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.

704-699-6080

Or

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?

http://www.buybelowmarket.com/

See my latest video about what we do at The Gold Seal Homes Group: http://www.youtube.com/watch?v=ACJx3wpKezQ

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 tsheppard@adbproperties.com or visit his website http://www.buybelowmarket.com/.

Wall Street Woes Mean Main Street Opportunities

A hedge fund manager, Andy Kessler, recently opined in The Wall Street Journal that, "Wall Street firms are actually down close to 15% for the year" and "Wall Street faces headwinds that will force its hand. We are at the bitter end of a 30-year interest rate cycle. Declining interest rates are the ideal environment for economic growth." [What's The Matter With Wall Street?]

So, how are declining interest rates and a declining Wall Street turning into "Main Street Opportunities?" When the stock market has to rein in its wild claims of gains, ordinary investors do better. When the stock market is riding high, many people (and their money) are lured into investing in stocks by the promise of large gains, especially fast ones. Of course the reality is that the only people making large gains are those who bought the stocks before the big run up and are now selling them to the average investor and pocketing wads of cash.

If the market has to dial back its expectations, investors are more likely to turn away from the siren song that wrecks them and pay attention to investments that seem a lot less sexy, but which actually are consistently producing better returns for investors. I am talking here about private mortgages and private lending.

What Happens to Your Money in the Stock Market? About ten years ago if you had put $10,000 into a stock fund that mirrored the Dow Jones Industrial Average, ten years later, you would have about $9,540 in your account. Zero growth in ten years. How is that possible? Because ten years ago the Dow was at 10,000. After that it went down and stayed down. Only recently did it climb back up to 10,000 again. Which means you would have had a decade with negative or no earnings.

What Happens to Your Money With Private Lending? In contrast, if ten years ago you had put $10,000 with a real estate entrepreneur as a private mortgage at just a 7% interest rate, ten years later you would have about $18,385. That is 80% more than than you would have in your stock market account. Which would you rather have, a $460 loss after ten years or an $8k gain over ten years? Why the huge difference?

Investing in dull and boring real estate private lending actually harnesses what Albert Einstein called "the most powerful force in the universe," compound interest.

Keep It Simple Silly - most real estate entrepreneurs prefer to keep things simple. They like simple interest and they like interest only. That means when you lend $10,000 to a real estate entrepreneur, most of them prefer that the loan is interest only and better yet, interest is paid annually instead of compounding. It makes it easier for them to keep track of costs of funds and it lowers their outgo slightly. For you it means you have a simple interest income calculation on your taxes. Then when the loan is paid off, you can clearly see the gains and the return of principal. Then you can do it all again.

In many cases, real estate entrepreneurs are looking to use your money for a year or less. Some may put it to work for longer periods. You decide if you want to keep getting it back and putting it back in, or if you like having it sit there and earn steady money for you. Either way, you can be in control.

What Real Security Looks Like One of the best aspects of this kind of private lending is the security you get compared to stocks. When you buy a stock, the value can fall to zero. Just ask those who held GM stock when it went bankrupt and was bought by the government. In contrast, when you invest in real estate you get a mortgage or a deed of trust on a real house. And the house is insured with you as a named beneficiary. This means that if the borrower stops paying you back, you can take the house. You can live in it or sell it, as you choose. If the house is destroyed, the insurance will pay you back what you are owed. Either way, you have significant and real protection against loss and your investment is unlikely to become worthless. You have no such protection with stocks.

Banks Are Doing it With Your Money Right Now If you are putting your money into certificates of deposit (CDs) or other savings accounts at banks, the reality is that you are already taking all the risks of lending to real estate entrepreneurs and getting none of the returns. Lending to real estate entrepreneurs for centuries has been the lifeblood of the banking industry. They take your deposits, pay you a few pennies of interest, and lend them out to real estate entrepreneurs and make dollars of interest - for them, not you. In recent years bankers too were lured into wild and risky investing schemes using derivatives and other arcane and complex calculations. Soon they will return to their roots, robbing you of your earnings by lending your money out to others. I suggest you rob them instead.

Cut them out of the lending game and take the gains for yourself. Become a private lender today and turn Wall Street Woes into Main Street Opportunities. For some free info on how private lending works go to http://www.robthebanklegally.com/. But, before you do that, go back to the paragraphs above on "What Happens to Your Money..." and add a zero to the end of each number. Then you will see just how powerful this private lending can be.


Tom ~

Why Buy Retail?

http://www.buyahousebelowmarket.com/

See my latest blog about what we do at The Gold Seal Homes Group: http://www.youtube.com/watch?v=ACJx3wpKezQ

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 tsheppard@adbproperties.com or visit his website http://www.buybelowmarket.com/.