Applying the Age Old Wisdom Of Wall Streets Gordon Gekko In Your Real Estate Business
The movie Wall Street has gone down in history as one of the all time favorites among investors of all kinds. Gordon Gekko, played by Michael Douglas portrays a confident stock and real estate investor with the world in the palm of his hand. Let’s hear what he has to say:
“Ever wonder why fund managers can’t beat the S&P 500? ‘Cause they’re sheep, and sheep get slaughtered.”
This article will show you how NOT to get slaughtered as a real estate investor in this market. This sound advice will make you a much better investor therefore making you a lot more money.
First off I am not advocating Gekkos illegal activities at all, a lesson we can all learn is…play by the rules. If you know the rules of the game inside and out you can play it to the limits, just abide by the rules and you’ll be fine He lost everything by pushing the envelop way to far.
“I don’t throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought.”
Never buy a property until you know all the facts, throwing darts at a board is no way to do business in this market, in 2005 maybe but today you’ll get hammered. Believe me I know. Here are 4 steps we take before pulling the trigger.
1. Always know what the projected appraised value will be after the renovation is complete, how do you do this? Find appraiser and hire them as a consultant to analyze deals for you and give you a tight range of value. For extra caution take 5% off the price for potential adjustments.
2. Get an estimate from a licensed contractor on what the renovation will cost.