Secrets Real Estate Gurus Never Share
A secret kept well hidden by real estate gurus is that they know how to make a huge profit from property investments instead of just earning a small amount of equity or profit from investment strategies. This secret is hardly ever explained, revealed or divulged and at the very same time it is these factors that real estate gurus apply to every single purchase decision of real estate that they make.
To look at it in more detail, the price for the purchase of a property can be worked right down and this depends on the investment approach that is taken. This means that you are creating a greater margin for eventual profit. For instance, if you have a large sum of money that you want to keep aside for investment on a property, it is better to divide this money into two or three parts. And then invest one part of this money in combination with money taken from other people in the form of multiple mortgages and then go ahead and invest this in multiple properties. This will enable you to negotiate down from the price of purchase especially if you buy from one vendor on a new development. This is called leveraging.
What happens here is that suppose you have a capital amount of hundred thousand dollars to invest, instead of using up the entire amount to purchase a single property you should divide this amount into four parts. And then you can buy four properties by placing an amount of twenty thousand dollars as deposit down. At the same time you can mortgage the other seventy five thousand dollars on each one. So now if you are a strong buyer you can make an aggressive purchase offer to your vendor and say that you want to buy four properties but need a five percent discount on each. So at the end you will have shelled out hundred thousand dollars for four properties which each taken individually would have cost you more. At this point you can simply resell the properties and by this time your original hundred thousand dollars will already have turned into at least hundred and twenty thousand dollars. So you make a neat profit without actually doing any work at all.
Another alternative way would be to buy a property at auction. This way you can buy a house in some what bad shape in a good neighborhood at a price much below the market value. This property can be flipped and you can then resell this at top market value. So this way an undervalued house can be turned into a major capital returning asset.
So these are two secrets that real estate gurus cash in a major way so its time that you also follow suit.
Related Tags: real estate gurus
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
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