Most folks agree that the real estate bubble popped in June 2006.  Can you believe that was more than five years ago?  Sadly, property values are still falling.  Well, so much for all that “Hope and Change” and “Government is the Answer” nonsense. 

 The way real estate investors do business today looks N-O-T-H-I-N-G like it did back before the real estate market collapsed.  We’ve all learned a lot of life-changing lessons during this downturn.  It’s important that we recognize and remember these lessons. Read More→

Earlier this year, I wrote a column about a three-bedroom, two-bath investment home we bought for $101 (see “How to Buy a Home for $101 – REALLY!!!”).  Needless to say, that column generated a lot of comments like: Holy Cow!  Wow! Unbelievable! And, of course: You’re full of #*%@!

A few days ago, while speaking to a group of real estate investors in Gwinnett County, Georgia, I asked the question: Is a $100 investment home a good deal?  Most folks shouted, “Yes!”  A few shouted, “No!”  The smart ones said: “It depends.” Read More→

At this month’s foreclosure auction, Kim and I were prepared to bid on four properties.  After losing the bid on the Peppermill Drive property to another investor, a new investor asked how we determined our T.O.P. (Top Offer Price) bid.  It was a very good question – one that we’re asked regularly.

Before we bid on a property, I’m adamant that we first do the following:

1) We see the house – both inside and out.  Our goal is to do a thorough inspection of the property to determine an accurate rehab cost. Read More→

Recently, I spoke to a group of real estate investors and was asked this question: “What is the best way to make money in real estate?”  Easy answer: Internal Revenue Code (IRC) 121.

Since most of us aren’t CPAs, let’s look at this incredible way to structure a deal and get tax-free money.  Here are the basics of Section 121: If you are married, have lived in your house for two of the past five years, and then sell your house, you get to keep up to $500,000 ($250,000 if you are single) of the profit from the sale – TAX FREE!  Better still, the IRS says you can do this every two years! Read More→

Lonnie Deals are among our favorite – and most profitable – creative real estate investing deal structures.  What’s a Lonnie Deal?  It’s when you buy a mobile home in a mobile home park for cash and then resell it with owner financing.   Lonnie Scruggs invented this technique, and that’s how it got its name. 

Lonnie got into real estate investing in 1971 at age 41.  He mainly bought single-family homes and rented them out.  In 1986, because he was tired of being a landlord, Lonnie decided to get into the note business.  Problem was, it was hard finding good notes to buy. Read More→

The number of people who are terrified of owning rental property and managing tenants is amazing.  This unfounded fear is the stopping block that prevents MANY would-be millionaires from ever becoming wealthy.

When Kim and I were in our early thirties, our goal was to retire in our fifties.  Not just retire, but to retire with means…enough means to do what we wanted, when we wanted, where we wanted.

At the time – and this is true for most Americans who are in their thirties and forties – our chances of becoming wealthy and retiring early were zero to nil. Read More→

As real estate investors, Kim and I have bought, sold and rented a lot of homes over the years.  One of the most important lessons we’ve learned is to pay attention to price.  Price, especially in this market, determines the “if” and “when” your property sells or rents.  If your price is just 2% or 3% too high, it can cause your home to sit on the market for months or even years.

I know, you’ve always heard that the three most important factors to consider in regard to real estate are location, location, location.  That may be true when real estate values are rising, but in this economy, the three most important factors are price, price, price!

Right now, we have two homes on the market – one is for sale, the other is for rent.  Let’s look at how we market each home. Read More→

As a real estate investing teacher, way too often, I forget how scared Kim and I were when we first started buying investment real estate.  We didn’t know the language, the techniques, the paperwork, the steps – nothing!

For example, in 1997, when we first heard a speaker talk about a creative deal structure called Subject-to deals, I remember writing Kim a note during the presentation that read: No seller would ever agree to this.  It’s got to be illegal!  Boy, was I wrong.  Not only were Subject-to deals legal, they were done all the time.

Fast forward one year: After getting some good been-there-and-done-that education, we were doing Subject-to deals on a regular basis.  Heck, when we bought our horse ranch in Adairsville, Georgia, it was a Subject-to deal. Read More→