Why you make money in real estate (Part 2)

Back in Part One I wrote about what money was. My conclusion there was that money was the way we measure value. The amount of money we are willing to spend displays how valuable something is to us.

So how does that pertain to real estate? If you want to make money in real estate, you need to figure out a way to provide value to someone. Our customers tend to come from two places, tenants and buyers, so everything you do should be adding value to one of those two groups.

Let's take a hypothetical example of John Doe who just bought a book that taught him how to buy a home for No Money Down. He gets a 100% mortgage and let's assume that his mortgage payments are about $1500 a month. He sets his rent to $1600 a month (because he's heard about the importance of cash flow). Now what are the odds that he's going to rent? If his potential tenant could pay $1600 a month in rent, why wouldn't they just go out and buy their own home for $1500 a month like he did? John Doe has failed to add value.

So how can we, as real estate investors, add value for our customers? There are a variety of methods, some common and others not so. Let's look at some of the commoner methods that a investor can add value for his customers.

Fix the home up. Buying a fixer-upper and then fixing it is possibly the most obvious method of adding value to a home.

Offer life beyond their means. This is something that every investor does, but rarely thinks about the mechanics behind it. Imagine that John Doe instead sets his rent at $1200 a month. He'll have to either eat a negative cash flow for a while or put more money down at closing, but he has immediately added value. Tenants can now afford to live in a nicer house than they could afford to buy. For example Jane might only be able to allocate $1300 a month to housing, but wants to live in the nice school district for her children. John Doe is allowing her to enjoy a home that she couldn't afford.

Offer hassle-free living. This strategy mostly deals with transient populations who won't sit down long enough to making purchasing a home reasonable. Military bases, college towns, downtown city areas are all places where large numbers of people move, stay for a few short years, and then leave. Very few of them can afford the hassle of buying a house, and even fewer would be profitable in the transaction given the short amount of time involved. You add value by giving them an alternative to purchasing a home.

In these areas you can sometimes start making money immediately. Biff and I bought out first house with only 10% down, yet we were making a $25 a month profit when our first tenant moved in (after all regular monthly costs including insurance, HOA dues and PMI). The reason we were able to do this is because our tenant was a military contractor and wasn't expecting to be in the area for more than 2 years, hardly enough time to buy (we also bought the house at reasonable discount).

Buy properties at a discount. The value added when you buy properties at a discount is the difference between your purchase price and the price that others are willing to pay for the home. You add this value through your knowledge and expertise. With so many investors out there it is very difficult to spot these sorts of bargains, so your value is hard earned.


What are some less common methods that real estate investors use?

Offer to buy out distressed buyers. Find people in difficult situations and offer to buy them out, though at a discount. The value added here is the difference between what you paid for the house and what the market value is. You add this value through time, you are offering money quicker than more traditional methods.

Rezone a property. Some investors have the knowledge and expertise to get areas rezoned or re-lotted. For example an investor might buy a house on a large plot of land and then subdivide it and sell the lots. Since most buyers wouldn't be able to do that on their own (they lack either knowledge or the time to get the knowledge), you've added value through your expertise.

Make the property a landmark. It's also possible to increase value by adding a bit of celebrity to the property. If you buy a very old home, for example, you may be able to petition to have it recognized as a historical landmark. If you really wanted to be a little creative, you could also try tracking down a property that housed some celebrity before they had made it (Eminem's home on eBay leaps to mind) . This could add value to both buyers AND tenants.

An important note to close on is that every method of increasing value requires either money (to fix a house or make a larger down payment) or legwork and expertise (to find bargains or get a property recognized as a landmark). There is no free money in real estate; to get it requires either cash or hard work, and usually both. But if you are willing to get your hands a little dirty and be a little imaginative, then you'll often be surprised how many different ways you can add some value to your customers.

8 comments:

Johnny said...

Well,

After you have armed your self with knowledge and strength to make money in real estate that will be the time to have your first real estate project. You must be creative in finding your house. Buy and sell houses business involves a lot of patience. You have to sell the houses that you have bought in so that you can proceed with your business and allow it to progress. If you have what it takes, then take advantage of this business.

how to make money in real estate said...

Keep in mind that this venture can require a bigger amount of investment. Remember that you are dealing with something that costs dear and thus if you want to venture into selling properties, you have to prepare your investment and make sure you know your market.

梁爵 said...

2019.11.09台北知名酒店經紀今天(9日)公布10月酒店上班薪資統計,酒店經紀公司全體酒店工作受僱員工每人經常性薪資平均為新台幣9萬3200元,酒店小姐年增4.59%,創近19年同月最高,不過,較能反映景氣的加班工時則已連續6個月呈現負成長。酒店經紀分析:這代表酒店兼差景氣雖持續擴張,但擴張力道趨緩。不過,5月整體加班工時年減0.2小時,已連續6個月呈現負成長,若觀察制服店、便服店、禮服店、鋼琴酒吧、日式酒店、飯局、傳播加班工時更是連續7個月負成長,顯示景氣雖持續擴張,但擴張力道趨緩。台北風俗知名專家說:八大行業跟去年11月比,酒店兼職是減了3小時,可是7月跟去年7月比是減了3.5小時,所以沒有擴大,基本還是景氣擴張力道趨緩,反映出的加班打工減少的現象。

梁爵 said...

