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To ensure that you will—someday—write me such a letter, here are some rules to keep in mind during your real estate deals. I call them my “Best Rules.”
Best Rules for Your Success in Income Real Estate
YOU CAN BE SUCCESSFUL IN INCOME REAL ESTATE, if you follow proven rules. Here a number of these rules you can use:
1. NEVER PAY “Front Money” or advance fees for loans. A fee is fair AFTER you receive your loan money, NOT BEFORE!
2. DON’T BASE YOUR FINANCIAL OPINION of an income property on whether or not you would live in it. The only valid measure is if the property earns a Positive Cash Flow for you and rises in value as time passes.
3. HAVE STRICT RULES FOR YOUR TENANTS—and enforce the rules. Demand that rent be paid on time. Get a three-month security deposit. Do not waste time with dead beats. Get them out of your property quickly.
4. TRY TO BUY EVERY PROPERTY with zero cash out of your pocket. Using this approach will make you more much successful—faster—in income real estate today.
5. NEVER PAY ASKING PRICE for a property unless the seller is helping you finance it. Then consider paying the asking price to make the seller more generous in the terms you are offered.
6. KEEP ACCURATE RECORDS for all your income properties. Your records will help you support your tax deductions and give you exact profit numbers.
7. START WITH SMALL LOCAL INCOME PROPERTY. Keep it neat and clean and your vacancies will be low. Make repairs as soon as they are needed—don’t let them hang on.
8. USE A COMPETENT ATTORNEY and accountant for every real estate purchase. Never buy without legal advice.
9. LEARN ALL YOU CAN ABOUT FINANCING your real estate. Since you’re in a “borrowed-money business” the more you know, the easier it is to get the money you need.
10. KEEP YOUR CREDIT SCORE as high as possible. This makes it easier for you to get any loan you need for real estate.
11. TRY TO MORTGAGE OUT—it can put cash into your pocket while you take over an income-producing property.
12. START WITH LOCAL SINGLE-FAMILY HOMES. They are easy to buy and can get you started in income real estate quickly at low or zero cost.
13. LOOK FOR SELLERS WITH BUILT-IN FINANCING and you’ll get started on zero cash sooner and easier.
14. TURN YOUR REAL ESTATE HOLDINGS into your private bank, borrowing against them to buy more properties.
15. REMEMBER: REAL ESTATE IS THE WORLD’S BEST BUSINESS! Follow these rules and success in real estate can be yours.
Finally, a reminder: My newsletters, International Wealth Success and Money Watch Bulletin, have many subscribers throughout the world. Many of these subscribers ask me business-related real estate questions. Since these subscribers have shown faith in me by subscribing to one or both newsletters, I try to answer their questions first. So, if your questions as a nonsubscriber are slow in being answered, please don’t say I didn’t remind you of this possibility!
And now, here’s how and when you can contact me, as I’ve promised you several times in this book. If you have any questions about the business aspects of your real estate wealth building, you can call me from 8 a.m. to 10 p.m. (New York time) at 516-766-5850. Or fax me 24 hours a day at 516-766-5919. If you prefer e-mail, drop me a note at firstname.lastname@example.org. However, I prefer a fax. My web site is: www. iws-inc.com. My postal mailing address is IWS, Inc., PO Box 186, Merrick, NY 11566-0186. Please remember that I try to help my newsletter subscribers first! Meanwhile, good luck in your real estate wealth search, my good friend!
Useful Real Estate Books, Reports, Training Courses, and Newsletters for Beginning and Experienced Wealth Builders
You CAN build your real estate riches on borrowed money faster! How? By getting more know-how about real estate. As has often been said, “Knowledge is power!” And Ralph Waldo Emerson said “Only an inventor knows how to borrow, and every person is or should be an inventor!”
Here are a number of sources of real estate techniques you’ll find helpful and profitable.
Real Estate Investment and Management Books
The following books are available from John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6000, www.wiley.com. Books listed, here range from beginner’s guides to helpful dictionaries and comprehensive references.
Achenbach, George, Goldmining in Foreclosure Properties, 5 ed., paperback, $27.95.
Useful Books, Reports, Training Courses, and Newsletters
Albrecht, Donna G., Buying a Home When You’re Single, paperback, $14.95. Berges, Steve, The Complete Guide to Buying and Selling Apartment Buildings, paperback, $29.95.
Berges, Steve, The Complete Guide to Flipping Properties, paperback, $19.95.
Boroson, Warren, and Ken Austin, The Home Buyer’s Inspection Guide: Everything You Need to Know to Save $$ and Get a Better House, paperback, $19.95.
Carey, Chantal Howell, and Bill Carey, Going Going Gone! Auctioning Your Home for Top Dollar, paperback, $16.95 Eldred, Gary W., The Complete Guide to Second Homes for Vacations, Retirement, and Investment, paperback, $16.95.