Monthly Archives: September 2017

Real Estate Investing 202 – Buy And Hold Strategies

Now that people are being scared away, the prices are dropping and value is becoming real again. Houses will still get old but there will be a lot less competition for those who stand the test of time. If you didn’t learn about flipping foreclosed homes in this last decade, good for you. Now you will be able to make some real money in it.

Once you have determined that the company in question is a good value, it’s time to make an entry. The easiest way to enter is to buy a stock at the market price, by either calling your broker or logging on to your account online and making the trade. While this is easy, there are tools out there that can help you get a better price, which can also be used through your broker. The tools are called limit orders, stop orders, stop limit orders, and trailing stop orders. While they all have their uses, my favorite to use is the trailing stop.

Daisy chains are a chain of people claiming they have direct access to a ‘list’ of property for sale as long as you have the finances available. However, it turns out they don’t have the list at all.

Gunslinger in the wild west mentality – if you think that you can do whatever you want when you’re face to face with homeowners in distress, you would better have a sit down meeting with yourself (as Tony Soprano would say) and seriously think it over. Sure, big money is waiting for you to find it as long as you follow the rules. You had better believe that your local authorities will not appreciate you trying to shade the truth or outright deceive homeowners in distress. Most states have some sort of consumer protection laws in effect to protect unknowing homeowners from unscrupulous investors. There’s no need to be paranoid. Just be prepared.

It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow every day. We know that the lower tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, So our candle has formed a tail and a wick. Is it starting to make a little sense to you?

The amount of revenue you pull in if you keep your occupancy rate at or above a certain level (see the James Fales YouTube video for minimum occupancy rates) allows you to realize more revenue now, as well as higher gains later. Think about it: once you go to sell your property, the markup is going to be exponential to that of a single-dwelling property. At the same rate of return, more money invested means more money returned. It’s investing 101 all over again. If you invest 0,000 at a 10% rate of return, that’s a ,000 gain. If you invest ,000,000 at that same 10% rate of return, that’s a 0,000 profit. Makes sense to me.

Whichever investment vehicle you choose, your goal is going to be the same – buy low and sell high. This may take some research, but if you’re looking into something that is interesting to you, it will make things much easier. For example, if you like to read, look into book store stocks. Like gardening? Look into stocks that deal with that. There’s nothing worse than studying something you’re not interested in.