Welcome to the first of an ongoing series of blogs dealing with real estate investment.My goal is to inspire and help all those who are serious about creating generational wealth to connect with the information and resources they need to win. It is my humble opinion, that in order to succeed and become wealthy for the long run we have to diversify our income. I will never have all my eggs all in one basket again! Before the market crashed in 2007, my real estate portfolio was estimated at about $10 million dollars and my net worth was about 3 to 5 million with respect to the equity positions that I held with about half a million dollars in cash on hand. As one might imagine, I saw no end to the empire that I was building. By the end of that era I was in foreclosure, stealing water, lights and gas! Tip: Diversify your income before its too late!
During that time prior to the market crash, it was easy to buy and sell real estate. The banks were financing anyone with a pulse and unfortunately even a few folks that had no pulse! LOL. Sub prime lending was at an all time high and the market was filled with amateur investors who wanted a piece of the action. This influx of inexperienced buyers and sellers created a speculation bubble that inflated the prices and value of homes and buildings to unprecedented highs. Houses in the worst neighborhoods were going for what they were originally worth even one year ago! As we all know it wasn’t long before the bubble burst and devastated the entire U.S. Economy and world market as a whole. That combined with the increasing impact of technology on productivity and manpower created a deficit in both cash flow and the need for a robust labor force. This has destabilized our world on one hand and created a leveled playing field on the other.
Why is this the most incredible market in history to buy/sell real estate in? Heres the answer! Any real estate guru or how to manual will teach that the best areas to dig for real estate gold in are in distressed areas! This concept of seeking out areas that have been hit by high unemployment and layoffs is one that predated the current recession! Prices are now at an all time low and sellers are motivated more than ever to sale their properties. Understanding this, what does that tell us? Since blacks folks are the last hired and the first fired, our community is the perfect training and proving ground to generate untold fortunes. Its not just in real estate! Digging for gold in the black community is a universal trend amongst foreigners any group of people who are organized enough to pool their assets and resources to take over an industry. Look at the health and beauty industry…dominated by Koreans and the Asian community in general. How about the grocery stores and gas stations…dominated by Arabs and middle easterners. Right now the only game we dominate in our community is the dope game and even there we don’t control the higher elements of it!
Before I get too distracted from the primary purpose of this blog let me get directly to the main point! We are strategically located and perfectly positioned to take advantage of this marketplace! Real estate basics when it comes to foreclosure is to seek out ore-foreclosures…in other words properties that are delinquent but that have not gone back to bank. Since our community has been hit the hardest and we still live in it, it only makes sense that we could find these types of properties all day long since the folks in foreclosure are not strangers but rather our sisters, brothers, cousins and friends! In the series of blogs, seminars and webinars that I will release, I am going to teach the best strategies to purchase properties in this type of environment! There are tons of techniques that work best but there are only a few primary ones that are essential for doing the majority of deals in this environment. My goal is to develop a solid network of buyers, sellers, contractors and real estate professionals that can make creative real estate investment more doable and simpler than ever. The primary key to buying real estate with no money and no credit is to master the exit strategy! The next blog on this subject will focus on what techniques and best practices we can use to win and how to master the exit strategy to create a win win in this environment!
Be sure to visit the enterprise zone at AskRoDavis.com to learn some of my secret strategies and sign up for my free No Money down No credit course on buying and selling real estate! RO…No Ceilings!