Posted by Mike on January 06, 1999 at 18:51:33:
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.
Happy New Year nad best of Success in 1999.