"The 4 Fundamental Factors For 
Making Big Money In Real Estate"

Everything in real estate investing is about having an advantage of some type. The four types of advantages that are most significant are:

• Price - how much you have to pay for a property
 
• Terms - how you pay for the property you buy
 
• Urgency - the level of motivation to "deal" that exists in the buyer or seller
 
• Information - knowing strategically important information about an opportunity

Here are some simple examples of what I mean:

Advantage: Price

The most obvious advantage you can receive in real estate investing is buying a property at a great price. If a piece of land is legitimately worth $200,000 and you are able to buy it for $50,000 then you've clearly got a huge advantage.

Advantage: Terms

When is it a good deal for you to pay $250,000 for a property only worth $200,000?

You may be tempted to say "never", but that wouldn't be correct. Imagine that I own a home that you know is worth $200,000. But I'm an "emotional" home owner, and my attachment to the property makes me think it's worth far more - a whopping $250,000. And I won't take a single penny less than that.

This puts you in a precarious position, until you come up with this great idea. You say to me: "Eric, I'll pay your price of $250,000 like this: Every month for the next 30 years, I'll pay you $700 every month. And when you add it up, you'll see that I'm actually paying you a total of $252,000, which is $2,000 more than you're asking!"

Hmmmmmmm. Why would anyone do such a thing? It's simple, really. Just compare the total cost of your paying me "only" $200,000 by getting a regular interest-bearing loan at 6% versus the total cost your paying me the "premium" price of $250,000 at zero interest.

The difference? Paying $250,000 at zero interest would obviously cost $250,000. But paying $200,000 at (the attractive) rate of 6% would cost you $431,676 - a whopping difference of $181,676!

(Note: I believe that this advantage is the one that is easiest to work in your favor, as you'll soon see...)

Advantage: Urgency

In real estate investing, as in much of the business world, the party who is able to "walk away" from a deal is usually the party that will get the best deal. Here's what I mean:

Imagine a home owner in the unfortunate situation of pre-foreclosure (this is the period immediately before a lender repossesses the home from the borrower). This home owner wants - and desperately needs - to do something to improve his situation. The truth is, he'd rather not be facing the problem at all, but his situation demands that he respond, or face some rather serious problems.

And then there's you: The well-informed investor who knows about the home owner facing the pre-foreclosure situation. You know some things that can help the home owner and help yourself in the process. Your solutions, while effective and ultimately beneficial for the home owner, certainly aren't the home owner's ideal choices.

But the fact is that there is a strong sense of urgency with that home owner. He must do something to improve his situation or else he'll lose his home, his credit rating and a lot of his dignity in the process. You, on the other hand, don't have to do anything. You're in a position of strength, because the seller is a "motivated seller", but you're not a "motivated buyer".

Clearly, your objective is to always act from a position of strength.

Advantage: Information

This one is easy to understand. Imagine a person who owns a house in a developing rural area...

...You know something that he doesn't. You discover (somehow) that Walmart is going to make a bid to buy his land so they can construct a Super-center at the location.

Is this valuable information? You bet it is. And it's a huge advantage if you know about it, and the home owner doesn't.

"How To Use These Advantages To Put Cash In Your Pocket..."

In the next e-Lessons, we're going to discover two specific strategies you can apply which will best allow you to profit from Advantage #1: Price. 

As part of that lesson, you'll learn why money is a "function" of time, and the two can't be evaluated independently.
Check Back Often! The Following E-Lessons Released Soon!
    • Share by: