A Winning Real Estate Formula
Jennifer Aniston plus real estate equals a Powerhouse combination. Ever wonder what a significant cash flow can do for Real Estate flipping? This Hollywood actor has been in the game for many years despite what many people may think.
When you think of extreme real estate flipping deals, a name that should come to mind is, in fact, Jennifer Aniston. She has been in the game for many years something surprising a lot of us in the real estate industry. We’re going to take a look at how she started off and built up to an immense Empire. We can discuss risks involved when playing with high dollar amounts in the real estate industry. However, at the end of the day, it’s all about the cash flow and margins on what a house may be worth, and we’ll see what we can glean from this and maybe apply our businesses.
Jennifer Aniston started off big in the real estate game. Well truthfully, big is all relative. To define what big is, that could be an hour in discussion all on its own because to one person to another it may not have the same meaning at all. It’s sometimes challenging to chase purchases from famous people because they do follow a principle that we should all support which is not own an investment property in our name, but rather a separate legal entity. Famous actors sometimes go through other channels to make things even a bit more challenging to follow. She then started to move up the chain focusing on the Malibu area on the West Coast, and probably the most popular that made a lot of press was the 21 million dollars Bel-Air home she flipped after some renovations.
Bigger The Money In Deals The Bigger The Risks
You want to know the risks when you’re playing with more significant sums of money. Techniques will change, but principles should stay the same. I was bitten by the bug of temptation about ten years ago and made a significant purchase using a lot of money. You can still make mistakes and the bigger the money, the bigger the mistakes. I was helping a friend that went through a divorce and thought it would be a great deal. So Jennifer and Brad lived in a beautiful home until their split in 2005, that house sold the following year for 22 million. When Brad left Jen moved to a condo on the beach, it was owned by Larry Ellison in Malibu. It was during this time frame after the split when Jennifer looked at different condo markets and picked up some other properties in New York to flip.
At the end of the day no matter the amount of money in the game it’s about the margins and what you can pull out in profit. If you’re playing in the high-end condo Market, you will unquestionably want to look at options to negotiate the HOA fees for even more significant profit margins. Knowing your cash flow limitations is vital. Calculate for unexpected and unpredictible situations to arise. Just know that you have to put that into your formulas. If you pursue a lot of renovation projects like Jennifer Aniston does, you may need Deep Pockets because you also have to factor in variables such as the price of wood changing due to commodities in the markets. Some other tips you want to look at or understand is the price of fuel, mainly diesel. These are things that can influence the cost of how they pull the lumber out of the forest, which makes it to the Mills, and ultimately to Market. Think of the bigger picture and what influences it.
Anybody with massive funding behind them can get into the real estate game and make a significant difference, however, remember the more significant the backing, the larger the mistakes can be. When you’re flipping a property, and you get into the renovation portion to increase the value understand your cash flow situation, it can make or break you. Understand your temptations even if you’re working with a property originating from a divorce, death or any other crisis. Other deals can come along and will. Lastly, understanding the demand for the property in the market you can quickly get in over your head if you make an error in judgment on this single factor.