Paying Too Much for Real Estate – Really?

Paying too Much for real estate - Really?
Paying too Much for real estate – Really?

Some people struggle to find a way, while others seem to turn everything to gold that they touch.  How is that?  I‘ll tell you – while most people LOOK, only a few SEE.  Does that make sense?  I hope so…

This ability of making finer distinctions in life; of being able to look at the same thing that everyone else but SEE something that most people can not is as applicable to real estate as anything else, specifically as it relates to creative finance.


Value in a real estate deal is very much a moving target which is difficult to peg; it is difficult to peg because there are many value centers in every transaction, and depending on what goals and objectives are being addressed definition of value changes.  Understanding that there are multiple value centers in any given deal is paramount to unlocking creative finance possibilities.

So – what about the title of this article; Paying Too Much for Real Estate – Really?  I bet many of you are thinking I’ve lost my mind.  Come to think of it, you are probably more right than not, although this has less to do with real estate and more with my in-laws…

Yes my friends, I do indeed believe that there is a time to steal and a time to pay more than you know the asset to be worth.  As I’ve said before, the essence of creative finance is our ability to see what others can not.  To most real estate investors, getting a “deal” is strictly a function of paying a low purchase price.  Not to me, because while a low price is never a bad thing, I recognize that price is only one piece of this puzzle; it is only one of the negotiable terms which add value in a transaction, and focusing solely on the price can lead us to ignore possibilities which exist elsewhere. Continue reading at BiggerPockets

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