The question presumes that the price will increase immediately after purchase. The only people who make money with that philosophy are the ones who give “How to Get Rich” real estate seminars with programs that have no risk, require a minimal amount of money, and involve very little time. Seminar terms frequently used to entice registrants are: “50% below market”, or “less than replacement costs”, or “uninformed seller”.

a. The statement “50% below market” translates into a guaranteed 100% profit.
b.Buying “below replacement cost” is probably not a good feature.
c. The presumption that you are dealing with a “dumb seller” is a very naive and bad philosophy for acquiring real estate.

The most effective strategy for acquiring real estate is called positioning. Nobody knows what day a property will increase in value, but you can project a time frame with reasonable probability. When you acquire a property, the important factor is to make sure you have the financial resources to see that time frame through to its conclusion.