30 Days to Real Estate Cash 87
Now read this carefully, since I’m putting it in print here to prove my point. Today I approved another 12 deals from Matt at $7,500 each. I don’t have the time to go out and find them, so I’m very happy to pay Matt this reasonable fee in exchange for the amazing profits he’s putting in my pocket. And why not? He’s finding $100,000 houses that he can bring to me at 30% to 40% or higher discounts. When I can buy houses worth $100,000 for $50,000 or $60,000, I’m not going to hesitate, and Matt’s getting his check delivered with a smile on my face. The Importance of this Formula When I was young, I was buying and selling cars. In high school and after graduation, I would buy wrecked cars, fix them up, and then sell them for a profit. I would buy many of them at auction. I had to consider the cost to buy the car plus the cost to fix it up. A common example is a car that I could buy at auction for $2,000. I wanted a $1,000 profit. An examination of the car showed that I’d need to put $1,000 of repair work into it. So to make my $1,000 profit, I’d need to pay no more than $2,000 for the car. The problem is that, when I was younger, I’d see a really popular model, get emotionally attached, and end up paying $2,100. I’d justify that decision by thinking that it was only another $100. Little add-ons like this became common, and they would mount up. Before I knew it, that $2,000 car that I could sell for $4,000 was costing me $2,475. Almost half of my desired profit was gone. Don’t get emotionally attached and fall in love with a property. You should always love the numbers and the profit potential more than the aspects of the property itself. Remem- ber it’s not personal, it’s business!
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