How Anyone Can Make $50,000 Per Deal In A High Priced Market
|One of the most common self-sabotaging beliefs that we hear is this:|
"I want to invest in real estate, but I can't because my area is so expensive. I can't make money in an expensive market." If you are in a high-priced market, did you know that we receive emails from people all over the country in cheaper markets wishing that they were exactly where you are? The grass always seems greener on the other side, but in reality, it's good on both sides. I want to pull my hair out when someone says that their market conditions make success impossible!
But because a person has this belief, he or she will never recognize or commit to going after the many opportunities that exist in their market. Think about it - how fired up are you going to get about real estate if you think that your market is not favorable for success? Not very. That's why we have to attack those beliefs head-on before you waste another minute of your life not getting the results that you deserve.
Here's what I'll prove to you:
1) High priced markets are excellent markets to get rich in, and
2) You don't have to be as skillful of an investor in high priced markets.
"What? That can't be so!" you say. If you're in a cheaper market, don't worry. Your market has unique opportunities that we will discuss in subsequent articles. Let's take an "entry level" home priced at $500,000 in a higher priced market. You can easily pull down $50,000 per deal without really having to break that much of a sweat.
If you can find a house for only 5% under market value, and that is not hard, clean it up and push the price by 5% on the sales end, you have just made $50,000. "O.K. Dave, but how do I find that deal?"
If you can't buy at a 5% discount, you're not trying! When you apply the right tactics and techniques, a 5% discount is like shooting fish in a barrel.
Consider how much better of a deal you must find to make $50,000 where the home prices average only $100,000. That's right, it would take a 50% discount to bring in the same amount of profit. That is going to be a harder deal to find, and it will take more skill to land that deal as well. Bottom Line: It is much easier to buy in an expensive market for 5%-10% under-market than it is to buy in a cheaper market for 50% under-market for the same profit.
In expensive markets, you can practically earn a living dealing only with listed properties. I don't recommend that, as you know if you have my materials, because I want you to go out and nab homes for 25% discounts. A key rule that I teach in my course is that: "the easier it is to find a deal, the more you'll pay." That's why we like to "play" where there is little if any competition. Do you see the types of profits that buying at a 10%, 15% or 25% discount level could bring in an expensive market? You could easily approach six figures on each deal!
So What's the Catch?
The downside to expensive markets is that it is harder to qualify for homes as an investor. However, do you see with this type of profit margin how only one measly lease-option deal would net you $50,000 in seed capital to start your business? The numbers are so large that you can do a couple of creative transactions and never look back. Banks will then love you because you have cash in the bank.
Just because you are broke now and need to find one creative transaction that can net you some start-up funds does not mean that you need to spend your whole career doing that. I want my students to push through their first "no money down" deals, and move onto laying real cash on the table. If you have no money now, one lease-option or other creative deal will give you the assets to jump in with both feet and never look back.
I hope that this gives people in expensive markets something good to think about, and gets you out in the field today to take action and make your real estate business thrive. If you're in a cheaper market, don't let this article frustrate you for a second. The grass, as we said before, is great on both sides. I've invested successfully in both types of markets and know that you will make money in whatever kind of market that you are in.
|Dave Whisnant is an Atlanta investor/attorney who is dedicated to helping people land their first deals and create whatever level of success in real estate that they desire.|
After successfully building a real estate law practice, Dave walked away from it to focus on real estate when he saw the profits that his clients were making. Jumping in with both feet, he created a proprietary model that rocketed him to the top of Atlanta investors almost from day one.
Dave is different than other investors in his single-minded quest to perfect a series of cutting-edge prospecting tactics to locate and then land motivated sellers who other investors are not even aware of.
A master investor AND teacher, Dave's precise and easily duplicated systems have been successfully implemented by his students around the country in competitive markets of ALL kinds.
He believes in freely sharing his expertise and information for the benefit of anyone who is serious about succeeding, and believes that his techniques will create more success stories per student than any other real estate investing coach in the world in 2006.
Real estate investing has enabled Dave to have the freedom that enables him to spend time with his two young daughters, wife, and "herd" of golden retrievers.
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