Buying below intrinsic value

[Liam Marshall]

Very new to real estate investing. Everyone says buy below intrinsic value but how do you do that? Is it just finding properties with problems that scare people off (mold, junk, bad smell, etc) and buying those because they will be cheaper?

[Bill B.]

I've never heard it out that way. (Intrinsic) But I would ask anyone using the word what they meant by it. Certainly the could be saying buy below market value, as in get a good deal, (but then why not just say that.) they could mean buy someone else's scary problem s you mentioned. They could mean buy below "after repair value" (ARV) minus repair costs to generate either profit or equity depending if you're flipping or holding. Or they could mean change the value by changing the use. (Though this really sounds like the opposite of Intrinsic value.) if you're going to rent it out by the room you can pay more for a 5-8 bedroom home than almost anyone else. If you're going house hack you could pay more than others if it has a separate basement entrance and you closed it off. If it has 2 living rooms and a dining room maybe you make one of those an extra bedroom? Maybe it's a city/state that has made adding adu's/dadu's easy and the property has extra land. Etc etc.

I’d say try  to skim for general ideas and plans, don’t get stuck looking for a blueprint. It’s not rocket science it’s real estate. Time is your friend.