receive a copy of my blog as soon as I post it thus saving you time by not needing to check back.

Money In Your Pocket – Or Out of Your Pocket


by Dave Miller

When was the last time you looked at your insurance policy? Do  you really know what’s in it?

This week I bought 3 houses and at the last-minute I thought about insurance. With a phone call and a scrambling agent I got the coverage I needed. The downside was that I did not shop around or really think through the details. This is a huge downfall to those of us who wait till the last-minute at times.

So now I’m thinking about insurance. Am I paying too much? Why do I have it? What’s covered?

Here is an article that has helped me.

One cost saver for me is my high deductible. I say insurance is not to cover every little thing rather it’s to keep me from losing my butt. I carry a $5000 deductible, but then I also have high liability coverage.

Check out your policy. Maybe you can save a few dollars. My agent said yesterday that by raising the deductible to $5000 it would probably save me 12%.

Ask your agent questions. Maybe you need better coverage. Shop around if you must but be aware. Be very aware.

Published in: on November 5, 2011 at 7:21 am  Leave a Comment  
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As Barren Ground Gets So Goes Lackadaisical Investing


by Dave Miller

The bare ground of the empty garden was being overrun by weeds in a short few weeks. So I tilled the ground last night and scattered the Jerry oats. With the dirt knocked loose and the weeds stunned the oat seeds I spread can find a hold and quickly overpower the weeds.

  The seed is planted and has a good chance to grow. No weeds to hinder the growth. Fertile ground to root into. At the sight of the greenness we will see the fruits of the labor, our toil combined with productive soil coming to fruition.

Is neutrality possible? The first law of motion says: The velocity of a body remains constant unless the body is acted upon by an external force. So something at rest stays at rest. Unless an outside force affects it. It stays at rest if nothing affects it, but something is always affecting something.

To invest or not to invest. That is the question.

When I say invest I mean good investing, not the I’m-too-uncertain-so-I-will-stick-it-in-bank flavor of investing.

Good Investing; By making good investments of time, money and knowledge you will grow in confidence and intellect. When you see your seeds multiply, your heart will be happy and content. This is not always easy, it’s work, but it’s rewarding.

Bad Investing; When investments go bad they deflate the morale, they squash and humiliate. Your attitude and life will be affected, like it or not, it just will.

Neutrality; By not investing your money, holding it in cash or putting it in a savings account for ½% interest a year, you are not moving. As Isaac Newton said, a body at rest stays at rest unless affected by an external force. The external force is never at rest. If you are not investing wisely you can go backwards, but if you do not invest, you will also go backwards. Neutrality is not an option. The outside force is in motion and if it is going faster than you then you are going backwards.  

Here a few reasons why “neutral” money holding doesn’t exist.

  • If you invest at a ½% in the bank you are (1) not keeping up with inflation (2) your reward sucks so the incentive to save more is squashed.
  • When sitting on cash you (1) are not keeping up with inflation (2) are prone to spend more than needed because it’s visible and accessible. Money in your pocket has a way of disappearing.
  • Did I mention inflation? According to our government inflation has been around 2% to 3% but has jumped to around 3.75% last month. Now we could spend a whole paper on the inaccuracy of these government statistics but we will let it go for now. Nevertheless, they may be inaccurate but the experts agree they are pushed down, meaning in reality they are higher. So if you are not making in excess of 4% to 5% you are floating backwards. Your money will buy less in the future.

The ground does not like to be barren. It will cover itself. Its default is weeds. So if you choose to sit by idly it will cover itself with weeds. Do I want weeds?  No. I will work, till, and plant to create an environment that allows the ground the produce. Today it’s raining steadily. I smile because I planned and prepared.

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Warren Buffet – Just Shut Up


by Robert Ringer

As much as I dislike being harsh to my elders, sometimes you just can’t control yourself.  That said, though I mean no disrespect to the man, I have to get something off my chest that I’ve wanted to say to Warren Buffett for at least two decades:  Warren, will you please — PLEASE — shut up!

I’m tired of hearing about how you’ve lived in the same modest house since 1958.  I’m tired of hearing about how you plan to give away 99 percent of your fortune, primarily to the Bill and Melinda Gates Foundation.  And, most of all, I’m tired of hearing your pleas for millionaires and billionaires to pay more taxes.

