Overpay for Property

So – what about the title of this article?

I bet many of you are thinking I’ve lost my mind. Come to think of it, you are probably more right than not, although this has less to do with real estate and more with my in-laws…

Yes my friends, I do indeed believe that there is a time to steal and a time to pay more than you know the asset to be worth. As I’ve said before, the essence of creative finance is our ability to see what others can not. To most real estate investors, getting a “deal” is strictly a function of paying a low purchase price. Not to me, because while a low price is never a bad thing, I recognize that price is only one piece of this puzzle; it is only one of the negotiable terms which add value in a transaction, and focusing solely on the price can lead us to ignore possibilities which exist elsewhere.

Furthermore, an open mind and a willingness to pay more than your competitors so long as you receive value in excess for doing so does in fact position you favorably relative to those competitors. Is not this what we want – an edge over the competition? Well – let me tell you, all they are looking for and at is how to get a steal on the purchase price; that’s because this is the only way they know to make money. You take equity at the time of purchase off the table, and vast majority of your competitors drop off the face of the Earth – lost, confused, and unable to find a way. Not us…

Allow me to assure you that the journey of thought I will be taking you …read more