Lesson 13: Profit Strategies

November 19, 2025

Review:

• Multifamily Residential
• ROI
• Select your most promising apartment building (based on ROI Analysis)
• Add the building address to the sign up sheet

Presentation:

• Strategies – ways to make money
  • Buy something broken
    • Cosmetic fixer
    • Major repairs
    • Problem should scare away amateurs
  • Buy at a discount … by paying cash
    • Pay cash
      • Cash offers are expected to be lower than conventional financing
      • Implicit discount to avoid bank financing headaches (e.g., inspection, appraisal, approval)
    • 3 “D” opportunities
      • Default – owner is facing foreclosure or bank-owned
      • Death – death in the family forces younger generation to sell
      • Divorce – joint assets must be liquidated
  • Fix and flip
    • quick profits/cash
    • higher tax rates
  • Buy and hold rental
    • more headaches
    • long term income
    • lots of tax deductions
  • 2-year hold
    • hybrid approach
    • avoid short-term gains tax
    • relatively quick ROI
    • “Live and Flip” approach
    • House-Hacking
  • Seller financing
    • defer capital gains taxes
    • earn interest income
    • set price
  • Business with Real Estate
    • motivated sellers
    • buy together, sell separately
    • valuation is tricky – proceed with caution
    • liquor store deal
  • Short-term rental
    • Airbnb

Assignment:

• Have a good break!