I hear the cliche over and over "You make your money in Real-Estate on the buy side." That statement rings true through the good times and the bad times. However, there is a difference in buying properties for a good value instead of a cheap price. Getting a seller to knock money off of his "Asking Price" is not necessarily getting "Good Value". Merriam-Webster defines Value as : "a fair return or equivalent in goods, services, or money for something exchanged." So to achieve a "Good Value" one must get better than a fair return. One way to do this is to look at the fact that properties often have extraneous and invisible costs. Closing costs, broker fees, inspection costs, time costs, hassle costs, etc, etc that can often add up to 7-10% of the price(double that on a buy sell). Getting good value can often include finding ways to limit your invisible cost exposure. Paying 14-20% to round trip a property can blow up a value proposition. Send letters in the mail, direct to the owners, on streets with properties that you like. Get an agent as a partner and use his commission as part of the purchase price. Network to find properties off the market. Be disciplined in your buying locations that fit your "leasing needs". All of these things lower your exposure and help to achieve "Good Value."
Posted by Landlordstation.com
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