I was with a MasterMind group last night and someone asked me how do you know when the Real Estate market hits bottom?
I don’t but here’s how I try to protect myself.
When the Market is declining at say 2%/month (Email [email protected] and we can calculate where your market is actually moving (declining or increasing in value)) and say it will take you 6 months to Buy, Fix-up and Sell a property. Then you know you’ve got to hit a value 12% less.
House valued at $325,000. needs $20k renovation and holding costs, $40k your profit, 12% declining market = $226,000. Maximum offer. (Assuming no other costs such as Real Estate commissions and Taxes)
Seem extreme? Check out my course on “How to Become a Real Estate Investor in 12 Tough Lessons” [email protected] First lesson Free. Good Luck investing and be careful, Mike Hurney