THERE ARE ALWAYS "NEW WAYS TO SKIN A CAT" as my Dad used to say. Of course he was raised on a farm and he really did love cats! I'm finding that from other parts of my life through the years, I'm able to find creative solutions to apply to current conditions. Notice I did not use the word "Problems" and I seldom use the word "Challenge!" Don't like that last one at all; got those out of my vocabulary years ago. I think it was Mark Victor Hanson's very first tour back in the 70's where he'd point out that those two words "denoted doubt" which I thought was very, very astute and profound.
That goes hand in hand with our past experience for finding creative solutions ot interesting conditions which arise in this business. The business is really easy! It is TIME CONSUMING AND THAT ladies & gentlemen goes to the core of it's nature. And with the hours we invest into the process, be that part or full time, it is why we tend to seek out that personal and moral support through those that are positive around us. With this in mind, I repeat myself purposely: I go to my past experience for creative solutions to apply to current conditions. So with this in mind, I just finished networking with one of our Sister Investors. She is doing deals and is only making hundreds of dollars in some of the deals. So I tasked her to her past by asking questions, etc. As it turns out in her area of Missouri she's only beek looking at the lower cost homes which are often in the $30,000 range which is after 40%+ under FMV or Foreclosure Value. So with a split with with co-partners there is a very small profit margin. So in this case, we determined from her experience to think outside the box, she needed to go back to doing some driving to the higher priced home communities, then going to the expired MLS listings and "raise her sites" and see what was out there. Accordingly, the homes are "newer" which means less Rehab Costs (newer then 2004 built) and they also have more equity. Gated Communities often have "Waiting lists" of potential Renters. Do you see where this is going? Raise your sites from what you know: To make more money she needs higher priced homes. And national averages are showing that "this is where LOCAL BUYERS WHO HAVE PUT TOGETHER BUYING FUNDS FROM THEIR GOLFING BUDDIES", are buying higher riced homes, with ready to go renters willing to pay $900-1,200/month, which is often $200 less then current average rentals. Assignments on these home are now going to carry OVER $10,000 spreads! Go back to Dean's books. Most of the examples are people who have made $9,500-$16,000 on Assignments. Well, if those books were written 2 years ago, it's changed because the nature of the inventory has changed. So raise your sites: GO BACK TO THE PAST and adjust! That is where the buyers are... Most don't want homes that are 20 years old! And the National Averages are reflecting this... So stay tuned to see how she does!