Buy Low, Sell High

As the check came after having dinner with a friend I asked if he had a tip for the server.

"Yeah, buy low, sell high" he said. We both laughed and I thought about how easy it would be to make a profit if we all knew how to do just that, especially in real estate investing.

The whole idea of real estate investment is to find a property with potential and sell it for more than you paid. The best bet is a home in foreclosure where a lender is taking back the property for unpaid debt. Often you will find that this type of property can be obtained for under market value and then, with a bit of time or elbow grease, sold at current market value. This is of course easier said than done as the privacy laws in Canada are stringent and it takes a lot of work to find a home like that to make an investment deal on.

This strategy could look like we are preying on troubled people. It is actually the opposite. We don't try to steal the property from those already down, but instead we offer them a financial solution at a fair price so that everybody wins on the deal. The vendors sell their home, we buy an investment property at fair market value and the deal is good for everyone.

When we make an investment in a property it is important to be fair and above board on each deal. There is plenty to go around and everyone can walk away from it with what they wanted.

Rhonda Hoffman

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