Five Steps to Real Estate Success
| | Monday, January 23, 2006 @ 11:43 AM EST
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Contributed by: Ken Lyons
Ken Lyons Properties
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William Lilly, the Condo King, says anyone can be a millionaire in three years by following his real estate plan.
Here are Lilly's five basic steps to success:
1. Pick an area and learn the real estate values. Call for-sale signs, talk to brokers, look at properties, and check sales data on sold properties. Follow foreclosures; see who the pros are at the auctions and what they bid, and pay just a little more.
2. Don't be afraid to make low offers on a number of properties. You will find sellers that will negotiate right away or at some time in the future. Don't overpay; there are plenty of deals out there. You can buy a ''problem" property for less, fix the problem, and make a much higher profit.
3. If you have cash and good credit, wonderful. If not, begin fixing your credit and find a partner with cash and good credit willing to at least split the profit. You do the work using his or her cash and credit. After you do a few deals and your credit is repaired, you won't need a partner. Consider a private lender with higher rates for more leverage and faster closings.
4. When you are doing the first deal on your own, even before you sell it, you can use your equity to acquire one or more additional properties. Don't be conservative unless you don't mind waiting more than three years.
5. After you purchase your property you can sell it immediately or spend more time rehabbing it into great condition to make a larger profit. Be careful not to overimprove the property. You are doing this for resale, not to live in.
Work hard, never give up, and don't get discouraged by setbacks. Live conservatively for these few years; don't squander your new wealth. You will have plenty of time to spend your fortune.
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