When a House is More Than a Home

Buying real estate for investment in many ways mirrors buying real estate for a family home, and at the same time, it is an entirely different animal.  What makes an investment house different from a home?  On the outside, not a thing.  An investment property will look much like a home you view for a living space.  You want it to be presentable, in decent shape (unless you are buying at a severely depreciated rate with the thought of rehabilitation and selling in a ‘flip’ manner).  You also want your purchase to be as affordable as possible.
The difference actually is more of an attitude than a physical attribute.  The difference is in how you, as an investor, view the property for potential resale.  You will have to be sure the cost is in line with what you can afford to invest, and that there is reasonable assumption of sale value over that.  When people purchase a house to live in, they are concerned with its livable qualities the same as you would be – because resale value is better if it is a desirable home-, but they aren’t as typically concerned at that point in time with the value being low enough to resell it for a profit.
That is the reason it makes sense to use specific real estate strategies to obtain homes at the lowest possible price.  Using foreclosures, short sales and loan modifications the way the pros like Dean Graziosi do is the way to make sure you end up with a valuable property that will be a top performing asset for you.
You can use these techniques for any type of real estate investment, even those you aren’t looking to turn over, such as rentals.  The less you pay, the more you pocket and that’s the bottom line.  Unlike other investment markets that are abstract, when you own real estate you own something ‘real’ that you can put your hands on.  Real estate investment is and always will be one of the most solid investment purchases you can own.

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