Buy Low – Sell High Approach.

When the real estate market is hot like now, it is super easy to sell a property at a super high inflated price to a buyer that is willing to over pay, to skip inspections and to go to a closing table even if the deal makes no financial sense at all.

But,

Is that smart investing? NO.

Is that profitable? To whom?

Realtors loves this market because it becomes effortless to earn a commission, even though some will argue that they struggle to find properties because the demand is too high.

Buyers go crazy to win the bidding war against all odds and have their offer accepted.

Sellers love it because they cash in their equities.

What about investors?

Investors who are knowledgeable will stick to what works and what makes them a consistent profit.

If a property is highly priced, they won’t buy it.

If a property doesn’t cash flow, they won’t buy it.

If a property can’t be reasonably improved, they won’t buy it.

Think about this,

If you buy in the high you’ll pay a bigger price later when the market adjusts and you are holding a property that now has no equity and if you sell it won’t make you a profit.

The bigger question is: How can you stay in the real estate investing game and always make a profit?

The simple answer: Create the real estate. Get into building new real estate.

You will invest in buying the land, but even if you overpay for the land, the profit margins are way bigger which gives you huge leverage because when you add the cost of the land plus the cost of construction, you will always end up with enough profit in the deal… and that makes it well worth it.

Now,

Do you have the courage to do it? Do you trust yourself enough to do it?

Always study the market. Make a deal only if it’s a profitable one. Stick to your success formula. Avoid the trends. Invest for the long run… and enjoy the life that you craft for yourself!

Become a happy and a prosperous real estate investor!

 

 

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