Greg Gaudet did a thing! He moved from being homeless to being a successful real estate investor. And guess what? He has the right figures to back that up and it’s really intriguing. How did he achieve this success?
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What did he know and do that made him stand out and make so much profit? I’m sure you want to know too. So, steal his tricks for free in this article.
Minimal and Easy Renovations
If you want to make money, you must first spend money. Greg had this idea when he invested $25,000 in renovations, repairs, and upgrades of the house he bought in Hawaii.
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This move he made increased the value of the home. Not long after renovations were finished, he put the property up for rent and started making his profit quickly.
Smart Investments
Who sees a good deal and looks away? Definitely not Greg. He had a knack for identifying properties with untapped potential.
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Greg trusted his intuition about the home’s value and jumped on the offer the first chance he had. He got a favorable purchase price and has been making his profit ever since. This ability to identify properties with hidden potential and foresee their appreciation is one that investors must have.
Market Timing
The real estate market is extremely tricky and success sometimes depends on the timing. So, Greg acknowledged that he was lucky with the market and his timing played a huge role in the property’s value increase.
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We aren’t sure what the outcome would have been if he made the purchase at an earlier time. But if you are looking to make it in real estate, you must leverage proper timing.
Cash Flow and Price Consideration
There are two things Greg emphasized as the biggest factors in real estate: cash flow and price. They make the biggest differences.
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The theory he works with is that a property’s true investment potential lies in its ability to generate a steady stream of income, not just in its aesthetic appeal. So with this knowledge, he considered this as a passive source of income. This is, in fact, the best way to see your real estate investments.
Profitability from Day One
Any approach taken to reduce the risk rate in any business is very crucial, and the real estate business is not left out. Greg’s strategy was hinged on the fact that the property would start yielding profit immediately.
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This reduced the risk and ensured the investment started paying dividends without delay. Avoiding delay is another crucial factor in maintaining financial stability.
Location
Even if you know little or nothing about business, you must know that location matters. That’s common business knowledge. Greg made a very calculated move and bought a property in Maui, Hawaii, a very desired location.
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Buying a home in that area already promised growth and continued interest in his investment, which led to its rise in value.
Contractor Efficiency
This strategy made the renovation process very fast. One of the hallmarks of a successful real estate investment is a swift turnaround from purchase to profitability.
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He found a reputable contractor that did the necessary work quickly and efficiently. His good contractor already reduced the potential loss of income by making the renovation fast.
Rental Income
Having a property and waiting for the value to increase is one thing while having a property and putting it up for rent is setting yourself up for massive profit.
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After Greg finished his renovation with $25,000, he started making more than $5,000 monthly. If you do your calculations, you’ll see he had a wide profit margin. This covered his expenses and also contributed to the financial well-being of the investment.
Long-Term Investments
Serious investors don’t just look out for quick profits, they also watch for investments that would yield for long. Greg’s decision to keep his Hawaiian home after so much increase in value shows that he values long-term investments.
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He will continue to make a profit and have a steady cash flow because of his patience and foresight in investments. One must not be quick to nip their growing investment in the bud, in a bid to make quick profit.
Creating Value
The first thing Greg thought of when he acquired his property was not profit. Instead, it was the value he was going to provide. His focus was to repair properties and provide affordable housing for the local families.
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This strategy increased the value of his investments because he was meeting the needs of people in the community. He did this because he understood that the bedrock of any business is the value they create.
Efficient Property Management
After Greg bought the home in Hawaii, he focused on making it a more profitable property by renovating it. He also managed it effectively by ensuring tenant satisfaction.
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He attended to the tenant’s concerns promptly and did timely maintenance. This approach maintained the property’s value and helped in appreciating it because of the reputation it had in the market. Everybody knew that it was well maintained.
