Starting out as an Entrepreneur is always an unceremonious affair. Your first few deals are small potatoes and the decision to become an entrepreneur go’s unnoticed by most. Even you don’t realize how the decision will impact on your life or how you are going to go about implementing your new focus.
Paul is an associate of mine and a very good friend. He started his compounding campaign with very little money indeed. In fact he was up to his neck in debt because of a bad franchise purchase that whittled away at his capital for two years until he finally needed to get commercial capital to bail him out against the value of his equity built up in his families home.
Paul went back to his job as an electrician for a large retailer and thought his entrepreneurial days were over and this was his final fiscal resting place. Little did he know that not 12 months later, he would have a seed capital account of over $1 million dollars.
His hobby was garage sales and he had a pretty good knowledge of the market and activity in his area. He kept it strictly nickel and dime. There was no real attempt to make money from it but he enjoyed it and used it as a therapeutic activity that he and his wife enjoyed on weekends. Paul decided to see his old hobby in a new light.
It’s funny how we know things, but somehow don’t see them. Its often only when they are pointed out to us that we “know that we know” and only when we truly realize what we are in possession of do we act on our knowledge. This is a classic example of what happened to Paul.
His existing knowledge gave him an incredible advantage, at least while he was compounding his money at this level. He had close to $10,000 within 12 weeks simply discovering intrinsic value and profetizing that value into cash. By the time he had $15,000 he was ready to go where the real leverage and compounding was. Real estate.
By the middle of the year, Paul had gotten into land subdivision and unlocked excellent profits in larger blocks of land that were subdivided and resold at smaller lots for quick profits. He had achieved what we all achieved, fast and rapid compounding of capital. The last block he did was 4 acres of farm land on the outskirts of the city near an existing development of residential housing. Now these 4 acres were ear marked for subdivision and re-selling. However, the developer owning the neighbouring development made an offer on the new purchase that Paul couldn’t Resist.
You see that developer had tried to secure that land but the original vendor would not sell for such a low offer. When Paul paid a fair but still low price for the same parcel, the developer became motivated again to secure the adjoining land, which led to a skillful negotiation followed by a purchase. Paul was a millionaire within 12 months starting with absolutely no money. The developer paid him enough to tally the total of his seed capital account well over $1 million dollars.
Martin Thomas (c)2005
Martin is a professional investor and Entrepreneur. If you would like to discover more about being an entrepreneur, you can read “The Million Dollar Mentor” by Hayden Muller. Martin recommends this work highly and has used the very concepts contained in the work for his own successful entrepreneurial activities.
http://www.opportunity-investor.com
A recent newspaper report featured Mark Guard who bought land for sale for capital growth and sold it after 11 years for a staggering £3.5million as the land was developed for housing.
Though you may not do as well as Mark, buying land for sale for capital growth can yield great gains, with low risk.
Land investment has been the “secret” of the world’s wealthiest investors for years.
For example, such investors as Donald Trump and Howard Hughes made billions from land investment and so to have many others.
The perfect place for investors to buy land
There is no better place to buy land for sale for capital growth than the UK. Both domestic and foreign investors are now getting in on the UK land boom. Mark Twain’s famous quote:
“Buy land their not making it any more”
Is sound advice, as land for sale for capital growth remains in short supply and investors can make big gains by buying plots of land in the right location, then wait for development to occur.
This form of investment is referred to land banking. There are many specialist land companies who giving smaller investors the opportunity to take advantage of buying plots of UK land for sale for capital growth with as little as $10,000.
So why is buying land in the UK Such a good investment for capital gains?
Quite simply, it’s a question of supply and demand. With the demand for quality building land for development far outstripping available supply.
The UK is in the middle of a severe housing crisis, which is being fueled by a shortage of cheap affordable homes, a rising population and expansion of single households.
With this comes the need for land for development to build houses on, quality land in the right location can then be sold out for quick profits.
Land for sale for capital growth is therefore linked to buying UK land that could be granted planning permission.
Be it farmland, brownbelt, or greenbelt land, as soon as planning permission is granted the land will increase in value and investors can sell out for a substantial profit
Past performance
Land prices as an AVERAGE have increased by 920% over the last 20 years, but investors have made much greater gains by careful plot selection, as you can see from the example earlier.
With the severe shortage of land set to continue these gains could be even bigger in the future.
The risk
Land for sale for capital gains also has low downside risk.
Even if the land is not developed for housing, it still tends to increase historically in price anyway over the longer term.
The comfort of buy back options
Add in the fact that many land companies offer buy back up options from developers for quick liquidity, and land for sale for capital growth, offers the perfect investment in terms of upside potential to downside risk.
In conclusion, any investor should consider land as an investment.
More information on land investing including a FREE report on potential for growth, plot selection, buy back options and much more please visit =>http://www.lpgroupinternational.com
The TV show Flip this House spurred a lot of interest in making money in real estate by flipping houses. However, the show only tells part of the story. Often, the viewer never gets to know if the renovated house sells or not.
How can you learn about making money flipping houses if you don’t get the entire story on how much profit the investor made? Also, the investors rarely get their hands dirty and hire out all the remodeling, which costs a lot.
Another reality show scheduled for The Learning Channel, Property Ladder,* also focuses on the “rehabbing” side of flipping houses. In this show, the investors do the home remodeling themselves instead of hiring outside help. Let’s hope the new show gives us more details on costs, profit and loss.
To many real estate investors, the type of real estate investing these TV reality shows feature is termed “rehabbing” or fixing a “fixer.”
Flipping Houses: Terms Explained
Old-school investors think of “flipping houses” differently. They think of a “flip” as a house (or just its purchase contract), which is purchased below market value for a quick resale. The house may never transfer title into the investor’s name. These investors look for sellers under duress to sell for 70 percent or less of market value. The house may not even need fixing. When the house or purchase contract sells to another party, possibly another investor “rehabber,” the “flipper” pockets quick cash.
The flipper or “quick turn” investor may never even “invest” any of his or her money into the purchase. Quick-turn investors look for many “flips” to do each month and like to make $5,000 to $10,000 or more on each house.
The “rehabber,” who fixes many houses each month with a team of contractors, may or may not do some of the actual work. Rehabbers who do the work themselves take longer to do a project and do fewer homes each year. If they keep a house for over a year, rehabbers can gain a significant appreciation if the property value increases. Plus, they do not have to pay high income taxes. Investors who sell in less than a year pay taxes based ordinary income. Holding over a year gives investors the long-term capital gains tax break.
State taxes also cut into the investor’s profit. In California, the state gets the first check out of escrow–almost 3.8 percent of the sales price– regardless of the profit percentage. Investors need to wait until they file tax returns to get their money back.
Investors who specialize in “Pre-Construction” also flip houses. They gamble that a builder’s home will appreciate in value upon completion. Some builders require that an investor keep the home for over one year to keep speculation from harming the home buyers who intend to live in the home.
No matter what you think of when you hear the term “flipping houses,” you can bet that the knowledgeable investor makes money.
Copyright © 2006 Jeanette J. Fisher
*Tune in to Property Ladder Saturdays at 10 p.m. ET/PT starting June 4.
See Pre-Construction: How to Make Money in Real Estate Witout Doing the Scrunch Work
Jeanette Fisher teaches interior design secrets to making more money investing in real estate.
Free ebook The Truth about Making Money Flipping Houses http://www.doghousetodollhousefordollars.com