Many real estate investors search anxiously to find profitable investments. Successful real estate investors, however, realize that great investments are rarely found – investors must work to create them.
One of the great things about real estate is that, unlike other investment opportunities, real estate gives you tremendous ability to add to and in other ways improve your asset. We, as real estate investors, have a great advantage because we can have many opportunities to enhance value in potential deals including:
- structuring the purchase price
- creative buying strategies
- rehabbing
- subdividing
- improving property management
- etc.
Additionally, the problems we encounter, unlike other investments, can represent income opportunities. If you find something wrong with a property, we have can offer a lower price and to later repair for increased resale value.
One thing we do not do, however, is speculate. Our properties must cash flow from day one. Low price alone does not mean its a good deal.
The deal is ALWAYS in the DETAILS! We create deals 99% of the time rather than find them. In order to create a deal, you need to know the seller’s pain/motivation points, the EXACT financials (your costs to purchase, close, renovate, and hold the property all the way to your sale) as well as the willingness/cooperation of a seller to participate with you.
Always establish the selling price because there’s no sense negotiating unless you have a price. But the deal is not only in the price. Always be asking yourself how else can you add value to the deal.
How have you created deals where others couldn’t find one?
