5 Magic Paths to Making a Fortune in Real Estate

"For many people, real estate has been the investment of choice to become wealthy."

"One of the keys in working the fixer-upper market is that the price of the house once fixed up will fit into a range in which buyers are actively seeking homes in your area."

"The challenge to you is less about finding property to buy than about finding a seller who is serious about selling. To get yourself linked to this seller, you've got to cast a wide net."

"Always decide the limit of your bidding by calculating repair cost, overhead, and profit expectation, and subtracting these amounts from the market value once repaired."

"Your job is not to bring the property up to brand-new standards, but simply to fix the obvious problems, such as poor flooring or gutter replacement, structural repairs if needed, and any building code violations such as broken windows."

"An appraisal is an estimate of value. The three basic techniques to arrive at a value judgment are the sales comparison approach, the cost approach, and the income approach."

"Start by establishing a level of trust and confidence with the seller before you deal with hard numbers."

"Wholesaling, or flipping, a property happens when you assign a contract for a modest profit to a buyer soon after you sign it, in most cases not closing at all."

"Through a lease/option you could control six or a dozen properties with the same amount of money you would need for a down payment on one."

"If you desire to buy-and-hold homes, seek rent-to-value ratios that are relatively high so that there will be enough money left over for profit."

"First, you need to find out what this seller's needs are and why."

"Sometimes what a seller wants is just beyond what you wish to pay."

"For the first small apartment building you buy, you should act as your own landlord, experience supervising the physical ins and outs of your property, and have direct contact with your tenants."