Realtors- Make Money In Real Estate Without Doing Rehabs – Real Estate Investing
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Realtors- Make Money In Real Estate Without Doing Rehabs – Real Estate Investing

Joe: Hey, it’s Joe. I’ve got another one here.
Question: “Hi, Joe. Investing is a great idea but I prefer to be a realtor because I just
want to make income. I don’t want to be a landlord. I did that a few years ago and it
was a nightmare.” Joe: Boy, I can tell you some nightmare stories
about being a landlord myself. I had a situation in one of my houses where a guy changed the
oil of his motorcycle on my living room carpet. I had some people rip out their electrical
plugs and call the health department and I had to put them up in a hotel while we got
it fixed. I had a brothel in one of my properties (not that I ran — we had to call the police
and get it out). I had some drug dealers that were working out of one of my houses. We had
to get them evicted. At least those people are easy to get out because you can just call
the police and they take them away. Joe: But I hate to be a landlord. I absolutely
hate managing property. I don’t ever want to paint a house, fix up a house, clean a
house, clean out a toilet, etc. I don’t ever want to talk to my tenants. I don’t want to
go and collect money. I don’t ever want to have to file an eviction. I never want to
go to court. I never want to do any of that stuff.
Joe: But I still own a lot of property and I do it by hiring property managers. You can
get good property managers pretty cheap. For 8 to 10% of the monthly income, you can get
someone to take care of all of that junk for you, and believe me, if you own a lot of properties,
there’s going to be a lot of that junk to take care of. When you add up the dollars
for it, its pennies; what they’re making is pennies.
Joe: I’m happy that there are people out there that are willing to do it. But I don’t think
it makes a lot of sense unless you’ve got 100 or 200 properties and then you can hire
other people to do it for you. I do have some students actually — I have one student who
has 100 of her own properties. She manages all of her properties plus she has 200 or
300 other properties that she manages for other investors, and it makes a lot of sense
for her and it makes her a lot of income. She doesn’t actually do it. She doesn’t have
to do the eviction. She has people that work for her that do that. So, you can do that.
Joe: But I don’t even want it as part of my life, so I don’t do that personally. It makes
sense when you have so many properties to eventually set up your own property management
company. My problem is that I’ve got them all over the state and country and a bunch
of different states so it makes it more difficult to have a centrally located property management
company, whereas she’s got them all in pretty much one neighborhood or vicinity. So, you’ve
got to pay attention to what you’re doing on that. So, you don’t have to be a landlord.
Joe: Now, you don’t even have to keep properties. One of the things that we do as investors
is we just make quick money — we do the quick flip type of deal where we buy the property,
then we turn around and sell it and we make a big chunk of money. But we don’t buy it
with money. We don’t use real cash. We don’t buy it with credit and we don’t take any risk
in the deal. If we can’t sell it then we don’t even close it, so we just put it under contract,
we get control of it, we go out and find a buyer for it and then we turn around and sell
it. We use that method on the “For Rent Method”, with the “Subject-To” deals, with the “Multi-mortgage”
deals and with a lot of different things that we do with expired listings. You can do that
with all of those things to where you don’t keep the property and you don’t have to be
responsible for it. Joe: But I’m going to encourage you to take
a second look at owning property for the long term, because your retirement account just
isn’t going to get you there unless your dad left you a trust fund. Your $2,000 a year
in your IRA or whatever it is that you want to put in there is not going to get you where
you want to go when it’s time to retire. Your social security is not going to get you where
you want to go when it’s time to retire. Joe: Your return on investment on rental property
is much, much, much higher. It’s ten times higher than it is on stocks and mutual funds.
The reason it is is because of leverage, and it’s actually higher than that because you
don’t have much money invested in these things. That’s the beauty of real estate — you can
get control of a ton of assets with no money and it’ll go up in value and it’ll make you
rich in 4, 5, 8, 10 or 15 years, and you’ll be wealthy or you’ll be a millionaire just
by owning the property and not doing anything with it or to it. So, you need to own rental
property. Joe: There’s no reason why you can’t get involved
at the beginning and just start making money. With the techniques that we’re using here,
if you just want to be a realtor, to increase your listings and sales and to increase your
commission in sales, it’s going to be phenomenal because it’s going to bring in a ton of leads
as well. So these things are going to be of immeasurable use to you as you work as a realtor.

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