Wednesday, January 6, 2010

Getting a 'good' deal in Real Estate

One of the most common questions that I hear in this industry goes something like, "is it a good deal?" Because of the nature of the question and the difficulty to answer, I decided that I wanted to comment on this very thing.

Getting a good 'deal' is superfluous and difficult to determine. As the saying goes, "One Mans trash is another Mans treasure." The definition of a good deal to one person could be completely different to someone else. The first step to take in determining whether a real estate transaction you are looking at is good is to gather information on what it is you are looking for in the first place. Without a clear picture in your head of the desired property, it makes getting that awesome price near impossible.

For example, I am working on several deals right now in my home state of Utah. One of these deals is a short sale for a client who was going to lose the home if I did not step in and find the proper solution. To them, it is a good deal to be selling, as it is a better alternative to a foreclosure on their record. But to many of the people that have looked at the home, it was not a fulfillment of the 'picture' they had in their mind about the perfect deal. I can see that the contract we have on it will provide the buyer with 40,000 dollars in equity on a property that needs little more than paint and carpet.The other parties do not view it in this manner and thus don't count it as a great opportunity like I do.

The key to success in real estate is to recognize and solve the problem that is causing the deal not to be viewed in the right light by the general public. That is what we do as investors, solve problems!

Do you know of any deals that you could change the public perception on? Thus making money for yourself.

To your success!


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