Info on Terry Sprouse's New Book
Title
Fix 'em Up, Rent 'em Out:
How to Start Your Own House Fix-up and Rental Business in Your Spare Time
Now Available at Amazon.com
Award-Winning Finalist in the "Real Estate" category of the National Best Books 2008 Awards, sponsored by USA Book News
Book Description
This book is aimed at the person who has a strong desire to invest in real estate but wants to keep his or her regular 9 to 5 job. This person is aimed at people without a lot of "disposable income," people who have to cut corners and pinch pennies and think long and hard about it before taking the plunge to buy a property. People who posses the extra money can afford to hire "professionals" to take much of the burden off their shoulders. They can hire attorneys, real estate agents, landscapers, plumbers and electricians. This book says that the key is to not rely on the so-called real estate professionals to help you along the way. What the author proposes is that you learn to do all of these things yourself, just as you would learn all aspects of any hobby that you pursue. It is more difficult to do it all yourself. However, it is more financially rewarding, more deeply satisfying, and you will learn wide assortment of skills that will serve you well throughout life.
Biography
Terry Sprouse, his wife Angy, and their sons, Jason and Bryan, have been buying, repairing and renting fix-up houses for the last six years. Terry started out buying a house extremely bad shape, repairing it, and renting it out. He experienced almost all aspects of the business because it is his goal to do everything himself with as little outside help as possible. Terry promotes repairing and renting out properties as a way for the average person to make extra money in their spare time, gain independence from their 8:00 to 5:00 jobs, prepare for retirement, and to learn valuable skills in self-sufficiency and dealing with people that can be acquired in no other way. Like Henry Ford, Terry believes that most people don?t recognize opportunity when they see it because it comes dressed in overalls and looks like work.
Terry was formerly a Peace Corps Volunteer in Honduras (1985-88). He has a doctorate in Arid Lands Studies. His hobbies include rainwater harvesting and solar energy.
What Do People Say About It?
(Comments are reproduced by permission.)
"Great information for anyone starting out in the fixer-upper business. Easy to understand, written by an author who has served his apprenticeship in the trenches."
-- Fixer Jay P. DeCima, Investor and Author
"Terry Sprouse has created a profitable rental business with his family in their spare time. He's accumulated more net worth in five years than most people have after a lifetime of saving. What sets him apart is he took action."
-- Bob Zachmeier, Investor, Educator, Author
"Sprouse has created an approach to home restoration and wealth generation that works. This book provides simple guidelines for restoring homes, but also weaves in guidelines for restoring sanity to our crazy lives. Sprouse has the wit of Will Rogers and the business savvy of Donald Trump. His simple, direct, honest philosophy of sustainability and responsibility is profound."
-- M. D. Matlock, Ph.D., P.E., C.S.E., President, American Ecological Engineering Society, Award-winning designer of green neighborhoods for Habitat for Humanity, Professor of Ecological Engineering, University of Arkansas.
"The author thoroughly covers the in's and out's of house investing and repair. I have used the techniques described in this book to make a good living in real estate. This book is full of useful tips and advice. This is a must read for the first time investor. I would recommend this book for anyone interested in repairing and renting real estate. The book is very clear and readable. How to make money in real estate is clearly demonstrated with the author's real world experiences."
-- Paul Hoyt, Real Estate Investor, Tucson, Arizona
"Fix 'em Up, Rent 'em Out is a fun, easy-to-follow guide to renovating and renting houses for substantial income generation. His personal success using his method works for all types of people--college students just starting out, retirees, single people, and couples. This book stands out from other guides as Sprouse's method targets people without a lot of money to invest up front. Not only will they make money, they'll learn home improvement skills that will save them money in the long run. This book goes well beyond a simple how-to guide by providing inspiration for those who are seeking a way to achieve financial success."
-- Cynthia Pope, Ph.D., Connecticut
"Right from the inspiring book's beginning, the author emphasizes the message, "You can do it", and immediately proceeds to show precisely how. Citing his spare-time, house fix-up rental business experiences, with family member help, Terry Sprouse spells out practical, self-help steps and actions to undertake, from start to finish. He continually offers support and encouragement while imparting helpful advice and tips, reiterating his message of 'you can do it'."
