Look And You Can Clearly See
Last week while in Austin Texas for some training, while reading the local newspaper, I came across the story of Zach Thibodeaux. Zach is an eight year old boy who is suffering from a degenerative disease known as Cone-Rod Dystrophy.
This disease is rapidly robbing Zach of his sight. In fact, at this point in his life, he has already lost 75% of his vision in one eye, and 85% in the other. Soon he will be blind.
Currently Zach is on a fast paced tour of New York City, in a feverous attempt to see all that can with the hope that those visions will be committed to his memory.
His story is tragic, incredible, and inspiring all in one. And it made me think…Why is it that despite all the opportunities that we have before us, we often can’t see them before it is too late.
I have said many times (in many different ways) that today’s market offers buyers and sellers many opportunities. And, yet we fail to see them. Quite probably because we take today’s opportunities for granted.
A seller today, may very well be selling his or her home for less than they would like. However here is something for you to consider. Let’s say that a seller agrees to sell his home today for three hundred thousand dollars. And, if he waited for two years he could sell it for three hundred and thirty thousand dollars. By selling today instead of waiting, the seller will potentially lose 10% (or $30,000).
However, if that seller takes the profits of this sale and purchases a five hundred thousand dollar home (a move up purchase) over the same two year period he will gain 10% in equity which translates to a fifty thousand dollar gain.
Investors will also see an abundance of opportunities in this market. Let’s say that you have a single family home worth three hundred thousand, and it rents for two thousand a month. If you sold your home through a tax deferred (1031 exchange) transaction and purchased a four- plex for say three hundred and fifty thousand dollars (very doable in this market) and each unit were to rent for one thousand a month your cash flow would double.
I want to stress to you that this truly is a buyers time to buy!. Today in many areas of the Inland Empire you can buy for less than the cost of building. Other than the Great Depression, when did we ever see these kinds of opportunities?
Certainly not in my lifetime.
So, while Zach’s condition is incurable. And, we wish him all the best. Yours requires only that you open your eyes and look around you. The world is ripe with opportunities so beautiful and, you need only look to see.
Until next time…Go out and buy something!