Real Estate: Is the Buyer in View?
Have you ever stopped to think how much you know? If you have been in real estate for several years, or if you have bought and sold real estate quite a bit over the years, you have probably accumulated a wealth of knowledge and experience. So, if you’re so smart, why aren’t you rich?
Well, maybe you are. But, if you are or aren’t, you should consider applying your knowledge of real estate to your personal portfolio. Someday, you may not want to work so hard generating commission income. You may want to have your money working for you.
Now, back to what you know. Do you know your local real estate market? Do you see trends developing in that market? Do you see opportunities to capitalize on those trends?
For example, could you acquire property and increase its value through:
· Making changes in use of the property?
· Making physical improvements to the property?
· Actively promoting the property to the right users?
· Solving problems associated with the property?
Yes, it is true that the present owner could take the necessary steps to increase the value of the property, and maybe he should (with your help, of course). But frequently the owner just wants to cash out and that’s where you come in. Buy it. Add value. Sell it at a nice profit, of course.
No money? No problem. Partner with an investor. Share the profits. Remember, the investor needs you as much as you need him. You may be able to offer excellent profit potential with minimal risk.
If you are a licensed real estate professional, just make sure you follow the three rules of acting as a principle in a real estate transaction: Disclose. Disclose. Disclose.
That means disclosing that you are a real estate licensee if you are, and that you are purchasing the property with the objective of making a profit. If this disclosure discourages the owner from selling the property to you, so be it. Move on to the next property. Remember, you are looking for motivated sellers. You shouldn’t have to convince anyone to sell.
Profits in real estate investments are primarily made when you buy; not when you sell. There frequently is a “wholesale price” and a “retail price” associated with a property. You want to buy at wholesale and sell at retail. Buy low; sell high. It’s that simple.
So, the next time you feel frustrated because you can’t find a buyer for that prime investment property, start wiping the fog off the mirror. Your buyer will soon come into view.