I found it sad that when you finally bought a private jet (through Berkshire Hathaway) in 1989, you were so guilt-ridden that you named it “The Indefensible.”  Sorry, Warren, but when I was in the real estate business in my late twenties, I bought a private jet, and I found it to be indispensable. What a great moneymaking tool a private jet is for a high-flying (excuse the pun) entrepreneur.

Don’t be embarrassed about your jet, Warren.  Enjoy it.  You earned it.  And, best of all, it helps you make more money, which in turn creates more jobs and helps grow the economy.  The only private jet I know of that does not do any of these things and is truly indefensible is the one your pal, the White House Whiner, flits around on.

Speaking for millions of Americans, we don’t want the government to have any more of anyone’s money.  Boehner & Friends have already screwed us yet again and given our make-believe president the right to print trillions of additional paper dollars and thereby reduce the value of what money we have left.

And what will that additional funny money be used for?  Not to pay down the debt, for sure.  The debt will not, and cannot, ever be repaid.  Let’s stop the let’s-pretend games.

The money will be used by BHO to start and expand more government agencies, hire more government workers, give Jeffrey Immelt and his other sugar daddies more government subsidies, increase his record-breaking food-stamp binge and other welfare programs, and promote his reelection campaign.

There is a misconception about money and morality, money and intelligence, and money and common sense.  Buffett clearly has a genius for making money without dirtying his fingernails.  For that, I tip my hat to him.  But it says nothing about his common sense or knowledge in other areas of life.  I’d venture to guess that he has never read Ludwig von Mises … or F.A. Hayek … or Ayn Rand … or Murray Rothbard … or Harry Browne … or even Ron Paul.

What Warren Buffett needs to do is educate himself on history, morality, philosophy, and ideology in time to bring about a deathbed conversion.  Does anyone really believe he has ever thought about the basic question of whether it is moral for the government to take people’s property by force?  Does anyone really believe he has ever given any thought to the concept of Natural Law, which gives rich people the same rights as poor people?

Until and unless you do, Warren, I again urge you:  Please, shut up!  Write the government any size check you feel is necessary to soothe your neurotic guilt feelings about your success, but, please, leave everyone else alone.

If you want to pay more taxes, I call your attention to the fact that there’s a place on your tax return that gives you the right to do so.  If you don’t feel that the nearly $7 million you paid on your taxable income in 2010 was enough, there’s absolutely nothing to stop you from paying more.  All you have to do is do it.

Copyright © 2011 Robert Ringer
ROBERT RINGER is the author of three #1 bestsellers and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. Ringer has appeared on numerous national talk shows and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron’s, and The New York Times.

To sign up for his one-of-a-kind, pro-liberty e-letter, A Voice of Sanity, visit: www.robertringer.com


Published in: on August 20, 2011 at 5:38 am  Comments (1)  
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Pay Yourself First


by Dave Miller

Every month we chose who we will pay. The gas man. Rent. Groceries. Yet we forget about ourselves. There never seems to be any left for me. Why do we lower ourselves to such a degrading standard?

As a business owner if I were to decide to pay my employees last, only if there is money left, I would be jeopardizing my business. The employees would not be motivated. They would probably vacate. So in order to keep employees motivated, I pay them first. I would rather have a creditor calling than lose my employee’s loyalty.

So how can I avoid this lack of motivation in my life? I say set up a savings account and on every pay day put 10% in to the account. Before you pay the bills. This is your pay. I suggest you make this your investment account. A fund for your later use.

If you are saying you can’t afford to do this then change something. Cut spending. Increase your income. Whatever you do, do not say it’s not possible. Do you want to work for nothing all your life? I’m guessing your answer is no. Then stop the madness and get your act together. Adjust, adapt and move forward.

Your motivation will increase as you realize you are building something. It’s not about only surviving the day. There is a bigger picture out there. Pay yourself and you will find it.

To accumulate wealth you need to invest. Many times we look to outside methods to get rich quick. We are grasping for the big break. We heard of a product or method that promised big returns and we are intrigued. Be careful.

Invest in yourself. Every pay-check you get, look at it, decide who you are going to pay.
Hold yourself to a higher standard. Are you last?

Make yourself first by starting to invest yourself

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Published in: on June 15, 2011 at 2:20 pm  Leave a Comment  
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Real Mistakes by Real Investors, and How You Can Avoid Them (Part One)


by Dave Miller

In the real estate world investors tend to make the same mistakes over and over again. Then after a time they learn and either stop investing or stop making the mistakes. When they stop making the mistakes yet continue to invest, then the dividends start coming in.

Yet new investors emerge into the market place making the same mistakes their predecessors did.

You have a choice; to make the mistakes yourself or to learn from other people. I say, learn from other people’s experiences. It’s cheaper than way.

#1. Ignoring Risk Management

   Investments consist of two sides; risk vs. reward. Yet many tend to skip the risk element. Buying and hoping for the best. “Hoping for the best” is not risk management. You must carefully weigh the risk-to-reward ratio. All investments have risk, there is no such thing as a risk-free investment. Even if the risk is only your time or your money being tied up. You therefore risk your time or money on this project while it could be used on another possibly better deal, losing chance of a greater return.

  Loss of capital can come in various forms; capital loss (devaluation), loss of greater gains, loss of additional capital (lawsuits),i.e.

Here are few ways to reduce risks:

  • Purchase your property in a LLC
  • Discuss the purchase with a trusted attorney
  • Know the market
  • Get liability insurance

This list could be ten pages long, yet I will stop with this. Encircle yourself with trusted and experienced advisors. Ask questions. Weigh your options. Call or email with questions, call 717-951-0201 or realstreet@frontiernet.net , I will gladly give you a free 15 minute consultation. (Consider the risk first, losing 15 minutes vs. gaining 15 minutes of knowledge)

#2. Over Leveraging

Investors love the way leverage increases the return on the investment. Yet they forget it is a two-edged sword. Leverage magnifies both profits and losses. Investors tend to use too much leverage and use it too long in their careers.

Am I advocating no leverage? No.

Investors should use leverage early in their careers, making sure they can cover the payments with alternative means, and move towards more secure loan-to-value ratios later in their career, making the net worth they achieved more secure.

#3. Picking the Wrong Strategy

Pick a strategy that matches your strengths. Not everyone is cut out to raise the rent on eighty-five year old ladies or evict 6’ 5’’ drug thugs. If you don’t know how to fix a roof and are scared of heights then stay off the roof.

Aligning your strengths with your strategy requires honesty. Rather than focusing on how someone else did it, look at yourself and your potential. If you are not a sales person but rather Mr. Fixer-upper then outsource the sales aspect and focus on fixing.

#4. Overstating Returns

Hunters and fishermen tend to exaggerate, telling tales that captivate their wide-eyed audience. Real estate investors tell even wilder tales. Telling friends they made $5,000 on a wholesale deal yet forgetting to mention they spent $12,000 on some guru telling them how.

Whether working with partners that hold an equity position or private money investors, you need to gain their trust. For this deal and for the next. If you overstate the returns and then fall short of your promises you risk losing a partner. But if you honestly and accurately state your expected returns and then supersede them, you win.

#5.Overimproving Properties

There is no profit in fixing something. The profit is in the added value of the improvement. If it costs you $5,000 to build a garage that increases the property value by $5,000, you have not added value. Make sure the improvement adds value beyond the cost.

The profit is in the purchase price. Not in the improvements. Improvements cost money, paying less does not.

Many investors pay too much for fixer-uppers. Don’t be one of them. Make your money on the buy.

Avoid trying to squeeze every penny out of the deal when you can close the deal with a decent profit. A certain dollar today is better than an unsure dollar tomorrow. Here is an example of a property I could have made more money on but chose not to (Click Here). Get the fast buck not the last buck.

#6. Waiting Till April 15th to Check If You Turned a Profit

April 15th is when you report your profits to the IRS, not when you see if you had a profit. In real estate numbers are everything. If you lost money on a deal you need to know that NOW! Not after three more deals like it. Run the numbers. Have your accountant involved in your planning.

Quotable Quote:

There’s blind luck, dumb luck and then there’s get up every morning at 5:30 and sweat the details luck. Few people actually stumble into wealth. It takes persistence, tenacity and a tireless work ethic. In the end, luck has little to do with success. It takes experience and hard work. Pure and simple. –  Smith Barney

Working or Networking, It’s Your Choice


by Dave Miller

Is networking worth your time? I made $5000 last week with my network. I’ve done it before and I’ll do it again.

I continue to be highly impressed with the power of networking. In many ways networking is more than just looking out for my best interest. It means reaching out to other people.  If they have needs you can help them with, then do so. You will create a relationship.

Networking is more than a list of people. It is people with whom you have a mutually beneficial relationship. Other business people, potential clients and/or customers. The better your relationship with these people, the stronger your network.

