I've recently read Robert Kiyosaki's Rich Dad Poor Dad, and also played the board game CASHFLOW.
Both of these make a very strong case that profits in property investment are at made at the time of purchase, not sale. Whilst I fully understand this, it opened my eyes to the fact that be a successful investor it not only requires a fair amount of time but also strong networking.For those not nested or working within the industry, I could see this being a little difficult and time consuming, especially to get going initially.
What i wanted to ask is do you agree with this and what are your thoughts on this strategy and executing it? (profit at purchase that is)
and also….
What are some of the things you people think are valuable or do in order to make profit at the time of purchase? What should one tap into and look for? Buyer and property inefficiencies as well as foreclosures?
I recently read this article ………….. http://news.domain.com.au/domain/real-estate-news/committed-vendor-guaranteed-20100831-14ayp.html
It says that Mortgagee Auctions are not so much the cash cow that people think they may be….so what else is there?
Regards
Jamie.
Hi Jamie,
Making your profits at purchase is an often made statement.
You can also make profits by adding value to the property purchased. The add value approach to property investing can be effective in any market whereas property investors who simply buy 'run of the mill' property need to wait for the market to move.
Adding value can be achieved through, buying under value (which reinforces your first point), well planned renovations, sub-divisions, small scale developments and so on.
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