The purchase agreement is a necessary, and can be the most powerful, tool of the real estate investor. Unfortunately, most investors cheat themselves by not understanding the purchase agreement more. Tragically, most new investors are so terrified of the purchase agreement that regardless of how much they invest in their real estate investing education, they never do a deal due to that fear. Repeat after me, “The purchase agreement is my friend.”
For a greater portion of this decade the real estate market experienced unprecedented appreciation considerably due to a “Buy, buy, buy!”mob mentality. If you timed it right, you made out like a “fat cat.” If your timing was off, however… you have likely lost a significant portion of your portfolio, are losing it and/or are carrying “money-pit” properties.
Although I haven’t found much value in being a licensed real estate agent in my roll as a real estate investor, this week I was able to implement a negotiating strategy taught to me by my former broker. It worked countless times when I was representing home buyers and sellers as an agent, and it worked this week as an investor putting five figures in my pocket. Hmmm… So I guess all that work as an agent wasn’t for nothing.