Monday, October 25, 2010

You Can't Make Money in Real Estate in THIS Market... WHATEVER!

Here is the true story of how one of my partners and I recently made more than $23,000 in just 10 weeks. And, how one fortunate home buyer was able to buy a home at 30% below market.

My partner put up the money and I did all the work. Then we shared a 77% (annualized) return.

My partner and I bought this home in a good neighborhood in South Charlotte in late July for $140,000. Just ten weeks later we sold this same house for $181,497.

In the interim, we put on a new roof, cleaned the place up, made a few repairs, and got bids for upgrading the kitchen. After spending about $5,000, we sold the property for $181,497.

My partner didn’t have to attend any of the closings. I was there when we bought it on July 28, 2010, he was in California. I was at the closing on October 15, 2010 when we sold it. He was back in California after just returning from Australia and New Zealand.

He didn’t have to pound any nails or take time off from his busy schedule to manage the property or the work. I made all the arrangements and wired him the funds at closing.

After taking out all our costs (including real estate agent commissions) we had just over $23,000 to split between us. That was a 16% cash-on-cash return in just 10 weeks. If you annualize that it is an annual return rate of 77.22%.

How would you like to earn 77% a year on your money?
I meet people every day who, when I tell them that I buy and sell real estate, they tell me that, “You cannot make money in today’s market buying and selling real estate.” I tell them, “Don’t tell that to the guy who partnered with me on this house. He will call you a liar.”
Many people believe that if you make money it is because someone else got ripped off. I don’t work that way, but how about if I give you the facts and let you decide.

How did we get such a great deal when we bought the house?

I won’t kid you, finding really great deals in this market is not easy. There are a lot of houses offered for sale, but not many that are really on sale.
We bought the house from an estate. The heirs had left the house sitting for months and they didn’t want it. They were happy to get an ALL CASH offer that didn’t depend on a bank loan (which is pretty hard to get on a house that needs repairs). When we closed, they took their money and ran away, happy.
When they left, the house was filled with stuff that we had to remove before we could go forward. Also, the roof was in danger of collapsing, so we had to get a crew in there fast to fix the roof. Instead of just slapping on a few shingles, we took it down to the wood, replaced several sheets of plywood and then put on 30 year architectural shingles. Boy, were the neighbors happy to see that!
Did the Buyer get ripped off when they bought the house?

We don’t work that way. We sell houses at below market prices. Here are the facts, you decide.

We removed all the trash from the house, and there was a house full of it. Then we pulled up the carpets and revealed beautiful hardwood floors that had been covered up since the late 60’s and were in fantastic condition. We went out and got bids on upgrading the house to current standards. We negotiated those bids down from $60,000 to $42,000 and then passed those on to the new buyer at closing.

If they do the upgrades, the house will be worth about $260,000 right away. So, do the math. They paid $181k to buy the house. If they pay $42K for the upgrades, the property will be worth $260K. They will have $223K into a house that is now worth $260K. That is more than $37,000 in owners equity, beyond what they paid. In other words, after everything they will have bought the house for 14% below market value.

Why pay retail when you can buy below market?These buyers bought this house for
30% below market value!
When they complete the upgrades they will still have bought the home for
14% below market value!

Why pay retail when you can buy below market?

Are you tired of seeing your 401K turn into a 101K?
You need to learn how to get your money working for you!

Are you tired of seeing your IRA acting like it has retired before you have, in spite of the money you keep putting into it?

Robert Kiyosaki, the author of Rich Dad Poor Dad has correctly taught people that financial independence is when your investments earn enough to pay all your bills. Then you are no longer dependent on your job and your boss. You need to make investments that consistently earn money for you at double digit rates!

Real estate is the thing that has made more millionaires than any other business in history.

Any investment advisor will agree that you should always buy low and sell high in order to make money.

Right now real estate prices are the lowest they have been in decades!

This is the time to buy real estate.
But, if you don’t know real estate and local markets you could still end up losing money by making bad buys. For your money to make money for you in real estate, you need to partner with a seasoned real estate investor who knows the local markets and knows how to make money in real estate no matter what the market is doing.

Our company has been actively investing in real estate in the Charlotte market since 2001. We didn’t get hurt by this big market downturn because we always buy our real estate the right way. Our systems, processes, and expertise allow us to find the really great deals and make money on them.

We are actively seeking to expand our network of investors and potential partners. If you want to take advantage of the BEST REAL ESTATE MARKET IN DECADES, but are afraid you don’t know enough or you don’t have enough time to learn what you need to know, don’t worry, just contact us. We will help you get started making your money make money for you.

No one cares more about your money than you do!

We are more conservative with our partners’ money than we are with our own.

If you are sick and tired of seeing your investments go into retirement long before you do,

call us today for the cure.


Leave a message for us 24 hours a day at 704-900-1488
We will call you back within one business day.

Tom ~

Why Pay Retail for a Home or Investment Property?

See my latest video about what we do at The Gold Seal Homes Group:

Thomas K Sheppard has been successfully investing in real estate since 2001. A veteran of the US Marine Corps and more than 17 years in the banking industry, he is focused on helping 100,000 families to find quality, affordable homes. He buys, sells, and rents homes in the Charlotte, NC metropolitan area, including Mecklenburg, Cabarrus, Rowan, Union, and Gaston counties. If you are looking to buy, rent, or sell a home, condo, or apartment in those areas, or would like to learn about how you can help 100,000 families find quality, affordable homes, contact him at or visit his website