Top investor J. Massey gets this question all the time. He assures you that you absolutely CAN earn $26,000 in one real estate transaction. How does he know? He did it early in his journey. In one wholesaling transaction, that is the exact amount he made very quickly.
Did it happen magically? Um, no… It was through action steps and understanding value and the fair exchange of value that allowed him to do this deal. You need to understand the POTENTIAL value of a thing (whether that's a house, car or other item of value) first.
Now let's say you can get the item for half that value, do you think you have a chance at earning the full value? You bet! In real estate, you first get control of the property and then you assign the value. Then you find the buyer. Learn how you can do any size deal using this basic understanding.
Hi, Jay Massey here, with the CashFlowDiary.com with another quick tip about real estate business.
Today I got to answer a question that I've been asked. Can you really make twenty-six thousand dollars in one wholesaling real estate transaction?
I've been asked before many times:
• Can you really earn?
• Does this wholesaling thing really work?
And one of the things that you know I have been fortunate enough. to do that I did do a transaction where twenty six thousand dollars was.
Now that's you know depending on your frame of reference that may not be a lot of money. but if you think about it it's pretty cool for the amount of work and effort that you did it to get that to be rewarded for that much.
Now here's the point: value is in the eye of the beholder. Right?
There are some things that you and I value that don't do well really aren't worth twenty six thousand dollars. Well let me show you something that I was thinking about now.
Now you today you may not like, what I'm, you know cars. Now as you can tell I'm not in and artist have any kind but you may not like cars but it doesn't matter if you like them.
What matters is that some people in the marketplace assign great value to the vehicle known as a car. And depending on the type of car is depending on the engine size all these other stuff people assign value to it. Here’s my point.
If you knew that there was a car that was valued that was actually worth, let's say a hundred thousand dollars there are cars that are worth a hundred thousand dollars, And more.
But if there were the cards worth a hundred thousand dollars in you had the opportunity to purchase it in a decent enough condition but you could buy it for fifty thousand dollars even though you don't like cars do you recognize that there is at least fifty thousand dollars’ worth the potential value there.
That’s my point. Because there's fifty thousand dollars’ worth of potential value you have a shot at being able to actually create value for someone else. You may not even like the car. That’s not the point. The point is that the car is valuable to someone else
because it's valuable to someone else they may be willing to give you twenty six thousand dollars for the fact that ‘cuz they give eighty twenty-six thousand dollars on top of the fifty they paid seventy six thousand dollars which is still a discount to what they were actually looking for and you provided value.
Here’s how this works in a real estate transaction.
Let’s say for example that you're using or that you are interested in a single family house so that you know your buyer is interested. Notice how to keep saying your buyer not necessarily you.
You don't have to be interested in the product or owning the product that you necessarily sell. It’s recommended it helps but you don't have to be the one specifically interested in.
You do need buyers who were interested in but it doesn't have to be you.
What we're going to do then though, as we're going to learn techniques and strategies to acquire control up this particular property at a below-market price. That’s it. That control is evident it's represented it Represented, the physical evidence of that is what we call a contract.
By learning to get properties under contract what in effect you're actually doing is you get control and a new assign a value to that control which you then sell. It’s the same thing like the car except that it's real estate.
So imagine in instead of a single family house it was an apartment complex imagine it was industrial complex imagine if it was I don't know a commercial building.
You can quickly see how $26,000 dollars how it really. Doesn’t necessarily mean it’s a lot of money for that particular transaction.
If this was the 200 unit apartment building twenty six thousand dollars probably doesn't sound like a lot and it may not be. The point is the difference, is the vision that you have and the size of the control that you can obtain whatever assets that you're looking for.
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Until next time.