Real estate can be an instant wealth creator… as long as you learn a critical lesson about deal making.
When my husband and I purchased a duplex, we instantly added $20,000 to our net worth and $500/month positive cash flow to our pockets. And we did it simply by getting to the heart of the seller’s problem and offering a perfect solution.
The foreclosed-upon duplex was owned by a bank. With some digging, we found the outstanding balance on the mortgage. We also researched the area thoroughly and learned that the place was worth about $20,000 more than the outstanding balance.
The bank had two problems. They needed to sell the duplex quickly to get rid of the debt, and they had to sell it at a price that would allow them to recover the outstanding mortgage amount. Focusing only on price, other bidders went in with low-ball offers and lost out on this high-quality income-generating property. But my husband and I took a different tack. We offered a quick close and a price equal to the amount of the outstanding mortgage… and we had the winning bid.
When you are looking at buying a property, instead of focusing on getting it for a low price, turn your attention to finding the seller’s 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.
[Ed. Note: This is the PERFECT time to scoop up real estate at bargain prices and set yourself up for massive wealth creation when the market recovers. In the meantime, you could be putting money in your pocket every month! Real estate expert Julie Broad can show you just how to do it. Get hands-on coaching and step-by-step instruction to create your own million-dollar real estate portfolio with her new program. Get all the details here ]
Similar Articles:
- A New Recession-Proof Income Stream – Would you like to know how to create equity out of thin air? Would you like a guaranteed method to &…
- How to Evaluate a Rental Property in 60 Seconds – When you start looking for a rental property to buy, you might find yourself overwhelmed by all of t…
- Why Current Market Conditions Shouldn’t Stop You From Buying Real Estate – Seven years ago, the real estate market where I live – the west coast of Canada – was in a serious s…
- How to Handle Your Investors’ Money for Fast, Profitable Real Estate Deals – Without Bank Hassles – Many banks and other lenders have overreacted to the sub-prime mortgage scare. As a result, it’s tou…
- The Danger of Pursuing Passive Income – Real estate investing has given my husband and me a great deal of freedom to do what we want with ou…
- Dear ETR: "The rental and the sales markets are providing a big challenge to our fiscal serenity." – "My ex-wife and I co-own a house just north of Tampa, FL. We purchased it 2 years ago for $260K…
- Amortization: How the Un-Sexiest Word in Real Estate Can Make You Rich – There are a lot of high-energy terms in real estate: flip, leverage, cash out, cash in, boom, bubble…
Great info thanks.