WHAT I KNOW

            If you are interested in building wealth, real estate offers that opportunity to all who are willing to put in the time and effort.  Recently, I attended the open house celebration of my friend who recently purchased a home in the inner city of Indianapolis.  For purposes of this story, we will call the friend Buddy. Most who are familiar with Indianapolis understand that the inner city has undergone a transformation.  Old dilapidated houses that were constructed in the early 1900’s are receiving a make over.   Of course, there are still a good deal of houses that are abandoned and falling apart but there are some that are yet holding on for that investor to see the potential and make a small fortune. 

            Such was the case with the, let’s call it “Marshal House,” in honor of the governor of the state of Indiana at the time it was built in 1912, Thomas R. Marshall (and later vice-president to Woodrow Wilson) and I am playing on the word “marshal” meaning to make ready for action or use, which is the story of this house.  The Marshal House was purchased on March 15, 2013 for $19,900.  Two years later, this same exact house, with improvements was sold to Buddy for, wait for it $244,500!  That is 12.28 times the original purchase price.  But wait, there’s more!   

            At the end of this month, another friend of mine; we'll call him Pal, will be closing on the sale of a piece of property he purchased on November 1, 2013 for $15,000.   We will call this the Bowen Building after Governor Otis R. Bowen who won Indiana’s gubernatorial election in 1972, the year this building was completed.  So Pal purchased this 1,647 square foot building on a busy street. The building had previously been used as deli. Pal changed the signage on the building and then out of nowhere he gets an offer to buy the building.  The offer . . . drum roll please $350,000!  Of course the offer was snapped up immediately and at the end of this month Pal will gladly exchange the Bowen Building that he bought for $15,000 for more than a quarter million dollars.  Pal sold the property for 23.33 times what he purchased the property for. Here's the kicker, the empty lot next to his was purchased for $30,000 and was recently resold for a million! True stories! 

            The moral of these stories:  you can make money in the real estate market.   I am not advocating going out and buying the first piece of property you find, that would not be prudent.  However, equipped with a knowledgeable real estate professional like myself, you just might be the next real estate magnate, rivaling the great Warren Buffett.  Of course the key to buying real estate as an investment is the ability to see where the market is heading.  Eventually all real estate appreciates.  Real estate is forever.  It cannot be destroyed, it may change forms but it is perpetual.  It always helps to have knowledge of your seller.  Sometimes sellers just want to sell property quickly and are not as interested in making the biggest profits as they are in getting rid of the property.  Whatever the case, it pays to be able to discern this factor and maximize upon the situation.

            Today’s market is the perfect time to get involved.  I hope you will contact me today to see how you can capitalize on what real estate has to offer.