I like to keep the odds in my favor. I say this because as a stock broker for 15 years i taught to buy low and sell high.
Another principle that i taught is to buy and hold your investments because if it was worth buying in the first place it should be worth holding for the long term.
When it comes to real estate this is an optimal time to buy low and to hold onto your investment. I have heard Dean say a number of times that he is buying and plans to hold up to 5 years in the future.
Having said that, a lot of people will say that they can't qualify for a loan because of various reasons.
Solution: Put together a TIC (tenants in common) agreement with 4 investors ( could be more) and have them put up the money and you do the work, (find the property, rehab or see that the rehabe is done, rent out the property and eventually sell the property.)
They put up the money and you do the work and you own one/fifth of the property along with the other investors.
The most important ingreadient is that the properties must rent for at least what the expenses are so no one has to put any additional money into the deal.
Right now banks are paying 1 1/2% to 2 1/2% for Certificates of deposits. What if they bought a property and held it for 4 to 5 years and the property increased $100,000. dollars over what you paid for it. $100,000 divided by 5 = $20,000. If they had $25,000 in a certificate of deposit that was yielding 3% that would be $750 dollars a year x 5 years = $3750 vs $20,000 in one piece of real estate.
The great thing is that you could do this with 10, 20 or 30 properties and not have to put one dime in the deals. Not a bad return.
Think about it. Wouldn't it be worth it to develop a business where you could be guaranteed this kind of rewards?
Until next time, this is Charlie Fuller, PMI Coach
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125