A few years ago a real estate investor shared this excellent tip (a real story) about income property investing. He said, “You make your money when you buy the income property, not when you sell the income property.”
The logic is as simple as it is profound: Make your determination to invest in a property based on real numbers that make sense and avoid the temptation to consider numbers that are “pie-in-the-sky.” If the real numbers don’t make sense, it’s a more prudent investing goal to look for another investment opportunity than to make the purchase and hope the property appreciates enough in value to make you a profit when you sell.
