"Real Estate Investing is just an idea, a concept
1. Why Real
2. Common Misconceptions About Becoming A Real Estate Investor
3. Disadvantages of Investing In Rental Real Estate
4. Working Smarter, Not Harder To Become A Successful Real
5. Show Me The Money - How To Attract Financing For Your Real
Estate Investment Property
6. Preview for the Next Issue
1. Why Real Estate Investment?
Why all the talk about real estate investing? A lot of reasons.
1. Well, for starters, investments in real estate has produced
wealth for millions of average Americans.
2. It's simple, it's easy to understand, real estate investment
property is tangible.
3. Real estate holds its value pretty well, often grows in value
at a pace faster than inflation.
4. Your real estate investments are capable of producing phenomenal
profits and returns on investment if bought and sold right (we'll
talk more about what "right" means).
5. Real estate investment properties could be a great rental
cash flow vehicle, you can get nice monthly payments that could
potentially replace your dependency on a paycheck
6. Investing in real estate has a residual income potential: you do
the work once and continue to get paid many months and years
7. Real estate can provide high rate of return, maintenance
and management free investments for people who've already accumulated
cash - by investing in mortgages secured by real estate, or
buy creating your own note with owner financing.
8. Finally, real estate investments have preferential tax treatment
allowing for valuable write-offs, and tax deferred treatment
for profits from capital gains on sale of the property.
2. Common Misconceptions About Real Estate Investing
Typically, the main argument of real estate 'nay-sayers' is
by associating real estate investments with toilets, bad tenants,
damages, evictions, etc. - all the bad things that may happen
to an investor getting ready to jump into the real estate
For somebody who believes the only thing to real estate is
getting a loan and buying a run-down duplex in a bad part
of town real estate could certainly turn into a major nightmare
very quickly. However, an individual open to possibilities and willing
to learn will quickly discover - that's not the way to be
doing real estate.
Much more profitable strategies exist for doing business without
management headaches, without having to deal with bad clientele,
and without having to constantly worry about how often one's
tenants clean their toilets.
Modern real estate thrives on doing things smarter, not harder.
3. Disadvantages Of Investing In Rental
Real Estate Properties
One of the major disappointments of the conventional, 'rental'
approach is there's just no money in it NOW, only after a long
period of ownership.
There's not enough spread between the income from rent and the
expenses of mortgage payments and repairs for the investor to
make any money today.
You barely get by in the early years of your ownership of the
property. You've got to have other income to support your lifestyle,
you can't just count on the rentals to support you.
Most likely, in the beginning you'll be supporting your properties
with your other income. That's not too attractive.
Yes, if you stick to it, there's a pot of gold at the end of
the rainbow. In fact, I will be selling one of my rental properties
within next year or so, at a profit of $172,000.
That's a lot of money for most of the population of the United
States. Bought it for $128,000 and today's market value is $300,000.
But it took long 8 years of management and maintenance headaches.
Trust me, these were REAL headaches: vandalism, fire, evictions,
rent loss, repairs, etc.
A lot of us don't have the stomach to endure the rough and tough
financial stresses of the rental business. Even more people
don't have the desire to. I certainly didn't enjoy it.
4. Becoming a Successful Real Estate Investor
Working smarter, not hard is the key. The good news is, there
are better and faster ways to make money with real estate. I
discovered them while waiting for my rentals to increase in
value so I could sell them.
For instance, not long before writing this issue (this issue
was published in May 2001) I sold 4 homes with a gross profit
of about $160,000. All of these homes I bought in the preceding
That's not bad for 90 days of work. In reality, however, I didn't
spend but 8 hours of work into each transaction. If you ask
me that's a high rate of pay for some 40 hours of work.
I've only been to each of these homes once or twice: first to
sign the purchase contract with the Sellers and then to check
upon the completion of remodeling by my contractors.
I've exchanged a few e-mail messages with several prospective
purchasers. I spent a few hours in front of my computer preparing
the paperwork and another hour or so to meet with each Buyer
in my office to sign the papers.
All my clients are nice people who are extremely happy to do
business with me and grateful to be able to benefit from my
However, a very important part of our relationship -
it's not Landlord/Tenant like. They'll never call me on the
phone if something breaks. I just don't want to hear about faulty
toilets, leaky faucets, A/C not cooling enough, etc.
I do deliver the homes in good repair and condition at the time
of sale, though. After that, it's Buyers' responsibility to
take care of them.
5. Attracting Financing For Real Estate Investment Projects
Show me the money!
That's the first question I always hear from the beginning
investors: Where do I get the money to buy homes? I need to
finance my deals. I ain't got any money, so how can I be successful
in real estate?
Let's make one thing clear: You Don't Need To Have Your Own Money Or Credit To Make
A Ton Of Money With Real Estate.
