It’s About Liquidity

  

One of my students called the other day with a great question. 
 
He said there was a $1,250,000 horse farm nearby that was for sale at the deeply discounted price of $750,000.  The place is 28 acres with beautiful views and in perfect shape.
 
My student asked if he should buy it, and sell it when the real estate market turns around.

 Look, I made my first million in real estate, so I’m not "anti-real estate." 
 
But, I told my student, "Let’s think this thing through."
 
I said it was possible (if every single thing went perfectly) that he could turn his $750,000 investment into $1,250,000.  That would be a 67% return on investment.  But, he’d have to pay a mortgage every month until the property sold, hope the real estate market does turn around, and then he’d have to find a willing buyer.  
 

In real estate, liquidity (being able to sell it when you want to) is often the major problem.  It is not unusual for sellers to sit on properties for years before they can sell…all the while, paying taxes, mortgages, interest, and upkeep.

 
Now, compare my student’s potential real estate investment to someone using my checklistwealth system.  My students can often make 67% in a few weeks if they carefully use the checklistwealth system.  And, our transactions provide instantly liquid (unlike real estate) with the push of a button.   
 
So the advice I gave my student was to get really good at the checklist wealth system I teach, and let the real estate pros do their thing.

 

 

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