FIXER-UPPPER FORTUNES

"How to make big profits from fixer-upper properties: Quickly!"

By Sal Vannutini

Copyright 2005 Karsal Pty Ltd All rights reserved.

Introduction

I can still recall the look on my friends' faces. They obviously thought that I had completely lost my mind when I told them I was going to become a real estate millionaire. A few years later, the smiles were wiped off their faces when they saw how much money I was making!

It was late 1987, when I finally concluded that I could no longer rely on my job for financial security. So, I decided to make my fortune buying and selling real estate. Unfortunately, my total knowledge of real estate investment added up to zero. So everything I did I had to learn the hard way. It was all a case of trial and error...mostly error! In fact, my lack of knowledge almost sent me into bankruptcy.

As time went on, I noticed other investors were accumulating a large portfolio, whereas I was searching around for my next down payment. You see, I realized that my problem was this: I had no effective plan for accumulating a portfolio of rental homes.

With the real estate market being flat and the rental prices going the Sale way, I had no way of coming up with the down payment or being able to purchase another property. All I could do was to wait and hope that real estate values would go up again; and therefore, my increased net worth would provide me with enough equity to purchase my next property.

Then one day I attended a real estate investment seminar. The speaker was a self-made millionaire. I sat there totally amazed for the entire day as this guy spoke about the ideas and strategies that he used. He spoke about all these creative techniques and strategies to acquire and fund the purchase of real estate which I had never heard before.

Sure enough by the end of the day I left the seminar full of excitement and expectation that I too could go out there and become a self made millionaire. But when I tried to apply these new ideas and creative strategies into my own real estate investing, I became confused and frustrated.

You see, I learned what to do but now how to do it. Deep within me I knew that there had to be an easier way the average person could make money from real estate. I was determined to find a better and easier way. And so I set about attending as many seminars and reading as many books on real estate investment as I could.

Time and again all I heard was what to do, but never how to do it. And maybe that's the whole idea, because to get the how to do it you have to pay large sums of money for more seminars, or more books or more videotapes. One guy was even charging up to $15,000 for a 3-day seminar to learn how to become an instant millionaire.

By this stage, I was suffering from information overload and figured the easiest way to get inside knowledge was to become a real estate agent, and so I joined the real estate profession.

It was here that I met a client who was looking for old houses to purchase and fix up and then sell at a profit. I was amazed by the results that he was getting. When I asked him to explain how he did it, his words were simple: Buy low, fix up, sell high.

One month later I purchased my first fixer upper. I conducted a minor upgrade and sold the property for a $33,000 profit in the space of 2 months and I've never looked back since. That was back in 1994. Over the next 12 months, I managed to buy, rehab and sell 3 more properties. Unfortunately, not every deal turned out to be a winner. In fact, on my third property I actually had a loss. To tell you the truth, I was flying by the seat of my pants. Buying a property hoping I could make a dollar out it.

As I began to fine-tune my strategies, I discovered the power of buying foreclosure property, and was amazed at how effective and how simple these strategies were to apply, and how much profit I could actually make simply by purchasing houses below market value. Two years later I was introduced to the concept of Lease Options as a way to control property with virtually no money down.

As you can imagine, my friends and clients began asking what I was doing and wanted me to help them to do the Sale. You see, most of the investors that I talk to have all the right intentions for becoming wealthy, but they are so confused by all the information and creative strategies thrown at them, that they never get anything achieved.

I call this Paralysis by Over Analysis. All they wanted was a practical guide to help them realized their dreams. Just like me, many have listened to various so-called experts who fed them piles of hype that is next to useless when you get out to the real world. In 2001, I was approached by some clients and friends and asked to present my strategies to them. And so, Fixer-Upper Fortunes was born.

What I would like to share with you are the most powerful strategies that I have learnt over the years. These are concepts and ideas that I have fine-tuned to make big profits from fixer-uppers. So, if you have experienced some of the frustrations that I have talked about, then take heart, because you too can learn the secrets to making big profits from fixer-upper real estate.

In writing this book, I have attempted to share with you the highs and lows of fixing up houses. It contains powerful yet simple strategies that could make you a fortune in real estate, if you apply them. It is not a book of theory, but a book based on real life examples and proven strategies that have worked for both my clients and me.

This type of wealth creation is a lot easier than you think. Whilst many investors are aware of the benefits of a buy and rehab strategy, it is a fair estimate that 90% of them do nothing.

Either it all seems too hard, or they undertake a project that turns out to be a total disaster due to the lack of strategy and planning. As a novice property rehabber, I soon discovered that there are many traps for the inexperienced.

It is designed to be your step-by-step mentor that will allow you to make big profits from fixing up houses. The contents are aimed at bridging the gap between theory and practice, or if you like, the gap between theory and reality.

The formula, in a nutshell, is to buy a run-down house at the right price, using the correct finance structure, and fix it up for the least possible cost. You then sell it for maximum profit, or hold it and use the newfound equity to help fund your next property.

I will also draw upon my many years of experience in the real estate industry to break through a few myths and teach you how to make a real estate agent a valued resource that can speed your path to riches.

For almost ten years, I have made big profits fixing up houses for both personal and investment purposes. Along the way, I have helped clients make hundreds of thousands of dollars from the very Sale strategies.

Now, it's your turn!

Sal Vannutini