Many real Real Estate Investing Programs taught by well known gurus will teach you to go out and make 100 low ball offers to find a good priced piece of real estate. The gurus create this sensation that makes you feel like the only way you’re a successful real estate investor is if you are practically stealing real estate you’re getting them so cheap.
The reality is that most people do not have the time, energy or network it takes to make 100 offers in search of a cheap property. And, the truth is that while you are obsessed about finding that rock bottom priced rental property, you are missing out on really good deals that could be making you money right now!
Let me give you an example of this. When my husband and I purchased a duplex, we instantly added $20,000 to our net worth and $500/month positive cash flow to our pockets. And we did it simply by getting to the heart of the sellers problem and offering a perfect solution.
Notice I didn’t say anything about making low ball offers, hard nose negotiation tactics or crazy clauses to squeeze every ounce of blood from the seller? All we did was look for a problem to solve.
The property was bank owned. We learned the outstanding balance on the mortgage by digging through some public records. We pulled a bunch of comparable properties and analyzed that the property was worth about $20,000 more than the outstanding balance on the mortgage.
The bank had two problems. They needed to sell the duplex quickly to get rid of the debt, and they had to sell it at a price that would allow them to recover the outstanding mortgage amount. Most other bidders went in with low-ball offers and lost out on this high-quality income-generating property. But my husband and I took a different tack. We offered a quick close and a price equal to the amount of the outstanding mortgage and we had the winning bid.
This property makes us $500 every month and added to our net worth the day we bought it.
As a real estate investor buying a rental property, turn your attention to finding the vendor’s biggest issue and figuring out how you can solve it. When you take a problem-solving approach to real estate investing, you are more likely to create an even better deal for yourself than if you had focused only on the purchase price. And, no matter what, you’ll be saving yourself the headache and pain of making 100 different offers!
Learn how to buy financial freedom, cash making investments and wealth creation with tips with your free Real Estate Investing Starter Tips Guide. Get real estate invest tips like: How to find rental property, resources and steps for renting out your property, and making cash with real estate from Julie’s weekly real estate investing newsletter.
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