When you and your team identify a potential real estate investment, each team member has a unique skill set that contributes to the success of any deal. What’s that quote, “The whole is greater than the sum of its parts.” But the main objective buy low sell high real estate investingduring an evaluation is accurately identifying the price to offer, all costs and the price to sell. That’s the profit.

In a previous article, we wrote about how to view an offer that’s been accepted a little too quickly. When an offer you make is accepted before you can hang up the phone, it’s likely you left a little money on the table. On the other side of the fence, what should you sell the home for to maximize your profit? Do you want to be on the other end of a quick offer?

With your real estate agent and appraiser, you should be able to obtain a solid price range in which to list the property. Perhaps the acceptable range is $200,000 to $220,000 and your agent says that the range should sell the home within 45 days. Should you follow that advice and list the home at $220,000 and wait for 45 days or price it on the low end at say $199,000 for a quicker offer? Now the tables are turned. Now you’re the one deciding on a price.

As you review your list price options, consider your other options. Would you rather hold out and perhaps price it at $225,000 and maybe end up closer to $215,000? Or are you convinced that a $199,000 offer will come within a day or two? When asking that question, what is the time value of your money? If you sold and closed within 48 hours to a cash buyer, would you be able to turn around and invest those profits and churn for yet another profit?

Velocity of money is defined as how quickly profits are exchanged from one deal to the next. The quicker you can reinvest your profits, your long term results can be greater than holding out for longer periods of time. Should you wait to squeeze out a few more dollars? Or sell more quickly and reinvest? If you know the answer to that question, your financial future is in fine shape.