Yes you read the title right. Stop searching for great real estate deals…to a certain degree. Yes as real estate investors we want to buy greats deals in great areas and if we get them for undermarket value thats a pretty sweet bonus. But don’t make it your primary investment strategy where every single deal of yours has to be this crazy homerun grandslam one in a million deal or your not interested. Being a real estate agent specializing solely with real estate investors, I have come across so many “Investors” who have snuffed away deals because it was a “crazy deal”, and lost so much money in the end.
For example: Right now in my business in this specific time for some reason most of the deals I am sending my realtor clients are being tossed away because to them its “not good enough”. While in the meantime I am literally buying all of them with all my partners. We are making a shit ton of money we’re doing a lot of duplex conversions right now this time. We’re doing some flips, doing multi family properties.
All of these deals I sent to my clients and they said “its not good enough deal” I am buying them all up. Like I said we are making a lot of money flipping these and converting them, refinancing them, so my partners make all of their money back. So the moral of this story is to create good deals. You’re going to find a common theme through out this. Here are the five reasons you should stop searching for these hidden gems, these crazy homerun deals and why it’s slowing you down.
YOU’RE NOT GOING TO ACT
Like I said, you are going to pass off good deals and snuff your nose at all of them. You’re not going to do anything. You’ll be sitting on the side lines waiting and waiting for the homerun deals.
Yes when the homerun deal comes along, grab it. I am doing the same. I look for those as well. But I am also buying the nice easy boring deals all through out while I wait for that crazy grand slam. Like I said I am making boring money on all of them. All the time, great quality tenants, great areas, I am taking action! You gotta stay in the game. If you’re just sitting by the side lines, you’ll get rusty but also you’re literally walking over a ton of money. You have to act in this business. You have to get out there and grow your portfolio.
Yes with a couple of singles, doubles, and small little deals. Grow your portfolio, grow your authority, and name. Why? So we can attract more joint venture partners into our lives, into our business. So when those crazy grand slam deals do come along we can snap them up and close on them FIRM! We’ll have partners in the back because we have built our brand, and proved ourselves on all of these deals. If you’re just sitting on the sidelines you’ll maybe buy 2-4 deals a year, maybe even less. Because you were waiting for these crazy grandslam deals when you could’ve bought 10 that year! Or even more! We’re up to that point right now. We are buying 10 or more deals a year and not all of them are crazy deals.I’ve got one crazy grandslam that we are working on right now but all the other ones are just nice little boring properties.
BUY SINGLES AND DOUBLES
So wait for the homeruns, wait for the grandslams, but along the way buy the singles, doubles, the boring small properties that will give you small little boring cheques. All of those cheques add up to a lot in the future. All of those properties being paid down and appreciating at the same time, will turn into crazy ass grandslam deals. For example: The first property I bought was a tiny little town home where I paid $135,900 back in 2011. At that time people said “you’re crazy” because I paid full price.Guess what that property is worth now 8 years later? I paid $135,900 and those properties in that complex are now selling for $305,000. Meanwhile my tenants paid down the mortgage a shit ton for the past 8 years. Thats one deal!
The second deal we bought was the same thing. We actually moved into the primary residence of this house. It was another townhome in the same complex. This one was a little more higher end, and had a garage. It was listed for $165,000. I put in $166,000 and paid my closing cost of $1000. Essentially I paid full price, and snatched it up. Guess what that property is worth 8 years later? It’s now for $360,000.I paid $165,000 8 years ago, the tenants paid it down a shit ton, and is now worth $360,000.
#Realestate, #investing, #deals
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