How Much Can You Really Make
I read the book on real estate investing, it said that you can make at least 40K-$100K a year buying, fixing and reselling foreclosure homes. My question is in reality can you really make that much?How many property do you have to flip per year to make at least $40K? for those who are landlarding full time, how many property do you need to own in order to generate a decent income?
Well its not like its a job with a fixed income per hour or week or month. How much you can make is a function of your drive, your creativity your brain and your personality. It is possible to make $40k on a single flip but I really don't recomend this as a career choice if you think its going to be about short hours and big money. All the people I know who are best at this business do it as much to avoid things they dislike as to make money.
REI is not all about money! It is more about the freedom to do things you are not able to do now. What do you want to do that you cannot afford to do now? Can you take a months vacation to Europe? Hawaii? Australia? Or even around the United States? You can make as much or as little as you like if it will support your lifestyle.
I would have to agree with Michael, REI, for me started out as a supplemental income for my retirement. After doing this for over 15 years. I now am more selective in my investing. I have switched gears a number of times over the years.
For a number of years I was afraid to buy, fix, and sell. Now I do that on every other house. In reality you can make make that. The question should be can you make that in the market where you are located?
I am in the market where you can buy very cheap and if you can fix the house up yourself you can make anywhere from $15K to $40K on a deal.
I only buy when I can pay cash, fix up with cash, and can hold until house is sold. So I must take into account all factors before making an offer.
Sometimes I wish I was in a higher end market but I'm not so I adjust to what I have.
To answer your question about landlording. That wuld depend on your standard of living.
Lori
[addsig]
I agree. I only need $600/ month to continue my present lifestyle (roof, food and a cell phone) so two or three rentals will cover my nessecities. however I would very much like to go on vacation and do some fun things with my wife and buy a new computer, so I need to keep going to reach what I want. But if you cash flow $200/month and don't have to work 10 hrs for it that is decent income. On rehabs I think you should net no less than $15k less than that it is getting to where it isn't worth your time. However, $15k on a $300k property isn't worth the risk.
$10k on a $40k property would be wonderful.
In other words your risk has a lot to do with what you should make.
Good luck.
Josh
[addsig]
JVYHOO:
The sky is the limit. It all depends on how much you put into it. I know investors who make $100k a year just doing it part-time and others who make $1,000,000 a year.
The key is education. You have to educate yourself. If you wanted to be a dentist you would go to school right? Well guess what, most investors I know make more than my dentist!
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 04/20/2004 ]
It depends on you. If you play with big properties you can make larger returns. If you wish to play small, that also is possible. If you wish to play quick, buy and get rid of it at once, why that also is possible.
The main thing is you are the boss, if you screw up you can only blame yourself. You push no timeclocks and you dress only to conform with your clients. Simple Brooks Brothers. Slacks, Shirt striped, blue, pink, white. A sweater light weight and shoes. The shoes must match people notice things like that.
If you go into a bank for a meeting. Put on a jacket. Be very casual always put your hands into the sleeves dont just wear the jacket as a cloak. People will think you are show business or an agent or even worse a producer. Right now all Producers are suspect, something about a disease that has broken out among the actors of a certain genair.
Be conservative in your language, use thee and thou. Never discuss religion unless the client is a Cao Deo Sect Member. Then compliment them on having Victo Hugo as one of their saints.
When some recent flipper describes the jproperty for which he paid five times too much. Smile and wish him well, also give him your card with instructions to call you when his equity fanishes under the onslaught of an increase in interest rates or a continued failure of the Iraq population to adopt Jeffersonian Democracy below Tribal Chieftan level.
The sky is the limit and small chump change can also be had. It depends on you. Not the books you read or the glib purvayors of courses tended to increase your adreneline levels.
Just do it. Every day. Lucius 8-)
This is a good post....from alot of qualified individuals. I am taking note myself, for I want to be able to do this full-time myself someday. It is good to hear from people with a positive outlook on investing, and that can say, 'YES...IT CAN BE DONE!!'
Thanks !!!
Chris G
Yes it can be done! I have been investing full time now for four years. I pay more in taxes then I could make working a real job. I know other investors who pay more taxes then my total income. So yes the sky is the limit.