Helping People with Real Estate Investing … featuring Jim Pellerin, Author of "7 Steps to Real Estate Riches"
Saturday September 4th 2010
Simple Real Estate Investing advice by an everyday Real Estate Investor. I will post my ideas and advice on many topics related to Real Estate Investing. This information is based on my many years as a successful Real Estate Investor and will cover such topics as Lease Options, Buy, Rent and Hold, Property Management, Financing, Business Planning, Sales and Marketing and much much more. These posts will also be organized by my "7 Steps To Real Estate Riches" which are Educate, Control, Plan, Analyze, Invest, Manage and Sell. I look forward to your comments and feedback.

Jim Pellerin, Investor, Advisor, Speaker, Coach, Writer

Leverage People and Money

Looking back on December I had a record month. A record month so far. When I looked closely at the deals it became obvious that I had earned a lot of money but I also had paid out a lot of money. I paid a lot of money to sales people and investors.

There were basically 3 types of deals that we worked on in December, 2009. We did 4 sandwich lease options, 3 Buy Fix Lease Options and 3 Assignments. The Gross Profit was $254,000. The total commissions and splits were $104,000. My Net Profit was $150,000. Here is an example of each type.

1. Sandwich Lease Option Deal #1

Option Price          150,000

Purchase Price      (130,000)

Gross Profit             20,000

Commissions            (3,000)

Net Profit                17,000

2. Buy Fix Lease Option Deal #1

Option Price          170,000

Principal Profit         10,000

Purchase Price      (128,000) (after renovation)

Gross Profit             52,000

Commissions            (6,000)

Net Profit                46,000

JV Partner 23,000

My Net Profit        23,000


3. Assignment Deal #1

Assignment Price    297,250

Purchase Price      (290,000)

Gross Profit               7,250

Commissions            (1,500)

Net Profit                 5,750


The key message here is that I was able to make a lot more money by leveraging other people’s time and money than if I had tried to do it all myself with my own money. You should always be on the lookout for ways to partner with other people who have time and money to contribute to a deal.

Happy Investing,

Jim Pellerin

Investor, Advisor, Speaker, Coach, Writer

Get My Blog at http://www.JimPellerin.com

Get My book at http://www.The7StepsToRealEstateRiches.com at Amazon

Good Information at http://www.RealtyInvestmentSeminars.com

© 2010, JimPellerin. All rights reserved.

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