There’s a Huge Real Estate Deal Right Under Your Nose
Yesterday an attorney and I discussed a real estate deal where his client is wholesaling a property to make $1.25M. We recently closed on a warehouse flip that made an investor about $250K. In February, an investor client bought some vacant land for $100K and sold it the same day for $500K.
If there was an exchange floor for real estate, we’re sort of it. I hear this all the time.
Ten or fifteen years ago, real estate dealing was crickets compared to today. There was a lot less competition, much fewer mini-funds with high-net-worth money and the streets weren’t flooded with aspiring ‘investors’ straight out of wholesale-school.
Despite the seller’s market and the competition, there are still killer real estate deals happening all the time. Killer.
Information and the Killer Real Estate Deal
Going back to when I was a kid, I’ve always been fascinated by information. The idea that the people that can help make my dreams a reality are probably all around me, and I may not know it. It always blew my mind that missing information could stand in the way of accomplishment and that opening the door could be so easy if you only knew about it.
What’s jumped out at me about real estate, and it seems so obvious, is that opportunity is about personal circumstance at least as much as market data.
Market Data vs. Personal Circumstances
Mostly all of the information available for real estate is focused on market data: information about supply and demand, value, comps, market activity, trends, etc. Valuable and important stuff but it’s only part of the story.
Once I know where I want to go, I need to find who. Who is the property owner that needs to trade money for time? It’s clear that motivated sellers and the opportunity to add value to a property are a result of someone’s personal circumstance: divorce, death, debt on a small scale, mismanagement, corporate focus and debt on a large scale.
With all of the growth in access to information we’ve seen, we haven’t seen much improvement in transparency of personal circumstances; the ability to gather, understand, identify or even predict this type of opportunity. This touches my lifelong fascination with information: it exists and it’s close to us, all we need to do is find and interpret it.
Stock and equities trading does this well, information is much more transparent. Publicly traded companies report just about everything to the SEC and to the public and every market move is recorded and analyzed in real time. Access to that information creates trillions of dollars in wealth through trading in the markets.
Right Under Our Noses
There’s still a ton of opportunity and a ton of invaluable information that’s right under our noses. It’s a passion for me to create clarity out of disparate data and uncover the perfect opportunity, the one in a million real estate deal. I’m lucky enough to have developed a career and business in real estate transactions and data, without even understanding what was going on around me – at first.
A huge gap still exists between the information that exists and the information that can be used in a practical way. But we are heading in the right direction. For more information on identifying opportunities in real estate, stay tuned to the Transfer Title blog, as this is one of our greatest passions!