Everyone has a network. It is simply the people you know. Everyone one from your nearest and dearest to your neighbors’ plumber’s cousin who surely has a phone number you could track down if you cared to.

Not everyone puts a cognitive effort into building their network. This is a mistake.

Here is a list of ways to build a bigger better network.

Start an email list

Begin building an email list of people you know have interest in your product or service. For me this has been a huge eye-opener and success.

I send out an email when I have an investment opportunity to share. This results in about a dozen or more emails a year. I do not bombard my network, only the stuff that matters get sent out.

To be added to my email list just click here

Add tag lines to your emails and correspondences

Last fall I added the words, “Financial and Real Estate Solutions” to my email. The first email I sent to my email network resulted in a call from a fellow asking if I do hard money loans. I do. I set him up. He made over six thousand and I made over twenty-eight hundred in two weeks’ time. Needless to say we were both happy, all from a mere tag line.

Social networks

Facebook, LinkedIn, et al. Any way to let people know what you are doing. Telling them every juicy nugget of gossip fodder about your personal life is not necessary.  But by filling them in on your business dealings you will be amazed by how many people you know have similar interests.

Help  others

Step out and help people. By helping others you will blessed. Okay, here is the plug: My brother has a house in Bird-In-Hand he is trying to sell. I told him I would get him some exposure by mentioning it here.

Quaint and Quiet

It is a quaint 3 bedroom rancher with a horse barn. It is an ideal starter home or investment property. Here is the link. He is asking $149,000 and the previous renter paid $940 a month. It has the potential to get $1000 rent per month. This is an excellent John Schaub style home. You can call Allen directly at 717-295-0662. If you find Allen a buyer I’ll see that you pocket $500

Start a blog.

Every marketing guru says so, so I will too. Start a blog.

Newsletter

Write a newsletter. Keep your network informed. This could be your blog.

Referrals

People know people. If you are in the market to buy a rental property, then call people. Ask. Call your real estate attorney and tell him what you are looking for and ask him if he knows anybody that could help you. Call your banker. Call your investor friends. If you are selling, ask for referrals. Tell your people you will reward them if they give you a successful referral. Note the $500 reward mentioned above.

Quotable Quote: The secret of my success is a two word answer: Know people.– Harvey S. Firestone

The Quick and the Deal


by Dave Miller

Ever wholesale a property in three days without leaving the office?

Last week I got a call from my Realtor. “Beaver St is back”, was his message.

Last November I placed an offer on this same property and got a signed agreement. It was a complicated short sale and the seller was not going to be able to give a clear title by the settlement date. I did have a sales agreement signed and could have forced the sale. But that would have been a costly hassle not worth the time and stress. I asked to retract the agreement and he consented.

I did take note, a few months ago, that this property was going to the foreclose auction. I was not able to attend the auction. The bank bought the property back at the auction and put it back on the market.

Monday, 4:08 pm. That’s when I get the call, only a few hours after it hit the MLS. Mmy sharp eyed Realtor spots it and forwards the information. After a brief discussion, I hang up, pull the file (from a year ago), and run the numbers.

A property like this not going to be on the market long, this I know. So I need to move fast. All my paperwork is done and I only have to review it.

When I buy a home to wholesale, I buy it with the intent to own it. If it does not work for me to own it I refuse to buy it. I won’t flip something I wouldn’t work on myself. This makes the selling easy since I can sell it honestly and sincerely, because I believe it will work.

So do not buy a home to wholesale, I buy a home to rehab with the possibility of wholesaling it.

I do not have the money to buy this with cash so I need an alternative. I find it. My self-directed IRA LLC is the solution. My IRA does not have the capital to make a full price offer, so I move fast to avoid a competing offer.

I have the edge because I know the property and already have the work done to estimate the cost of rehabbing it.

Monday, 8:20 pm.  I email the agreement with a copy of the deposit check to the Realtor. He forwards it to the bank’s Realtor. We wait. But not for long.

Tuesday, 11:39 am. “We have a deal” the email reads. I send the deposit check.

Tuesday, 3:32 pm. I send out an email to my network of buyers. In the email is a brief description of the property with two links. Link number one is to my blog with a better description and link number two is to a postlet with additional information and more pictures. I also post an ad on craigslist.

Wednesday. I receive multiple calls and emails expressing interest. We have multiple showings.

