Most amateur real estate investors would agree that financial gain is a positive and desired outcome, but shockingly, their actions show the exact opposite. This is a very important subject in the real estate world because our profits are made very clear. It is very rare for the money you earn in a real estate deal to be kept a secret. You must embrace the fact that financial gain is positive and have your actions match this belief. Many times we think we believe in financial gain, but our actions reveal the exact opposite. The information in this blog is very significant to today’s marketplace and should be mandatory reading for all novice real estate investors.
Financial Gain in Real Estate
In real estate, financial gain is prominent in every deal, because your earnings are made very clear. There are websites like Zillow, that can show a potential homebuyer exactly what a house was purchased for and when. If you flip houses, this information can be a negative, because it does not show how much renovation costs, holding costs, or closing costs were. It will only show that you paid $150,000 for a house in November and are now selling it for $230,000. In the real estate world, people can view your profits, especially if you are a licensed real estate agent, because your 3% commission is listed on the closing documents.
Why Financial Gain is Positive
1. Business Survival
When you experience a financial gain in business, those profits help that business to survive. There is a company that provides an incredibly useful service to my team and I. We have been using this company for over ten years, but over the past year I began to predict that this company was going to go out of business due to undercharging for their services. Even though we were getting great service for an amazing price, I worried that the company wasn’t t earning enough profits to survive. If this company goes out of business, there are no high quality alternatives to the service that they provide.
- Help Others to Survive
This is precisely why financial gain is positive economically. It ensures that the companies you do business with are also making a profit. A lot of people think real estate investors need to be master negotiators who get the cheapest deals possible, but that is not my belief. I want the people I work with to earn enough money to survive and sustain themselves for years to come. This is the smartest solution to my personal business being a success.
Have you ever considered what would happen if one of your favorite companies were to go out of business? What if Youtube or Amazon went out of business? If the owners of these businesses were unable to turn a profit, they wouldn’t be able to financially survive. What would you do without these businesses and the services provided by them?
Companies that experience frequent financial gain, will not only survive, they will flourish. If a company earns enough profits, they can invest in more research and development to create a better product or service. This also applies in real estate investing, because you can take the profits you have earned, and invest them into bettering yourself and your business.
Improve Your Results
Most wealthy people do not hoard the money that they earn. They reinvest it and use it to improve their business and themselves. You must feel positive about financial gain so that you can not only survive, but also improve your results.
The definition of a contingency is: a provision for an unforeseen event or circumstance. In real estate investing this means that you have enough funds to survive and thrive, because there are a lot of expenses in life. Having the funds to pay your bills, investment expenses, and employee expenses, is crucial to being successful. The only reason I am able to offer my free book and Youtube videos, is because I am earning a lot of money sharing profits with my apprentices and closing my pwn deals. You are benefiting from that massive financial gain.
You should feel positively about financial gain, because it helps you to survive and thrive in the real estate world. Plus it helps to provide contingency for you and your employees, for all of the costs in life.
4. If You Have More You Can Give More
Another positive side to financial gain, is that you are able to give more if you have more. Earning more money puts you in a position to give more money back to your community or causes dear to your heart. The more financial gain you experience, the more you can give back without it hurting your wallet.
Greed is NOT a good thing. Greed is the belief that it is good for you to make a profit but bad if anyone else does. If it is a positive thing for you to make more money, than it is a positive thing for others as well.
Putting Together Good Deals
The best kind of real estate practitioner is someone who puts together great deals where everyone wins.
Everyone Should Win:
In real estate people often believe that you must be an incredible negotiator that cuts everyone down to get an amazing deal well below cost. This is not something I have found to be true. I pay good money for great services and great materials. The people I hire earn a profit and this is a positive thing for me. I am not taken advantage of, because these people want to come back and work for me again. They often even put my jobs above others, because they know that they will be earning a good profit.
Be aware of how much things should cost. If you receive a bid for a renovation that seems to low, ask the contractor about it. It is important to not cut corners or misjudge how much a project will cost.
Learning to Earn Larger Financial Gains
The best way to learn about earning a larger financial gain, is from someone earning a profit. If you listen to someone who is not making a profit, you will not learn how to be profitable. I earn a lot of money in real estate investing and teach others how to earn a profit as well. Make sure you find someone that will help you to produce the results you want in life in a fair way.
Financial Gain is Positive!
Now you know why financial gain is a positive thing. If a seller wants $100,000 for their house, you can offer them $80,000 with integrity, and explain why that amount is fair. Then it is up to them on whether they take your offer or not. I have done this my entire life and it works incredibly well. I do a lot of deals, earn a ton of money, and create a lot of financial gain. But I also make sure the people I work with are earning money as well, so that everyone is winning.