How YOU Can Turn $1000 into A Million Dollars

Real estate investing has been around since before Columbus convinced Queen Isabella to hock the crown jewels to fund his first voyage.  But it never really struck the fancy of John Q. Public until 1959, when William E. Nickerson published his seminal book on real estate investing, How I Turned $1,000 Into a Million in Real Estate -- in My Spare Time.

Actually, in today's dollars, the title should probably be How I Turned $50,000 into Fifty Million in Real Estate -- in My Spare Time.  A grand just doesn't go as far as it used to -- inflation and all.

It's a good read, and it's been updated a few times over the years.  You should get a copy from Amazon. It's a great place to start because it's based on plain old common sense, not some self-annointed guru's "magic secrets" to "untold real estate fortunes".

In this book, Nickerson lays out a simple, step-by-step plan that should inevitably lead the investor to success, ending up with a really respectable nest egg.  It only requires:

• Money -- you'd need about $50,000 to get started in today's dollars
• Credit -- you would need leverage (bank financing) to purchase properties
• Time -- this plan takes years to accomplish, but you get to retire rich

Let's face facts.  In today's world, most people don't have the initial investment and they're not willing to work diligently for decades in order to realize their dreams.  That's why shady ne'er-do-wells make millions of dollars hawking courses on how to Buy Properties With No Money Down or Make Your Fortune Flipping Properties.

Everyone wants something for nothing and they want it yesterday.  There are just too many people looking for a free ride.  Our generation is cursed by a general feeling of "entitlement".

Reality check -- nobody "owes" you anything.  If you're not willing to earn it for yourself, get used to going without.  Fortune favors the prepared and the hard working, not the whining wannabe.

Nickerson's plan is pure simplicity.  Here is the gist of it:

1. Find a house that needs some work but is basically livable.
2. Put 25% down on the property and get a bank loan for the rest.
3. Fix up the property while you're living in it
4. After a few years, sell the property, realizing a profit
5. Repeat

I knew a woman who used this formula.  When she and her husband finally retired, they owned ten rental properties free-and-clear.  They had no mortgage payments, just ten rental checks coming in every month.

Talk about a comfortable retirement...

After her husband died, she got tired of managing rentals and sold them all.  I bought one of them.  She took all the cash and bought herself a very, very comfortable home to live in - and paid cash for it.

That'a what discipline and time will do for you.  And it's within the grasp of anyone who's willing to do the work and give it the required time.

There are a lot of related topics that I'll get into in future blogs - leverage, banks, inflation, equity, rehabbing, home improvement, gurus, etc.

For now, try to find a copy of Nickerson's book (HINT -- they still have these big buildings where you can borrow books FOR FREE -- I think they call them "Libraries").

And here's a freebie.  If you like Nickerson's book, try to get copy of The Millionaire Next Door.  It's not the most exciting book in the world but I consider it to be mandatory reading.  It's another book that will probably open your eyes to new possibilities,