Physical real estate is my second favorite asset class to build wealth. Online real estate is my first. Unfortunately, owning physical real estate can be a royal pain due to never-ending maintenance issues. You can buy new construction and I guarantee you there will be problems that need addressing within several years.

After inspecting hundreds of houses and buying and selling multiple properties over the years, let me share with you some sneaky tricks sellers deploy to make a house look better than it really is as well as some warning signs to be aware of.

In real estate, there’s a saying that goes, “money is made on the purchase, not on the sale.” With a well-timed purchase, you get to pay fewer property taxes over the life of ownership and generate a much higher compounded return due to a lower base.

The market is a wonderful place because it allows two people with opposing views to swap assets at an agreed upon clearing price. But I had to keep a poker face during my SF real estate purchases in 2003 and 2005 because deep down I was thinking, I can’t believe they are selling for so cheap! 

Even with my latest single family home purchase in 2014, I couldn’t believe they were selling a panoramic ocean view home on a double lot for 40% cheaper on a price/sqft basis than property on the east side of SF. No other major city in the world has ocean view properties that trade at a discount.

But now that the property market is hitting record highs across the country, it’s a good idea to negotiate more aggressively, just in case you buy at the top of the market. Here are three strategies that may get you up to a 5% fair market discount. 

I have a confession to make.

Despite swearing off buying more property in an expensive coastal city like San Francisco, I recently submitted an offer for a single family home. Why would I do such a thing, especially given I had just  gone through the difficult process of selling a single-family home rental the other year?

Ego and maybe a little bit of real estate addiction.

In 2014, we downsized from a 4 bedroom, 3.5 bathroom, 2,300 sqft house to a 3 bedroom, 2 bathroom, 1,920 sqft house with a small office. Not only that, we downgraded from a well-known and expensive neighborhood to a relatively unknown neighborhood.

We took our ego squashing quest even further by buying a Honda Fit as well. With simple clothes, a compact car, and a modest house, we successfully completed our mission to go completely Stealth Wealth. It felt wonderful being nobodies!

Then things started to change once our son was born.

The following is a guest post by Bill Lanting | Vice President, Commercial Debt, RealtyShares. I met Bill over dinner and asked him to share his wisdom about triple-net properties because such investments sound attractive to someone who doesn’t want to do much managing, remodeling, or maintaining. 

Savvy investors seek the most return for the least amount of effort. Therein lies the appeal of triple-net properties, which offer the chance to work with major commercial tenants while at the same time handing off some of the biggest responsibilities any property owner will face.

Triple-net may align with your goals if you’re seeking a quirky, little-known investment type that is better known for reaping rewards than requiring repairs. If this resonates, read on to find out if this is the right asset class for you.