“you Profit When You Buy”… And What That Means In Our Market!

By: Peter Giardini
Submitted: 12:45AM on Thursday 03 September 2009

In a recent article I wrote I spent some time talking about how sellers have been getting more realistic about the value of their properties… and how as investors more and more deals have become available. Deals that truly allow us to “Profit when we buy.”

For many real estate investors these past couple of years have been a crap shoot. At first it was almost impossible to find deals that had any profit in them at all. Sellers had totally unrealistic views of what their properties were worth. We still see this today, even after two plus years of pressure on sellers to get “REAL” regarding sales prices. However, and this is the key… prices in almost every area have been coming down and in some areas coming down hard... and better and better deals are being taken down everyday.

While this is great when you are the buyer! What does it mean to those real estate investors who buy-renovate-and sell, when it comes time to sell?

Where do you need to be price-wise to get a quick sale? For most active investors this is the PROFIT question of the day!

Based on everything I am reading and experiencing here is what you need to be thinking about… Once you have a contract to sell your property getting the buyer financed does not appear to be a major issue. I hope you read that correctly… getting buyers financed does not appear to be our biggest issue. Especially with the $8K grant from Uncle Sam. I will caveat that statement by saying that as long as you are selling to first-time homebuyers your are in the right part of the market.

The challenge is to get home buyers to walk through your property and put a contract on it… and here is the simple secret to making that happen…

Consider your thought process when are making an offer on a property. You want to ensure that you purchase cheaply enough to ensure your profit in our market. Well… guess what… homeowners are thinking the same way. In short, they don’t want to get into a home where the property decreases in value below the level of their mortgage… and their lenders don’t want to see that happen either.

So… your challenge is to ensure that you are selling your properties at a price levels that meet your buyers objectives.

Remember… the only way to offer lower prices in this market is to buy your deals at the lowest prices possible, and the good news for us investors is that those deals are out there for the taking.

To your success,

Peter Giardini