Most people get involved in Real Estate investing to make money.
Pretty self-evident - or, is it?
What would you say if I told you that everything you have beentaught about Real Estate investing and making money 'rehabbing'your real estate investments is wrong?
Well, at least, much of it. Let's take a look at something thatall too many people don't think about in their real estateinvesting - something that seems to be a secret formula tobringing in the most cash from your real estate investments.
While it is often true that the total price of a property thathas had a lot of work done on it is more than one that hasn't,what has that 'price difference' really cost you, the RealEstate Investor?
With enough time and effort, we could go through dozens ofscenarios to figure out just what a loss of time, money andeffort it is to go through a house and 'rehab' it, but let'skeep it short and talk about some things that really happen inreal estate investments - a 'reality check' if you will...
I like to be sure to get everything out of a real estateinvestment that is possible, but, there is a balance between theTime, Money, Effort and Appreciation the customer will get outof what you put in, as opposed to what they would rather dothemselves...
And they are willing to pay you for the privilege!
I call this the 'M-E-A-T' of a real estate investing deal, andit is a simple equation you can apply to all your real estateinvestments.
In the table below, look at the M.E.A.T. result for eachFunction.
____Function____ _M_ _E_ _A_ _T_ _Total_
Painting (full) _2_ _5_ _5_ _6_ __18__
Kitchen Redo _7_ _4_ _3_ _6_ __20__
Bath Redo _6_ _6_ _3_ _4_ __18__
Landscaping (full) _4_ _6_ _4_ _4_ __18__
Painting (LAZY) _1_ _2_ _4_ _3_ __10__
Landscaping (LAZY) _2_ _2_ _4_ _3_ __11__
You can see from these figures, the appreciation factor of thecustomer is often the same - whether you put lots of time,effort and money into this real estate investment or not.
The reasons for this are as varied as the people looking at anygiven house, but how many times have you heard of people goinginto a house - just after it was fully 'rehabbed' and theyturned right around and put the paint they liked throughout theplace?
So, why did you waste your M.E.A.T. on doing it yourself?
Because you thought it would be prettier?
That you would get more money from it?
Because you think that's what real estate investing is allabout?
I challenge you to think about this - every time you getinvolved in any real estate investment...
Just how much more M.E.A.T. did you really get from your realestate investment - your total return? The cash you got was more- maybe - but so was the WORK.
You can sell houses just like you get them - and get 90% or moreof the price you will after all that effort, even without everseeing the place!
When you use the LAZY way, you put very little extra into anygiven real estate investment, but raise that return by another5% (which means that it brings in almost the same total as youget otherwise - without the added cost and work!
So, who makes more profit from their real estate investments?
Those that do less work! Plus, there's more time, energy andmoney available to put into the next real estate investment -while those other folks are still remodeling their last deal!
In a year's time, you can do 30-50 houses this way - byyourself!
How many can you rehab in a year - by yourself?
Now, where is the bigger profit?
By now you can see just what I meant by the training you hadbefore being 'wrong'...
You've been taught to 'fix and flip' your real estateinvestments - but, unless you are doing the fixing directly atthe request of the end user, you are likely wasting your time,money and effort for no additional appreciation factor, so,overall, you are wasting it for nothing.
You are throwing away the M-E-A-T of the deal!
Just how much did painting that living room in your last realestate investment cost you? Since you missed another deal thatmight have $20,000, $30,000 or more in it, I would suggest youspent a LOT on it!
Think about this before you start your next real estateinvesting 'rehab' project - just how many other deals could youdo if you didn't put all your time in on fixing? Then, add onthe energy (effort) that it saves you.
Most people think about the money part of real estate investing,but leave out the rest of the equation when calculating thetotal value of their real estate investments.
I think that is a big mistake.
When you can get 90% or more of the same price from any givenreal estate investment, but do 1% or less of the work, keep 95%of the energy for other projects and 95+% of the money it wouldcost you - why would anyone want to do any 'rehab' job - ever -in their real estate investing business?
Now, there may be times you find a house you want to live inthat needs some work. That is a fine time to consider doing a'rehab' job - you aren't doing a real estate investment (otherthan for appreciation), but any time you are working your realestate investment business, take a serious look at the M.E.A.T.of the deal - before committing to spending all your time, moneyand efforts.
