Chapter One
Build Your Real Estate Wealth on Other People's Money
More fortunes are built in real estate on borrowed money than in any other popular business. And you can build your fortune in real estate using borrowed money-if you follow the tips given in this book. How can I make such a statement?
Thousands of my readers write, call, fax, or e-mail me telling how they're building their wealth in income real estate using borrowed money to start. Many of these readers do this by following the tips in one of my books, newsletters, or courses. Their letters, calls, faxes, or e-mails prove to me that you can make big money in real estate today, starting with money you borrow from others.
Here are three letters showing how Beginning Wealth Builders (BWBs for short) get started in income real estate on borrowed money. (The state or country in which the BWB letter writer has his/her real estate is given at the end of each letter.)
(Note: "cashed out" means the buyer received $5,100 at the closing of the purchase.)
If you'd like to examine any or all of the letters cited in this book, just give me a call on the phone. You'll find my telephone and fax numbers listed in the last paragraph of the last chapter (Chapter 12) in this book. Please allow us a day to assign you a desk in my Manhattan office where you can spend as much time as you wish examining the actual letters-just as we received them.
Invest in an Item of Lasting Value-Income Real Estate
Buying a piece of real estate or dealing with a piece of real estate allows you to work with an item of lasting value. Why is this? Because the land on which the real estate value is based will never go away. It is there forever. So, too, is its value.
I know you can tell me that in some sections of the world the land falls into the sea and disappears. This is true. But the amount of land to which this happens is such a small percentage of the world's total that this event can be ignored. (And I assume that you have enough sense not to buy such land!)
Recognize the Many Pluses of Real Estate
All real estate has a certain basic monetary value that usually rises as time passes. But there are other advantages, besides the usual rise in value, to making your fortune from real estate. Here are some typical advantages:
In real estate, you are in a "borrowed money" business; this means that it is easier for you to start by using Other People's Money (OPM)-even if your credit is not the best when you start.
In most real estate deals, little of your labor or time is required for the usual piece of income property.
As a property owner, you are entitled to and can enjoy enormous legitimate and legal tax savings on your real estate income.
Almost all real estate is an excellent asset on which you can borrow more and more money as your property rises in value (money to buy more and more income-producing property!)
Nearly the entire world is in the midst of a real estate boom; hence your property will almost always rise in value with the passage of time.
You can wheel and deal in hundreds of ways in real estate to reduce the amount of money you need to borrow to get started.
When you pick your properties carefully, failures are almost unheard of in real estate income property holdings.
You'll tell me, I'm sure, that there are many other advantages you will enjoy while you build your wealth in real estate using borrowed money. Good. This shows you know your goals and you are ready to work towards those goals.
Speaking personally for a moment, I have been a real estate investor/entrepreneur for a number of years while at the same time I run several other businesses and work as a consultant for a Fortune 500 firm. Although I make good money from my other businesses and earn comfortable consulting fees from my regular career, nothing can equal the advantages that my real estate investments give me. I own real estate, while at the same time I:
Serve as director of a large money-lending organization annually making millions of dollars of real estate and other types of loans.
Regularly do writing services for some major firms.
Plan and publish two internationally circulated and respected monthly newsletters covering real estate and business financing.
Author-that is, write-one or two new books a year.
Market some 15 marine products to boat owners all over the world.
Give lectures in many parts of the world to businesspeople and Beginning Wealth Builders (BWBs) and Experienced Wealth Builders (EWBs) on real estate and business.
Enjoy a great family and leisure life.
And I am fully convinced that you, too, can have many of the above joys. So I am giving you in this book what I believe are the essential keys to becoming rich in real estate using borrowed money to finance your fortune.
The tips I give you in this book are based on my years of personal experience in the fields of borrowing money, lending money, investing in real estate, and seeing that real estate rise in value, year after year. You, too, can do the same-or even better than I have done!
Build Your Real Estate Riches Minute by Minute
As I mentioned earlier, hundreds of people contact me each year to tell me of their adventures in real estate. Here are several more typical letters written to me by some of my readers. One of these BWBs was able to take over property worth more than $1,400,000 with zero cash down! Read these letters now to see how you, too, might do the same for yourself!
(MIF = Positive Cash Flow you can bank with no claim on it other than yours!)
What do these letters show us, my good friend? They show you and me a number of important concepts that I've been preaching for many years, namely:
Income property can be bought on zero cash.
BWBs can make money with 100 percent financing.
You can get help as a Beginning Wealth Builder.
Wealth-building deals are available today.
Any BWB can wheel and deal on prices.
Knowledge does pay off in real estate-I told YOU so!
Finding a good property encourages you to look for more.
You have a great future in real estate-if you work at it!
By including the letters above, I am trying to show you what actual, real people are doing these days. And you, too, I believe, can do the same! But YOU must work at it and YOU must:
Keep trying to build your real estate wealth-never give up!
Plan to achieve what you want in real estate-and then work your plan!
Know there is a property for you. You must keep looking until you find it!
Wheel and deal whenever you can-it's fun and profitable!
Decide to learn all you can about the real estate business!
Now you know that it is possible to take over real estate for very little money down. Or, in some cases, you can take over real estate for zero cash down. This is one of the greatest advantages that real estate offers the BWB today.
