{"id":104412,"date":"2019-12-29T12:00:52","date_gmt":"2019-12-29T19:00:52","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=104412"},"modified":"2021-03-16T14:51:28","modified_gmt":"2021-03-16T20:51:28","slug":"time-buy-property-worth","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/time-buy-property-worth","title":{"rendered":"The Only Time You Should Ever Buy a Property for More Than It&#8217;s Worth"},"content":{"rendered":"<p>Before you think I\u2019m absolutely crazy to buy a property for more than what it&#8217;s worth, please hear me out.<\/p>\n<p>Guys, of course we know we should be buying properties under value or as cheap as possible. Then, we should put whatever we need into the property to get it to a sustainable long-term standard without things falling apart. And then there is equity in the deal that we can refinance and put into another one.<\/p>\n<p>I\u2019ve been around long enough to know all of the strategies.<\/p>\n<p>But what I want to do with this article is aim it toward those who might not have the expertise, time, or will to go out and do all these things. Buying a dirt cheap property, fixing it up, refinancing it, and then rinsing and repeating is not easy.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/6LSXDp8VpLw\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Turnkey Real Estate: When the Cost Is Justified<\/h2>\n<p>So, this is for all of you folks out there looking at investing in <a href=\"\/renewsblog\/2015\/12\/15\/turnkey-real-estate\/\" target=\"_blank\" rel=\"noopener noreferrer\">turnkey real estate<\/a>. Yes, I know there are shady operators out there, but there are a few companies doing the right thing. They are looking after their investors and have some of the best reputations in the business.<\/p>\n<p>You know why? They probably sell their properties for a little bit more than they are worth. In this particular case, this is not always a bad thing, because that entire service and package comes with a completely hands-off experience\u2014or at least it should.<\/p>\n<p>So, if you do not want to do any of the work such as finding, buying, renovating, tenanting, managing, and dealing with ongoing maintenance, then you may have to look at purchasing through a turnkey company. In many instances, I think you are going to be hard pressed to find a legitimate turnkey company that will sell your property for way under market value and offer all those services.<br \/>\n<em><br \/>\n<strong>Related:<\/strong> <a href=\"\/renewsblog\/types-of-investors-turnkeys\" target=\"_blank\" rel=\"noopener noreferrer\">3 Types of Investors Who Might Benefit From Owning Turnkey Rentals<\/a><\/em><\/p>\n<h2>You Get What You Pay For<\/h2>\n<p>Don\u2019t forget that price is what you pay and value is what you get. Sometimes, there is no harm in paying a little extra to get more value, a better product and better service. I didn\u2019t believe in this for a long time\u2014I was always looking for the deal, and I always wanted to buy a property as cheap as possible.<\/p>\n<p>This mentality, however, is not successful long-term, because oftentimes, seeking a deal at all costs may lead you to rip other people off or work with less-than-quality individuals. I think every business transaction should be a win-win for everyone involved, because if it\u2019s not, someone will become disgruntled.<\/p>\n<p>Generally, I believe you should only buy a property for more than what it\u2019s worth if you get the complete package. And if it\u2019s a 100 percent hands-off experience, if you don\u2019t have to do anything except check your account for the rent, then it\u2019s worth it.<\/p>\n<p>Even if you buy a property today and pay a bit more than what market value is, then three to 10 years later as inflation grows, the real estate prices will likely go up in value. I think if you\u2019re looking at buying and holding long-term, you should be OK.<\/p>\n<p>If you\u2019re looking at buying today and selling tomorrow, you will lose money\u2014so don\u2019t do it.<\/p>\n<p>Contrary to popular (or property) belief, I think that there is a customer out there who may want to buy a property for more than it\u2019s worth. This is because it might make sense for their particular situation. For everyone else\u2014the 99 percent\u2014we definitely want to buy properties as cheaply as possible.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/real-estate-investment-calculator?utm_source=renewsblog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91220\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>What are your thoughts? Do you think I&#8217;m right? Do you think I\u2019m wrong? <\/em><\/p>\n<p><strong>I\u2019d love to hear from you in a comment below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Generally, I believe you should only buy a property for more than what it\u2019s worth if you get the complete package and if it\u2019s a 100 percent hands-off experience. If you don\u2019t have to do anything except check your account for the rent, then it\u2019s worth it. <\/p>\n","protected":false},"author":1672,"featured_media":117737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4252],"tags":[],"class_list":["post-104412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deal-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/104412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=104412"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/104412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/117737"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=104412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=104412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=104412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}