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Wednesday, July 29, 2009

Get Rich Quick- Part 2



Hi Prospects & Friends,

I wrote an article prior to this one about no such thing as getting rich quick fast in real estate. Well let me re-inform you, you can earn wealth very quickly by having your investment analysis mastered along with the know where about tactics for when, where & how you want to earn your money. In this article I will give a story that is real & explain how wealth can be gained in this business. This is just one of the many stories I have, so take note on my articles because I sporadically post one. I mentioned awhile back in my "Foreclosure Trip" article I'm looking for a foreclosure in a nice subdivision that's gated. My job is to fix up the home & hold onto it for 2+ years then roll over into a bigger foreclosure until I reach my $1,000,000 house without paying $1,000,000. Please take note when I mentioned in the other "Get Rich Quick" article to hold your real estate for 8+ years, I was speaking only for investment properties. With a homestead if you live in your home for 2+ years you don't have to pay any capital gains taxes. Meaning here in Texas if your single you can keep up to $250,000 in gains & if married you can keep up to $500,000 in gains (so learn your limits for your state). This story will land anyone a real "Get Rich Quick" theory. I'm a living witness of House 1, because I went into the home to look at it to advance my investment thinking abilities. House 1 was listed as a foreclosure for $309,900 & sold for $305,000 March 2007 with only being 5 days on the market. The new owners for House 1 financed $274,500 for 30 years. House 2 was listed as a regular house on the market & sold for $380,000 May 2009 & they financed $304,000. Analyzing this situation yes "Getting Rich Quick" will happen with the abilities of mastering your niche. I'm still mastering my niche, but if it wasn't for me knowing (having my current skills) how to analyze subdivisions I wouldn't know how to pick up on these foreclosures doing this trend in certain exquisite subdivisions. There's only 70 homes in this gated subdivision & only 2 homes have sold as foreclosures in last 10 years. So this means not many foreclosures occur, & if they do you've got to act fast to be able to buy it. So what I've done is made a list of other subdivisions similar & are watching them like I've done this one, & when the time is right I will land my first exquisite foreclosure home which will build me wealthier to that $1,000,000 mansion without paying $1,000,000. If you've ever read "Millionaire Next Door" or haven't

buy it here http://astore.amazon.com/acohaprll-20 my post is actually a good example of this book. Back to post see below:

House 1- Sold as a foreclosure for $305,000 3/2007 & they financed $274,500 for 30 years.
sq.ft is 4,873

House 2- Sold as a regular home for $380,000 5/2009 & they financed $304,000 for 30 years.
sq.ft is 4,580

Price/sq.ft as of 5/2009 is $82.97 in this subdivision

House 1 explains how you can "Get Rich Quick" in real estate the real way. House 1 the owners only put down $30,500 but since 3/2007 they've earned $99,312 in equity & got back their down payment of $30,500 so their total equity is $129,812. House 2 the owners only put down $76,000 & have earned nothing since they put down $76,000 5/2009, what is wrong with this picture? House 2 will take longer to recoup their $76,000 down payment back, because the peak in the last decade for this subdivision is $425,000. The most House 2 will ever earn on their investment for profit is $45,000 ($425,000-$304,000=$121,000, but remember they put down $76,000 so they will only earn a max of $45,000 in profit for the trend in this subdivision)


House 1 is the "Get Rich Quick" winner!- Learn & educate yourself about money/assets. If House 2 people were asset smart they would not of put down $76,000 for their house. So even people with money aren't educated correctly on building wealth quick & preserving their liquid (cash). Stay tuned I will right a pamphlet about this & offer it for sale at my ACHP on-line store soon.

I write down my strategies in my task journals I'm selling over at ACHP on-line store. Click on link to right to see them. Enter the contest to win 1 for free for post below this one also.
HOUSE 1 IS THE RED HOUSE IN POST "THE FORECLOSURE"
HOUSE 2 IS THE HOUSE WITH TREES COVERING IT

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