Let me make you thousands of dollars on your next real estate buy.
First, most people don’t do anything that moves the financial meter in their life. They try to budget. Some severely cut back.
Miserly tactics like smuggling home napkins from Chipotle or saving ketchup packets in the fridge just keep people miserable.
In a world of abundance, they’re scared into scarcity, choosing to live sub-optimally. They’ll never get that lost time back.
Then there are those big picture market forces, some of which border on financial news and entertainment. This is a little more worthwhile and can even give you some long-term investing gains.
For example, last week, Fed Vice Chair Lael Brainard didn’t ease anyone’s nerves when she said that central bankers “are determined to stay the course” until inflation is back at their 2% target.
That signals more rate increases. The Fed’s rate announcement comes Wednesday, February 1st.
Then, there’s a group that builds real wealth.
They’re interested in actionable wins now. There are few times in the real estate cycle that are more conducive to this than today, January 2023.
A national trend has emerged.
Many property providers that our in-house Investment Coach, Naresh, helps you with are commonly offering three big incentives in a market still adjusting to higher mortgage interest rates.
But mortgage rates have now hit four-month lows. So use these three tactics to your advantage before they disappear.
Ask for these deal sweeteners confidently with Naresh:
- 2% seller closing cost incentive. Sellers are often granting this to buyers. On a $200K property, this is a $4,000 credit to you at the closing table.
- 2 years of free property management. Then after this period, some providers offer a long-term PM fee of 5%-6%. The industry standard is 8%-10%.
- Rent guarantee. This means that if your newly-bought property is vacant, your seller will pay market rent to you until it is occupied. This can save you another $1K-$3K alone.
The first two incentives won’t last long.
But keep the rent guarantee request in your back pocket for the long-term.
During most any market cycle, you can request this from a turnkey seller.
But use care.
You can imagine how an unscrupulous seller might be incentivized to fill it with a tenant whose FICO score is lower than room temperature just so that they can stop paying rent to you.
Therefore, if the seller must pay market rent during an initial vacancy period, you may want to approve the provider’s chosen tenant first.
Our providers are expected to have a higher standard.
These incentives are a bigger deal than getting, say, a discounted purchase price.
At a 6% interest rate on a 30-year loan, a $1,000 purchase price discount only reduces your payment by $6 a month.
You can start using these deal sweeteners right away.
No time or knead for cake puns. I like big bundts and I cannot lie. Naresh will go ahead and bake your day.
Again, when working with Naresh, ask for these three incentives. His help is free. Start here.
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