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Updated over 9 years ago on . Most recent reply

User Stats

30
Posts
5
Votes
Spencer Keables
  • Hailey, ID
5
Votes |
30
Posts

Why would anyone get rid of a good asset?

Spencer Keables
  • Hailey, ID
Posted

OK this is a question that I have had in the back of my mind for a while, why would anyone sell a property that is cash flowing? 

I realize that some people might want to sell their property to invest in a better property that gives them more of a return. Also I know that there are people that are just bad property managers/owners who might be looking to sell to get rid of a head ache. I can imagine some owners are forced to sale because of financial problems.  Other than the reasons I just mentioned why sell a property that is clearly cash flowing? I can't help but to think that most sellers are ditching their property because they have some underlying issue with it; an issue that will be very costly in the future. Obviously this makes me nervous as an investor. Out of curiosity, for those of you who have purchased/sold a property, what caused the seller or you to part with it? 

Most Popular Reply

User Stats

38
Posts
26
Votes
Israel Tabi
  • Investor
  • Los Angeles, CA
26
Votes |
38
Posts
Israel Tabi
  • Investor
  • Los Angeles, CA
Replied

 My strategy has always been to improve a property and maximize net income to create equity. Once you do that you aren't going to make much money on cash flow. Most wealth created through real estate isn't cash flow its equity growth. You have two choices, wait for the market to do it for you or create it on your own. I always choose the later. The properties I sell have great cash flow even at the inflated prices I sell them at. For buyers just looking to sit on a turnkey property, its perfect, for me its like a squeezed lemon with no juice left to give. I hope this helps, KEEP ROCKIN BP-ERS!

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