The real secret in the trenches is there is big profits to be made buying, fixing, selling, and renting junker properties. No one likes to admit they own junkers; the truth be known, many, if not most, full-time investors (especially professional landlords) wheel and deal in junker properties. You know, the ones in lower-income, slighly distressed areas.
It is all about cash flow. Remember the old saying: It's the books, not the looks.
I spent many years deliberating over whether or not to begin buying so-called junkers. The bookstore books said don't buy in these areas. Only buy in pretty areas. There is some truth to it, too. Better areas are easier to manage and they appreciate.
I am by nature an observer. I noticed many professional and full-time investors were buying in these areas. If these were "bad" investments, why were the pros dealing in them? Simple. The risk is higher, but the market rewards professional buyers/investors with great yields.
These areas (not slums or hard-core ghetto) are lucrative to the hands-on buyer/manager. Houses and apartment properties can be purchased with 100% financing for 40 cents on the dollar. I know countless people who have built their own 30 or 40 house empires with junkers over a relative short period of time. They cash flow, too!
It is kind of like fishing. If you want big fish, go for the carp and catfish. Yes, they're a little rough, but the quantity and sheer fight of these fish create avid fans. Same thing for low income stuff. Forget about showing these to friends for applause. If cash flow is what you want, these are the deals.
This is not for everyone, but for the tough-minded individual who is not afraid to get their hands dirty. I can assure a fine living can be made wheeling, dealing, renting, lease-optioning, wholesaling, and land-contracting.
Bryan Wittenmyer has been investing in real estate for the past 15 years. He's not the new kid on the block. In the past five years he has written extensively in the real estate field. His articles have appeared in Creative Real Estate Magazine and the Real Estate Entrepreneur. Bryan served on the board of directors of the Real Estate Investment Association of Berk's County for 3 years.
Although Bryan hasn't attended formal university studies, he keeps himself educated reading a plethora of books, newsletter, journals, and listening to hundreds of audio tape lectures. He jokingly considers himself to be an information junkie. You can also benefit from his years of practical business experience, having managed several income stream businesses, ranging from automobile debt instruments to appliance paper. He also has bought numerous real estate debt instruments - he knows the income stream business.
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