eolzvfg

Saturday, October 27, 2007

A Real Estate Formula

It was a simple real estate formula. The ads ran in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. Maybe a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments.

When a friend started doing the same thing he explained the process to me. It was a way to get a great return on capital, and it was the opposite of buying with no money down. There is no down payment at all when you buy, because you buy for cash.

The Simple Real Estate Formula

You probably know that when you buy for cash, you can often get a much better price. With no financing contingencies in the offer, and the promise of a faster closing, sellers are willing to sell for less. You can offer $95,000, for example, on a house that might be worth $108,000. If you can't get it for less than, say, $99,000, you walk away - there are always other opportunities.

Once you buy the house, you put few thousand into high-return repairs and improvements. These might include paint, carpet, and maybe asphalt for a dirt driveway. For our example, we'll say you spend $5,000. Let's suppose the house is worth $116,000 now. You're ready for the next important step in this real estate formula.

You put it up for sale, targeting buyers who can't get financing easily. You provide the financing. Because you are making it easy for the buyer, you can get more than the $116,000 value for the home - and do it without paying a realtor's commission. Let's say you sell it for 123,000. The buyer needs a down payment of just 5%, or $6,150, and makes monthly payments of $1230 per month. You charge higher interest than the going rates at the banks, of course.

This is a win-win situation. Your buyer is able to buy a home instead of renting, and you get a capital gain of perhaps $16,000 after expenses, plus good interest. Your total rate of return will often be over 20%!

In our town, the first to do this consistently were a father and son team of lawyers. They saved money by doing their own foreclosures when necessary. Once they foreclosed, they raised the price and sold the home all over again.

They made millions. Did you know that if you can get an average return of 18% on your money, you'll turn $75,000 into more than one million dollars in about fifteen years? That's the power of a good real estate formula.

Build Muscle Mass
Cologne Pheromone
Overcome Premature Ejaculation
Stop Smoking
Breast Enlargement Pill
Menopause Treatment
Sign of Menopause
Menopause Treatment
Hangover Cure
Easy Weight Loss
Fragrance Perfume
Easy Weight Loss
Stop Premature Ejaculation
Wholesale Perfume
Wholesale Perfume
Herbal Breast Enlargement
Menopause Treatment
Menopause Relief
Breast Enlargement Cream
Stop Premature Ejaculation
Fragrance Perfume
Cologne Man
Stop Smoking
Breast Enlargement Pill
Herbal Breast Enlargement

Oct 15, 2007 Oct 16, 2007 Oct 18, 2007 Oct 19, 2007 Oct 20, 2007 Oct 21, 2007 Oct 22, 2007 Oct 24, 2007 Oct 25, 2007 Oct 26, 2007 Oct 27, 2007 Oct 28, 2007 Oct 31, 2007 Nov 1, 2007 Nov 2, 2007 Nov 3, 2007 Nov 9, 2007 Nov 10, 2007 Nov 11, 2007 Nov 12, 2007 Nov 13, 2007 Nov 14, 2007 Nov 15, 2007 Nov 17, 2007 Nov 18, 2007 Nov 19, 2007 Nov 20, 2007 Nov 21, 2007 Nov 22, 2007 Nov 23, 2007 Dec 26, 2007 Dec 27, 2007 Dec 28, 2007 Dec 29, 2007 Dec 30, 2007 Jan 26, 2008 Jan 27, 2008 Jan 28, 2008 Jan 29, 2008 Feb 4, 2008 Feb 5, 2008 Feb 6, 2008 Feb 8, 2008 Feb 18, 2008 Feb 19, 2008 Feb 20, 2008 Feb 21, 2008 Feb 22, 2008 Feb 23, 2008 Feb 24, 2008 Feb 26, 2008 Mar 4, 2008 Mar 5, 2008 Mar 6, 2008 Mar 7, 2008 Mar 8, 2008 Mar 9, 2008 Mar 10, 2008 Mar 11, 2008 Mar 12, 2008 Mar 13, 2008 Mar 14, 2008 Mar 15, 2008 Mar 16, 2008 Mar 17, 2008 Mar 18, 2008 Mar 19, 2008 Mar 20, 2008 Mar 21, 2008 Mar 22, 2008 Mar 23, 2008 Mar 24, 2008 Mar 25, 2008 Mar 26, 2008 Mar 27, 2008 Mar 28, 2008 Mar 29, 2008 Mar 30, 2008