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Math Makes More Money!
Very few of us enjoyed those algebra lessons or high school math.
But great real estate investors realize that it is THE most important part of being successful.
Whether you are buying the house to rent, hold, or flip if the numbers don’t work – you don’t work.
A few key things to keep in mind when buying investment property:
- Purchase price is king. Over pay in the beginning and your investment will be behind the eight-ball from the word “goâ€.
- Reasonably over estimate. As a newbie investor, plan for the worst and hope for the best.. Build those profit margins so that if that “small fix†becomes a “big pain†you are able to still make your money back. Cost overruns need to be controlled, but a certain part of them has to be expected.
- Sell or Rent Fast. The worst case scenario is to have your house ready for the market and then be sitting on the market for 60-90 days while you wait for a tenant or buyer. Be a great deal so that your inventory moves fast. Also for renters, don’t go after the “top-dollar†in your rentals. The pool becomes smaller and you have less to choose from.
Math may not have been out favorite subject in high school, but using it right today can – and will – make you a lot more money from your real estate investing.
Want to be a real estate investor? Let me send you “Toby’s Tip” with my pick of a great investment opportunity in the area. Visit our Contact Us page and choose “Toby’s Tip” from the subject line.
You’re definitely right that real estate investing is all about the numbers. An investor should NEVER get into a property unless they fully understand all the numbers involved. That said, I think your worst case scenario of a property sitting on the market for 60-90 days is a conservative one, unfortunately. In the current market, some properties are sitting many times longer than that.
Just wondering if any active traders are starting to trade the ETFs? After reading the book by Larry Connors – High Probability ETF Trading – I switched and I would say overall my results have improved but there are fewer trading opportunities because of the small number of ETFs he writes about. ETFs seem to be a little less erratic in their price movement so that’s good but some of them have poor results using the systems he describes in the book.