Looking to make money in real estate? Wondering what the formula or actuarial table says is the ‘golden ticket’ to profit margins? Well, sorry to share that it doesn’t exist. Investing in Real Estate is different for every buyer, investor, state, neighborhood, market trend, and portfolio. There may not be a magic formula for getting rich off of the white picket fence dream home- but one of the wise ‘money guys’ of our generation shared a simple, yet important bottom line that will give anyone looking to make money in the real estate market at least a great starting point.
Dave Ramsey often says, ‘you make money when you purchase the property.’ While on the surface this statement seems backwards as most of the time when a buyer goes to the closing table they are bringing either a decent pile of cash or a certified check in a rather large amount. Money seems to outflow at time of purchase. What Ramsey is referring to is the idea that you don’t physically get your profit at the time of purchase, but you set yourself up for what you will net when you go to sell. Purchasing a home to make money doesn’t necessarily mean getting a rock bottom price- it means buying a home either under market value or at market value with the possibility of improving the home to increase its net worth. In order to make money when you sell a property, you have to start with the right buying power. Purchase a home for the right price and you will ‘make your money’ when you go to sell as long as you have held up your end of the deal by making the improvements or additions needed to bring up the home’s marketable value.
Having an educated Realtor (R) who understands home values in your area and is in touch with what buyers are looking for is a great resource to have on your side. Spica Real Estate can be there the entire process to help you reach the best potential for making money in real estate. We can help you buy at the right price, give suggestions to the highest return on investment changes to bring up the homes’ market value, and help you sell it to turn your profit into cash in pocket. There is no quick scheme or magic formula for making money in real estate, but having the specialists on your side will give you a boost in the right direction!
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