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Real Estate Investing in Rentals - the $10 Million Real Estate Investing Mistake
Renting to tenants is no longer "where the money is" for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses. Yet, I consider this real estate investing approach the biggest mistake in my real estate investing career. I call it my "$10 Million Mistake." Back then, real estate investing in rentals was buying a house, renting it to tenants for a rental fee that covered the mortgage, and waiting for an increase in value. Interest rates were as high as 25%. Inflation was rampant. You could buy a house, and it would almost double in value in 10 or so years. Boy, have things changed in real estate investing! Interest rates have recently been the lowest in 46 years. Inflation is flat. The same rental house in some areas is appraising for less today than it appraised three years ago. The major profit to real estate investing in rentals is the pay-down of the mortgage by the tenant. Otherwise, profit comes from the difference between the rental fee and the mortgage payment. One month vacancy per year, which is not uncommon, might convert into an annual investment loss, even if (1) tenants don't leave owing rent, (2) the property is not damaged, or (3) repair cost is negligible. All of these possibilities are very unlikely. One month vacancy per year can eliminate usage profit for the year. Spend your time on fix up repairs, even part time, and you go more in the hole. How much you lose depends on how much your time is worth. Real estate investing is intended to be profitable. Vacancies, repairs, and time expenditure might mean you are only making a donation to the great cause of improving the nation's housing. The scenario changes if the mortgage is negligible and note payments are significantly less than rents. But the beginning investor does not often create this situation. Fixing up properties for resale is a better venue for real estate investing today. Go a step beyond the norm, and learn how to help a renter get financing for your fixed up house. Go another step by converting a junker into a "Dream House," and you will attract prospects to your property like bees to honey. Turning a "Plain Jane" into a "Doll House" demands extra work, but attracts better quality buyers. Real estate investing is extremely profitable, but your choice of real estate investing venue is critical to optimal profitability. Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" - http://www.AAREIT.com/.
MORE RESOURCES: The Insult Comic Who Sells Million-Dollar Homes The New York Times Texas now restricts Chinese nationals from buying property. Is it alien land laws all over again? The Guardian Commercial buildings, shopping center: See 19 latest business, apartment, land sales ($3.5K to $16M) Syracuse.com Sun Belt States Popular With Retirees Have Highest Share of Homeowners Paying HOA or Condo Fees Realtor.com The 36 Top L.A. Real Estate Agents of 2025 The Hollywood Reporter Like Real Estate? Earn 12% With AWP Seeking Alpha University of Alabama business school receives $5 million donation The Tuscaloosa News Dunlap & Moran real estate attorney named to Best Lawyers in America 2025 Sarasota Herald-Tribune Capital Idea Community Pulse - Lima One Builds Unique Lending Model For Real Estate And Construction Projects Greenville Online Northwest Healthcare Properties Real Estate Investment Trust Announces September 2025 Distribution Yahoo Finance Does Las Cruces real estate take a winter holiday? Las Cruces Sun-News East Cobb residential real estate sales, Sept. 2-5, 2025 East Cobb News AI and analytics key to navigating ‘exciting inflection point’ in real estate, UBS CIO says Pensions & Investments Renovated 125-year-old waterfront cape in Westport sells for $2.5 M: Weekly home sales Fall River Herald News Brand-new, million-dollar home in Clive features fitness area, contemporary style The Des Moines Register On the Move: Strategic Retail Advisors Partners with CCP Real Estate Advisors Orange County Business Journal Photos: Most expensive homes sold on South Shore The Patriot Ledger Incredibly spacious custom-built two-family in Dighton sold for almost $1M: Weekly home sales Taunton Daily Gazette Chicago Atlantic Real Estate Finance Declares Common Stock Dividend of $0.47 for the Third Quarter of 2025 Yahoo Finance See inside this newly-built house for sale for $1.1M near Clive featuring a fitness area The