Can you make money from REOs and from doing buy, fix, and flips? I would be dishonest If I said you can't. My students, my family, and I have all made money on REOS. They've recently bought REOs. But, they didn't buy them from the big banks. They bought them from smaller institutions or credit unions, as all-cash deals, where they had the liquid assets to buy it at a big discount. The property was bought for 50%-60%-70% off the list price, by providing the bank statements and by closing quickly with no financing contingency. They got a good deal. If you can find a good deal and do that, that's fine. But you're still coming up with the cash, one way or another.
This is not the 2008 REO market
Buying buy-fix-flip residential real estate is good; it can create income, but not wealth. Frankly, getting REOs and doing buy, fix, flips or buy, fix, holds, in this time frame just creates a second job for you. You're chasing down the deals, competing with everybody else, coming with cash, trying to line up the cash, line up hard money lenders, trying to get the existing lenders to give you a decent deal, and then you've got to face all the stuff that’s behind the drywall. All that stuff, that is a full-time flipping job.
But Is this the smartest and the highest use of your time and money?
I will say emphatically no, not even close.
Is that why you entered this real estate flipping business? Did you really want a new or 2nd job where you’re doing $15 an hour labor (which is what you're doing when you're doing this buy, flip, fix work yourself to save money.) You're trying to make money as a real estate investor. Wouldn’t you rather have more passive income? Wouldn’t you rather have more time freedom, but in essence Is creating a 2nd J-O-B? This Not providing you with passive income you want and not giving you Financial Freedom.
Real estate is wonderful. But, I'm telling you, if you're chasing down REO residential real estate deals, you’re chasing the wrong kind of real estate. Investing in residential real estate right now has the major issues and problems. And if you’re currently investing in REO residential real estate, you were most likely already aware of the frustration. You probably just didn’t know why you seemed to hit so many road blocks. It’s not your fault. The REO market has changed. And no one told you.
Yes, you can make money by doing buy, fix, flips. But you will be trading your time for potential profits. You’re still trading time for dollars. Residential real estate investments do not make you wealthy with massive passive income. It’s time to Dream Bigger and Succeed Faster.
I’ve spelled out, what’s going on in the residential buy, fix, and flip market that the world teaches you to enter as the best way to get into real estate. Can you make money in buying fix and flip? Yes, you can. Have I done it? Of course, I have. Has my family? Yes. Have my mentees? Yes. Is it possible? Sure.
But at the time of this writing, commercial real estate is so much a better vehicle to bigger success- faster. And investing in commercial real estate effectively allows you to effectively escape the 3 traps that are keeping you feeling fearful, frustrated, and caught in a feeding frenzy.
If you want massive passive income to acquire resources that will make you wealthy over the long-term; commercial real estate is, always was, and always will be the primary source to make people wealthy. As a matter of fact, it has been for decades, and it's going to go forward the same way.
You don’t have to be trapped in the REO Rat Race. You don't have to be involved with the Buy, Fix, Flip Fiasco. You don't have to deal with the Credit Cash Crunch; it disappears. This is a totally different product. Investing in commercial real estate can change your life and make you wealthy.
It made it possible for many, many people to become multi-multi-millionaires and some of the top billionaires. I’m not saying you're going to make a billion dollars out of this, but you could create for yourself a comfortable living that allows you to have the peace of mind that you are not going to outlive your money. It can allow you more time freedom. It can help you achieve the dream life you want.
That’s why you got involved investing in real estate in first place, isn’t it?
Want to find out how easy it is to find cash-flowing commercial real estate in 3 easy steps? Take my free mini course now. Absolutely no obligation.
Dream Bigger! Succeed Faster!