Thread: Real Estate investing is an art

I don't know man...an art? To some extent yeah, in the commercial industry especially with vacancies hitting the roof. Residential is 80% work and financing and 20% luck.

There's not much art to locating a crap property in a good neighborhood, convincing the 98 year old woman it's worth three dollars or offering 3% cash down and 20% of asking. Bulldozing it, building new if need be and then locating a tenant with the help of a Realtor/one phone call. Especially if money doesn't matter. Just think about it for a second. If you had $100k in a briefcase to buy a foreclosure for $33k and have $20k in repairs, who cares if it doesn't sell in 30 days if you want to sell. You still got $47k left over and $500k in the bank nobody but you can touch.

When there's an assload of inventory (which we ALL have nowadays), the only real thing you have to be concerned about as an investor who's got money to burn is: location. The rest (locating a tenant or marketing it at a decent selling price) falls into place with one phone call. But since nowadays, we ALL have renters banging our doors down, a real estate investor is wise to rent smart, sell high. I don't see the art in this. But maybe there's an art to buying commercial with the games the banks are playing nowadays.

CM

Well this could be a science for all those guys who are marketing their services to invest in real estate business. To conclude i will it is combination of both.

Of course it's an art as you have to study and to analyse a lot of data and to look for the better chances.

I don't know man. The data you're talking about is like Algebra: once you know the formula, it's easy. There's plenty of fools out there who don't s*** about anything and if they can figure out the formula (ROI, how to calculate rent amount, management), anyone can do it.

CM