If you’re fascinated with the world of real estate, and would like to become a real entrepreneur in this field, I’ve got two piece of good news for you.
1. You can operate anytime, regardless of the market being on the rise or in decline.
2. You can earn incredibly well, in several different ways, and not necessarily with a starting capital.
You don’t believe me? Let me explain it further to you
Quite often, over the years, I’ve had people say to me, “This is/isn’t a good time to buy or sell.” Ever since 2008, after all, the biggest fear has been exactly that of being unable to sell.
Well, I’ll tell you that, over all these years, the average time for selling my properties, and those of my clients, has always been 20 days. As a rule, if more than two months go by without managing to sell, it means there’s something wrong with the property itself, or with the way we’re selling it.
The thing is, the market going up or down is natural, but if your deal can hold water, you shouldn’t worry about the market. What you need to care about are just the numbers that have an impact on your bank account.
First off, you’ll have to make sure you follow rule #1 for investing in real estate.
You don’t know that? It’s the first and most important notion we detail in my course “Real Estate Investing“: to buy well.
“Real Estate Investing” is my ebook free about real estate that teaches you how to invest in real estate, with or without money.
Yep, because the real deal is not made when you sell, but when you buy.
Only this way, regardless of market trends, will you earn money nonetheless.
If you buy high-potential real estate, for a price sufficiently low to allow you to sell it back, in tip-top conditions, for a competitive price in the respective market, whoever may be house hunting (and there is always someone hunting for homes, particularly in Italy), they will always choose you, hands down.
What’s the price you should definitely be pouncing on to buy real estate?
The Street Price: the quick-selling price. It’s a crucial number, one to properly evaluate on a case-by-case basis, so as to calculate your profit even before initiating a deal.
In a nutshell? If you buy well, you’ll sell. If you’re off-base with the price to begin with, you won’t sell.
My partners and I have operated this way for years, both during market upturns and downturns, and these are the discrepancies we came across:
– When the market is in a “Down” trend, you can buy really well. And exactly because buying well entails selling well, I must say that I closed the most rewarding deals when the market was in fact in decline.
– When it’s in an “Up’ trend, selling comes easier, while buying is a struggle.
But as you can verify for yourself, both situations earn you money.
This does not mean neglecting the market, rather, it means you can operate constantly, yet adapting to its demands, and looking into what the market itself requires right then: the price, the cutoff, the size, the proximity to services, and so forth.
Because the rule is to give the market what it needs: the best product at the most competitive price.
Given this assumption, as a real estate entrepreneur, what investment opportunities would you get?
There are up to eight you can size up.
Exactly: there’s no single way to invest in real estate, but a plethora of opportunities I’d like to list for you, even though I can’t go into too much detail, at least not in a simple blog post.
So, here they are:
1. Free-market straight-through transaction: you can single out your deal following a zoning inquiry, buy your property, and sell it back.
2. Assignment of contract: you can buy the right to purchase a good potential property, boosting its real value, and selling back that very same right.
3. Subdivision into multiple real estate units: you buy a very large property, split it up into multiple real estate units, and put them on the market separately for a higher price.
4. Repurposing: you can turn office spaces, storage units, attics, workshops, stores, and so on, into residential buildings (or vice versa), as it best suits you, converting a non-liquid asset into a liquid asset, and thus easily marketable.
5. Acquisition through auctions: participating in auctions can help you snap up heavily discounted real estate.
6. Acquisition through sale and debt extinguishment: it’s a relatively unknown procedure which allows you to acquire heavily discounted real estate, while relieving a debtor from having their property auctioned off, in turn resulting in financial death. Moreover, it’s the type of deal you can initiate without a starting capital, i.e. “no money down.”
7. Short- and long-term capital gain: it’s about renting out one or more properties to create instant positive cash flow. You can rent out privately owned properties or third-party owned properties, through subletting (the so-called Rent-to-Rent).
8. New construction: you buy a lot, get the permits to build, and sell what you built.
The real estate sector is a a world of opportunities! I’m not at all surprised that many of my clients quit their profession to become real-deal real estate entrepreneurs, in order to take the reins of their life and their time: being able to decide how to independently handle our own deals and affairs, reporting exceptional earnings to boot, is a luxury that is hard to give up, once experienced first-hand.
You need to have the moxie and the willingness to put yourself on the line, but it’s worth it: that’s the path to achieve our financial independence.
If you want to learn more, and find out how to make the most of these eight investment opportunities, check out my courses on real estate investing.
Here’s to your financial independence!