Christian Osgood and others argue investors fixate on purchase price when they should care about financing terms and cash flow. A $1 million property listed for $2 million could work if you get 1% interest over 50 years with zero down and positive cash flow immediately.
throw the bank out and you don't need that appraisal anymore. Well, now their price is back on the table. If they want us to overpay for a property, but we get excellent terms, we can absolutely do that. As a ridiculous example, say it's a million-dollar property and they want $2 million for it. Like, appraisal would come in at $1 million. That's gross. Yeah, that's— do you massively overpay for it? If I could get 50-year debt that, you know, say like 1% interest and it cash flow positive day one, I'm gonna say that million-dollar property will be worth $2 million 50 years from now.
I would do that deal. And even if it's not, if you can do zero down and cash flow for 50 years. I'm going to say it'll be fine.
Right. So to summarize this, I mean, this is very, you know, out of the box, to use your analogy, out of the box way to look at real estate, right? Most people are really focused on the price.