This was my first blog

I have learned alot since I first started this blog about real estate investing in 2009. I have purchased and fixed up a few homes since 2009. In early 2011 I had some setbacks with the sale of my remodeled homes. I had to lower the asking prices of these homes because the market was dropping so much. I actually lost money on one deal. I now see that there are alot fewer homes for sale in Sacramento CA. You will probably see little or no depreciation in 2012 in the Sacramnento area because of the low inventory of homes for sale. You can find homes for sale in sacramento by
going to

For Sale: 3BR/1+1BA Single Family House in Sacramento, CA, $108,000

For Sale: 3BR/1+1BA Single Family House in Sacramento, CA, $108,000.

If you children ages 3 months to 8 years in Sacramento CA area, you should go to www.thestoreclosing.com. This online childrens educactional toy is closing. They are getting rid of everything at 70% off. You can order out of the area also.

More equity created

We just had another offer accepted on a house for 64k. This home is in Lincoln CA. The goal now will be to put 46k into it and it should be worth 169k. That will come out to 59k of equity created. This project should be a very extensive project because we are going to tear down the original front half of the house. The back half of the house was added to the original house in 1991. The front half of the house is in very bad shape and is outdated.Once we create a whole new house with new hvac, siding, roof, kithcen, and bathroom, it will be like a new home. The first time homeowner who buys this house will get a new house at a $1100.0 per month payment. I just declared this is now a SELLERS MARKET IN THE SACRAMENTO CA AREA at another blog that I have. We should be able to sell this house very fast once the house is finished. If a person just finds four of these homes during the next 12 months, they will have created 236k of equity.

I helped create 40k in equity

I just had an offer accepted for a client on a house for 63k. Once this house is fixed up it will easily sell for 123k. The REHAB costs are around 20k. He could always keep it and rent it out and put a 15 yr mortgage on the house and he still will have POSITIVE CASH FLOW. If he uses a HARD MONEY LENDER, he will only need about 10k to put into the purchase of the house. Here are the final numbers. 10k now gets him 40k in EQUITY now or potentially 200k in EQUITY in 15 years. That isnt even using a 5% appreciation rate annually.

Remodeled home for sale

This home was purchased as a distressed preforeclosure. We rehabed it and now it is for sale.
go to http://www.oodle.com/view/1599858117/

A real estate investor’s team

In order to succeed as a REAL ESTATE INVESTOR, you need very reliable and experienced people on your team. You first of all need a realtor who knows the difference between buying a house to buying a property at a discount. You need a realtor who will look for your best interest and not their commision. I made the mistake of using a realtor three years ago who I thought they knew what they were doing and all they did was find me a duplex in the worst neighborhood at retail price. You also need an honest and trustworthy contractor. One who can give you estimates on properties that you will be buying at WHOLESALE PRICES. One who also can fix these PROPERTIES so that you can make a profit as fast as posible. You also need a good property manager. You dont want to go through the ones I have used who give you excuses as to why they are letting your rentals sit vacant. I think a good CPA is important so that you can get all the tax deductions associated with rental properties. You also want one that can give you good advice on how to delay long term capital gains. It is just about imposible to be a successful REAL ESTATE INVESTOR without the proper people helping you.

Millionaire Real Estate Investor

A year and a half ago I read the book ‘Millionaire Real Estate Investor’ by Gary Keller. In that book he interviewed the most wealthiest REAL ESTATE INVESTORS across the country to see why they were so successful. One of the basic themes in the book is to always buy a house with at least 20% equity. Another idea from the book is not buy a house in the hopes for appreciation. If you buy your first rental property with more than 20% equity ,you will be able to do a cash out refinance a year later. You can use this cash to buy your next property. When you own two rental properties, you are well on your way to creating wealth and passive cash flow. I made the mistake of buying a rental four years ago in the hopes of appreciation and now I have to hold onto that house for 15 years or more before I see a nice gain. I wish I would have read that book 5 years ago so I could have avoided a couple of mistakes I made when buying rentals.

How to create 25k in new equity from just 5k

I will now show you how you can own a new rental house with just 5k down. You will need a 620 credit score or above and some verifiable income. I have found many companies out there that will purchase a fixer home at less than 65% of appraised value. They will REHAB the house and put you on title to the house. Once you are on title , you do have to pay this company a 5k fee. Here is an example, you will have a note between you and this company for 75k. They will find you a tenant for this property. Once you have the tenant you go to a conventional lender and refinance that 75k loan into a new 30yr fixed rate loan. Your new payment will be $ 585.0 per month. This will be a nice new REHABED house that a tenant is paying 950.0 per month. You will end up with $245.0 per month of positive cashflow after taxes,insurance and property management. You will also have 25k in EQUITY. Once you have saved up 5k again then repeat this process until you are wealthy.

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