30 Days to Real Estate Cash 53
real estate agents will advise you what a property sold for three years ago. This sales information does not help you determine what the property will sell for in today’s market. What the property will sell for today is what the property is truly worth. A property is worth what others are willing to pay for it. Re- cent comparable sales of properties usually within the past three months help us to determine what a property might be worth today. You want the deals that are great deals today, not what will become great deals if you buy and hold with the thought of selling tomorrow. Looking at the chart above, you can see that the market reached the bottom in 2008 and the best it could do by the end of 2010 was sideways movement. The vast majority of people in periods like this will stay away from real estate. However, in 2010 and 2011, headlines like this one were in newspapers around the country. Communities around the country found that cash buyers swooped in and began picking up bargains. Homes selling for $200,000 in the bubble were worth $100,000 in the trough. And investors will pay those discounted prices, fix them up, and resell or rent them out. The thing is that these houses valued in half at $100,000 in many cases could be bought for $50,000, $60,000, or $70,000. The in- vestors who located these deals could have benefitted by working with a wholesaler like you’re learning to be right now and possibly made even more deeply discounted deals. Too many of them paid $100,000 because they didn’t have the time and knowledge to do better. They still made money, but they could have made a lot more money working with someone like you. “Cash Investors Move In – Buying Houses Shores Up Prices”
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