Realty411 Magazine Feautring Memphis Invest | Page 8

If Single Family Homes Are Such Great Investments, Why Do Most ‘Investors’ Still Go To Work Every Morning? W by Dave Lindahl ouldn’t you love to discover how to make $9,700+ in passive income month after month… and how to reap huge positive cash flows from real estate – with less risk, less money down, and no tenant headaches? I’ll tell you what, if you want to collect an automatic monthly income of $9,700 or more -- without having to get up ev- ery morning and “go to work” – then you need to know that most real estate ex- perts are giving you the wrong advice! See, they rave about buying and selling single family homes, but they don’t tell you about the risks and downsides. They no income. That’s not financial freedom. 4) The government takes 33%-50% of your profits! When you hold houses for less than a year, your profits are taxed at the painfully high rate of “ordinary income”. Com- pared to my approach, you have far less cash to roll into the next property. The result: it could take you twice as long to attain financial independence. When you’re flipping houses, you’ve got to keep working to earn your next “paycheck”. don’t admit that single family homes are poor investments for passive income... for attaining real financial freedom. Now don’t get me wrong, if you can wait a few years for your upside, single family homes have a history of appreci- ating nicely. And if you’re happy making one-shot profits, flipping houses can be an exciting business. Over the past eight years, I myself have bought, rehabbed, and/or sold 422 houses. If you can pull it off (despite the risks), you can make a big profit in four to six months. It can be a good business model. But it’s not financial freedom. When you’re flipping houses, you’ve got to keep working to earn your next “paycheck”. You’ve got to keep market- ing, buying, renovating, and selling. This is the life of a “house flipper”; 1) You’re at the mercy of contrac- Realty411Guide.com tors. Most bargain homes are in disre- pair. You’ve got to renovate them, but most contractors are unreliable. You’ve got to oversee everything they do, or risk paying for their mistakes. And the good ones are always booked up for months in advance. 2) You lose money for four to six months. That’s how long it takes to fix up a house and resell it. When your con- tractors drag their feet, you’re left help- less and stressed out. Every day your house sits vacant, your bank account is further depleted by loan payments, taxes, insurance, and utilities. 3) Your job never ends. When you finally sell, you’ve got to start all over again, marketing, negotiating, and over- seeing your contractors. If you take time off, or can’t work for awhile, you have PAGE 8 • 2011 If you’ve read the best-selling book Rich Dad Poor Dad, you understand that income-producing assets are the key to financial freedom. You also know that Robert Kiyosaki (the book’s author) built his personal fortune through buying and holding real estate. Unfortunately, Kiyosaki doesn’t go into detail about how he selected, man- aged, or sold his properties. That’s why I’m writing, “The Real Secret…Apart- ment Buildings And How To Manage 642 Units With One Phone Call Each Month!” Today, I own 33 multi-family apart- ment complexes, with 7,322 units in all. Yet, I never deal with a single tenant, their complaints, any repairs, or vacan- cies. My carefully chosen property manag- ers handle 100% of the tenant manage- ment. I have one phone call per month reWEALTHmag.com