In the beginning was the word...

[Skook]

I thought I would post another Ozzie Jurock gem. The quote below appeared in the Jan/Feb 2007 edition of Westcoast Home & Design. Jurock has been the mag's RE 'Advisor-in-Residence' for a number of years.

In this excerpt, Jurock points the way to becoming an RE millionaire. Notice here, he does advise avoiding the downtown condo market.

Quote:OK, what plan should you do if you want to make money on real estate?

Forget the fad downtown condominium market, the fad condominium hotel deals, the strange fractional market, the "get rich quick schemes," it is smarter to invest for the long term. Note, the key word here is "invest."

If the goal is to have $1 million in cash in 20 years, here is how you can achieve it:

1. Buy five condominiums in growing urban areas such as around the Lougheed Mall in Burnaby, in the Fraser Valley - yep Chilliwack - around Edmonton University, in Calgary, or in some good small towns - Kamloops, Nanaimo, others. Remember urban real estate will always have a use and as such will always have value.
   
2. Buy into a good building (research it) and pay no more than $100,000 for each unit.
   
3. Get a rental income of about $800 for each condominium.
   
4. Finance the purchase 100 per cent (or so)
   
5. Own them in 17 to 20 years, clear title.
   
6. Even if they never go up in value and the rental income never were to go up - you will get $4,000 per month income forever (and then your kids - forever). An income of $4,000 per month today would pay off a $1 million dollar mortgage. Presto! You are a millionaire!
   

And the best part ... even if prices never go up, and even if rents never rise ... you will have that passive income. Who cares about markets ... if you follow those simple steps. That first unit you paid off, that rental cheque of say $800 - you will get for the rest of your life ... and then your heirs will get it ... and then ... their heirs. You get the picture. Quick flips are fun ... fortunes are founded on investment.

So, get into action. After a few years on your way to $4,000 s month, you will have $1,000 then $2,000 and so on. Use the leverage of rental income. A plan like this starts you on the road to real estate investment success. To start creating passive income. Didn't do it in the past? Didn't stick to your plan in the past? Remember that your past in no way determines your future. Get your plan ready ... you have 2 months. And then in 2007, do some learning, hire the professionals, do some research, do not get swept up in the "multiple offer" euphoria. Invest in certainty. Get into passive income - it will set you free.

There are those magic words again - "passive income" and with an added bonus no less for it "will set you free!"

Now, I know absolutely nothing about RE investing, but the impression I get from this is that it is a recipe for becoming a 'slum landlord' and without ever having investing a dime of your own. All the money keeps rolling in year after year without any word of future expenses; I guess mentioning something so mundane is an unnecessary damper on what is otherwise a beautiful and wealth-creating experience.