One option is a “fix-up” which is the purchase of an older building and then refurbishing, designing and styling the property. This can be beneficial for both personal use and resell value with fix up options ranging from small properties to large mansions. When deciding to invest in real estate it is wise to consider the following:
Narrow down your options by selecting the area you wish to buy. Research property prices in the area so that when you find a fix-up property you will be able to recognize if it is under-priced in relation to the other property process. If you are struggling to find a fix up look for terms used by real estate agents such as “special” and “TLC” (tender loving care) which indicates it is ready for some work.
Once you have found the property, purchase the house with the lowest cash down payment possible. It is possible for the seller to agree for you to buy the house with no money down, usually seen in cases when a seller is eager to move. If the seller does not agree to this, it may be possible they will agree to carry back a second mortgage or trust deed on the property for an amount that represents the majority of equity in the house.
Assess What DIY You Can Do
To make the most of your investment it is important to keep restoration costs as low as possible. To be able to do this you must assess what jobs you are capable of managing yourself. The majority of people have the ability to strip wallpaper and paint, but when it comes to bigger jobs such as electric and plumbing you must assess if you are qualified or if you need to hire professional help. If professional help is required then it is important to create a budget and stick to it.
Once the house has been renovated and decorated it is now your decision whether you wish to sell on the property listing it on the market for a considerable amount more than what you paid and renovated It for. Or the second option is to rent the house our providing a steady income rather than one large sum.
Repeat and Increase
As your assets increase over time due to this process you will be able to buy even larger properties and turn an even larger profit. Many have started from one house to now renovating whole blocks of apartments, building their own real estate empire.
Disclaimer: HighWorthCitizen.com is not intended to provide legal, tax or investment advice, and nothing on HighWorthCitizen.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by HighWorthCitizen.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.