"With Sprouse's book as your guide, you are ready to start, to work in your spare time, to have fun in the process, and eventually reap the rewards of fix-up house completion and money attained thru you (and your family's) dedication."
-- Wally Allen, Retired, Volunteer English Reading and Writing Teacher, Tucson Elementary Schools
"I found this book to be extremely well written. Even for a prospective reader with little or no knowledge about property, it is really enjoyable to read and easy to understand mainly due to the writing style, informal and highly informative."
-- Chris Clare, book editor, Angel Editing
Contents
Introduction
1. Focusing Your Energies On What Gives Life Satisfaction And Meaning
Working And Living In Harmony With Your Values
Start By Meandering In The Direction That You Want To Go
Your Desire Creates The Power To Succeed
2. Why Invest In Fix-Up Houses
Security In Retirement
Security Today
The Advantage Of Real Estate Over Stocks
Buying Fix-Up Houses Reduces Risk
More Time With Family
You Can Do It Part-Time
You Can Start Later (Or Earlier) In Life
Women Are Leading The Way
Make $106/Day With Just Two Rental Properties
3. The Rules Of The Game: Learn By Doing
Learn The Ropes
Trust Your Own Judgment
Learn To Make Repairs
Learn To Buy, Rent And Pay Taxes
The 5-Day Sale?
Always Make Two Bids And Make Lots Of Calls
How I Do My Calculations
Do The Math ? Don?t Leave Profits To Chance
4. The Nuts And Bolts Of Buying Fix-Up Houses
The Foundation
The Target Neighborhood: Nice And Not-So-Nice Houses
Finding Housing Information
Selecting Fix-Up Houses
Chance Favors The Prepared Mind
Advantages Of Fix-Ups
Sources Of Fix-Ups
5. Paying For The First Fix-Up Property
Getting Ahead On Borrowed Money
Technique Number 1: Take Out A New Loan
Let Leverage Work For You
Technique Number 2: Refinance The Home That You Live In
Your Credit Rating Could Make Or Break You
How To You Improve Your Credit Rating
Private Mortgage Insurance
Piggyback Loans
Qualifying For Piggybacks
6. The Zen Of Repairing Properties
Inner Growth And Making Repairs
Work Like Dogs, Eat Like Hogs, Sleep Like Logs
Learning The Skills
Draw On The Past
What To Fix Up
Safety First
Avoid Perfectionism
Tools Of The Trade ? ?Give Me A Lever ? And I Shall Move The World?
7. The Two Safest Ways To Make Money In Real Estate
Technique 1.) Turn Your Residence into a Rental Instead of Selling It
Timing Your Refinancing
Technique 2.) Sell A House That You Live In For Two Years And Pay No Income Tax
What This Means To Investors
Increase Cash Flow, Sell One House To Pay Off Another Know When To Sell
Combining Techniques To Create Synergy
8. Renting Houses: Bait The Hook And Reel In The Fish
Curb Appeal
Background Checks: Scrape Off Bad Applicants Like Barnacles
Rental Contracts
Advertising
Open Houses: Attract Tenants Like Flies
Closing The Deal
Dealing With Problem Tenants
Noisy Tenants
Insurance And Invisibility: Layers Of Protection For Your Properties And Yourself
9. Let The Tax Law Help You Make Money
The Tax Codes
Repairs Vs. Improvements
Travel Expenses: Let The IRS Help You Keep In Touch With Your Properties
Depreciate Property Used In Rental Activities
Allowable Expense Deductions In Schedule E
The Great News About Depreciation, If You Never Sell
Keeping Records
Keep Personal Account And Business Account Separate
10. Make Work A Family Affair
Bite Size Pieces For Small Fries
Hire Your Kids And Add Tax Breaks
11. A Tale Of Two Investment Strategies: Calle Canis And Avenida Planeta
Strategy #1, The Planeta House: Buy And Hold
Strategy #2, The Canis House: Buy, Live In, and Sell With No Tax Liability
The 3-House Solution
12. The Big Picture: Even When You Lose, You Win
Teach What You Have Learned
Write A Book
A New Beginning: Write Your Own Ending
References
Appendix A
The Compressed Version Of "Fix 'em up; Rent 'em Out."
