Wedge refers to buying real estate for under-market value, which creates instant equity. There are several benefits to purchasing real estate with wedge: • The ability to refinance or sell the property, potentially profiting from it. • A safeguard during a potential housing market crash, as the equity loss can be absorbed. • Allows you to sell the property if you are forced to move and cannot cash flow. When purchasing your home, you must understand the advantages of a wedge. Selling or refinancing a property can cost tens or hundreds of thousands of dollars. Determining if a property has a wedge is done through my granular market analysis in the subject property's subdivision, comparing it to the selling prices of other properties. In some cases, repairs may be necessary to bring the property up to the standard of the different properties in the area to capture the wedge. When purchasing real estate, aiming to buy 10% to 15% below market value is a good rule of thumb. With interest rates expected to remain high, there is a window of opportunity to find great deals. It is essential not to make emotional decisions when buying a house and to prioritize your personal and investment goals. Wedge is one of the compelling real estate strategies I use because it can lead to significant financial benefits for my clients. With extensive experience and training in this field, I harness my knowledge to guide clients through purchasing properties below market value, creating instant equity. This potential for significant financial benefits should inspire optimism in potential
21
Powered by FlippingBook