Des Moines Register Assessing Primaris Real Estate After Strong Q1 Results and Recent Stock Price Rebound sg.finance.yahoo.com Floor Space: What You Can Buy for About $850,000 Flathead Beacon Flagship Communities Real Estate Investment Trust Announces September 2025 Cash Distribution GlobeNewswire Mortgage Rates Predictions for Next 90 Days: October to December 2025 Norada Real Estate Investments Wilton Real Estate Report: Sept. 5-11, 2025 — $2.6 Million Tops Seven Sales Good Morning Wilton Florida Real Estate Florida Trend $5.3 million home sells on Anna Maria Island Tampa Bay Times Best Real Estate Projects 2025: Sugar Pine Village Phase I The Business Journals Remodeled mid-century modern home in Akron with courtyard sells for $785K. See inside Akron Beacon Journal Apple and Citadel Fuel London Office Boom The Wall Street Journal Homebuyer slams real estate agent for opinions on house's solar panels: 'He was rather negative' yahoo.com Revolutionary Real Estate Platform: Linkhome Enables Direct US Property Purchases with Cryptocurrency Stock Titan Serafin Real Estate Announces Historic Wheatland Farm in Loudoun County Va Going to Auction October 14 markets.businessinsider.com Dodgers star Shohei Ohtani seeks dismissal of lawsuit, claims he is victim of NIL misuse - USA Today U.S. Commercial Mortgage Delinquencies Rise in Q2, CMBS Loans Lead the Surge The World Property Journal First Half of Real Estate Taxes Are Due KCII Radio South Florida real estate buyers, development hotspots revealed (Podcast) The Business Journals $1.88 Annual Dividend: Chicago Atlantic Real Estate Finance Maintains Strong Quarterly Payout for Q3 2025 Stock Titan Firm connected to Arte Moreno buys Phoenix land for $11M KTAR News 92.3 FM Redefining Real Estate Decisions With AI, Trust, and Community: The Story of BT-AI: Broker Terminal Entrepreneur Shelter Island Reporter Real Estate Transfers: Sept. 14, 2025 Shelter Island Reporter Ohtani's lawyers claim he was victim of likeness misuse in real estate deal, move to dismiss lawsuit The Independent $2 Million Homes in California The New York Times Ohtani's lawyers say he was victim of likeness misuse in real estate deal, move to dismiss lawsuit Northeast Mississippi Daily Journal Chimney Debuts Property Intelligence at FinovateFall 2025: The Modern Growth Engine for Real Estate Lending Business Wire Mortgage advisors association: Surge in mortgage volumes The Jerusalem Post Homes in Monterey County sold for higher prices recently: See how much here Salinas Californian Homes in Tulare County sold for lower prices recently: See how much here Visalia Times-Delta Creating the ‘Feeling of Morocco’ in Texas The New York Times Homes in San Bernardino County sold for higher prices recently: See how much here Victorville Daily Press Phoenix home with views of Camelback Mountain sells for $4.9M. Take a look azcentral.com and The Arizona Republic Added Transfer Fee on Real Estate Weighed as Affordability Boost Franklin Observer Top 10 property sales in Marion County recorded July 14-20, 2025 Ocala StarBanner Chicago Row Homes and Lofts for Sale Chicago Magazine Luxury market slows in August; experts predict uptick in fall Las Vegas Review-Journal Average U.K. House Asking Prices Rise in September The Wall Street Journal Is Real Estate a Good Investment? NerdWallet D.C.’s Rental Act vote looms this month Washington Blade Morguard Real Estate Inv. (TSE:MRT.UN) Stock Passes Above 200 Day Moving Average - Time to Sell? MarketBeat Ohtani's lawyers claim he was victim of likeness misuse in real estate deal, move to dismiss lawsuit MSN Commercial real estate isn't just for billionaire developers. A&E explores this hidden world with a new reality show. Business Insider Club One owners sell iconic nightclub to new real estate group for upgrades, expansion Savannah Morning News Brassbell, Belmazad partner to transform auctioned real estate into hospitality assets Dailynewsegypt Metro Detroit homebuyers face higher prices but more inventory, lower mortgage rates The Detroit News Real Estate Troutman Pepper Locke Northtowns lands two more million-dollar home sales The Business Journals Central Mass. real estate transfers, Sunday, Sept. 14 Worcester Telegram Ohtani's lawyers say he was victim of likeness misuse in real estate deal, move to dismiss lawsuit MSN Mass. median home sale price is $665,000. What you can get in Framingham for that MetroWest Daily News |
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