Everything about real estate business


Real Estate - Make Money With This Technique

Thinking of investing in real estate?estate isn't to get the property at that
Make money more consistently with thisprice. That's just a nice bonus if it
simple technique.happens. The real point is just to lower
The first time I invested in realexpectations.
estate, I was able to make money in partConsider the following scenario. You are
because I bought a piece of land cheap.ready to sell your house and you think
In fact, I offered 22% less than theit's worth $340,000. Then a friend with
asking price. Understandably, the realsome real estate experience comes along
estate agent didn't want to bring myand, after hearing that you plan to
offer to the seller. But fortunately Isell, says, "You can probably get almost
was too ignorant to know that such a low$300,000, right?" How confidant would
offer would normally be insulting, and ayou then be in about your estimate of
waste of time.$340,000. You might lower your
I say fortunately, because my offer wasexpectations, right?
accepted. This was my introduction toThat is why smart investors use
the art of the low offer. It was of"lowball" offers. They make money by
course, a misleading lesson for me,lowering expectations. Suppose, for
because the truth is that such lowexample, that you look at a rental house
offers are almost never accepted. Butthat is for sale for $123,000. You make
this doesn't mean that they're not worthan offer of $102,000. Will it be
making.accepted? Almost never. But you will
First of all, it is important tosometimes get a counter offer. You might
recognize that low offers ARE sometimesthen go back and forth until a price of
accepted. A friend of mine bought a home$113,000 is agreed upon. Prior to your
on a lake for $40,000 less than it waslow offer, the seller might have never
worth, simply because he made a lowconsidered selling that low, but now he
offer. No one else was making any offerssees it as getting you to come up
at the time, and the seller was ready to$10,000.
move.Of course you'll have a lot of offers
Of course, as I said, this doesn't workthat are just plain rejected. Sellers
often, so you have to balance the timewill often feel annoyed or insulted, and
and trouble of making many rejectedwon't even consider subsequent offers.
offers against the occasional profitThat's okay - it is just part of this
from one that is accepted. In the casegame. Investing in real estate in this
of my friend, he had probably made tenway is about the numbers. You make your
offers on various homes before gettingmoney by making more offers.
this one. $40,000 for ten offers seemsHow low should you go? You'll have to
like decent pay, doesn't it? For thatwork that out for yourself, based on
matter, if you aren't too busy, wouldn'tmarket conditions in your area, and on
$40,000 justify one hundred offers?the specific of a particular property.
(That's $400 per offer, by the way, ifBut one millionaire real estate investor
you want to average it out.)who uses this technique told me, "If
Make Money By Lowering Expectationsyou're not truly embarrassed by your
The real point of a low offer on realoffer, it isn't low enough.



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