If You Aren’t Making 100 Percent ROI, You Aren’t Really Trying!

Hello, fellow investors! Isn’t it a wonderful time to be a big time real estate investor in America? I mean, if you weren’t certain about whether real estate was the absolute best vehicle to catapult your financial portfolio into the stratosphere during the last eight or ten years, there can’t be a smidgen of doubt left in your trembling little soul now. Right?

I suppose the best thing about being an independent real estate investor today has got to be the overwhelming amount of opportunity that exists in the market. Where else can you be assured that you are going to make 100% – 200% return on your investment – each and every time you close a transaction?

What’s that? You aren’t making that kind of return? It’s an impossibility? Maybe for you snooty, spoiled little wannabe Donalds who have kidded yourselves into thinking that you were anything other than guests in the big sandbox that is real estate investing. It was only a matter of time before you ran the market up and took advantage of the subprime lending frenzy to the point where the only thing left for the market to do was to POP!

And so it goes. But don’t you get a hitch in your giddy-up just yet. Your favorite uncle Madjik is here to give you another little move you can still make that will satisfy your hunger for the kinds of kills you thought you would always find in this business – the kind that have all but dried up now.

It works like this. If you live and invest in one of the major metro areas around the country, you have seen prices for single family residences skyrocket out of sight. Median prices have raged ahead of salary growth to the point that there is no place for the average American family in the average American city. You, the investor, who has been able to snap up the red tags, and condemned properties, then the drug rehabs, then the regentrification candidates are now swimming in a pool where a first time homebuyer would have to shell out a minimum of at least $225,000.00 in many cases.

And although you hate to admit it, you know damn well that that is a preposterous figure. We’re talking about first time home buyers. Not the ones you have lead yourselves to believe exist, but the real ones with real jobs and those…what are they…oh yeah, kids, dogs, medical bills, parents, school loans, etc.

OK, I’ve tortured you enough. Here is you solution. Have you noticed lately that although an average duplex can go for between $350,000.00 – $600,000.00, there are numerous multi-family properties, i.e. 10-30 units, that are going for prices between $1,500,000.00 – $3,500,000.00?

For example I just found a 28 unit property that was going for $1,800,000.00. Rounding off the numbers, the individual units were going for around $65,000.00 each. Of course, each and every one of you knows that the only difference between an apartment and a condominium is a document called a condominium charter. If bells aren’t going off in your head yet, keep reading.

I bought the 28 unit complex and gave the seller his full asking price. Why? Because when I put up a sign that advertised two bedroom condos starting at $120,000.00 I had 82 calls the first day. There were so many qualified and eager buyers beating on my door for the next two weeks it wasn’t even funny. Two weeks, of course is all it took to liquidate the inventory I had in that property. It left me with a qualified buyers list a mile long. You can see that I more than doubled my investment, and all I did was file a few documents which constituted what is commonly known as a “Condo – conversion”.

Its as easy as that. Now go out there and make some money. Big money. Glad I could help. Oh, keep watching for other little tidbits like this from time to time, and feel free to let me know how you are doing.