Choose your Trick Wisely

Air only counts for 25% of your score. So if you do too big of a trick and don’t land it then you lose. It is really that simple, and really that harsh. However if you don’t do a decent trick you can lose it as well. Choosing the right trick based upon your situation, the conditions, what the other competitors are doing is essential to being a successful Mogul Free Style Skier.

We see too many real estate investors fixing up homes as if they want to live in the home. Meaning they make changes to the home as if they are the owner. Making things to personalised, doing dark accent walls that some people may like and others may hate. Or doing cabinet and counter top choices that some people will love and others will hate.

You need to pick your tricks wisely. When completing a rehab and retail we frequently see too many people doing too much to the property. When you put a property under contract go look at some of the homes that are currently on the market on the same street. With those homes you will know if Granite counter tops are standard in the area or if you can just use laminate. You will know if you have to get upgraded appliances or if lower end appliances or even used appliances will work and many many more. I recommend that you do what is standard in the area and then I like to throw in a little something extra. For example if every home in the area has vinyl floors I like to do tile in the kitchen, or maybe do nicer carpet than everything else in the area. So for each house I recommend that you do something to bring some sizzle than all the other homes.

The Key is to have your home the nicest. I think this is accomplished by having new carpet, new paint, and everything clean and working and then to add a little sizzle, one thing that you do extra to spice up the home. Choose your tricks wisely; if you over do it you lose, if you don’t do enough you lose. Knowing the other homes for sale will tell you what you are competing with. If you know what tricks your competitors are throwing in you will know what type of tricks you need to do to win the Gold!

Markets Fall like a Parachute that won’t open, and Rise Like the Climb to Mount Everest, One Painful Step at a Time.

I have heard lots of discussion about buying investment real estate to flip and buying investment real estate to hold. I have a vast experience with both buying and selling as well as buying and holding. Having worked with hundreds of rental properties both for myself and for others I have to tell you that rental properties have not bought the returns I was hoping for. From our resent study over the last 10 years we have seen that rental properties brought in a 5.5% annual return (not including a sales price).

If you sell the property in the future it is really a flip. It is just the number of months you held the property may be longer than a traditional flip.

I recognize that real estate values are at all time lows, I think it is important to realize that values are not going to go up as fast as they came down. It takes hard work, time, and innovation for markets to climb.

Having properties to hold long term should be part of your goal. The End goal would be to have several paid off rental properties that will bring in a consistent income for you month after month. Rental properties are a great vehicle if you want consistent income coming it. It is also a basic need for all people so I love the vehicle. Also there is inheriting value in the real estate itself regardless of what the house is worth. Best of all you can go by and kick the bricks rather than having some electronic document that says you own stock.

These are the days to buy and sale real estate, Fix and flip every home you can get your hands on. Only buy properties you would not mind owning as rental properties. Then if you have trouble selling a property you can turn it into a rental property.

There is no question that Fixing and Flipping homes is a job and does require your attention all the time. You will have to admit that it is the GREATEST job you could ever have. You can work when you want, you can make wonderful returns, and no one tells you what to do. You can make as much or as little money as you want.

My two cents is to Fix and flip every home you possibly can. As you earn money don’t spend it on foolish things, also don’t use it to buy your next fix and flip… Use it to buy and pay cash for a rental property.

You are better off using other people’s money on Fix and flips rather than your own, and use your own money to buy and pay off a rental property. You will have the rental property for a long time and it will produce consistent revenue. The fix and flip you will be in and out over just a few months.

The Truth is that Markets go down and Markets go up. I just want the markets to move, because movement creates opportunity