Its Not Just About Price When You Are Investing in Rental Property
There are so many choices for Real Estate Investing Programs taught by a well known guru these days. And many of these programs will teach you techniques to find good priced deal on property. The gurus make you feel that you have to feel like you're practically stealing rental property youre getting them so cheap if you use their techniques.
The reality is that most people do not have the time, energy or network it takes to make 100 offers in search of a cheap property. And, the truth is that while you are obsessed about finding that rock bottom priced rental property, you are missing out on really good deals that could be making you money right now!
Let me give you an example of this. Together with my investment partner (who happens to be my husband), we purchased a duplex. This duplex instantly added $20,000 to our net worth and put $500/month positive cash flow in our pockets. And we didn't do it with 100 offers.
Notice I didn't say anything about making low ball offers, hard nose negotiation tactics or crazy clauses to squeeze every ounce of blood from the seller? All we did was look for a problem to solve.
The property was bank owned. We learned the outstanding balance on the mortgage by digging through some public records. We pulled a bunch of comparable properties and analyzed that the property was worth about $20,000 more than the outstanding balance on the mortgage.
The seller had two problems. They had to get rid of the debt, and they had to sell the duplex at a price that would allow them to recover the outstanding mortgage amount. Most other bidders were seeking that super low price property and went in low offers. as a result they lost out on this high-quality income-generating property. But we offered a quick close and a price equal to the amount of the outstanding mortgage and we had the winning bid.
From this one duplex we make $500 every month; And we added to our net worth the day we bought it.
When you are looking at buying a property, instead of focusing on getting it for a low price, turn your attention to finding the sellers biggest problem and figuring out how you can solve it in a way that will be profitable for both sides. When you take a problem-solving approach to deal making, you are more likely to create an even better deal for yourself than if you had focused on price alone. At a minimum, you at least will be doing good deals instead of wasting your time making 100 offers! - 23226
The reality is that most people do not have the time, energy or network it takes to make 100 offers in search of a cheap property. And, the truth is that while you are obsessed about finding that rock bottom priced rental property, you are missing out on really good deals that could be making you money right now!
Let me give you an example of this. Together with my investment partner (who happens to be my husband), we purchased a duplex. This duplex instantly added $20,000 to our net worth and put $500/month positive cash flow in our pockets. And we didn't do it with 100 offers.
Notice I didn't say anything about making low ball offers, hard nose negotiation tactics or crazy clauses to squeeze every ounce of blood from the seller? All we did was look for a problem to solve.
The property was bank owned. We learned the outstanding balance on the mortgage by digging through some public records. We pulled a bunch of comparable properties and analyzed that the property was worth about $20,000 more than the outstanding balance on the mortgage.
The seller had two problems. They had to get rid of the debt, and they had to sell the duplex at a price that would allow them to recover the outstanding mortgage amount. Most other bidders were seeking that super low price property and went in low offers. as a result they lost out on this high-quality income-generating property. But we offered a quick close and a price equal to the amount of the outstanding mortgage and we had the winning bid.
From this one duplex we make $500 every month; And we added to our net worth the day we bought it.
When you are looking at buying a property, instead of focusing on getting it for a low price, turn your attention to finding the sellers biggest problem and figuring out how you can solve it in a way that will be profitable for both sides. When you take a problem-solving approach to deal making, you are more likely to create an even better deal for yourself than if you had focused on price alone. At a minimum, you at least will be doing good deals instead of wasting your time making 100 offers! - 23226
About the Author:
Learn how to buy financial freedom, cash making investments and wealth creation with tips with your free Real Estate Investing Starter Tips Guide. Get real estate invest tips like: How to uncover rental property, resources and steps for renting out your property, and making cash with real estate from Julie's weekly real estate investing newsletter.
posted by X - Men @ 8:24 AM
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