Please keep in mind that all the examples you will read about in this book are drawn from the actual experiences of living, breathing BWBs. So they reflect real-life experiences. What's more, I keep the actual letters in a bank safe deposit box. But you are welcome to read them in New York City any time you wish. Just give me a few days' notice and you can study them as long as you want.
Start-Ups Win in Almost Every Real Estate Deal
Forget about needing a college education to make it big in real estate. I know thousands of people who are actively earning big money in real estate today. Few of these people have ever seen the inside of a college classroom. Many of them have never even been on a college campus, and a number of them could not produce a high school diploma if asked to do so. Yet they are earning large incomes from their real estate investments. I firmly believe that you, too, can do the same-with or without a formal education.
You do, of course, need some basic know-how in real estate. It would be foolish to try to take over income property, make real estate deals, or start a real estate investment company without knowing what you are doing. But in real estate, you can learn while you earn, because:
Most income properties are easy to buy and run.
By hiring an accountant and an attorney to help you with the business and legal aspects of your real estate you can avoid problems.
Help is easily and readily available from thousands of people in real estate who are ready to assist you when you have questions about your real estate plans.
You will gladly learn more about how to increase your income when money is flowing into your bank from your rental properties.
Do not call me, e-mail me, or write me to say, "I don't know what I am doing; hence I can't make money in real estate!" This is a give-up excuse that only annoys me. Please do call or write me, and I will be glad to try to help you, if you're trying to build your real-estate holdings. But I will refuse to try to help you if all you want to tell me is about the number of times you tried to do something and failed. What I want to hear about is the number of times you tried to do something and succeeded, like these readers who wrote:
Triplex with No Cash Down and Cash Back at Closing
"Purchased a triplex with no money down and cash back at settlement for rehab. Seller said it was the best deal he had ever seen!" -Maryland
Three Pieces of Real Estate with Zero Money Out of Pocket
"I just purchased my third piece of real estate with zero money out of my pocket. Two properties are rental homes with about $200 positive cash flow per month each. Third house is our dream house. All these have a value of $160,000 and were purchased with zero money out of my pocket-well almost, the last home I put about $300 out of my pocket for $80,000. I am presently employed as a firefighter and I found rental properties are a great second job. I am starting my 22nd year as a firefighter; so retirement is not far away. I plan on taking your advice and double my real estate holdings every two years or sooner. I am only 43 years old and will be in my early fifties when I retire. I will need the extra income!" -Oklahoma
I'm the First to Say Zero Down Deals DO Work
"After reading several of your books I purchased several real estate units. I currently own three up-and-down doubles and I'm working on a deal to buy two townhouses. The owner is willing to refinance these townhouses and sell them to me on a land contract. Some people say 'no money down deals' don't happen. I will be the first to say they do!" -Ohio
From $1,000 Borrowed to $225,000 Value
"I read two of your books and followed your advice for the purchase of two beautiful properties in New Jersey. I bought the first one, now worth about $225,000, with a borrowed $1,000 down payment. I am now ready for more substantial propositions." -New Jersey
Apartment Building for $500 Down
"I purchased one apartment building for only $500 down and $500 closing (it was a repossessed building) using the method Ty gave in a recent issue of his Newsletter. I am now negotiating for four more buildings from the same bank." -Texas
Another $500 Down Nets $8,000 Profit
"I have three of your books. Because of your inspiration my wife and I bought a building eight months ago for $500 down and recently sold it for a net of $8,000. Thank you for your help." -Minnesota
Speedy Results Are Possible in Real Estate
My education is as a mechanical engineer. After graduating from engineering school, I obtained my license as a Professional Engineer. For a number of years I worked as a consulting engineer. During my education and my consulting engineering activities, I always enjoyed working with numbers. All of my business life has been directed toward numbers, such as the six classes of numbers I look for in real estate, namely:
1. The four numbers I need from you to advise you on whether a proposed real estate investment in income real estate will be profitable for you. These numbers are: The Price, The Income, The Expenses, The Down Payment. I call these numbers the P, I, E, and D of investment real estate.
2. The precise numbers of making a fortune in real estate using borrowed money (you will see these numbers later in this book).
3. The average number of hours it takes to build a real estate business that has $1 million worth of income property.
4. The usual number of weeks or months it takes to acquire a typical income property.
5. The happy number of dollars you can "walk away with" each month from each income property you own.
6. The very small number of errors I have seen BWBs make in the income real estate business.
When you analyze an investment in advance and have good legal advice, these numbers are all in favor of you, the BWB in real estate. Why do I say this? Because the numbers that give your time input, money input, energy input, and "worry" input are all very small. But the numbers that give your chances of being successful and the income that you can earn are very large! Listen to the following BWBs who wrote to me:
$1.2 Million in Assets on Little or Zero Cash
"I have benefited substantially from many of your real estate books. I now own 20 properties (78 units) with a value of over $1.2 million. All these properties were bought with little, or zero money, down."
Continues...
Excerpted from 209 Fast Spare-Time Ways to Build Zero Cash into 7 Figures a Year in Real Estate by Tyler G. Hicks Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
