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In this episode, we are going to cover the old question of when is a good time to buy.
Aunt Suzy doesn’t know…
Social Media Lies…
Wholesalers Definitely Lie…
So who’s opinion do you trust on when is a good time to buy?
How about your own? When the numbers make sense and allow for a reasonable profit, then buy!
For Rentals: Income minus expenses equals cash flow, if the end result is not acceptable to you, offer less for the property.
Yes, you must allow for greater vacancy AND the time it takes to find well-qualified tenants who are financially secure.
Yes, you must figure in the cost of management because it’s a legitimate expense, even if you are brave enough to self manage.
For Flips: If the After Repaired Value (Verified by an appraisal) does not offer a significant profit after deducting the purchase price, repairs, and holding costs…don’t buy.
Make your flip offer subject to an acceptable appraisal.
Forget about what “the market” is doing or not doing….do the numbers as you see them today..make sense? Will this property offer a fair and reasonable profit at the current purchase price?
Don’t fear getting turned down, it’s part of the process. Hearing “No” is a good thing, it means you are taking action. After enough “No’s” the “Yes’s” will come