Everyone would like to be wealthy, financially independent, and financially stable; however this is not an easy process (otherwise everyone would be a millionaire), yet almost anyone can become a millionaire by following one simple success principle: by real estate low and then sell it high. To put it another way – search out properties that have a depressed value, make every effect to purchase that property either through your own financial means or through a loan from a bank or other financial institution, and then quickly sell the acquired property for a higher market value.
In this manner you are almost completely guaranteed to make money quickly and easily and thus put yourself on the right track to financial stability and growth. By utilizing this proven method you can increase your net worth by becoming a successful real estate investor thereby allowing you to make larger and more profitable investments in other money making arenas.
The first step to the success principle is to learn how to locate and identify potential profitable real estate investments. There are many reasons why a property will have a depressed street value. The most obvious reason is that the property has not been taken care of and has fallen into disrepair. While these types of properties can be extremely cheap, they usually need further investment to make them desirable or sellable. Therefore, unless you have the means and experience to make these improvements or repairs, you should avoid these types of properties.
Other reasons why real estate may have a depressed value include homes in the pre-foreclosure or foreclosure stages, the property has come under bank ownership, or the property has been seized through some sort of legal means. In all of these instances that value of the property drops, not because of the physical status of the property, but because of the legal or financial status that is associated with it. Thus, you cannot tell a foreclosed on house from a house that has no financial problems simply by looking at it from the street. This makes these types of real estate very valuable to a potential investor because he or she can easily purchase the house and then resell it at market value thereby securing a healthy profit.
The next step in the principle is to actually purchase the property you have identified as a good investment. You can obviously do this through your own financial means. However, that carries a huge personal risk. If you are unable to move the property, then your own personal money is on the line. Most investors choose to pursue short term loans in order to make the purchase. This means that, in large part, he or she is risking the money of the bank or other lending institution. While there are consequences if you are unable to repay the debt, they are less severe than losing your life savings.
Finally, in order to make a profit, you must sell the property for a profit. This will be easy to do if you have correctly identified a property that will be attractive to potential buyers or other investors.
This is the success principle that has made many investors successful and wealthy.
* About J. Burley
Tidak ada komentar:
Posting Komentar