NO!!
GET IN AND GET OUT!!
GET IN AND GET OUT!!
One thing that really confuses me is the lack of "willingness" to want to make moderate returns in this market. People are so used to hearing about 25+ percent returns on Real Estate investments from a few years back that they now think thats the norm, anything less isn't worth it. Does that make sense to you? It makes zero sense to me. If I can find you a home that will offer a quick 10% return as a flip what would make you hesitate? Nothing? Good, let me show you how to do it.
As I keep saying in these posts, you want to be positive with each investment, makes sense right? There are however certain investors out there that will pass on properties that have a moderate risk in regards to making cash on the flip. So what these investors want is a property that will offer a HUGE return on investment. For example they want a home that they can buy and rehab for say $400,000 and sell for $540,000 they expect a 35% return!! Now there is NOTHING wrong with that, I wish I could bring all of my clients such high returns. These deals are possible, but why waste all of your time and money waiting for a 35% deal to come along when you can pick up 5 10% deals in the same amount of time, with the same amount of money out of pocket, AND MAKE MORE MONEY!!!!
Let's say you buy the same house in the explanation above. You have comped out the neighborhood, you have done all of your research and you know that with the right marketing, exposure, agent and buyer you can make 35%. How long do you think that will take however? 6 months? A year? In this market I wouldn't be surprised. So why don't you take "a loss" and market the home for $475,000, sell in a week, make your 20%, move on to the next property and be happy?
As I keep saying in these posts, you want to be positive with each investment, makes sense right? There are however certain investors out there that will pass on properties that have a moderate risk in regards to making cash on the flip. So what these investors want is a property that will offer a HUGE return on investment. For example they want a home that they can buy and rehab for say $400,000 and sell for $540,000 they expect a 35% return!! Now there is NOTHING wrong with that, I wish I could bring all of my clients such high returns. These deals are possible, but why waste all of your time and money waiting for a 35% deal to come along when you can pick up 5 10% deals in the same amount of time, with the same amount of money out of pocket, AND MAKE MORE MONEY!!!!
Let's say you buy the same house in the explanation above. You have comped out the neighborhood, you have done all of your research and you know that with the right marketing, exposure, agent and buyer you can make 35%. How long do you think that will take however? 6 months? A year? In this market I wouldn't be surprised. So why don't you take "a loss" and market the home for $475,000, sell in a week, make your 20%, move on to the next property and be happy?
Investing with your brain, and not your wallet!!!
Now I am not in any way saying make less money when you can make more, I am simply saying in Real Estate the name of the game is GET IN AND GET OUT why hold property that you don't have to for an extra 10-20%? Is it really worth it in the long run? And doesn't a longer hold period equal more risk?
WOULD YOU RATHER HAVE ONE 35% DEAL A YEAR OR 5 10% DEALS? Ummmmm.....
Let's make some money the smart way people!!
Email me today and let's get started
-Rick
Rick@rickrapp.com
WOULD YOU RATHER HAVE ONE 35% DEAL A YEAR OR 5 10% DEALS? Ummmmm.....
Let's make some money the smart way people!!
Email me today and let's get started
-Rick
Rick@rickrapp.com
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