We get hundreds of calls every year for people wanting a fixer-upper, especially after they have just watched some TV show where a couple bought something, fixed it up and made tons of money! Really?
What about a couple who are handy or even want to be helpful, and who do not have to keep up with the Jones’s for appearance sake? Instead of buying that $400,000 or $500,000 home with the finished basement, excellent schools, close to work, two-car garage and then busting your butt to ensure all your monthly bills are paid?
And then, hoping that your home will increase in value in 5-10 years.
What about the couple who buy a smaller home outside for cash or put 5-10% down, have a 1-2 year plan to fix the place up and sell it and repeat this 4-5 times in 10 years?
Look at the math. Instead of a $1000 plus going to interest every month, you buy something where that interest goes, perhaps $600-$800 goes to fixing your place up. After 1-2 years you sell it, you may earn $20,000 to $40,000 plus, but let us say you only net $15,000? That’s low, but stay with me here.
Do you do that five times or more? If you compared the couple who has had only one house after ten years, mortgage poor or to keep up with their friends, go deeper in debt and get a bigger home, or the couple who uses their sweat equity and common sense after ten years?
I have 14 couples now who followed this plan and let me give you three scenarios:
- Couple number 1 lives in a $360,000 home, no mortgage and are under 35 years old and have no debt
- Couple number 2 live in a condo now, no mortgage and are living off the rental income of their last seven homes they bought, and instead of selling, they rent out
- Couple number 3 are into house 3, it’s worth about $375,000, they owe just under $100,000 on it and the first home they bought, they scraped, borrowed and begged to come up with a $5, 281 down payment!
Are the above three different than most? Yes. You see, they are willing to pay the price in time and effort to build their financial stability. Now, ten years from now, who is living a good life?
Is it easy? Safe? Nope! Is it wise and financially prudent? You bet!
So I ask, do you have what it takes, or are you going to go through the rest of your life in debt and looking well off or no liability and feeling well? If you have what it takes or want to learn more, why not give me a quick call at 519-435-1600 now?