People are emotional creatures, and creating a soft fluffy environment where they feel safe and secure following you in this transaction is key.Some people's brains will work like yours and some will work the opposite of yours.

When I started I just factored backwards to what I would make on the deal and decided whether that was enough money or not.I know a lot of new investors brush over the 70% of ARV minus repairs formula, but it really is where you need to be.

As long as your numbers represent this shift then your profit won't change.The shift from a seller's market (normally under 6 months of inventory) or otherwise known as a strong market to a buyer's market (over 6 months inventory) or a soft market opens up the door to investors to purchase properties at even a more significant discount than before.

If you are in a soft market, you would want to drop that percentage atleast 5%.

When others culled thosesprawling farmsAnd welcomed deals with open arms . . .A corner here, ten acres there,Compounding values year by year,I chose to think and as I thought,They bought the deals I should haveThe golden chances I had thenAre lost and will not come again.Today I cannot be enticedFor everything’s so overpriced.The deals of yesteryear are dead;The market’s soft—and so’s my head.Last night I had a fearful dream,I know I wakened with a scream:Some Indians approached my bed—For trinkets on the barrelhead(In dollar bills worth twenty-fourAnd nothing less and nothing more)They’d sell Manhattan Isle to me.The most I’d go was twenty-three.The redmen scowled: “Not on a bet!”

Hi,In spite of Federal Fund rates having remained steady in the latter part of 2006, the economy seems to hover between a soft landing and a recession, without taking a definite course.

The rental market has actually become very soft in Lubbock.

In so doing, they can cover 100% of the total project costs including, in most cases, monies the developer has already expensed for soft costs, pre-development, etc.

Regardless, since you will be buying once, then selling once, your round trip commission cost will be about 6%, assuming use of agents on both sides.On top of that, there are other hard costs - title insurance and inspections, in particular.On top of that, there are *soft* costs - things that both you (the first buyer), and the second buyer (the one you sell to) must do - due diligence to make sure you're not being hosed by a bad house or a bad deal.

In Jim's original post, he didn't specify what he meant by "equity", but in his second post he brushed on the idea that repairs are not included in equity.