By Nathan Stitt
Mike Watson Investing

One of the main reasons for the slow national housing market is the lack of affordable entry-level housing. Investors that know how to create this type of housing stand to make huge profits.

If you are an MWI student, you already know how to create entry-level housing opportunities in your community. How do I do it, you ask? The answer is simple. You must understand how to find the Highest and Best Use of the properties around you.

On a recent Training Call, Mike Watson shared the following example that demonstrates the power (and profit) with finding a deal’s Highest and Best Use:

An MWI student found a property that seemed to have the potential for more density than was currently on the lot. However, multiple potential buyers had “evaluated” the property and because of their limited visions, dismissed the property as being an unprofitable deal. Even the savvy property owner knew that current use of the property was underutilized, but balked at the thought of developing the property after seeing the potential costs.

The student researched the property by looking at zoning maps, codes, and meeting with the city planner. By using those MWI techniques, the student was able to get 20 lots on the parcel, where previous investors had only been able to plan for 9 lots! Imagine the difference in profit going from 9 to 20 lots. Now, the deal had new life, when it had previously been dead in the water!

There is incredible profit to be made in simply finding the Highest and Best Use of a property. When we maximize a deal’s potential, the future value of the property skyrockets. The secret is to acquire a property at the low “current value”, and THEN expose the Highest and Best Use or higher “future value”.

When we do this, we are able to create affordable Entry-Level housing by adding density in areas with that potential. We are able to do deals that allow us to supply housing opportunities at reduced prices and still make incredible profits.

To find out more about creating Entry-Level housing profits, make sure to be at the “Any WHERE! Any TIME!” Super Camp this January in San Diego. At this event, Mike Watson will teach extensively on how to create handsome profits AND fill this glaring need in our national real estate landscape.

Get more information on the “Any WHERE! Any TIME!” Super Camp.