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Posted over 5 years ago

The Universal Theory of Real Estate Investing

There is a lot of noise out there...

But give me a few minutes of your time and I’ll clear it up for you.

You see, If you set out to learn real estate investing on your own, you’re in for a lot of sifting and sorting.

The internet, while awesome in many ways, has also given rise to a surge of information.

That abundance of information causes a lot of new investors to feel completely overwhelmed and unable to figure out what to trust.

It can feel like you’re in the woods walking around in circles.

Everything looks the same.

Which way did you come from?

Which way do you go?

Will you make it out alive?

Ok, maybe that last part was a bit over-dramatic...

But I’m going to hand you a compass to help you navigate your way out of the overgrown internet forest.

I’m going to teach you a theory... more like a principle actually...

And what this will do for you is act as a lens.

A lens that you can use to identify and separate what real estate investing information is proper and what information is gimmicky marketing stuff.

Here’s what you need to know...

No matter which strategy you’re applying (wholesale, fix and flip, lease option, buy and hold, etc), the main thing you’re looking to do is acquire the property under FAVORABLE conditions.

Let me explain.

Basically, you don’t ever want to do a real estate deal without knowing your exit strategy... How is it going to make you money?

You make the money when you buy, not when you sell.

When you pick up a property you want to know that you’re either getting a favorable price, favorable terms, or instant cashflow.

Anything else is not investing. It’s speculation.

Speculation is when you buy a piece of property, cross your fingers hoping the market will go up (and the value of the property as well), and then sell the property for profit.

Speculation is like gambling.

Yes you could make money that way, but just as often you could lose money that way.

So what do you do with this information?

Well, like I said, use it as a lens.

Anyone who teaches you fundamentals of how to acquire properties under favorable conditions with a proven system has likely got the goods.

Anyone who teaches you how to capitalize on a market trend (that’s not guaranteed) is probably just trying to sell you the flavor of the month.

Hope this helps somebody today :)

-Joe



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