S.E.C. Real Estate Observer

Frankly, it is very easy for the American public to buy a home which can be acquired from “nothing down” to “very little down.” The bright side of the picture is the fact that “little or no capital” is required for the initial down payment. However, the other side is that the monthly principal and interest is high. Few buyers take into consideration the inflationary cost of water, gas, electricity and other utilities.

Did you ever roam around a new subdivision and see all of the homeowners putting in their lawns, and right in the middle of the subdivision are two vacant lots? The developer knows the value of “finders keepers.”

Mr. and Mrs. Seller had purchased an industrial parcel of land some five years ago for $200,000…

CHECK YOUR HABITS! It has been said that we are creatures of habit and Real Estate Brokers are certainly “habit” creatures.

When thinking about building their own estates, most real estate practitioners give up before they start because they don’t have a “nest egg” (a reasonable amount of cash for investment). This is a faulty concept because a practitioner can have his nest egg if he sets it as a goal.

“I am not the kind of person who can save money to build an estate.” The author is unknown, but often quoted. It is a fact that it takes money or assets to get started in Estate Building. Many Brokers and Salesmen will admit they are unable to create and maintain a savings account. Money is always needed for short gap emergencies like office rent, family expenses or to close a transaction. Thus, many potential estate builders cannot even get started.

The title of this article is sheer nonsense. It’s a cliché usually uttered by those unwilling to try. “You gotta have money to make money” is an easy “cop-out” for those who lack a positive mental attitude and have no understandable plan for accomplishment. It is true that persons with money certainly have a most proper resource (and money is a resource to the estate-building real estate practitioner).

Many Realtors use cash to buy or control real estate for their own account. This program is OK if you have plenty of the green stuff around. However, once you use cash, it’s gone for a period of time, or what Jim Misko of Eugene, Oregon, calls “final spending.” The money is gone and gone probably when you need it.

The simple method of increasing income is by working on larger properties. Let’s say, for example, you are an investment broker or salesman who has specialized in selling units (duplexes, triplexes and fourplexes) and they sell from a range of $25,000 to $65,000. If you want to increase your income, all you have to do is upgrade your listing ability to start handling properties in excess of $100,000.

The word “leverage” ap­pears to be the historical concept of estate building. It is from this basic historical concept of leverage that the Estate Building Broker might find “opportunity” using the historical ap­proach and adding a few ideas [...]