| MYTH |
Investing is something I need to do on my own, and that means a big time investment and a lot of work for me |
| TRUTH |
You won’t go anywhere without help, and that’s why we will teach you how the value of a team of professionals and specialists – your own Power Team – to make sure investing is done correctly. |
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| MYTH |
The only way to invest in property is avoid Realtors and go after “Sold by Owner” deals |
| TRUTH |
Some FSBO (For-Sale-By-Owner) deals are great, but they might make up only 10% of the possible deals out there; we teach you to broaden you field and go after those sellers who want to sell badly, whether they use a Realtor or not; the more deals you have to consider, the greater the likelihood that one of them will make you a ton of money! |
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| MYTH |
Buying houses well below market value is dangerous because the house is probably not structurally sound and I’ll go broke fixing it up |
| TRUTH |
clearly you need to select the right house to buy, but that’s what we show you in how to judge a property, what to look for, what needs fixing and what doesn’t, so you do only enough to make the property desirable but don’t spend your profit down the expenses drain. |
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| MYTH |
The only way to make money is to buy rental units, but they’re expensive, so I 10% of the possible deals out there; |
| TRUTH |
we teach you to broaden you field and go after those sellers who want to sell badly, whether they use a Realtor or not; the more deals you have to consider, the greater the likelihood that one of them will make you a ton of money! |
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| MYTH |
Buying houses well below market value is dangerous because the house is probably not structurally sound and I’ll go broke fixing it up - |
| TRUTH |
clearly you need to select the right house to buy, but that’s what we show you in how to judge a property, what to look for, what needs fixing and what doesn’t, so you do only enough to make the property desirable but don’t spend your profit down the rat-hole. |
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| MYTH |
If a house is ugly, it will be hard for me to turn it around quickly |
| TRUTH |
In fact, this would be true, but for one thing. You won’t let it remain ugly. It should be ugly only when you buy it. The people who will buy it want a pretty house. But the law of supply and demand states that products in high demand (like pretty houses) go up in price. You need to buy low and sell high.
Ugly houses just need some paint, maybe a couple of new doors, new carpet, and they’re good to go. Now you can fetch a good-house price for what you paid an ugly-house price to buy. |
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| MYTH |
You have fewer problems if you look for nice properties in good neighbourhoods |
| TRUTH |
A few basic facts to keep in mind: If you want to turn properties over quickly (meaning fewer costs to you), consider this. The single-family house = More people are buying them, creating higher demand. Single family homes sell quicker and are more affordable for most families.
Properties in your middle to lower-middle income areas retain their value very well because of the demand, and it’s actually easier to find distressed situations or ugly houses there, too.
A sophisticated investor does not get emotionally attached to properties. You won’t be living in these houses or neighbourhoods, so don’t turn up your nose. On the same token, don’t let the cute charmer with the white picket fence seduce you into paying too much. A sophisticated investor uses the fundamentals and the numbers to create wealth. Homes with more suites and units create more positive cash flow. The art of investing is like a painting, it is crafted over time and with experienced successful investors with a power team is certainly a desired way to invest. |
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| MYTH |
I can figure out how much a property by looking at what other properties are selling for now by thinking that all other sellers don’t know what they’re doing |
| TRUTH |
Truth is the only way to know how much a property is worth is to see how much it just sold for. The fact that you might be looking at properties that are for sale right now means you simply pick some proxies to stand in for your “subject” house: houses that are just like it, same size, in the same neighbourhood, same style, and approximate same age. If you know what these houses sold for within the past 6 months or so, your subject house will likely sell for about the same price. This information is available as comparable sales reports. Your real estate agent can supply you with these “comps.” An analysis of comparable sales reports results in a figure that we refer to as the “Future Market Value (FMV).” |
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| MYTH |
Your profit comes from selling the property A very basic principle of real estate investing states |
| TRUTH |
You make your money in real estate when you acquire; you may collect it later, but you earn it when you get it, or in the way you get it. This means that you are most careful while evaluating and analyzing the property before you ever buy. The point is, if you acquire the property correctly, you will always be able to make money. Even if the market goes stagnant, even if interest rates go way up, you can make money. Sometimes acquiring it correctly means you don’t even pay for it, but you still make money. It would be hard not to make money if it costs you nothing, right? |
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