Everyone wants to get a bargain when they buy real estate. I’ve NEVER met anyone who said, “I hope can find property to buy today and pay the owners a lot more than it is worth.”
But what you may not realize is that not everyone is trying to sell their property at retail market value.
I know that may sound a little crazy when you first hear it. But the fact of the matter is that people sell real estate for a lot of different reasons. And sometimes those reasons mean that a quick sale is more important to them than selling for a high price.
The most critical factor in real estate purchases is finding the “true value” of a property.
Once you know the value of a property, you’ll know whether you are getting a bargain or a money pit.
After you’ve figured out the true value, there are other things you will need to consider:
* after repair value – what will the property value be after needed repairs?
* the comparative market analysis – how does the property compare to similar properties?
* gross rent multiplier – is this property worthy of further research and consideration?
* capitalization rate – what is the valuation of a rental property?
* vacancy and credit loss – what if you have no tenant?
* gross potential 1ncome – what will your potential fully-occupied rental income be?
* and much more…
There’s a saying in real estate, “You make your money when you buy a property, not when you sell it.” Don’t make the mistake of buying a money pit. If you educate yourself and buy correctly, you can follow the footsteps of others who have generated their fortunes by buying real estate wisely.
Remember: It’s important to know both the market value of any property you are considering as well as its’ personal value to you.
And now, I’d like to invite you to determine your own destiny. You, too, can build wealth with real estate, and I’m here to show you how.