Last Mogul Field

Once the second jump is done there is still a mogul field that cannot be overlooked. You can see the finish line right ahead but if you focus too much on the finish you will hit a Volkswagen size hump and fall over. This will ruin your chances of a finish let alone the hopes for a medal. This last mogul field is overlooked because it is a bit smaller than the others but it’s important – it will make or break the race.

This last mogul field for a real estate investor is finding the buyer. In reality if you have done everything else right up to this point finding the buyer should not be too difficult don’t spend the money until you have it in your hand. My philosophy is very simple. A. Be the 3% under the other comparable homes in the area B. List with a quality agent and don’t skimp on the Buyer agent commission. I would get a discount from the seller’s agent but make sure the buyer’s agent gets a full 3% commission. Make sure to put in your contract the amount that the buyer’s agent will receive. Most contracts just state the total commission that is paid. Create an addendum to the listing contract that shows exactly how much the buyer’s agent and seller’s agent will receive C. Have the house better than everyone elses. I don’t care what market you are in, if you are the lowest price house and the nicest home in the area you will sell, fast. That is the key. Sell Fast and get on to the next deal. There is a cost to hold the property, not just the cost of your money, but there is an opportunity cost on the next deal that you may miss, or something else you can do with the money. Holding the property also comes with risks. Too many investors think you can always start high and come down over time. This is stupid! Price for what the property is going to sell for. Too many investors think that some idiot from another state (like California) is going to come and pay more than what the property is worth. Price the property for what it is worth and then discount it 3% and you will have buyers coming. In some cases you will get more than the asking price because you may end up with multi offers. Yes you heard me right multi offers in this market place. The key is if you are the best home at the best price people will fight over it.

The Last Mogul field is easy if you have the right strategy and you don’t plan on a Jet engine to push you faster to the finish or plan on some idiot to over pay for your property.

Point Your Ski Tips Down!

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!

How Real Estate Investors are Helping the Economy Part 9

9. Real Estate Agents

The local buyers and sellers agent will get a commission upon the sell of the property. Again, this money will be in turn spent by the local agents in the market place that will help local business in the area increase their revenue and continue to employ wage earners.

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