 My Realtor offered to show it for me to potential customers so I don’t need to run in each time. He does not charge me for this. I am putting him in contact with prime customers and he may (I have given him the okay) freely solicit other business from them. By doing so I do not need to use my time to show it and he may gain a client. It’s a win-win situation.

Thursday. We come to terms on a verbal agreement with a buyer. He only wants to do another walk through with his wife through and then sign the agreement. This has me a little nervous, women with their emotions can bring a deal down real fast. But I consent. I have no other choice.

Friday 10:30. Sold! It’s a done deal.

Recap of the week:

  • I bought a property.
  • I utilized my network.
  • I marketed a property
  • I sold a property
  • I have more money in my checking account
  • I never left the house

How can you replicate this method of making money?

  • Action! Get off mental duff. Make a cognitive change.
  • Action! Get off your physical duff. Like Wyatt Earp said, “Are you gonna do something, or just stand there and bleed?” Get out there and look at properties. Put offers (low offers) on properties.
  • Build relationships; Bankers, private money investors, buyers, sellers, realtors
  • Start a network; email lists, social networks, investor clubs
  • Buy a buyable home.
  • Hit your network
  • Sell the home to your buyer
  • Cash the check

If that is too many steps, then start with the first two. These are the most crucial.

Quotable Quote: Wherever you see a successful business, someone once made a courageous decision. – Peter Drucker

Get Rich Slow Scheme


by Dave Miller

The easiest way to get rich quick is to accumulate wealth slowly. Well then, how does one accumulate wealth slowly?

First you need a plan. A solid, well thought-out, practically applicable plan.

This plan must be solid, to preserve your precious capital, as you do not want to go backward. The retaining of capital is a key element of moving toward your goal. If you lose your initial capital you must not only gain it back but also recoup the lost time.

It must be well thought-out; you do not want to be jumping on some quick get rich band wagon that is ready to go bust.

The plan must be feasible. Over the ages three areas have proven successful; real estate, gold, and businesses. Most wealthy people own one of these three.

Don’t put all your eggs in one basket, just like your Daddy told you. But nevertheless get some baskets and fill them with eggs. Many people use that line to delay saving and investing. Procrastination kills.

The real estate basket is the topic of discussion today.

Enter John Schaub and his book Building Wealth One House at a Time.

John Schaub

Building Wealth One House at a Time - John Schaub

This book focuses on strategies for creating wealth through real estate by starting small – and making the right moves. Nationally known real estate expert and speaker, John Schaub, learned his craft in the best way possible–on the job, and through every kind of market. He published a great book titled Building your Wealth one House at a Time. In it he shows you how to buy homes with little money down using private or owner financing. By doing this he eliminates the whims of the banking world. The lender he says, is more concerned about getting his money back than earning high interest. In Chapter 6 he tells you to do what it takes to make the lender happy, over secure if you must.

Click this link to read an article I also wrote on keeping the your lender happy.

He recommends only single family dwellings, no fancy shmancy highfalutin projects. Just solid homes the typical family desires and can afford to live in.

The part that hit home for me was that he says buy one home a year. No more. He warns of the dangers of diving headfirst. By waiting a year to purchase your second investment property you will learn innumerable lessons before plunging in.

John uses two people to accumulate wealth; his renters and his lender or investor. His lenders allow him to purchase the home and the renters pay for it. In the meantime he is accumulating wealth. Renting to long-term tenants, with financial incentives to pay on time.

By using leverage, i.e. owner financing, investors or the bank, he can purchase a home that otherwise he would have needed to walk away from. This then allows him to have a renter paying down on the mortgage. But remember, leverage is a two-edged sword. It can help you accumulate faster and it can take you down even faster. You must carefully consider the amount of leverage you are comfortable with and what makes sense in your situation.

Building Your Wealth One House at a Time is very concise yet an easy to read book. It lays out a blueprint that is easy to follow using graphs and figures.

Unique is his approach to focusing on buying houses in good-quality neighborhoods while simultaneously creating positive cash flow properties. John uses the Goldilocks theory when choosing a neighborhood: not too expensive and not too cheap. Go with a neighborhood where prices are just right.

Buy his book today. Read it. Implement a plan. Take the first (I know this is the hardest one but do it anyway) step. You will not get rich quickly but you will most definitely be headed in the right direction.

Quotable Quote: It is hard to fail, but it is worse never to have tried to succeed. – Theodore Roosevelt

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