Here is an excerpt from my other book. It is called Magic Bullets In Real Estate.
There are 4 phases, or lifecycles, to real estate and here is how it often goes.
Phase 1: You will see new construction, bright shiny homes popping up,
landscaping contests, baby strollers and tricycles in the neighborhood.
This is probably going on in the suburbs of the city, as new growth tends
to radiate out at a pace of one mile per year from growing and
prosperous cities.
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Phase 2: The same neighborhood now 10-15 years later has aged a bit and
now you see basketball hoops and 2-wheel bikes, as the kids are older
and want more mobility.
Phase 3:The kids are grown and gone with families of their own and now the
parents are riding their own 3-wheel bicycles, trikes to the hip grannies.
Here in Phase 3, you’re looking at 25-35 year old homes, where some
people are passing away. Others are just hanging in and some are
moving in with the kids or going to an A.L.F. (Assisted Living Facility).
No doubt, you have outdated homes, deferred maintenance and some
repairs to be made. Here is the beauty of this whole thing. These are my
cosmetology candidates. Here’s why! The formally elder owners lived
there and they needed everything to work.
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They didn’t update it. They
just fixed things that needed repair in order to maintain a level of
comfort. They had pest control and the Sears man come annually and
piddled around. So things were kind of looked after in that manner. Buy
here!
Phase 4: That’s what happens as a result of you buying your ripe-
for-rehab fixer-upper in Phase 3 neighborhoods. Odds are, you will rent
it out, lease-option it or sell it to a young family when it does sell, and
guess what? Yep, out come the tricycles and baby strollers and it starts
all over again.
Tricycles
Bicycles
3-wheel bikes (buy here!)
Revitalization
Determine what cycle different neighborhoods are in! Follow cycle #3.
Isn’t that a beautiful story; isn’t that the truth? Think about your own parents and your own childhood. Now I also want you to think about that brand new young family that is counting on you to treat them fairly and give them a trouble-free home when they buy or rent from you.
The harder and smarter you work, the better quality and value you can provide to others. Don’t rip them off. Don’t take advantage, don’t scrimp and for Pete’s sake, do your best to do your level best. You need education and help from others to achieve these heights of excellence.
Dan Auito has been with the U.S. Coast Guard for the last 20 years most of that time in aviation. During that time he has acquired two real estate licenses an appraisers certification, founded a non-profit drug prevention corporation, headed a real estate consulting group and has recently written his first full scale real estate book.
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