"52 Homes in 52 Weeks" by Dolf De Roos and Gene Burns

The title of this book caught my eye. "52 Homes in 52 weeks!" If they can do that then it should be easy for me to do 10 in a year I thought. After reading the book I'm not sure their method could be replicated today, but it did lead to to some new insights.

 

Written in 2006 (before the real estate crash), the authors attempted this experiment in Las Vegas.. They boast about Vegas' great metrics which I found entertaining since we all know what happened in Vegas a few short months after this book was published. However, their location selection factors are worth nothing.

 

FACTORS FOR CHOOSING AN INVESTMENT DESTINATION:

* Population Growth

* Climate

* Sustainable Work

 

I would add to this list:

* Low Cost of Living

* Cheap Real Estate

* Low Property Taxes

 

Dolf De Roos and his partner Gene Burns bought these 52 homes from motivated sellers over a 9 month period using a Buy/Hold strategy. Most of the deals involved the assumption of a current loan. They recommend creating a plan before investing. It should include the plan of action, target zip codes, hour criteria (example - 3 bedroom 2 bath), financing, price range, search terms, items you are not interested in/deal killers, and your needs.

 

On particularly interesting technique they used to find buyers was handing out cards to average Americans offering $500 for information on a house. Another was using pizza flyer delivery services to blanket neighborhoods. They also used classified ads.

 

Once they found a seller, they worked out very creative methods to get the home using either lease options or land trusts. This made their out-of-pocket costs nearly nothing (their limit was $5000 per house), but the deals were clearly a lot of work and very stressful.

 

After securing the deal, they would put a tenant in place on a lease option. The idea was to be cash flow positive by collecting larger rants than the payment and lock in a higher sales price than that of their option. The option fee would also help them to replenish their cash reserves for buying more properties.

 

Biggest Takeaway: Land Trusts can be used to assume mortgages without activating the due on sale clause.

Comments

  1. AnonymousMarch 17, 2022 at 10:07 PM

    Casinos in Malta - Filmfile Europe
    Find the best air jordan 18 retro men clearance Casinos in website to buy air jordan 18 retro yellow Malta including bonuses, 가입시 꽁 머니 사이트 games, games and the history of games. We cover all air jordan 18 retro varsity red good website the main reasons to visit Casinos in show to buy air jordan 18 retro red suede

    ReplyDelete

Post a Comment

Popular posts from this blog

Charles J Mosely Jr on Real Estate

Some People Consider Real Estate Investing Similar to Buying a Boat When you get right down to it, buying a non-performing mortgage is like buying a boat; the two happiest days are the day you buy it, and the day you sell it! Investing in a non-performing mortgage note (NPN-NPL), and cashing out for a profit, are my two happiest days as a note investor. A non-performing note is basically a mortgage where the borrower has stopped paying which means you can buy it at a discount. You have heard the old saying in real estate, the profit is made when you buy. How true that is, especially in the note world! We have found that you have to take into account all the costs you will run into from the day you buy it, until the day you sell it, and use that to make sure you are not overpaying. If not, you can lose money; sometimes a lot, sometimes all of it. While there are some warm and fuzzy feelings experienced when you own the boat, like taking it out on the water for the first time, you are go...
Read more

What Every Real Estate Investor Needs to Know About Cash Flow

"What Every Real Estate Investor Needs to Know About Cash Flow" By Frank Gallinelli   Frank Gallineli's book "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" is highly technical, but very interesting. I found it helped me by explaining the math behind the deals in plain English.   The book is divided into two parts. The first part covers the basics of real estate investing and an introduction to the concepts that need to be understood. The second part covers individual calculations such as compound interest, cash-on-cash return, and internal rate of return. It is best kept as a reference, so my notes are limited:   How to make money in Real Estate: * Cash Flow - also called "net spendable cash", this is the left over money each month after all of your bills are paid. * Appreciation - the growth in the value of the property over time. * Loan Amortizat...
Read more

Financial Freedom with Real Estate Investing

Image
Financial Freedom with Real Estate Investing: The Blueprint To Quitting Your Job With Real Estate - Even Without Experience Or Cash by Michael Blank is both a ‘how to’ and a bracing bit of financial self-help.   Michael Blank, according to his bio and the book’s introduction, is an ex programmer, would-be restauranteur and a seasoned investor who’s lived both near catastrophic failure and phenomenal success. He sets out a strong case that for those looking to retire from their jobs and live on passive income from their property, multi-family apartment blocks provide the most time and cost-efficient solution, relative to flipping single-family homes. Blank then both guides and cheerleads the potential novice property investor through his three-stage process: 1. raising the funds for that all-important first deal, without relying on personal savings, 2: How to interact with brokers as a serious buyer and build the right team of advisors or coaches, 3. Rapid analysis of pote...
Read more