Raul: What up, guys? Today, I’m talking about … This is Raul, by the way. I’m going to talk about real estate prices. I’m not here to talk about the markets and the trends. That’s for the Bloomberg Channel or some shit, man. I’m here to talk about what the price really mean when it comes to real estate, especially real estate investing.
Price is a really subjective number. You could buy Nike’s for a hundred. You could buy Louis Vuitton’s for 800. Shoes, it’s subjective. They’re probably made in the same factory. Who knows? In real estate, it’s a little different. In real estate, the price actually represents a return or it actually has a tangible value unlike branding. When looking for these properties or when pricing your properties that you’re selling … I’m sure all you guys have heard of comparables. You guys have heard of property values in areas and stuff like that. It’s really important to always have the consideration, never lose sight of that.
I see a lot of people renovating and they list a property like, “Oh, but I did this and I did that.” It’s like, “Yeah, I understand and it’s all beautiful. Your pool’s beautiful. I want to bathe in it on Saturday evenings, but it’s really got no value.” Unless you did something extraordinary, right? But what I’m trying to get at here without going off track so much, is that when looking at a piece of real estate to buy, the price is not that important. What’s really important is what that price represents. It’s what return am I going to get? What’s my cash on cash return if I’m going to invest in this house? If I’m financing it, what’s my down payment like? You know what I’m saying?
That’s the really important stuff. Price is subjective, okay? It’s important because it brings the value of the other stuff. Does the property really appreciate in this area? Does it depreciate? What’s my rents like in this area? Et cetera. So keep that all in consideration when buying real estate. It can be residential, commercial, mobile homes, whatever. It’s all roughly the same and if I can help you out with any of this stuff or you guys want to hear more or whatever, click the link below for the Calendly. We can talk on the phone. We’ll be in touch. Thank you guys.