Dan Blacharski - The Part-Time Real Estate Investor: How to Generate Huge Profits While Keeping Your Day Job

The Part-Time Real Estate Investor: How to Generate Huge Profits While Keeping Your Day Job

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Table of Contents

Part One

Anyone Can Be a Millionaire

Chapter 1

Why Real Estate?

I havent had a real job in 25 years.

For quite some time, my office has been wherever I choose to sit down. Right now, thats my hometown of South Bend, Indiana, but Ive also worked from the California coast, Krakow, and Bangkok.

When you choose to take your vocational destiny in your own hands and stop working for other people, whether its in real estate or anything else, your friends become envious, thinking that your glorious career is romantic and exciting. There is some excitement, true a little romance if youre lucky but mostly, its just a lot of work. When you stop working for other people, you will first make the mistake of thinking you can make your own hours. While this is true to some extent, in reality, you will start work earlier and finish later than you did when you used to punch that time clock.

You may have purchased some of those books that purport to tell you how to work an hour a day and get rich in real estate. Thats a popular claim to make because it sells a lot of books, but unfortunately, its not true. Within the pages of Part-time Real Estate Investor , youll learn about what is true and what is not, what is possible, and what you cannot (or should not) do. There may well come a point when you will be working only a few hours a day and taking in millions, but that point is not today. It will take a lot of hard work to get there.

Still other books purport to give you the real secrets of wealth those miraculous, hidden strategies known only to a few elite individuals to make millions in real estate overnight.

The real, multi-million-dollar secret of the real estate investor elite is: There are no secrets. The hidden strategies that are kept secret by a mysterious millionaires club are nonexistent. Are there some mysterious words you can utter to make real estate sellers like putty in your hands? Magic formulas that will make bankers cower before you? No. However, there are pieces of information, strategies, and tactics that are not very well known, and this is the information that I will present to you in this book.

Why Is It a Good Investment?

There are a lot of ways to make money, but real estate is one that stands out above the crowd. Why? Because everybody needs somewhere to live. One of the best ways to succeed as an entrepreneur is to have something that everybody either wants or needs. Now to be perfectly honest, its not precisely true that every single person in America wants someplace to live. When I lived in San Franciscos Haight-Ashbury district, I made the acquaintance of a gentleman who lived in Golden Gate Park, standing on the principle that he simply did not wish to be part of the system. He made his home in the midst of some dense brush on the far end of the park where he had fashioned a shelter out of some discarded scrap metal and wood, and he seemed quite happy with himself.

But outside of a handful of people like my hippie friend, almost all of us want someplace to live. People spend between a third and a half of their monthly income to get it. If youre the one who provides it, you can become very rich indeed. Heres a few interesting statistics: in the United States, as of the second quarter of 2016, the U.S. Census Bureau reports that owner-occupied housing units accounted for 54.9 percent of total housing units, while renter-occupied units accounted for 32.4 percent. And according to RealtyTrac, the median sales price of single-family homes and condos as of early 2016 was $210,000. Thats an 11 percent increase over the previous year. In fact, as of March, the value of such homes had risen for 49 months in row. The market has been hot indeed, exceeding or approaching record values in many areas. Nationally, the market hit a peak in July 2005, when the median sale price hit $228,000.

With more than half of homes in America being owner-occupied, and with the market for real estate so strong, its clear that homeownership remains highly valued in our society, though plenty of people continue to rent. Whats important for you as an investor to remember is that buying real estate is not out of reach. Its not just for the rich. Its not even just for the credit-worthy. Do you think that all Americans have good credit? Think again. Heres a little secret Ill let you in on: you can buy a home or buy a dozen homes with the worst credit rating in the world. In my own case, I purchased a historic, 12-room restored Victorian home last year for my wife and me to live in. But after two previous marriages that ended in disaster, my credit left a lot to be desired. In fact, if you were to run my credit report, the computer would gag and cough, probably say a few swear words, and then would spit out a report with big red letters stamped across the front, saying Dont Ever Lend This Guy Money. Underpaid clerks at Experian probably spend their break time and laughing at my credit report. The salesperson at the car lot that advertises we finance anybody would jump out the back window of the showroom if I walked in the door. But even I can buy a house. Or a dozen houses. You can, too. You just have to know a few tricks of the trade, know where to look, and know what to ask of whom.