Playing to Win

Any professional real estate investor knows that in a good real estate investment, the investor already knows what the end result is of their investment dollars before they purchase.

In other words, you win at the beginning of a investment. Lets look at this concept. To the vast majority of homeowners, they buy a home because they need a place to live and they want ownership. They buy the home they like and aren’t necessarily considering what the property will be worth down the road or what their exit strategy will be in the event they need to sell. When it comes time to sell their home, they hope that their property has increased in value and they will be able to walk away with a nice profit. The problem with this is that real estate markets are cyclical and if a homeowner bought at the height of the market, they are going to have a very difficult time selling their property without taking a loss.

So how do you ‘win’ in real estate investing? You buy a discounted property with equity in it! By finding a property that needs some ‘love’ or is distressed, an investor can bring a property up to its true value and walk away with a great profit. As an example, lets say that an investor buys one of the many discounted properties offered by RE Wealth Advisors and they buy a $170,000 property for $100,000. The property may need $20,000 worth of work which brings the total cost of the property to $120,000 and leaves the investor $50,000 in equity. After subtracting a 6% commission ($10,200), an investor walks away with $40,000 in profit for a 33% return on their money. But what happens if the market starts to slide backwards and prices start to decrease? The investor in this case can still sell that property for $10,000 or $20,000 less and still walk away with 16% to 25% return on their money. Even if the market took a nose dive all the way to $120,000, the investor can easily rent that home for $800-$1000 per month and have a 8%-10% return on their money while waiting for the market to turn around and go back up.

RE Wealth Advisors has a steady and ongoing supply of discounted assets for our investors where the win is a given! Put more money in your pocket today, contact info@rewealthadvisors.com for more information.