Steve Majors - The Lazy Investor - Profit from Real EstateInvestment Articles, Real Estate Investing Information & Newsfrom One of The Most Creative Investors On The Planet ~FREEMEMBERSHIP & Real Estate Training Course~ http://SteveMajors.com
About the author:Steve Majors has fixed stereos, been a radio DJ and ownedseveral successful businesses - even before his wild success inReal Estate investments. Extremely well traveled (36 countries &counting), he now teaches others the secrets of Real Estateinvesting with his very own LAZY methods (minimum effort =maximum results). Profit from articles, news and informationfrom one of the most creative investors on the planet!http://SteveMajors.com
WH Energy Services Announces Fourth Quarter Results
News & Observer, NC -These and other risks are more fully described in WH Energy Services, Inc.'s Annual Report filed on Form 10-K with the Securities and Exchange Commission. ...
The future of network securityPC World Magazine, Australia - 2 minutes agoWhy don't we just build encryption and antimalware protection into end-points and simply enjoy open networks? From a security perspective that's always best ...Spr
The FINANCIAL, Georgia -... and use of the facilities designed to receive and treat such waste and residues, thereby enhancing the protection of the maritime environment. ...
Spreading awareness the only way to check pollution: Sri SriKalingaTimes, India - 14 minutes ago"The only way to check environmental pollution is to spread awareness. Many people in this world live without the knowledge of clima
Calgary Herald, Canada -... as well as the environment. Every year, there are about 6000 deaths in Canada due to short-term exposure to air pollution, according to the Canadian ...
Cuban Paleontologists Finish First Catalogue of Fossilized FootprintsMathaba.Net, UK - 12 minutes ago“The research was financed by the Environmental Agency of the Cuban Ministry of Science, Technology and the Environment, and constitutes
Journal Live, UK -The agency is expected to defend its use of the gIFN test that it insists is reliable. A Defra spokeswoman said: "The gamma interferon diagnostic test for ...
America's teetering banking systemEnerPub, TX - 5 minutes agoBut in a deflationary environment; public attitudes towards spending quickly change and the pool of worthy loan applicants dries up. ...Derouselle selects ULM
The Daily Advertiser, LA -"I liked the campus in Monroe, I liked the players, I liked the coaches and I liked the environment. Really, I didn't witness any flaws up there. ...
Honda Quarterly Profit Jumps 38 PercentBismarck Tribune,  USA - 2 minutes agoHybrids, once dismissed by Nissan Motor Co. and other companies, have become hot sellers amid rising gas prices and greater concerns about the environment. ...H
The News Journal, DE -By RACHEL KIPP, The News Journal Citing a report that described Delaware State University's work environment as "toxic," state Rep. Hazel Plant wants Gov. ...
Intel Becomes Largest Purchaser of Green Power in the USeCoustics.com (press release) - 3 minutes ago"EPA applauds our Fortune 500 partners for protecting our environment by purchasing green power," said EPA Administrator Stephe
Carlsbad Current Argus, NM -The Italian environment agency said Tuesday they could be triggered by climate change and pollution. Other specialists think a mysterious phenomenon called ...
New Report Provides All the Crucial Data on Norway Oil and Gas ...
PR-Inside.com (Pressemitteilung), Austria -The report covers the petroleum fiscal environment, license terms and key fiscal terms for assets. It provides detailed descriptions of various elements of ...
Crowded NJ County Opens Fire on DeerHerald Zeitung, TX - 19 minutes agoThe state Department of Environmental Protection and leaders of the four municipalities around the reservation - Maplewood, Millburn, South Orange and West ...Dell,
News 8 Austin, TX -Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil ...
Chief frustrated but hopeful about water situationPeterborough Examiner, Canada - 24 minutes agoFormanek encouraged Slaughter to go to the Ontario Ministry of the Environment to find out what they will want to see before formally applyin
SYS-CON Media, NJ -in France (National Gendarmerie, Ministry of Finance, National Assembly, etc.), and the rest of the world (Cities of Munich and Amsterdam, Swedish National ...
Additional Resources
The Cool War: Automakers’ Sustainable Solution
The alarming effects of global warming created considerable pressure to both the private and public sectors. The lawmakers and automakers are just few of the bodies and organizations troubled Read more...
|
Additional Resources
Climate Change Will Inevitably Lead To Changes In The Garden
By India Cooper
Climate change is taking its grip on our lives and that includes our gardens. So it makes sense to confront the issue and plan your garden accordingly. While some traditional plants may find the Read more...
|
We strive to provide only quality articles, so if
there is a specific topic related to climate change that you would
like us to cover, please contact us at any time.
And again, thank you to those contributing daily to
our climate change website.
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
]]>
