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You’ve Been Lied to About Real Estate Investing

Wholesaling real estate is by far the fastest path to real estate investing wealth. You’ve seen the investors on TV buying, fixing and selling property because it looks good. It looks fast, crazy, risky and exciting – all the reasons why it’s been on TV. What everyone fails to tell you is that it’s very risky, it’s time consuming and it’s not the most profitable residential real estate strategy you can do.

Don’t get me wrong, buying, fixing and flipping real estate is extremely profitable it’s just not for me and it’s most likely not for you. Here’s why you should not look into flipping a house.

Shocking? I know!

Everyone wants to flip a house because they see it on TV but what you don’t see on TV is what you need to be doing. You need to wholesale houses because you can get started today, right now with little to no risk, money and investing experience.

Wholesaling real estate doesn’t make for the best TV so this is why flipping houses has been all the buzz. We love the drama and we love watching to see if the house flippers will flip the house with a profit or will someone go wrong!

Everyone has enough drama in their life that we need to skip and focus on making the money. Focus on businesses that will yield the highest profit without being too risky.

And That Business Is Real Estate Wholesaling

As a wholesaler you’re in the business of connecting someone who is selling a house with someone who is buying a house and you get paid a ridiculous fee for doing so.

Now you’re not a Realtor and you’re not listing houses for sale. That’s not the cash producing strategy of wholesaling real estate.

You want to find distressed properties who are owned by someone who needs to sell the property immediately. The property is a burden and the worse it looks the better the deal you can negotiate.

Evaluate the property and agree to buy the house with the seller. Find a house flipper – someone who we love to watch on TV buy, fix and sell real estate.

Tell them you have a great deal for them. You have a distressed property with a motivated seller and they’re make tens of thousands on the deal when they can flip it, you just want you’re wholesale fee.

The house flipper will gladly pay you a wholesale fee if they’re going to make tens of thousands and the person selling the house gets their house sold. Everyone wins!

You introduce the house flipper as an associate of yours the seller when they actually buy and close on the property.

Everyone Wins

The house is sold – the seller wins!

The flipper gets a solid deal – the house flipper wins!

You brought the two together and made a nice profit – you win!

Wholesaling real estate is easy to do. It’s all about finding deal after deal. Wholesaling house day in and day out. There’s no risk and you can wholesale an extreme amount of houses whereas a house flipper can only flip so many houses and they’re taking on all of the risk.

Rethink your strategy and save the drama for someone else. You know better – become a real estate wholesaler today!

What’s in an Investment Newsletter?

When an investor receives a newsletter full of stock tips and information, the first instinct is to act quickly on the information in order to make money before anyone else does. However, scam artists realize that investors like to make decisions in a short amount of time and capitalize on this impulsiveness. This is why newsletters work so well to lure in new victims.

There are several things that investors can do in order to protect themselves from bad information that may be found in newsletters, emails, or text messages. First of all, the source of the newsletter needs to be acknowledged. This will give the reader a clear idea as to who might be benefiting from the sale of the stock. Disclosures of the information that are nonexistent or difficult to find might be a clue that the newsletter has other motivations for their advice.

Any newsletter or publication that advises you to invest in small stocks that aren’t filing reports with the SEC should be carefully scrutinized. These kinds of stock tips are trying the famous ‘pump and dump’ scheme in which a little known stock is strongly advised, causing many investors to invest their money in the stock. The demand for the stock then goes up, along with the prices. However, the scam artists will then sell off their shares of the now-high priced stock, leaving the investors with a loss for their initial investments. These kinds of small stock are almost guaranteed to be scams or stock that won’t do well.

Researching the source of the information is strongly suggested as any holes in the story may be signs of a possible scam. By going to the SEC, the NAAD, and the local regulatory committees, an investor can see where the stock’s company is registered, if they are registered, and even take a look at their financial reports. Asking a lot of questions is the best way to get a fair picture of the stock and how it could perform for the investor.

The local state securities regulator can give an investor a wealth of information about a newsletter. In some cases, the newsletter may have been sued by the SEC and that information is then kept on record. Newsletters that have a history of this litigation may need to be looked at more carefully. While this doesn’t necessarily mean that the newsletter is false, it may point to a valid concern.

The reason why newsletters aren’t being shut down and regulated is because they are generally considered under the freedom of speech amendment, leaving the responsibility for good or bad information squarely in the reader’s lap. These newsletters can not be prohibited outright, but only scrutinized for their accuracy.

Just like spam emails, newsletters that are unsolicited are generally not full of good advice that an investor should take to heart. As with any advertising, these newsletters are trying to seduce an investor with promises that will not be fulfilled. However, with a little research and time, the truth of the newsletter can be clearly seen and information disregarded.

The Top 2 Reasons You Should Invest in Residential Real Estate

What is the number one reason you should invest in residential real estate? Since the colonization of North America, no other economic asset has produced as much wealth as real estate. And, no other asset has produced as many millionaires as real estate. Ask the likes of Leona Helmsley, the Springs Clan, George Washington, John Jacob Astor, Sam Zell, and others (a number of which are billionaires). They all made their millions in real estate and most had all or at least a large part of their wealth in real estate.

Besides reliability and consistency producing more wealth than any other asset. You should be considering residential real estate for a lot of other good reasons. First, what other asset provides an education in how to care for it in the general every day activities that we all cope with. Paying the gas bill, or electric bill, or water bill are part of having a home and are part of owning residential real estate. Maintenance issues like roof replacement, rotten wood repair, fixing the plumbing, unstopping the toilet, repairing broken locks, and so much more are simply part of every day life and… part of managing residential property. While you may never have leased a home or an apartment to a consumer, the odds are very high that you have completed this exercise yourself and are familiar with the questions asked, the background and credit checks completed, your liabilities if you failed to pay and what the process would be should they have to evict you. You probably already know when rent checks are due, when they are late, and what will occur if not paid on time. You have an idea how to report a maintenance request even if you don’t know what to do with it when you receive it. In fact, you’ve spent a good part of your life to date learning the ins and outs of residential real estate operations and management. Additionally, as an American, you likely already know some or even many of the programs available to you to purchase a home and you have some sense of the loan process you will need to complete for the purchase. What other business can you think of that without additional professional training that you would know so much about?

Because of these two points, no one has created as much wealth as in housing and there is no business you know so much about, you should very seriously consider making residential investing part of your asset portfolio.