Two Basic Ways to Make Money in Real Estate and a Dozen Ways to Lose it All
Two Basic Ways to Make Money in Real Estate and a Dozen Ways to Lose it All The Perfect City for a Real Estate Investor Make money in RE:1) Buy and sella) Buy and sell as isb) Buy, fix and sell 2) Buy and hold:a) Buy and hold based on per unit priceb) Buy and hold based on a per sq ft price Sooner or later you will mature enough to:1) Buy and hold instead of keep buying and selling2) Buy and hold the type of properties that require the least amount of marketing, management and finance. Lose money in flipping RE:1) Buying at a high price2) Buying at the wrong time/market3) Buying in the wrong place4) Buying the wrong property with physical obsolescence5) Fixing at too high a price6) Fixing too much – too little or the wrong things7) Under marketing property8) Selling at too low a price9) Having no cash reserves10) Having wrong people involved (partners, investors, contractors, brokers, bankers, appraisers etc.) Lose money in holding RE:All of the above plus:1) Renting to the wrong tenant2) Bad lease, price and terms3) Not maintaining the property4) Not resolving matters with finalityObviously this is a very short list. Please give me feedback and let’s add to the list of how and why some people lose money in real estate. Latest Posts The Perfect City for a Real Estate Investor 07 Apr 2022 Uncategorized Two Basic Ways to Make Money in Real Estate and a Dozen Ways to Lose it All 07 Apr 2022 Uncategorized How to make 20% net after tax using a real estate hedge fund 07 Apr 2022 Uncategorized Newsflash Two Basic Ways to Make Money in Real Estate and a Dozen Ways to Lose it All Make money in RE:1) Buy and sella) Buy and sell as isb) Buy, fix and sell 2) Buy and hold:a) Buy and hold based on per unit priceb) Buy and hold based on a per sq ft price Sooner or later you will mature enough to:1) Buy and hold instead of keep buying and selling2) Buy and hold the type of properties that require the least amount of marketing, management and finance. Lose money in flipping RE:1) Buying at a high price2) Buying at the wrong time/market3) Buying in the wrong place4) Buying the wrong property with physical obsolescence5) Fixing at too high a price6) Fixing too much – too little or the wrong things7) Under marketing property8) Selling at too low a price9) Having no cash reserves10) Having wrong people involved (partners, investors, contractors, brokers, bankers, appraisers etc.) Lose money in holding RE:All of the above plus:1) Renting to the wrong tenant2) Bad lease, price and terms3) Not maintaining the property4) Not resolving matters with finalityObviously this is a very short list. Please give me feedback and let’s add to the list of how and why some people lose money in real estate.