This is very helpful information.

This is very helpful information. I am new to REI and am trying to purchase my first property. I am putting together an exit strategey. I agree that doing nothing at all is a big mistake. I had many opportunities in the UK before the properties sky rocketed but did nothing and missed some really good deals.

I always feel that I lack the knowledge to proceed with any REI but I am taking the first step to buy a house that has been on the market for a short time, it is listed at $1,175,000. It started out at $1,400,000 two years ago. Can anyone tell me if this is too risky. My exit strategy is to buy it and run one of my businesses there and resale in the spring of next year, hopefully turn over 150,000 profit.

Also, there is another one in this very desirable area, been on the market for 3 years, it started out at $1,400,000 as well but I may be able to get it for $825,000 and resale it in 18months. Would I be able to get funding for these projects?


First of all just because it's on the market for $1,175,000 does not mean it's worth $1,175,000! ! ! ! ! !

Being on the market for 2 years tells me this property is way over priced! ! ! ! !

If you run the comps and determine FMV is $1,000,000 then you want to buy this property for no more than $650,000 (35% investor discount for property over $250,000 or for any valued property in pristine condition in a declining unstable market!)

I suspect the comps will show a significantly lower value! If your a new investor I don’t recommend putting yourself at this kind of risk without real experience in luxury properties!

Just because it’s on the market 3 years does not make value anywhere close to the listing price and getting it for $825,000 or any price means nothing unless you know todays value, buy at an exceptable investor discount under todays FMV and can accurately project market value 6 months, 12 months or 18 months from now!

Investing in something of this price is extremely risky, I recommend you try the blue collar market and gain some experience!!



Virtually the same basic post was on here a couple weeks ago. Either someone doesn’t understand the “quote” function or someone’s got something to sell on here…

So true because that was my post! Love the advice GR gave though. Thanks a lot. I am taking in all the advice I get here. Don’t understand how someone could replicate the previous post.