Archive for the ‘how to make money renting housing’ Category

Making an Offer on a Townhouse and Mulitple Careers

Wednesday, June 18th, 2008

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House Shopping

I am making an offer on a fixer-upper townhouse. It’s a 2 bed 2 bath unit in a row of about 10 townhouses, where I already own another townhouse. It’s not the proverbial “worst house in the best neighborhood” but it’s located in a mixed lower-middle to middle-class neighborhood where there is good demand for housing.

They are asking $115,000 and I am offering $100,000. I’ll let you know how it comes out.

One Person/Multiple Careers

I began reading Marci Alboher’s intriguingly entitled book One Person/Multiple Careers. It’s interesting to read about other people doing similar multiple careers to what we part-time real estate investors are doing. I’ll post a review of the book here soon.

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Real Estate Investors and Recession

Saturday, June 7th, 2008


Do you worry about getting through the recession with your fixer upper house business intact?

Check out my ezinearticles.com piece entitled Proactive Responses to Recession – 7 Creative Ways to Make Extra Money With Real Estate.

Looking for motivation to get started in the  Fix em Up, Rent em Out business?

Just Follow Your Dreams.

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Five Questions to Identify Motivated Sellers

Friday, April 18th, 2008

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Thinking about buying an investment property?

Check out Real Estate Investing – The 5 Magic Questions at ezinearticles.com, by Robert Rentalman (yes, Rentalman).

The MARLA formula consists of 5 magic questions that will help you quickly weed out the motivated sellers from the rest of the pack. MARLA is an acronym for Motivation, ARV (After Repair Value), Repairs, Loan balance, Asking price. For more details on the 5 magic questions, take the link above.

Info on Terry’s Book

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How to Publish a Book on Real Estate Investing, Part 1

Friday, October 5th, 2007

Let me warn you, writing and publishing a book is like eating a giant piece of beef jerky. It’s rewarding, but it takes more time than you think.

Now that I am in the final stage of this long process, for my book Fix em Up Rent em Out, I can pass along my experiences by writing and self- publishing a book. (As a 2012 update, I have recently published a second book entitled, “Carve Out Your Niche,” which describes how to self-publish and promote a book.)

My initial thought was to write a book about what, to me, was a rewarding real estate experience. I wanted to inspire others to get started in the real estate investing, and to share the shortcuts and to point out the pitfalls of the business.

But, I wanted to do it the same way that I did real estate investing, by learning all aspects of the process and doing it all myself.

The actual writing of the book took 2-3 years in starts and stops. I did most of the writing late at night when my wife and kids were asleep. There were long stretches of time, between periods of writing, when I didn’t think I would finish. At times, doubts crept in and I wondered if I really wanted to publish a book.

What finally convinced me to finish was a book I read entitled “Aiming at Amazon” by Aaron Sheppard. The old way of publishing a book was to print off thousands of copies to reduce the per unit cost, then sell them at bookstores and workshops. The new way, that Sheppard describes, is to sell the books through web bookstores like Amazon.com and to have the printer only print books as they are needed.

Part II of “How to Publish a Book on Real Estate Investing” will follow in the next blog posting.

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How to Learn the Skills to Repair Houses, part 2

Wednesday, September 26th, 2007

This of Part 2 of my reponse to a question asking, “My background is not in the building trades. How do I learn the required skills to start a business in repairing houses and renting them out?”

How to learn the appropriate skills:

3. Draw on the Past

After I got more involved in the repair work of our houses, I thought back about how my father had taught me a lot by example. I recall seeing him construct screened-in porches on various houses that we had lived in. I was too young to help out much at the time, or to appreciate what he was doing, but looking back I realize that it required a strong desire to learn the basic principals, and a sense of self-confidence to build it. He had no formal training in construction, and didn’t have reference books like I do, but he learned by observing other porches that had been built in the neighborhood.

I also have a friend who has made a career out of living frugally. He does virtually all of his own house repair and car repair work. If he gets stuck, he goes to the library and finds books to help him. It helps that he has a background in teaching vocational eduction. We have helped each other with house repair projects over the years, and he is a source of practical advice when I need help.
You too may have family members, or friends, that you can draw insight and inspiration from when it comes to making repairs.

4.Create a House Repair Library

I like to scour the fix-up book areas at used book stores for good buys. I buy a book as soon as I see it if I know that it has valuable information. In the past, I have waited to purchase the book only to return later and find that the book I had wanted was gone. The price you pay will literally be a drop in the bucket compared to the money you will save. I have books on almost every possible repair topic, including electrical wiring, plumbing, flooring, you name it. Some books that offer information on a wide variety of repairs, such as Reader’ Digest “Fix-it Yourself Manual” and Better Home and Gardens Complete Guide to Home Repair,” are also good to have. See my earlier blog for more infomation on recommended repair books.

When a book is not enough, I can usually get good advice on specific jobs at hardware stores, like Ace Hardware. And, you can sometimes get advice on difficult repairs by doing a Google search.

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How to Make Money in Real Estate – Stick to the Basics

Friday, September 14th, 2007

One of the surest ways to make money in any endeavor is to follow in the footsteps of other successful people. Astronaut Neil Armstrong followed in the steps of John Glenn. Comic actor Ben Stiller followed in the steps of his show biz parents Stiller & Meara. The same is true in real estate. Plenty of people have gone before us.

Buying lower-priced fixer-upper houses, using your own time & effort to fix them up, and renting them out has been a tested and true path to generate wealth & security.

The four chief benefits of purchasing fix-up houses are:

1) if you buy a house in need of repair, a fixer upper house, you pay less for it than for a house in good shape. Since you paid less, you can take out a smaller loan and have lower monthly payments.

2) By doing repairs yourself (as much as you are able to), you save the money you would have paid others, and you learn new repair skills.

3) By renting it out, you get a house that is constantly increasing in value (by an average 5% per year) the same time the rents are going up.

4) When you get older, your loans will be paid off (or close to it) and the rental income you receive are like a pension for your retirement.

Granted, it is hard work to find a house, make repairs and learn how to deal with tenants. But you also learn valuable technical and people management skills that you can use in other parts of your life, and pass along to others. Mostly, there is a great sense of satisfaction in your accomplishments, a stronger sense of security, and more income, which means more freedom.

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