when comes to searching for property. first of all, take your list of all your selected properties. determine the income of the property, and multiply by ten. that’s where you’ll find the value (or) worth of the property.
most people misunderstand this strategy because it is a simple strategy, which is used by Warren Buffet. he used this strategy for buying: homes, properties, businesses, etc…
so let’s take a deep look; at how you can implement this strategy; in anything, if you’re searching for property. it is simple, but some people feel like it. it’s hard to understand it.
let’s take a land (example)
if you are searching for property; to buy at the best price. however, you also have; a plan to rent the land. after you buy the particular property. let’s say you searched the various land and selected the five land to buy.
moreover, you don’t have any idea to buy more than; one land. and also you don’t have; that much money to buy five land. so now you want to determine, which land will have the best price, and which one give you the maximum; amount of profit.
you have five lands, let’s say land A, land B, land C, land D, and land E.
land A is 27,000 dollars; yearly income is: 1600 dollars
land B is 31,000; yearly income is: 2600 dollars
land C is 20,000 dollars; yearly income is; 1800 dollars.
land D is 23,000 dollars ; yearly income is ; 2000 dollars .
land E is 26,000 dollars ; yearly income is ; 2600 dollars .
now think about . which is the best land, to buy. simply, you have the five land prices and yearly income. you don’t have to think, (or) collapse this. just multiply the land; and income by 10. because ten is the standard; for buying any property; above the 10 percent profit.
when we consider these five lands. the land E; has the correct value: of the property. which means if you multiply the 2600 dollars by the 10 you will get 26,000 dollars. It is ten percent profit from your investment.
but just multiply the other property, by their income with; land worth. you will get lower than—10 percent profit. most of the people, determine the price of the land, by other people’s opinion. so let’s take another example; in-house — to make you more clear about; this strategy.
searching for property; house
let’s say you want to buy the house. you have seen a lot of houses, but can’t able to; determine— which house to buy. so let’s take a look at how to search for property and determine the perfect house.
first of all, hire a lot of brokers for the property. then, brokers will call you to convince, and buy their chosen house.
whatever, the reason don’t buy the house on other peoples decision. which will affect you financially: in the long run.
understand the house’s worth, which you like to buy. think about yourselves. if you rent the house; after you buy. how much does it cost? let’s say you determine to buy the house; which is worth 250,000 dollars.
and you love that house more and more. because it is beautiful. when comparing another house. then, if you rent that particular house, which gives you 1,000 dollars per month.
however, if you multiply the house’s monthly rent amount by 1000 dollars by 10. then, you will understand, that the house’s worth is 100,000 dollars.
but the cost of your chosen house is 250,000$. which is more than, it’s worth Warren Buffet never bought this house, when more than 100,000 dollars. now I think you may; understand. how to search and determine the property. if you have any more doubt feel free to contact us.