Every man and woman wants to become rich. All of us are fighting for a better life. How can we make a fortune legally out of other people’s homes? There is actually a way to do this. If somebody has many debts towards different directions he / she will have to sell their homes. You can become wealthy if you do the following option: You are going to a foreclosure auction and fight for a win. You must have a maximum value in mind.
If you manage to buy the home which is in foreclosure, you can either:
- Make a rent investment for people: this way you can earn monthly profit
- Make a rent investment for companies: this way you can also earn monthly profit
- Invest money into an eternal value: this way you can use your invested money later, for example there is a bear market now and you are very sure that in a few months the market will become bull
- You want to sell it immediately after the auction and you are sure you can make a deal which makes money for you
Let’s consider the number values:
Max = the maximum value you are willing to pay for the home
Location: the value is from the following range: [0..1]. You can make more profit from an estate located in the middle of a large city than from an estate located in the poor district
State: the state of the estate is in the following range: [0..1]
Gradient: The gradient is chosen by you. You can either choose a lower gradient and have better profit but low probability of winning the auction or choose a lower gradient and you have more chance to win the auction but you have a lower profit. It’s from the following range: [0..1]
estimated_income = the minimum income you are going to earn from your investment
max = location * state * gradient * estimated_income
estimated_profit = estimated_income – max
estimated_profit = estimated_income – location * state * gradient *estimated_income
estimated_profit = estimated_income(1 – location * state * gradient)
Location < 1, state < 1, gradient < 1 => 1-location * state * gradient > 0 =>estimated_profit > 0
So, you will earn profit if you estimate correctly your income and win the auction. There is a certain risk here as in any investment: You might buy the estate but not earn as much income as you expected. How much risk should you accept? The traders from the stock market are frequently saying that you should accept a risk if you can sleep knowing that your investment is just probable to become a success, but you can’ be 100% sure of it. Of course, you can’t make such investments unless you have enough money.
Is this kind of making money ethical?
Well, you can say that you are making a fortune out of other people’s misery, but they have problems even if you don’t make a profit out of it for yourself. The other aspect of the question is that you are not making anything against the people who sell their homes; you are just fighting for yourself, your family, your future. From this point of view we can safely say that this kind of investment is ethical and useful from the investor’s point of view.
