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.