Appendix B
Useful Websites
Appendix C
Recommended Reference Materials
Appendix D
Credit Reports
Index
Sample Text
The Zen of Repairing Properties (short segment)
There is no need to run outside
For better seeing,
Nor to peer from a window. Rather abide
At the center of your being;
For the more you leave it, the less you learn.
-Lao Tzu
Inner Growth and Making Repairs
Beyond the economic side of the fix-up business, there is a spiritual side to repairing houses. Its not just about making money or repairing houses. Its also about growing as a person.
In the above quote from the book "The Way of Life" author Lao Tzu points the way to a fulfilling life. The phrase "abide at the center of your being," to me means to focus on doing the things in life that are most important to our core self, who we really are underneath it all. At a basic level we all desire to learn, grow and create. Applied to our work with fix-up properties, we desire to humbly fix things and by small gradations create a better world both inside and outside of ourselves. When we abide at the center of our being we recognize that we are on the right path through the feeling of satisfaction that we have.
There is a deep satisfaction that I receive whenever I am able to repair something at a property I have purchased. I often get an inner glow that lasts for hours, sometimes days. This is especially true when I have made a repair that I have never done before. After I finish the project, I bask in the warmth of satisfaction and the overwhelming feeling of confidence that "anything is possible".
Before I began doing fix-up properties, many times my attempts at even minor repairs ended up in failure. I thought that it was just beyond my abilities to understand the complexities of this type of repair work. (I admit that I didn't do that much physical labor around the house. In fact, about the only exercise I got was in jumping to conclusions, dangling participles and splitting infinitives.) I often felt that in any confrontation between myself and the mysterious electrical system, the Byzantine plumbing system or perplexing carpentry work, that I would always be the loser.
There is also an inherent fear of failure that often saps our energy and forces us to not even attempt what we may fear is a difficult repair. By charging ahead in spite of our fears we often realize that, after removing a cover or digging into a project, the solution is self-evident. I've often found that the problem is solved fairly easily by attaching a loose wire or unclogging a pipe. The worst case scenario is that I just have to replace something that is broken, which isn't so difficult when you have a book to refer to or can discuss it with an "expert" at a hardware store.
On the first property that I purchased, I hired out almost all of the technical repairs and focused my efforts on landscaping and painting. On the second property that I purchased I began diving into the technical repairs more. I wired the front porch light myself after having hired someone else to do it on the first property. The installation went slowly, since I was just learning, but the satisfaction I received was a big boost to my confidence. Beyond the satisfaction, I was surprised at how easy it was. Before starting, I had images of causing irreparable damage to the house. From that inauspicious start, I went on to other wiring projects. I put ceiling fans in all the rooms. Then I put a hall light in and installed a doorbell. I put electrical receptacles in the bathroom and installed new switches. Each accomplishment gave me more confidence and wet my appetite for more. Now, I don't think twice about doing almost any electrical repair that comes up.
The great inner truths of repairing houses are, like learning all great truth and wisdom, only revealed gradually. Some of the skills that must be learned and exercised in the course of fixing up a house include:
· Patience
· Strength
· Persistence
· Creativity
· Self-knowledge
· Overcoming fears
· Openness to learning
One of the greatest feelings of satisfaction is looking at your house after you have spent countless hours fixing it up. I sometimes think, "Wow, its hard to believe that I have returned the house to its original condition." Its almost magical. Before getting started in fix-up houses, I could never have imagined being able to do something like that. Over the years of having to put the same houses back together again after tenants have beat them up, you find it gets easier and faster to repair them each time. You feel like a doctor who brings a patient back to health.
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