As a result of investing in properties for over 30 years, I have developed what I call my ultimate real estate deal strategy.
Real estate has allowed me to take care of my family, but it is not a game where you get rich quick. You shouldn’t get into if you’re not obsessed with it.
However, it is an investment where you get rich for sure.
If that sounds good to you, here are the two parts of my ultimate real estate deal strategy.
The 2 Major Parts of My Real Estate Deal Strategy
1Does the deal feel good?
This first question I ask myself may seem vague, but it’s important.
How the property feels to you is how it’s going to feel to prospective renters. Don’t ignore it.
This step is not entirely subjective. When you look over the deal, go through these factors and see if these things feel right to you:
- What’s the asking price for the location?
- How do the property surroundings look?
- Does the deal makes sense when you initially crunch the numbers?
If all that checks out, then you can move to step two.
2Debt the deal up
The next thing you need to know is that there’s no reason to pay cash on a deal today.
There are two sets of debt that you will need to figure out:
- The debt on the asking price minus the down payment.
- The debt on the down payment (about 25% of the asking price).
You may wonder why this is such a critical part of my real estate deal strategy:
You will make money (cash flow) and pay down the debt if the deal is good. It’s a win-win.
Then with appreciation on that property, you get paid to wait.
There you have it, the strategy I use for real estate deals.
It seems like a lot of work initially. But once you start doing more and more deals, this will become second nature.
To get the knowledge you need to chase bigger deals, register for my Real Estate Training today.
Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
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