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What kind of real estate
investing?
NEEDLE IN THE HAYSTACK?
As mentioned on the link “Why Invest in Real
Estate?, there are four primary benefits to owning real estate.
However, as a real estate investor, you don’t experience
the benefits of owning real estate until… you start buying
some real estate. I know this sounds pretty simple, obvious, but
yet to many real estate investors, this simple fact eludes them.
Believe me, there are countless people out there who are “needle-in-a-haystack” types of buyers. They are looking for that one unbelievable, once in a lifetime deal on a property. They always want that property at $20,000 below market value. As a result, they make multiple offers on multiple properties. The end result: no properties purchased, a mountain of frustration, and of course, no benefits gained.
Don’t get me wrong. I am not proposing that we overpay for any property.. And especially in this market, there are a number of outstanding buying opportunities. However, if the comparable sales "say" a home is worth $220,000, I hate to be the bearer of reality, but that house will sell for somwhere around $220,000. Homeowners are not ignorant. They know the market, or at the very least their agent will let them know what comps warrant their home to be valued at. Again, this market has huge inventory levels, so as investors, we can get good buys right now. There is no doubt about that.
However, what am I proposing? I am proposing that as investors, we learn the benefits of actually owning the property, of gaining the benefits of cash flow, depreciation, appreciation, and principal paydown. I am proposing that we not focus all of our energies on “needle in the haystack” types of deals. If a home is worth $220,000, let’s focus on the financing to figure out how we can get that home cash flowing for you. And let's do out best to get that home at the best possible price for you. The key though, is to get in the game!
FIX AND FLIP?
This is an area of real estate that has a huge potential. We have a seminar each month on this! Go to our seminars page on this site to see more information on it.
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