Only TWO ways to MAKE Money in this Business

First let’s be up front with each other. There are dozens of ways to transact business and there are hundreds of ways to lose money but in my opinion there are only two ways to make money constantly. 

If you have spent any time in this business or simply enjoy the subject you have undoubtedly read about lots of ways to get business done.

 

I propose that almost everything you have read is actually about how to do a transaction or the method (Wholesale, Flip, Sub To, etc).  None of these things by themselves will make you a dollar in this business.  But they sure could lose you lots of money if you are not leveraging them around one of the two keys to making money!!!

I am not going to waste your time with some long winded run up to the big reveal so here we go.

First you need to become an expert at creating value. There are lots of ways to create value, you could add a master suite to an old 2/1, you could reconfigure a house to create an extra bedroom for a rental, you could rezone a property, etc.

 

You need to become very good at creating value and the more ways you can comfortably create value the better.  Again focus on learning how to spot and create value instead of all the buzz words around transaction types.  If you can create value on a repeated basis you can always find someone to help you with a transaction (Like an agent, title company or partner).

The second way to make money in this business is to solve problems.  The seller could have a problem like a death in the family or divorce or the property could have a problem like a leaky roof or city fines.  Either way the more problems you are comfortable and good at solving the more money you will make. Period!!!

If you happen to find a deal where you can solve a problem and create value you  have found a homerun deal.  Please note these combo opportunities are rare and don’t happen every day but when they do it is pretty special.

Again I propose you focus on learning how to solve problems and create value instead of all the buzz around doing transactions.  Don’t get me wrong I think understanding multiple transaction types is important but only after getting good at creating value or solving problems. 

Think about it this way.  Where is the money made? Is it in doing the transaction or solving problems or creating value?  I trust the answer is easy. 

Lastly if you had to find/pay someone to help with doing a transaction what do you think it would cost? Now how about paying someone to creatively solve problems or create value?  I suspect the last two are very expensive hence the importance.

Good Investing

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