It’s Hard to Make a Living, But It’s Easy to Build Wealth, pg. 9
Why Should You Consider an IRA? pg. 40
older to withdraw gains without penalty nor taxes Many may not feel it’s worth establishing a ROTH because of the low contribution limits of $5k/$6K and/or may not meet the requirements to contribute based on too much income. Keep in mind, you are able to convert from your tax deferred IRA, 401K or retirement plans to a ROTH. There are no income restrictions on a conversion, full or partial and you are the amount you are allowed to convert has no limits. So take advantage of these tax advantages before they become subject to change in the future. The objective of using a self-directed IRA is to take more control over your investment choices and invest in what you know and understand. The use of this investment tool requires the necessary due diligence to be performed on any investment you choose. Arm yourselves with the required information and education for the investment choices you choose to prevent the potential for losses. Remember, this is your retirement account we’re talking about here, so become diligent and proactive to protect it. It’s a Lady’s World, pg. 33
“Our mission was to create an environment in which our members can build camaraderie, share tested investment techniques, and promote responsible investing through networking, and referral-based partnerships,” Willois says. The price of admission to their live club held on the last Tuesday of every month is $20, however members can receive a $5 discount if they pre-pay online. The Lady Landlords of San Diego also educate their members via seminars, workshops and live presentations. If a buy-andhold strategy is your game or you’re curious about opportunities in other states, then it’s time to step into the pink domain of the Lady Landlords of San Diego. CLUB DETAILS: Lady Landlords of San Diego When: Last Tuesday of every month Location : Holiday Inn 3805 Murphy Canyon Road San Diego, Calif., 92123 Realty411Guide.com
n e e d e d t o invest. They were busy years and we were handsomely and surprisingly rewarded w h e n w e managed to buy a home with no money down in one of the most high-priced areas of the nation. How? We found a seller willing to carry a portion of the note and we used private money to get into the deal. Since we didn’t need any of our own funds to buy our home, we used our nest egg to purchase a small apartment building in 1994. It was then that everything began to change. Within a few short years, our net worth skyrocketed. Things were appreciating steadily and the equity in the properties was rising much faster than our ability to earn a paycheck by working in our professions. This is the beauty of real estate. A property can appreciate either due to market conditions or by adding value through a rehab. Profits can come quickly, much faster than a person’s ability to “earn” a living. The average national salary in America is $41,673.83, according to U.S. Social Security administration. Having a job can provide for the basics just fine, but what quality of life can that type of salary provide for an average family of four? In the real estate world, $40,000 is not an astronomical number. One can do a deal and make that much per transaction either by buying and holding for cash flow, or buying and flipping for profit. I even personally know someone who made $30,000 on one wholesale deal, and she did not even own title to the property! One of my favorite deals was when my husband and I purchased a small multifamily property in Hawthorne, Calif., a bluecollar area of Los Angeles. The market was really hot in 2004, and it was tough getting the deal because there were five other offers, but I wrote a personal letter to the seller assuring him that I would make the best landlord to take over his building and he sold it to us, even though another offer came in higher. Upon purchasing the property, we did slight renovations, PAGE 52 • 2012
one unit at a time. Nothing major, just new carpet, new paint a n d I think we changed the cabinets in the kitchen of one unit. The most challenging part was managing the property, which I chose to do myself, but we just had the typical leaky faucet issues. About one year and half into the deal, we decided to cash out. We purchased it for $425,000 and in 18 months sold it for $659,000. A gross profit of $234,000! How many people can make that amount of money punching a clock for 18 months? And what do they have to go through to “earn” that money? Get up at the crack of dawn, commute hours to work, put up with bad tempers, bad attitudes, constant deadlines and job stress. On the other hand, we created wealth by simply buying, managing, upgrading, then selling an asset. Can it get any easier than that? This is exactly why I get so excited about sharing the benefits of real estate with people because wealth can be created much faster and easier than by “working” at a given profession. After being in the work force for 20 plus years now, I’ve come to realize that more wealth can be created by focusing time and energy into finding and buying properties than by climbing the corporate ladder. Buying one property a year, or every few years, can really make a difference in your life and in the legacy you leave behind. The time has never been better to get started or to expand your portfolio. Never have we had a combination of so many distressed properties to choose from coupled with the low interest rates of long-term financing. The moves you make now can determine your family’s future. So don’t make excuses about how busy you are. Be sure to take time off from “work” to concentrate on building “wealth”. Email the publisher at: pliagas@msn.com or connect with Linda Pliagas at: www.facebook.com/lindapliagas
reWEALTHmag.com