Post Monday How do you get properties worth "our economic number"? The “million dollar” question (or…
Post Monday
How to get to the assets of our "economic number"?
The question of the "million dollar" (or in the case of our example - the NIS 7.5 million question) is how the hell do such assets come to be?
So it's important for me to clarify from the beginning, it takes time.
Time and hard work.
But when there is a work plan (and today we see how to build it) - everything can be done. Even if at the moment it seems delusional and distant to you, it is perfectly possible!
What is a work plan?
A work plan is a plan with short-term goals that lead us to a goal - remember it? Assets worth NIS 7.5 million.
Everyone starts from a different point. Some start with a million shekels, some start with a thousand 100 and some even begin with nothing.
But the first step is important!
What do we need to do to reach the value of such assets?
Work at it! Yes, yes, work at it!
It does not have to be a full-time job, but it can also grow in two hours a day or a week.
It all depends on what goal I want.
When considering a deal for us or our customers (and you know there are always “deals”, anywhere and anytime) you should always think - is it promoting me and them to the goal?
What is meant by?
If I want to reach my destination in the first years, for example, I will not invest in assets that "only" give me rent. After all, from the rental I will not grow my capital (not at least required rate). Renting will earn me a monthly income but you will invest my equity in the same property (unless you bought a No Money Down property).
In the early years (in my opinion, of course), short-term improvement transactions should be carried out. This refers to the Flips, of course. And not transactions of 4-5 years, but transactions measured in months to a year or two. And you have to be creative. is very.
Each flip will increase the equity we work with and bring us closer to our goal.
My first deal, for example, was in Israel.
I purchased with another partner an office floor as part of an option (option means that you do not purchase the property but purchase a right to the property - "buying" an option to sell it on at a profit - to trade my right to the property).
We made a deal of about NIS 12 million with equity of about NIS 500,000.
To Mike Mike Longstory Short, we sold our rights to the landlord's previous tenants after renovating the public space of the floor.
With the profit we created we acquired another office and so on.
In such an "entrepreneurial" transaction the profit is around 10% and it allows you to "leap" forward in your goals.
Again, this is just one example of many of the deals I have made, but it shows the need for creativity and daring.
In the next section - What is a “target return” on the way to the goal?
Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum):
https://www.facebook.com/1885945295012997/posts/2239459916328198
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
I have another question from Neobi: Is there an option in Israel?
In your opinion, in order to reach the target, or close enough to it, you have to make various transactions that will increase your equity and only when you close enough to the target amount do you start with the transactions that "closed" the capital and generate passive income?
I love how you build progress from post to post! Waiting for tomorrow?
There is no doubt that creativity is the name of the game to reach the goal. This is perhaps the most challenging part of any field
Can we expand on the "option"?
Very nice. I also think that in order to accumulate capital, one has to go for Flips
Moshe Orange
Wow