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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: Batman’s Office and Secret Bathrooms—These Real-Estate Agents Have Seen It All The Wall Street Journal Real estate deals, ‘high’ returns, 100 victims: Indian-origin ‘glam’ couple held for $4 million scam in US | World News - Hindustan Times Hindustan Times Real estate expert warns socialist mayoral candidate could trigger massive NYC exodus - Fox Business Office real estate wide open in Denver as vacancy rate hits 36 percent Colorado Public Radio Altadena’s rough real estate market: Slower sales, lower prices, lottery winner plucking up properties Los Angeles Times Erie County real estate transactions Buffalo News Real estate magazine reports Les Wexner as Blue Heron buyer The Martha's Vineyard Times 'Married to Real Estate' Stars Get Huge News after HGTV Cancellation Country Living Magazine NAR Real Estate Forecast Summit National Association of REALTORS® 20 Worst Housing Markets Facing Biggest Price Crash or Correction by 2026 Norada Real Estate Investments Residential lending shifts: Local credit unions gain ground, banks lose volume The Business Journals Real Estate agent speaks out as sheriff’s investigators search for missing foster mom fox5sandiego.com Las Vegas leads nation in glut of homes for sale, say Realtors Utah News Dispatch Mortgage Rates Today July 20, 2025: 30-Year FRM is Stable, Refinance Rates Dip Norada Real Estate Investments Future of malls: Arizona's retail centers evolve as customers' habits change The Arizona Republic Central Mass. real estate transfers, Sunday, July 20 Worcester Telegram How Trump’s personal aesthetic is redefining White House décor: 'I picked it all myself' - USA Today Neal Communities to celebrate Palmera at Wellen Park grand opening on July 25 Sarasota Herald-Tribune Don’t Skip This Moving Day Step: What to Clean Before Handing Over the Keys - Better Homes & Gardens Don’t Skip This Moving Day Step: What to Clean Before Handing Over the Keys Better Homes & Gardens Real Estate Property Transfers Spring Hill for June 23, 2025 Williamson Source I Tried Zillow’s New Aerial 3-D Search Tool, And I'm Obsessed Country Living Magazine Old Family Dollar demolished in Quincy Center. What will take its place? The Patriot Ledger Couple in California surrogate case also faces two lawsuits over real estate business practices NBC News New report documents that it's harder for Columbus and other Ohio residents to make rent The Columbus Dispatch Top Real Estate Stocks Fast Growth Stock Alerts - Free Capital Allocation Plans Autocar Professional International Buyers Purchased $56 Billion Worth of U.S. Homes from April '24 to March '25 National Association of REALTORS® Canadian psychologist Jordan Peterson sets up shop in the Valley, records show The Business Journals Real Estate Transfers ~ June 25, 2025 The Bedford Citizen ‘Taken advantage of’: Real estate agent ripped off friends, church, and federal government - WSOC TV Top Real Estate Stocks Fast Growth Stock Alerts - Explosive earnings growth Autocar Professional New Hampshire the latest state to ban right-to-list agreements Real Estate News by RealEstateNews.com Top Stocks for Real Estate Investment Premium Investor Signals - High-velocity capital appreciation Autocar Professional July Economist Snapshot: What Will the Big Beautiful Bill Mean for Commercial Real Estate and Housing? Urban Land Magazine OT Real Estate Spotlight of the Week: 3234 KY 140 East The Owensboro Times Best Real Estate Stocks Group Insights For Smart Investments - Overwhelming profit margins PrintWeekIndia Florida Real Estate: The Hidden Opportunity Amid Market Crash Concerns Norada Real Estate Investments Why these homeowners say the 15-year mortgage is the most underrated offering in real estate right now MarketWatch Is Wheeler Real Estate Investment Trust Inc. a good long term investment - Rapid-fire capital growth PrintWeekIndia A New Perspective: Here Comes the Groom | Real Estate Insights Piedmont Exedra RNR Real Estate Briefs – Texas & More Realty News Report ‘Making more money than ever before’: Las Vegas real estate agents using loopholes to charge higher commissions Las Vegas Review-Journal Best Real Estate Stocks Exclusive Investor Stock Picks - Free Daily Trading Room Entry Autocar Professional Real estate transfers: 7/16 Toledo Blade How much did that house sell for? Deed transfers in Ocala/Marion: May 19-25, 2025 - Ocala StarBanner Top Stocks for Real Estate Investment Free Market Trend Analysis - High-profit stock alerts Autocar Professional Bitcoin Is Draining The Value Out Of Real Estate Bitcoin Magazine Top Stocks for Real Estate Investment AI Stock Forecasts - Free Investment Case Studies Autocar Professional Founding Father John Hancock's home is on the real estate market in Boston. Take a look The Patriot Ledger Top Stocks for Real Estate Investment Free Market Trend Analysis - Lightning-fast capital gains PrintWeekIndia Eric Adams Is Raking It in From Big Real Estate New York Magazine Exploring the Future of Indian Real Estate Stocks Advanced Stock Analysis Tools - Free Market Volatility Navigation Tips Autocar Professional Real estate sales in Peoria, Tazewell and Woodford counties for July 19, 2025 Peoria Journal Star Best Real Estate Stocks Trusted Expert Guidance - Overwhelming financial success Autocar Professional Real Estate’s Big Gains From AI Morgan Stanley Top Real Estate Stocks Fast Growth Stock Alerts - Phenomenal capital gains Autocar Professional Mediterranean-style mansion in The Woodlands among priciest home sales week of July 6 (PHOTOS) The Business Journals New Valley mansion near Billionaire's Row lists for $13.5M The Business Journals Best Real Estate Stocks Expert Backed Stock Investments - Superior portfolio returns Autocar Professional HGTV’s Egypt Sherrod Shares Cryptic Message After ‘Married to Real Estate’ Cancellation tvinsider.com Top Real Estate Stocks AI Optimized Investment Strategies - Unprecedented growth rates Autocar Professional Best Real Estate Stocks Smart Trading Moves - Explosive earning power Autocar Professional Scammed, Shamed and Deepfaked: Real Estate Agents Speak Out on the $15M Crypto Con National Association of REALTORS® Best Real Estate Stocks in India Low Risk Stock Investments - Superior portfolio returns Autocar Professional |
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