1. Do more than one transaction per year
2. In each transactions LIMIT your LOSES, because lets face it the world isn’t perfect, and mistakes happen.
3. Try to make 8 -12% on each Transaction…NOT 25% or more….
4. Try to purchase and HOLD, ONE of the properties as a rental
5. Purchase homes at 10 – 15% below market value
6. Purchase all your homes through Justin Ruzicka, The House Guy
OK, so the last one is a shameless of me, I know. Now lets do the math on 5 properties, this is actually math I have done for customers over the course of 2012. The agreements I have with my investor groups/clients is a 50/50 on Profit Sharing, I provide a discount on Real Estate Commission, but beyond that, I find the homes, inspect, manage repairs, I have a team of Contractors, Sub-Contractors who are trustworthy, and do a top quality job for the lowest costs.
1. Real Estate Investment I
Purchase Price: $62,000
Resale Expenses $9875
Profit Share: $10562 in 120 days
Investor ROI: 14.6%
Annual ROI: 44%
2. Real Estate Investment II
Purchase Price: $72,000
Resale Expenses $8440
Profit Share: $8230 in 114 days
Investor ROI: 9.6%
Annual ROI: 38%
3. III Real Estate Investment
Purchase Price: $125,000
Resale Expenses $15200
Profit Share: $8650 in 95 days
Investor ROI: 6.9%
Annual ROI: 27%
4. III Real Estate Investment (HOLDING as Rental)
Purchase Price: $75,000
Rental Income $7200 (8 months for 2012)
Profit Share: $2550
Investor ROI: 3.4%
Annual ROI: 5.64%
5. IV Real Estate Investment
Purchase Price: $71,000
Resale Expenses $10,753
Profit Share: $5374 in 165 days
Investor ROI: 6.5%
Annual ROI: 14%
TOTAL: 41% ROI in 2012!!!
The short story long, steadily plodding leads to prosperity…Isn’t that a proverb?
If you would like more information on current real estate investments please fill out the form below. The houseguy.org has a good portfolio of Investments, years of expertise, and a hands on approach to real estate investing that leads to stronger returns. I look forward to working with you on your next real estate investment.
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