How to really get Rich in Real Estate

I was not going to do this since there are 1 million idiots selling Real Estate get rich quick scams, but I might as well get some good information out there for Free. We are at a very critical point in the Real Estate world and now is a great time to buy. Here are the golden rules of investing and how to really become rich in the Real Estate investing game.


There are layers and layers of investing vehicles from notes, to second liens to tax liens to dirt to actual Real property, called Real Estate. For those who want to dabble, make a quick buck, do not make much money personally or do not have very good credit, stick to non-real estate investing. The market is on it's ear right now and without assets, good credit and a great job you will not qualify to buy an investment dog house, let alone a real house!


Are you ready: First and foremost, in order to be an investor you must make more money than your debt payments each month. And I am NOT talking about minimum credit card payments, or Interest Only mortgage payments, I am talking about full mortgage payments (taxes and insurance) autos, utilities, food, etc. Also, you need have at least 6 months of total monthly expenses in the bank to even consider investing. On top of those assets you will need to have 10% down payment, in liquid form (no 401k or IRA accounts) for all properties purchased. Last and of course not least, you will need to have good credit. If your credit score is not above a 680, then get into the stock market or notes, etc. The days of 100% financing are gone and you need income, assets and good credit to get into the game. If you do not fit into this category, I will save you time.......ba bye!


Research: OK so now that you have your income, assets and credit in order let's talk about markets. There are still good investment markets in the US making 5% returns on a yearly basis. I believe the US average cycle for RE over a 30 year period is 25% gains, so let's get our money in now. Oh by the way, did I mention we were nearning the bottom of a huge selling cycle, which means over the next 12-18 months those with money are going to go on a buying spree at $.50 on the dollar? This is where you become a millionaire in the Real Estate investing game. Now if I only sold a CD 12 pack for $99 or had my own commercial like Tom Vu. Damn!



1. Areas: Find a market with low unemployment, good job growth, university nearby, and of course a good rental market. Simple, but you would be surprised how many over look this.


2. States: Depending on your budget (10% down rule) there are some states that always provide good investments. CA, FL, NY, WA are always going to have rocking economies and lot's of employees flooding to those states. NC, MO, LA, KS, AL are newly ripe investment areas because of hurricane Katrina. Recent damage, low prices, new construction requirements and a lot of people looking for housing is a recipe for success. As my man Tim the Tool Man Taylor always said...."measure twice, cut once"! Nevermind that was my 8th grade shop teacher. I think Tim's motto was...cut twice oops forgot to measure! Bottom line, look, search, visit twice and then pull the trigger.

3. Pricing: This is simple, buy a home that rents for at least the full PITI payment. Never pay more than 75% of current market value and if you can get the seller to finance your loan, even better. Single unit properties are ok, 2 units are good and 3+ units are great. More income, more security and better equity growth possible. If you cannot find a home or homes that fit this criteria keep searching.



Financing: Once you are financially stable, have found a general area and have a home or homes in mind, it is time to get an agent and Loan man! I do not sell agents or Loan Officer names but maybe I should? Any how, get with your local Loan Officer or banker to get pre-qualified. If you do not have one, email me I am licensed in most states.


Next, visit the area you are buying in (recommended) and you will see plenty of RE signs. Start calling those agents to make appointments and you will find out which one's are lazy, too busy or just think you are a tire kicker and will not help. When you find one that actually calls back or meets you, and they match your personality, have them write an offer.

The link above is for our investment site. These are some of our projects. Email me for any questions or interest!

Good luck and make it a great day!