Tuesday, November 01, 2011

Testimonial: Real Estate Income Despite the Economy

Unlike all the talk of a troubled economy, we still see great success stories from our readers, telling us how well they're doing with income real estate properties. Here's one testimonial we received by letter from Illinois.

Dear Mr. Hicks,

“I read [your book] ‘How to Make Millions in Real Estate in Three
Years’ two years ago, and I started using your methods immediately. My
first two deals weren’t so hot (I was too eager to close and didn’t do
enough up-front due-diligence), but I’ll make money on them all the same.
These were two small commercial strips in Chicago. Bought them with
basically no money down (for one the seller held paper; the other was
financed through SBA).

It was on my third try that I really hit a home run. This was an industrial
center we acquired through a construction loan. I renovated it, and leased
it up within 8 months (a year ahead of schedule). For this deal I raised most
of the equity from friends and family, after negotiating the bank down to a
10% equity requirement.

So here’s where I am at, barely two years after reading your book: Total cost
of 3 properties = $4,670,000; current value, based on
rent roll = $6,730,000.

That’s about $7-million bought with only $150,000 of my own
money—all borrowed with 2nd and 3rd mortgages on my house. After paying
all monthly mortgages and expenses, I’m clearing about $20,000 a month.
Thank you warmly for your encouragement and advice in your books,
newsletter and phone calls.” By letter, IL.