(EMAILWIRE.COM, September 22, 2008 ) Lake Wylie, SC - Larry Goins talks about luxury homes for a minute as he get a lot of inquiries about investing in them. A luxury home by definition will vary depending on the area. In Orange County, California where the median priced home is almost $800,000.00, a luxury home would have to be at least several million dollars to be classified as a luxury home in his opinion. Where as in his area the median priced home is in the $200,000 range then a luxury home would be anything around $1,000,000.

Many investors, especially new investors, call or email Larry Goins with a luxury home that they have found and are real excited about because they think it’s a real good deal. For example, he had someone recently email him a deal that was worth $1,000,000 and they could buy it for $800,000. Even though it looks like there is $200,000 in profit to be made he wants you to realize that with luxury homes you must buy them at a larger discount simply because the values of a luxury home fluctuate so much. He has seen the value from appraisal to appraisal change as much as 20%. In the example above… there goes ALL of your profit.

Larry Goin’s solution, which he actually learned from luxury home expert Frank McKinney, is that you need to be able to buy a luxury home at no more than 50% of its value to make a good profit on it. This is because there is less of a market for a luxury home making them harder to sell and because of this they can vary in price quite a bit. Please keep this in mind and don’t get too excited when you can get a luxury home at a 20% discount. That’s a good place to start but you need a better deal than that. Don’t think that you can’t buy a luxury home at 80% and retail it and make money on it. That’s not what he is saying at all because there are more things that also come into play here. If you are in a hot market and you know you can sell the property fast at retail and you are totally comfortable with the appraised value then you can make money on an 80% deal. Just remember luxury home values can change fast and there are fewer buyers for them.

For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and Much More!

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