Please note, I didn't say you don't need money or credit.
I said you don't need your own money or credit.
Some strategies don't call for any money - we’ll talk
about them in future issues.
Others do require some forms of financing. But
you should be worried about other things than your ability
to get conventional financing, when you start. You need to
get good at understanding what a bargain deal is, what a favorable
financing is, and how to find bargain deals, or deals with
Either one of these two will translate into profit very easily.
Once you get to that point - the money will flow to you. This is profound.
I didn't have money when I started and I still don't use my
own money, most of the time.
People with money are always looking for people with great
safe ideas and projects. And you'll be supplying those
great projects. You'll find the deals and then you use OPM - other people's
money to fund the deals. The money does have a way of finding
its way to you, once you have a reputation.
Real Life Example:
What May Happen After You've Been In Real Estate Investing
Game For A While
Just a month ago, a man walked into my office with some serious dough.
He wanted to write me a $100,000 check on the spot and buy
partial interest in some of the deals I had in my pipeline.
Because he didn't have the "know how" to put these cash flowing
deals together. Most of my homes are producing a NET positive
cash flow over $400-$500 a month. That's after paying the
For someone with the capital and no free time to work on putting
these deals together - it's a great opportunity to invest
money at high returns -- without having to do the hard part,
creating the income stream.
You shall be able to develop this kind of magnetic power over
money once you start learning and practicing your real estate
In The Next Issue
- Two (2) powerful strategies for making money with real estate
investing - without maintenance and management hassle.
.....Until we meet again in the next issue of the 'Real Estate Magic'
E-zine, your source for ideas and inspiration for creative
and profitable real estate deals.
investor & publisher
By Alex Gurevich
Real Estate Investment Newsletter
Here's What Our Subscribers Are
Saying About It:
Gurevich's newsletter has been a God send to me. I use his contracts
and techniques in my lease options. I was able to find many private
lenders to help fund my offers and get them accepted. This enabled
me to make more offers that previously I had to pass on due to lack
I was able to pull some cash out of existing deals. Now I am following
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- Peter Rzepka
Las Vegas, Nevada
a million to Alex
for this e-zine. The august one came at just the right time for
me. Two years ago, when I first got into this business, I lease/optioned
a house for $139,000 and then lease/optioned it out to a tenant/buyer
they were ready with financing and I was feeling unsure about the
details of how to get a simultaneous closing done. I took a copy
of you e-zine to my closing agent and everything went like clockwork.
My first one. Thanks again."
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worth sinking my teeth into. You tell your readers how to implement
your money making ideas. Many other newsletters I have read give
a brief overview and leave you wondering how to implement. Keep
up the good work!"
- Dave Friedman,
"Hi Alex, Gail and I have been learning alot of new techniques
from your newsletter and all the links are amazing . They have really
given us a boost to our portfolio and our Real Estate Education.
- Gail &
Jim Webber, Brisbane Australia.
Gurevich, Your newsletters
have been both helpful and influential. I recently finished a rehab,
my first, and had great success. ... we cleared $11,500 tax free.
it rented immediately cashflowing $160 a month. I just bought another
for $13,000 and will rehab it as well for a rental. Thanks for the
info and happy successful investing."
- Lee Elrod,
"I am a real estate investor of some 30 + years. Since coming across
Gurevich's Web site some
time ago I have been presently surprised by the freshness and sincerity
of your free newsletter.
The materials that I have purchased have been first class and yes,
even after 30+ years I still learned something new.
one more note. In this age of grab the money and run, I was almost
overwhelmed with the personal attention you gave to some of my questions.
I know with the size of your business you can not do that all the
time so a special thanks for caring."
- C Tom Logsdon
- Muncie - Indiana
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a weekly motivator prompting me to new successes using basic and
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Your newsletter keeps me motivated and going."
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"Alex, How are you? I have enjoyed this e-zine very much and you
are doing a great job!! I am basically involved with real estate
notes instead of the actual properties, but this e-zine has
opened some possibilities for me in the future. The information
on lease options and hard money lenders has been good along with
basic real estate related info for the experienced or novice investor.
Thanks again for Alex
- RICHARD P.
BELLIVEAU, LAS VEGAS, NEVADA
"Being a reader of Real Estate Magic has really helped me
to succeed in my real estate career. This is the best E-zine, based
on the topic of real estate, that I have ever read. I'll be reader
for life. Keep up the good work Alex!"
- Tony Dulgeroff,
Ann Arbor, MI.
are always interesting to me. It is a very good educational tool
to help anyone understand this business. I save some to file to
refer back to. Keep up the good work."
- Alex Misico,
Traverse City MI
"I am a beginning investor and I am grateful for the information
I have received from Alex
His information is concise and right to the point with no fluff
to wade thru."
- Ray Bradley,