You must be logged in to reply to this topic.
-
Someone asked me how I pick the topics that are taught at the Panama Retreat each year. This was my reply
The info shared at the Convention is what I think are the absolute best strategies to be using to make cash and cash flow, while reducing risks in 2017. The techniques all focus on not getting bank loans and often not even buying the house unless you can buy subject-to or with seller financing. But even then, with caution.
I take in to consideration the state of the economy, the demographic shifts, real estate market trends (up or down or stalled and volume of sales/rentals), ease/or no ease of buyers getting loans. Of course all this information changes every year so the content for the Convention changes every year.
I stay on top of what’s happening in the US real estate markets but also worldwide markets because there are always trends that usually go east to west. An economic collapse in China or Japan can certainly affect real estate in the United States. The EU break up is causing problems in the US too. And banking problems in the EU are causing problems in the US already.
You have to take a look a the entire worldwide economy to understand how and why it can affect real estate in your own backyard. It can give you a heads-up about what’s coming so you can switch gears.
Knowing how to do a certain type or deal is important, but know which types of deals to do or NOT do are equally important. An example, I would not touch a rehab project with a ten foot pole now!
Jackie, you wrote:
“…I would not touch a rehab project with a ten foot pole now! ”
Here’s a classic example of a high-dollar house in Baltimore being rehabbed with the “hope” of flipping:
http://www.cnbc.com/2016/10/13/a-1-million-bet-the-anatomy-of-a-high-end-house-flip.html
Can you smell the aroma of risk in the air? With the housing bubble economy hanging by a pre-election manipulated thread, and coastal city housing markets usually becoming the leading indicators of falling-away demand, how many checkmarks on a risk aversion warning list for this house deal can you spot?
–Dee
.
Way tooo risky.
A better, less risky, way to make money with this house would have been to get an option for $600,000 then do a Highest Bidder Sale. If it is really worth $1,400,000, then she should be able to sell it for $800,000 at least. That means she could make $200,000 profit without buying the house, without fixing up the house, without getting a loan or putting your own money at risk.
I’d take a $200,000 risk free profit over a $400,000 risky profit all day long!
This does not even take in to consideration all the time time time, it takes to do a rehab.
Risk versus rewards. You always have to evaluate them.
If interest rates go up after the election, which they probably will, then she just lost a lot of potential buyers.
If the election does not go the way buyers home they will, they will stop buying. It happens every election.
If there is a terrorist attack in this town or anywhere in the USA, then buyers clam up.
If there is a sudden real estate crash like 2008, then her $1,400,000 house could suddenly be worth $700,000 – meaning she loses most of her investment.
It is WAY too risky to be doing rehabs in this economic and political climate.
Highest Bidder Sales are much safer and you can still make a HUGE profit!
Join us in Panama January 20-22 to learn some new tricks for finding HBS opportunities, negotiating the deal, and how to sell them for more!
You must be logged in to reply to this topic.
