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Updated over 5 years ago,
Where is the end? Who is the end?
Well I definitely have a question for everyone who's out there because I listen to almost 95 episodes of the BiggerPockets real estate show and I'm absolutely loving it. However what's going through my mind is this in the cycle of buying and selling and real estate and wondering where the end actually is. Now all of these numbers and all these people I'm going to point out and put in this Narrows completely fake and fictional but I just need to have something structure for an example so I can ask this question appropriately. The question simply is I start out with property a and I am an investor and I'm done upset this job such as a wholesale deal so I talked with property a and I'm going to set up a contract that states I am going to be the buyer and or my partner and this property is going to go for $20,000 and then I'm going to go out there and find a third party which that is part of this question who is that third-party? How will I know or I will I be able to identify what their intentions are of the property meaning if I knew that with their in-game was then I would be able to set a path and getting my connections made and my lists of the two or three fires that I could talk to you and figure out if they are a wholesale type of investor or there a they're a buying and hold type of investor or they are going to get somebody in there for a rental property. Basically if I set up this contract for $20,000 and I wholesale the deal too that third-party How will I know for sure that third-party is who I want to sell it to when I could actually just sell it to a buy-and-hold investor instead or a Fix and Flip investor and let's say that Fix and Flip investor takes the house they buy it from me for 20k and then they do their own thing with it and they fix it and flip it turn around and sell it for $60,000 whatever and the question Still Remains where does it stop where does that price point cap out where is the ceiling for the value of that house to remain at a certain number or will it continue to go up because it seems to me like the whole real estate investing game will be swapping out one houses value at one point in time at a low price and then it'll just continue to go up depending on who is the next person that's going to buy it. So let's say that same scenario and property does sell higher than 60000 and the end person who does move in there would be a regular Joe and they're going to live in there with their family on a mortgage and a note, can someone then come in after 1 year of those people living there c sell that property again for 60000 70000 80000 whatever the amount is and then the cycle starts back over again depending on who that buyer is if they're going to wholesale it for a higher amount or if they're going to live in it themselves as a primary residence I mean I'm just looking at this whole perspective for or real estate as a huge cycle like where is the beginning and where is the end for that price point on the house and is that all just based on running the numbers within that particular Market in that area to know the value of the home and then go from there?