Sorry for the misleading title there. I don’t really know how to double your equity by planting veggie. I don’t even know how to grow an onion. If you actually run an investment by growing farm land, coffee farm or collecting lumber. I would love to buy you a coffee or lunch to pick your brain
Ok ok..lets back off a bit, my point here is that if you buy real estate right, it does not really matter what you do to it. You can run a meth lab, take all the risk and crank out crazy return, or you simply let it sit there, maybe plant some organic veggie like Jenny does for her hobby, and still able to collect the reward.
This is another deal in the boring series. So not much to talk about the deal here. We were able to obtain it below market price. Jenny and her family moved in, market appreciated, she sold the house and capture the equity tax-free through homestead. It’s an actual solid live and flip deal.
Sound too easy? Well, it sounds easy but I am willing to bet my duck’s slipper that If you are not ready, you won’t be able to capitalize on any opportunity. What did Jenny do differently than other to be able to take this opportunity?
1.Financial over lifestyle decision
Instead of putting of putting all the saving into a down payment for a fancy home. She was willing to stay at a class C area. She bought it right. She didn’t mind the crazy neighbor and their two ugly dogs. She waits for the equity to go up, then sells it for tax-free through Homestead.
2. Always carried a loaded (financial) gun:
If Jenny didn’t have enough capital buy the house at that time, Someone else would take the deal (I would). Good deal doesn’t come and stay on the market for long. Most great deals happened off-market and the great real estate agent/investor is the one that you never heard off. They work only with a handful of clients for repeated business and simply have no need to advertise. People come to these agents and ask to be on the wait list, not the other way around. Be ready, be educated, and when the deal presented, you jump on it.
3. Hang out with the right people/group:
You are the average of the 5 people you hang out with. If Jenny didn’t hang out with me enough, she would never get the deal (Sound very funny but true). If I didn’t hang out with David, I would never get this deal. This is going to sound means, but be selective in the top 5 people who you spend time the most with. I am not saying that if your mom is negative, you are going to kick her out of your house. It just that if you want to become a better you and a better son or daughter, you need to spend more time with the people who could help you and go in the same direction with you. then you can become better and in a way better position to help the people that you need to help.
What is your story on a live and flip deal? I would love to hear about it.