-If real estate is so profitable and lucrative like the "How-To" books say, why doesn't everyone do it??

So any profit you though you mike make on interest is gone.

We purchase homes and role all the profit into the principal.

If you're looking at finished lots only, you'll need to have a strategy that provides for holding costs until resale and expect to carry much of your investment and profit in the form of seller financing yourself.

Kevin if you bought a "cheap" house and are selling without spending any money on repairs, I would certainly build in the cost of closing fees into the profit margin and not look for ways to cut corners.

Be honest with yourself about expenses- attach a value to things you're handling yourself, so that if & when you don't have time to do those things, there's still enough profit in the kitty to hire them done.

THis way for him the seller did not see his big profits.

The seller will report a portion of the buyer's payments as a return of basis, a portion as taxable profit (capital gain), and a portion as interest income.If the seller owned the property free and clear.

I'm assuming a sub let would allow me to profit on the monthly pmt where as a simple assignment or transfer would NOT allow me to do that?

However I really like the idea of buying some land and building and selling for a profit.