Property Investment – Help, My Property Won’t Sell

It is commonly said that you make money when you buy, not when you sell. However, often this lesson is not learned until you try to sell a property. I remember the first property I tried to sell. It was a two-bedroom unit in a small complex of eight. A lovely unit… only four years old in an upmarket growing suburb. I was moving to another state in Australia and wanted the property sold, to enable me to buy another home in Queensland.

The property took over 12 months to sell. Three contracts fell over due to finance issues for the purchaser. That was my first experience in selling a property. The emotional roller-coaster was challenging. Initial excitement when the offer was negotiated and accepted, followed by confidence when the contract was signed, followed by disappointment when finance was not approved for the purchaser. The final emotion was frustration when the contract fell over. This happened three times.

Prior to this experience I believed properties took on average three months to sell, depending on the current market conditions. A few years later, we decided to sell one of our properties. This time it took close to two years to sell.

The property was a 2000 square metre property in a beautiful coastal holiday town. The property had zoning that allowed for the development of eight two and three-bedroom townhouses. The property was ideally located on the main road, a couple of hundred metres from the shopping precinct and beach, had two street access and was very close to community amenities such as a child-care centre, school and bus stop.

One month after we purchased the property we were offered $70,000 more than what we had paid for it. We had no intentions of selling the property at the time. Later, on realisation that we did not have the experience, contacts or time to develop the property, we decided to sell it. The first two offers we received were from developers. The offered a 12-month settlement contract. They would pay an upfront amount, with the balance paid in 12 months. This contract suited them. They got to hold the property with little money down. Negotiations could not get the terms of the contract suitable to both parties, and both contracts stalled.

In hindsight we should have accepted the contracts. These were the first two offers we received. We expected more offers to come in that didn’t have a 12-month settlement term. The market turned, developers pulled out of the market, residential construction slowed down and our property took an additional 18 months to sell. Holding a property for an additional 12 months to two years is not good from a cash-flow perspective.

It is important to consider the type of investor you are, before you risk buying a property that is wrong for your investment strategy. Don’t assume you can just sell a property if you need to. When selling, the market is in control. The market determines when it wants to buy, what it wants to buy and for how much. This experience provided one of our biggest lessons in property investing… know what type of investor you are, and be that type of investor only.

You’ve Been Lied to About Real Estate Investing

Wholesaling real estate is by far the fastest path to real estate investing wealth. You’ve seen the investors on TV buying, fixing and selling property because it looks good. It looks fast, crazy, risky and exciting – all the reasons why it’s been on TV. What everyone fails to tell you is that it’s very risky, it’s time consuming and it’s not the most profitable residential real estate strategy you can do.

Don’t get me wrong, buying, fixing and flipping real estate is extremely profitable it’s just not for me and it’s most likely not for you. Here’s why you should not look into flipping a house.

Shocking? I know!

Everyone wants to flip a house because they see it on TV but what you don’t see on TV is what you need to be doing. You need to wholesale houses because you can get started today, right now with little to no risk, money and investing experience.

Wholesaling real estate doesn’t make for the best TV so this is why flipping houses has been all the buzz. We love the drama and we love watching to see if the house flippers will flip the house with a profit or will someone go wrong!

Everyone has enough drama in their life that we need to skip and focus on making the money. Focus on businesses that will yield the highest profit without being too risky.

And That Business Is Real Estate Wholesaling

As a wholesaler you’re in the business of connecting someone who is selling a house with someone who is buying a house and you get paid a ridiculous fee for doing so.

Now you’re not a Realtor and you’re not listing houses for sale. That’s not the cash producing strategy of wholesaling real estate.

You want to find distressed properties who are owned by someone who needs to sell the property immediately. The property is a burden and the worse it looks the better the deal you can negotiate.

Evaluate the property and agree to buy the house with the seller. Find a house flipper – someone who we love to watch on TV buy, fix and sell real estate.

Tell them you have a great deal for them. You have a distressed property with a motivated seller and they’re make tens of thousands on the deal when they can flip it, you just want you’re wholesale fee.

The house flipper will gladly pay you a wholesale fee if they’re going to make tens of thousands and the person selling the house gets their house sold. Everyone wins!

You introduce the house flipper as an associate of yours the seller when they actually buy and close on the property.

Everyone Wins

The house is sold – the seller wins!

The flipper gets a solid deal – the house flipper wins!

You brought the two together and made a nice profit – you win!

Wholesaling real estate is easy to do. It’s all about finding deal after deal. Wholesaling house day in and day out. There’s no risk and you can wholesale an extreme amount of houses whereas a house flipper can only flip so many houses and they’re taking on all of the risk.

Rethink your strategy and save the drama for someone else. You know better – become a real estate wholesaler today!

Is Email Marketing an Expense or an Investment Opportunity?

Do you realize how much your perspective and outlook on certain things in life directly impacts your drive, your performance, and your end result?

Take exercising for example. One person might look at it as a means to achieve a high level of physical fitness to enable him or her to live a longer, healthier lifestyle while the other might look at it as a waste of time and something to do only when he or she absolutely has to. Can you take a wild guess as to who might make the conscious effort to take the stairs when possible and who might opt for the elevator option?

A company’s outlook on email marketing is no different – there are those who view it as strictly an expense and there are others that view it as an investment opportunity. Taking these two viewpoints into account, you should expect to see differences in the amount of time and effort involved as well as in the distribution of funds put forth into making your marketing campaigns successful.

Thinking of email marketing as an expense means that your interest lies in cutting costs and keeping your annual budget under control. Limiting your outreach potential because of your strict budget constraints will only result in limited benefits from your email and Internet marketing efforts. All campaigns will be carried out in a half-fast manner with little attention to detail, and the end performance of your marketing efforts will suffer as a result.

On the other hand, thinking of email marketing as an investment is thinking of your email marketing as an opportunity to generate awareness of your brand name and establish long-term relationships with valuable prospects. It means investing time, effort, and money to constantly monitor your progress and tweak certain aspects of your email marketing to take full advantage of the resources at your disposal.

I’ve dealt with businesses on both sides of the spectrum. Those who go the extra mile to identify their performance goals and act accordingly and those who just want to get the process over with and move on.

So, what’s it going to be? Are you going to spend the time and effort necessary to ensure that your email marketing campaigns are carried out without a hitch or are you just going to slap something together, send it out, and hope for the best? The choice is ultimately up to you.