Ted Thomas has taught me a very important lesson… always be on the lookout for unexpected opportunities in real estate business.
UNEXPECTED OPPORTUNITIES IN REAL ESTATE BUSINESS
A property investor friend of mine and his father-in-law regularly invested in residential and commercial property. They would do some basic clean-up on the property and sell it for a profit of about 50%.
They had just purchased a home for $90,100 and were having some basic repairs done, when something unexpected happened.
The neighbor, who had an almost identical house, but with the added feature of a large swimming pool, asked if my friend was interested in buying her property. She needed to move quickly and was willing to take any reasonable offer.
They bought that second house for $125,000.
They put in about $25,000 in renovations into the first house for new windows, paint, carpet and a remodeled kitchen. They sold that house for $224,200 making over $100,000 on that deal.
The second house they did not renovate, just cleaned up the house and yard and sold it for $200,000… to me, making almost a $74,000 profit after expenses.
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2 LESSONS ABOUT OPPORTUNITIES IN REAL ESTATE BUSINESS
There are two lessons to learn from this, and I’ll add one more at the end.
- Always look for unexpected opportunities in real estate business, as my friend found in getting a great deal on a neighboring house.
- Don’t expect to make more money in the long run by renovating property.
In the example of the first house, he tied up his $90,100 investment plus $25,000 renovation money until he sold the house, which was many months after buying it due to the time it took to renovate and sell.
The second house could be sold immediately. The result is that on the second house my friends could have $200,000 in their hands quickly to make another deal, while the first house was still being renovated.
In the end, they did make more money on the first house, but could have made even more by making more profitable deals in the time that it took to renovate and sell that first house.
A 3RD LESSON ABOUT OPPORTUNITIES IN REAL ESTATE BUSINESS
Now, I said that the second house was sold to me. I renovated it right after buying it and am living in that house today.
I felt confident in taking on that task because I had built a house 25 years earlier and had a friend, who is a carpenter and was available to help me.
Even with that knowledge and help, it cost over $57,000 to renovate the house and today, with the drop in housing prices where I live not fully recovered, that house cannot be sold for the $200,000 I paid for it.
Yes. It is where I want to live and is a nice neighborhood, but as an investment my friends, who sold me the house, did the right thing and sold it quickly without the expense of renovation.
Selling quickly is what Ted taught me and recommends you do, too. Unless you are extremely knowledgeable and efficient at renovating property, you will make your best profit by selling quickly.
“Buy low and sell low quickly.” Ted Thomas
Always be on the lookout for unexpected opportunities in real estate business. You never know when a great bargain is going to fall into your lap, but you have to recognize it and act on it.
Also, renovating properties may not be the best way to make money in the long run. Renovation ties up time and money when you could be buying it low, selling it low, and quickly moving on to the next property.
Buy low, sell low, and move on is Ted Thomas’ method, and Ted is famous for teaching his students how to earn 6-figure incomes within a year of going through his training.
Ted has been educating students from all over the world for over 25 years, and there’s no one more qualified than Ted Thomas to teach you all about finding opportunities in real estate business, both expected and unexpected.
Ted Thomas is America’s leading authority on tax lien certificates and tax defaulted property investing, and he offers full support and complete training with home study courses, live workshops & web classes, Q&A sessions, and personal coaching.
Tax lien certificates pay interest rates, as high as 36%, and tax deed auctions are full of real estate opportunities; you can pick up mortgage-free properties for 10, 20, 30 cents on the dollar if you know what you’re doing.
If you want to learn more about opportunities in real estate business, you can start your education today for FREE with the Safe Haven Investor System course (valued at $197).
Safe Haven is 2 hours of streaming videos and a 100-page illustrated manual that teaches you how to buy tax lien certificates and tax deeds. So be sure to get your FREE Safe Haven course today.
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