Equity can be converted to cash. Sometimes it is easy and sometimes it is not. Equity does help create a net worth. That infomercial is marketed to (primarily) people with little or no or even a negative net worth. Ask yourself this - what was your position when you got started?
Flipping is a great way to generate cash. Sometimes it is easy and sometimes it is not. Remember - there are different tax advantages to holding vs. flipping. Many people fail to realize that. Once you are tagged a dealer by the IRS you may be ALWAYS considered a dealer. That means if you hold a property for a long time as a rental, when you go to sell it…you are liable for the tax due on your gain. If a person is not prepared for that it can sneak up on them and sink their battleship.
Question: Isn’t monthly income cash?
Getting the CS course led me to this fantastic site. If it were not for that infomercial I would not be involved in REI and not a frequent visiter of this site. Most of the successful students on that infomercial started with little or nothing and now are “equity rich”. Are they doing better? Sure.
Good luck with LeGrands course. I would recommend to everybody to get CS first.
Through reading all the posts here, I pretty much understand the concept of “flipping”. Could someone with experience in flipping please let me know how long it takes to “flip” a house, from beginning to end. Are we talking a couple days here or a couple months? I am very interested in real estate investing, but I haven’t bought any of the courses shown on this post yet. I am a college student who is getting tired of the same old thing, and I’m ready to start experiencing some real success (financially speaking). As I understand it flipping is a way to make some quick cash and personally get out of debt within a matter of a few months (granted I work hard at it). Any info would be greatly appreciated. Also, of the major real estate courses (Ron Legrand, Carlton Sheets, etc…) which is the best for accumulating some fast cash?
Posted by J.P. Vaughan on January 06, 1999 at 06:52:31:
Read our new How-To Article by Jackie Lange,
“Beginners’ Quick Flip Primer.”
On the Sheets infomercial almost all of the testimonials
are from students who are “equity rich.” Equity is NOT
cash. As Ron LeGrand says, equity doesn’t pay the light
bill or put food on the table.
LeGrand’s “Quick Flip, Fast Cash” course is much better
if you want CAST rather than equity or monthly income.
You can find a complete description in our Online Catalog.
Posted by Chris Rock on January 05, 1999 at 23:21:03:
Jeff,
Maybe I can help a little. I’ll tell you what I know. The flipping aspect of Real Estate can be a very short process if you do a little homework and get to know a couple of rehabbers in your hometown. Check the newpaper for ads like “I buy houses”. These are usually rehabbers or wholesalers. The best person to talk to is Jackie in Dallas. Find her email on this site and ask her to help. She has some experience with flipping. I also recommend Ron Legrands course for flipping houses.
Chris Rock