The real secret in the trenches is there is big profits to be made buying, fixing, selling, and renting junker properties. No one likes to admit they own junkers; the truth be known, many, if not most, full-time investors (especially professional landlords) wheel and deal in junker properties. You know, the ones in lower-income, slightly distressed areas.

It is all about cash flow. Remember the old saying: It's the books, not the looks.

I spent many years deliberating over whether or not to begin buying so-called junkers. The bookstore books said don't buy in these areas. Only buy in pretty areas. There is some truth to it, too. Better areas are easier to manage and they appreciate.

I am by nature an observer. I noticed many professional and full-time investors were buying in these areas. If these were "bad" investments, why were the pros dealing in them? Simple. The risk is higher, but the market rewards professional buyers/investors with great yields.

These areas (not slums or hard-core ghetto) are lucrative to the hands-on buyer/manager. Houses and apartment properties can be purchased with 100% financing for 40 cents on the dollar. I know countless people who have built their own 30 or 40 house empires with junkers over a relative short period of time. They cash flow, too!

It is kind of like fishing. If you want big fish, go for the carp and catfish. Yes, they're a little rough, but the quantity and sheer fight of these fish create avid fans. Same thing for low income stuff. Forget about showing these to friends for applause. If cash flow is what you want, these are the deals.

This is not for everyone, but for the tough-minded individual who is not afraid to get their hands dirty. I can assure a fine living can be made wheeling, dealing, renting, lease-optioning, wholesaling, and land-contracting.

More to come on "junker" empire building...