Between March 2000 and summer 2002, the US stock market imploded $6.9 trillion. Americans started investing in real estate.
Between 2001 and 2005, the average homeowner saw house values jump 50 percent.
The average house median in 2005 was $220,000, an increase of 55 percent in less than 5 years.
The pattern was buy a home, live in it, build your wealth, get tax deductions, and then retire rich.
Nothing you will ever do in your lifetime is likely to make you as much money as buying a home and living in it.
There are 73.4 million homeowners in America.
You simply can't get rich renting.
"How do I buy a home"
It is never to late to catch the real estate wave.
Almost anyone can buy a home today.
"The fact is that homebuying is both easier and more straightforward than most people realize."
You don't need a lot of money for a down payment.
You don't need good credit
You should buy a home even if you have credit card debt.
Learn from real people.
Small things we spend on can add up to be a fortune.
Use the extra money to buy a home.
You don't buy your dream home with the first purchase.
Take care not to over extend yourself.
Case: John Martin buys a 30k home, pays it off, rents it for 3k a month, refinances gaining a down payment on a 650k home; John makes biweekly payments on the home and trades up for a 750k home with 4,000 sq ft and sell this property for $2 million; John finally buys a small apartment complex and make 50k a year in rent.
The trick to saving money is to make it automatic. Automate everything from savings to mortgage payments.
Leverage has a profit and risk side. Risk reversal does happen. However, speculators continue to use leveraging to increase payouts on their bets. "Buying properties with other peoples money give you huge financial advantages allowing you to multiply your gains" In this case the bank or Mortgage lender.
Eight important things a great real estate agent can do for you: A great real estate agent will listen to you carefully. A great real estate agent will help you figure out what you can afford. A great real estate agent will save you time by narrowing your search. A great real estate agent will educate you about the market. A great real estate agent will help you determine what price to offer for a property you want to buy-and how to evaluate a purchase offer when you're selling. A great real estate agent will show you ways to get more value for your property. A great real estate agent will hold your hand during closing. When you are selling your property, a great real estate agent will market the property aggressively.
Realtor interview questions:
How long have you been in business? How long have you working in a particular market? How many listings do you have? How many clients are you currently working with? How many deals did you do in the area I'm interested in? Why should I work you and not your competitor? Can you give me the names of three clients or referrals that you have worked for?
Making by weekly payments increases the amount on principle and shortens the loan life by seven years.
Rule number 1: Don't sell your first home. The first house is the golden goose. Finance the second home from equity from the first home and leverage the financing to live in a bigger and better home while your wealth grows. Risk planning should include the potential for market down turns and economic hardships, rent demand and prices, and profit margins representing mortgage payments and rental income. The first home is rented out with a profit margin that pays the equity loan on the second home. The second home loan is financed by yourself and reduced by the equity loan allowing wealth accumulation. The automatic millionare suggests only own at a max two homes at one time. The final home should be an apartment providing fixed asset income. The perfect fixed income machine.