Reasons for Buying Cheap Houses Now

“Buy low, sell high.” These words have continued to ring true throughout history. As with any timeless principle, some things never ‘change with the times.’ As author George Clason stated in his book The Richest Man in Babylon, that this basic principle of finance is ‘an insight that will aid one to acquire money, to keep money, and to make their surpluses earn more money.’

It is amazing to me how such a simple concept can be so foreign to the majority of people in society. They imagine having lots of money and freely spending like their supply is limitless. Without regard for how hard money is to come by, new lottery winners are soon bankrupt when their “supply” is sadly exhausted.Have a look at we buy houses Chicago for more info on this.

It really comes down to discipline, doesn’t it? If one cannot discipline himself to budget hie funds, account for depreciation, discern markets in advance and allow for a financial “rainy day,” he will soon be in the poor house. Thus the expression: “A fool and his money are soon parted.”

This is one reason so many suffered heavy losses in the real estate market starting late 2006. Without regard for the grossly inflated market conditions, many continued to buy and/refinance properties, indiscriminately enjoying their new-found “wealth.” Nonetheless, their losses can be our gain.

Applying the principle to “buy low, sell high,” savvy real estate investment professionals everywhere are cashing in. They have seized the opportunity by buying cheap homes and either “flipping” them for a quick profit, or they rehab and manage as an income producing rental for long-term gains. Cash home buyers have a distinct advantage as they can avail themselves of wholesale deals on properties that others cannot acquire using conventional financing. Banks just operate fast enough. That’s why we buy houses for cash all the time.

Presently there are hundreds of real estate “wholesalers” across the United States. These businesses are often operated on a local level and often out of the wholesaler’s home. In fact, they provide a very good service to cash home buyers everywhere. They may lock up a purchase in contract and subsequently assign that contract to the first buyer that comes with all cash. They take a modest profit say, 10%, and leave the major margin for their buyer at 20-30% below market.