To make appreciation work for you, you must buy low-cost properties and wait for them to appreciate while you help them rise faster in value by making selected improvements. Good advice from real estate millionaires is given in the saying:
Buy the worst house in the best neighborhood and improve the house while it grows in value. You can expand this saying to include condos, multifamily units, and other real estate.
Now here are 12 ways for you to find low-cost properties. Each takes some doing on your part. But good friend the doing is worth the effort. It can help you acquire $1 million in real estate in one year in your spare time, on borrowed money! So:
1. Look for property being sold because the owner(s) have marital problems. The spats have become so intense that both "just want out.Result: They sell to you at a price well below the market value "just to get out, and away.
2. Look for property offered by an owner who's being transferred to another location by an employer that does not take responsibility for the employee's property sale. The seller will often sell at less than the market value because he or she may have bought another property at his or her new job location and has to get there fast.
3. Look for property offered for sale by a seller who's being constantly harassed by someone to whom he or she owes money a government agency, such as the IRS; credit-card issuer, bank, credit union, real-estate tax authority, and so on. Such a person often decides to get rid of all their bills by selling their last remaining asset (real estate) to clean up all their debts, once and for all. Result? They offer the property cheap just to get out! You get the property and they're no longer hounded by their creditors. It's a win-win situation for both of you.
4. Look for laid-off, downsized, reduced-force sellers who have to raise cash quickly because they have little, or no, savings. So they want to sell rapidly because their property is the only substantial asset they have. Autos, boats, mopeds, and so on, rarely have significant value in these circumstances. Such sellers need cash to tide them over until they find their next job. You can help them by buying their property at a below-market price quickly.
5. Look for sick, maimed, handicapped owners who must sell their property because it is beyond their physical capabilities to handle it at this stage of their lives.While it may seem cruel to buy from such people, you are actually helping them to move on to a better lifestyle in a more comfortable property. Such people will often sell at a reduced price because they want to go to a different location (dryer, warmer, etc.) where they will be happier and more comfortable. They want to sell fast so they can do what the doctor ordered.
6. Look for property that's been on the market six months, or longer. The seller is getting worried because the property hasn't sold while others around it have sold in much less time. So the seller reduces the price drastically to encourage you to buy it quickly! Which I'm sure you will if it helps you reach your milliondollar goal in one year!
7. Look for estate sales where the survivors (often the children of the deceased) don't want to have anything to do with real estate. All they want is the money from the sale so they can do their "thing which isn't real estate! Their only desire is to get the money and run! You satisfy this desire by buying at a reduced price, allowing you to profit from appreciation of the property after you take title to it.
8. Look for sellers who are squabbling with neighbors, the local school system, the town board over a planned improvement, the tax authority over a big rate increase, zoning change, and so on. Frustrated, the seller wants out fast. Such festering problems can give you the property at a real bargain price which is your goal! And I'm sure you'll avoid getting into the same squabbles the former owner did.
9. Look for sellers who are suddenly impacted by worries over pending inflation, depression, rising energy (gas, oil) prices, and so on. Some people will be so obsessed with such possibilities that they decide to sell their property quickly to get their money while they can. You come along and pay their under-market price so they can get away from the cause of their worries! They "cash-out and are happy. So, too, are you, with the bargain deal you negotiated.
10. Look for sellers who want to sell out quickly so they can buy another property, a business, a boat, an airplane whatever turns them on. Such people are so gripped with their new love that they want to have it yesterday. They can't even wait until tomorrow. They must have it NOW! You buy their property at a bargain price so they can "dance with their new love today! Again, a win-win situation for both you and the seller.
11. Look for sellers who are "burned out dealing with tenants, repairs, renting vacant apartments, and so on. Then an "earthshaking incident in their lives leads to the "I've had it attitude. So the owner decides to sell fast.When the decision to sell is made, the owner can barely get out fast enough even a day seems too long. Result: You pick up a bargain property at an excellent price giving you plenty of "room for appreciation to take over.
12. Look for older owners (80 and up) who want to move north, south, east, or west and "smell the roses. Such owners may bond with you when you demonstrate that you're ambitious, honest, hardworking, and have exciting plans for the future of their beloved properties. Some of our readers have worked out zerodown deals with owner financing of such properties being sold by older owners. You can share in the future appreciation of these properties without putting up much, or sometimes, any, money. So now you have 12 more ways to find properties with high appreciation potential. Use any, or all, of these ways and watch your acquisitions grow to the million-dollar level, in one year, or less!
Our website is not responsible for the information contained by this article. Articleinput.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.
Note: This article was sent to us by: Kyle Greyford at 03272010
1. Beware of these ten fatal business analysis errors
All articles are property of their respective authors. Please read our Privacy Policy!
© 2009 ArticleInput.com.