2020.02.04根據2019年度調查酒店工作有6成4上班族有意願酒店上班,並盼藉此酒店打工加薪新台幣7萬6000元;除了陪睡接S(性交易)、為客人口爆(口交)顏射等酒店兼差工作受上班族歡迎,曾經酒店上班的知名網紅劉XX、雪XX首度擠進酒店上班在八大行業酒店成績排行榜前3名。酒店經紀今天公布台北風俗「上班族酒店兼職現況調查」,調查顯示,有6成4受訪者有意願酒店兼職,3成6的人擁有大學生酒店兼差酒店上班,4成6受訪者無兼差打算。酒店經紀觀察上班族想要酒店兼差或是已經有兼差工作的原因,主要有希望透過兼差增加收入、白天工作薪水太低必須兼差以及工時彈性自由。

梁爵 said...

2020.06.20酒店小姐的基本介紹跟工作內容林森北路是台灣酒店重要商圈,過去上電視多在社會新聞版,實境節目《我在酒店上班的日子匠紫也可以》邀請脫口秀小天后龍龍,及Lala (蘇心甯)深入不敢來酒店上班-酒店打工的原因林森北路日式酒店及男公關店,不僅酒店上班-酒店兼職-兼差如何達成人生的第一桶金從中認識酒店小姐、男公關的工作實際情況,更談起家人間的心酸歷程。Lala進店前跟劇組人員直呼超級緊張,沒想到一進去脫口而出「酒店兼差不是一個複雜的工作環境?原來就跟唱KTV狀況差不多」,職場須知 【酒店PT 】現場一次叫4位男公關進房大玩遊戲,一路從烏龜烏龜翹、數字拳開始,一玩之下竟然大獲全勝,讓Lala現場心花怒放,直說第一次玩到這麼嗨。不僅如此,男模們為了逗Lala開心,更現場大跳熱舞起來,輪流面貼面的超近距離接觸,讓Lala現場直接尖叫到想找姐妹淘求救,玩一輪下來後更直呼,有種被捧在手掌心照顧的感覺。脫口秀小天后龍龍為了認識酒店小姐日常,特別情商日式酒店知名媽媽桑席耶娜及藝人夢多分享及訓練,一進門龍龍就先問「小姐賣不賣肉體?」席耶娜立刻嚴肅表示「可以被上的小姐不值錢,現場不准跟客人『喇舌』」,讓龍龍開眼界的表示,原來酒店裡販賣愛情模式的做生意方式太高明了!夢多在這次特別擔任「酒客」,跟龍龍大玩起鹹豬手、擋酒教學,夢多談起酒店,特別提到「早期來台灣,提到酒店時,都被人用異樣眼光來看,但其實在日本,去酒店是一種休閒,不是你們眼中像色狼一樣都是做A的,台日酒店文化真的差很大」,現場更因龍龍的萌呆及反應慢,差點被氣炸,也讓龍龍最後哭著說賺錢真難。

梁爵 said...

2021.02.02酒店經紀到底要做那些事情呢?
一位專業的酒店經紀?在酒店什麼叫做專業的經紀人呢? 我的認定是:誠信與能力。專業的酒店經紀人要具備甚麼樣的條件呢?
1、把現在酒店打工市場、文化全部做了解後,針對女孩們的需求和尺度做最貼切的規劃。挑選適合的店家類型(制服店、禮服店、便服店、鋼琴酒吧)、 適當的酒店工作時段
2、把酒店打工女孩們帶去理想的店後,讓店家和她說明環境/人事和福利並保障和店家小姐是一樣的。
3、酒店應徵酒店小姐,酒店公關的外在包裝和酒店上班之後的生活問題。衣服、髮型、化妝、住宿與交通安排。
4、我梁小尊會不斷的觀察和了解女孩們對這間店的試應度和收入。女孩們的上檯的情況,是否有賺到錢、是否習慣?如有不習慣立即做處置。
5、了解女孩們的酒店上班情形及給予照顧和保護。酒店工作後的突發狀況、生病、臨時請假、休檔、下檔。
6、酒店薪資的處理和罰款的了解。除了將店家的票換成現金之外,也要注意上面的節數或金額有沒有正確。或是莫名其妙的罰單,也要即時處理掉。
7、做為小姐的發言人。因酒店小姐長時間待在店裡的關係,有些問題她也不便多發言。而經紀人就可以站在她的立場幫他發言,這樣酒店兼差小姐又不會得罪店家的人,也不會委屈到!
8、酒店經紀給予經驗指導。沒有人天生下來就會做酒店的! 有時因現場很忙,人手不足就會直接讓女孩們上戰場。所以酒店經紀在公關上班前就會先教導新人,公關的基本職責跟應對方法讓酒店兼差新人能夠在短時間內進入狀況。
9、給予女孩們心理建設。酒店工作公關的職業病就是越做會越空虛。因為每天服務形形色色的客人,所須扮演的角色也因客人的不同而有改變。因此常為了迎合壓抑自己的情緒,這時後酒店經紀就是公關抒發情緒的一個管道,給予輔導、教育。以下是我們梁曉尊專業酒店經紀公司的網站 https://www.mashow.org/momo/

梁爵 said...

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梁爵 said...

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