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You’ve Been Lied to About Real Estate Investing

Wholesaling real estate is by far the fastest path to real estate investing wealth. You’ve seen the investors on TV buying, fixing and selling property because it looks good. It looks fast, crazy, risky and exciting – all the reasons why it’s been on TV. What everyone fails to tell you is that it’s very risky, it’s time consuming and it’s not the most profitable residential real estate strategy you can do.

Don’t get me wrong, buying, fixing and flipping real estate is extremely profitable it’s just not for me and it’s most likely not for you. Here’s why you should not look into flipping a house.

Shocking? I know!

Everyone wants to flip a house because they see it on TV but what you don’t see on TV is what you need to be doing. You need to wholesale houses because you can get started today, right now with little to no risk, money and investing experience.

Wholesaling real estate doesn’t make for the best TV so this is why flipping houses has been all the buzz. We love the drama and we love watching to see if the house flippers will flip the house with a profit or will someone go wrong!

Everyone has enough drama in their life that we need to skip and focus on making the money. Focus on businesses that will yield the highest profit without being too risky.

And That Business Is Real Estate Wholesaling

As a wholesaler you’re in the business of connecting someone who is selling a house with someone who is buying a house and you get paid a ridiculous fee for doing so.

Now you’re not a Realtor and you’re not listing houses for sale. That’s not the cash producing strategy of wholesaling real estate.

You want to find distressed properties who are owned by someone who needs to sell the property immediately. The property is a burden and the worse it looks the better the deal you can negotiate.

Evaluate the property and agree to buy the house with the seller. Find a house flipper – someone who we love to watch on TV buy, fix and sell real estate.

Tell them you have a great deal for them. You have a distressed property with a motivated seller and they’re make tens of thousands on the deal when they can flip it, you just want you’re wholesale fee.

The house flipper will gladly pay you a wholesale fee if they’re going to make tens of thousands and the person selling the house gets their house sold. Everyone wins!

You introduce the house flipper as an associate of yours the seller when they actually buy and close on the property.

Everyone Wins

The house is sold – the seller wins!

The flipper gets a solid deal – the house flipper wins!

You brought the two together and made a nice profit – you win!

Wholesaling real estate is easy to do. It’s all about finding deal after deal. Wholesaling house day in and day out. There’s no risk and you can wholesale an extreme amount of houses whereas a house flipper can only flip so many houses and they’re taking on all of the risk.

Rethink your strategy and save the drama for someone else. You know better – become a real estate wholesaler today!

Investing in Mauritius

Mauritius, located in the Indian Ocean east of Madagascar, has recently opened up its property laws to allow increased foreign purchase of real estate. Mauritius has one of the strongest economies in Africa and is a stable country that is looking to expand its tourism and resort sector. This makes it an attractive place to look for potential investments.

With its sunny skies and warm climate, Mauritius is the destination par excellence for expatriates and business people. The country is renowned for the hospitality it affords holiday makers, but also welcomes those intending more permanent residence.

The Real Estate & Property Development Services cluster has been conceived to cater for the growing demand in real estate services mostly under the IRS and RES schemes set up by the government. The Group also participates in major real estate projects in the industry, tourism and private residences.

Mauritius offers an investor an unrivalled wealth of choice and investment opportunities in hotel, residential, office shopping and warehouse development.

There are three potential ways for foreigners to buy property on Mauritius: the Permanent Resident Scheme (PRS), the Integrated Resort Scheme (IRS) and the Scheme to Attract Professionals for Emerging Sectors (SAPES). You can find large plots of land at mauritiusestate.com

For those who are not interested in investing in a business, the IRS is a good option. This is a new scheme that was enacted in 2006 to increase the tourism and resort business. Foreigners may buy luxury villas in a resort, and the property may be up to 1.25 arpents. For this scheme, the properties being sold are mostly off plan as most of the resorts are under development.

When buying, the main costs are associated with the notary. The notary will prepare the contract and requires passport and documents certifying that the buyer qualifies under the scheme. Notary fees range from .5% – 2% of the property value and registration fees are 10%. There is a 5% transfer tax, which is paid by the buyer or seller, depending on negotiations, and agency fees are up to 2%. For IRS properties, the registration and transfer tax is determined by the property value, so the vendor will know exactly what is owed in that case.

The immovable property market in Mauritius is well regulated and protects property rights of investor, lenders, developers, and occupiers. The Constitution of Mauritius, which is the supreme law of the country, protects the right of land owners and the right from deprivation of property.

The Mauritian laws are a hybrid of French code civil and local statutes. The substantive contents of the law are derived from the Code Napoleon. The public law is based on English common law.

The Mauritian property law is substantially based on the civil system so that sale of property in Mauritius is carried out by means of an “acte authentique”, which must be notarised, registered, and transcribed to be binding on any third party.

The Top 2 Reasons You Should Invest in Residential Real Estate

What is the number one reason you should invest in residential real estate? Since the colonization of North America, no other economic asset has produced as much wealth as real estate. And, no other asset has produced as many millionaires as real estate. Ask the likes of Leona Helmsley, the Springs Clan, George Washington, John Jacob Astor, Sam Zell, and others (a number of which are billionaires). They all made their millions in real estate and most had all or at least a large part of their wealth in real estate.

Besides reliability and consistency producing more wealth than any other asset. You should be considering residential real estate for a lot of other good reasons. First, what other asset provides an education in how to care for it in the general every day activities that we all cope with. Paying the gas bill, or electric bill, or water bill are part of having a home and are part of owning residential real estate. Maintenance issues like roof replacement, rotten wood repair, fixing the plumbing, unstopping the toilet, repairing broken locks, and so much more are simply part of every day life and… part of managing residential property. While you may never have leased a home or an apartment to a consumer, the odds are very high that you have completed this exercise yourself and are familiar with the questions asked, the background and credit checks completed, your liabilities if you failed to pay and what the process would be should they have to evict you. You probably already know when rent checks are due, when they are late, and what will occur if not paid on time. You have an idea how to report a maintenance request even if you don’t know what to do with it when you receive it. In fact, you’ve spent a good part of your life to date learning the ins and outs of residential real estate operations and management. Additionally, as an American, you likely already know some or even many of the programs available to you to purchase a home and you have some sense of the loan process you will need to complete for the purchase. What other business can you think of that without additional professional training that you would know so much about?

Because of these two points, no one has created as much wealth as in housing and there is no business you know so much about, you should very seriously consider making residential investing part of your asset portfolio.