Continuing on our Olympics of Real Estate Investing, Judges look for you to always have your ski tips pointed down. Why? It is less about the form as it is showing the quality of the technique and also the courage to take on controlled risks. This creates a lot of speed that has to be controlled. We watched several of the U.S. Free Style contenders go out of control last week and not get a score. Don’t let the speed increase more than you can handle.
As a real estate investor this means not to take on more than you are able to handle. I am really, really good at homes under $150,000 in a certain area of town. Really good. Any time I go out of that area I get an education that I don’t want. When I say I get an education I mean it costs me time and money. Kind of like going to college. I would rather make money then go back to college. I did not particularly like hard seats and boring professors.
Knowing how to point your real estate ski tips in the right direction will make you successful as a real estate investor. Keeping your turns under control and not getting out of the speed you are able to handle. There is such an allure for higher priced homes. Many investors think that homes in the million dollar range have so much profit potential. What many investors don’t realize is that with great profit comes great risk. The higher the price the higher the risk, if you think about it, what does a 1.2 million dollar home have that a 1 million dollar home does not? The answer is simple, it is up to interpretation. Now let’s take the same example. What is the difference between a $150,000 home and a $180,000 home? That answer is A LOT. Typically a different neighborhood, different quality of work, size, garage and many, many other things!
It is also important to think about how many buyers are in that price range. The higher the price range the fewer the buyers pool there is. Meaning if there are 10 potential buyers for a million dollar home there is 100 potential buyers for the $150,000 home. This drastically increases your speed and price of getting your home sold.
Keep Your Ski Tips Down!
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