Hard or easy: find out what the pros say about real estate investing for beginners.
Maybe you’re thinking about a little real estate investing for beginners, now that you’ve made your fortune on the baccarat tables in Monte Carlo. Realistically, if you’re like a lot of folks, you just want to find a way to make money that doesn’t involve rising at the crack of dawn every day and driving to a job you hate. Believe me, we get it. Real Estate Investing for Beginners The fact is, there are real estate professionals who follow a simple strategy for flipping homes, and they’re making very nice six-figure incomes (or more) in the process. Real Life Deal Here is a deal that one of the most successful real estate investors in the country made not long ago. It involved flipping a home in a nice Cleveland, Ohio neighborhood.
| Purchase price…………………………………………………………….. | $57,000 |
| Improvements and repairs……………………………………………….. | $26,000 |
| Total investment…………………………………………………………… | $83,000 |
| Private money loan (funds loaned to buyer to purchase home)……… | $87,000 |
| Cash in pocket up front…………………………………………………… | $4,000 |
| Estimated sell price (based on neighborhood market values)……….. | $144,900 |
| Gross profit potential (estimated sell price less total investment)…… | $61,000 |
| Net Profit Goal…………………………………………………………….. | $40,000 |
| Actual Sale Price………………………………………………………….. | $132,000 |
| Net proceeds after deducting closing costs……………………………. | $119,200 |
| Adjusted gross profit (net proceeds less total investment)…………… | $36,200 |
| Private money loan interest (12% over 7 months)……………………. | $5,810 |
| Net profit after all expenses……………………………………………… | $30,390 |
As you can see, the investor used a private money loan rather than his own money to buy the home. In addition, he did not do any of the improvements or repairs himself. And yet his net profit was nearly $31,000. Imagine doing ten or twelve of these kinds of deals each year, and it’s easy to see how a six-figure income is attainable. Check Out This Video to Learn More One of the best learning tools is watching and learning from a mentor.
Check out this video we made showing a real life deal - a perfect lesson in real estate investing for beginners.
