Rehabbing a house is one of the creative and attractive ways to invest in the real estate. Rehabbing or popularly known as flipping is definitely in the limelight. You can see a lot of real estate TV shows that feature buying and flipping houses and present it as a straightforward and easy way to start investing in the real estate and generate a substantial amount of money. If you want to become an investor and considering flipping/rehabbing as an instrument, then keep on reading below.
Flipping a house requires a “working budget.”
If you finally decided to become a flipper like Scott Yancey from Flipping Vegas, you have to be aware that your job does not end in buying a house. There are a lot of things that should be done, and if you want a quick return on investment, then you should rehab the house in a swift yet smart way. Once you purchased the property, you already have a definite plan in mind. Identify the kind of repair needed and start the renovation process as soon as possible. The rehabilitation process should be done in a matter of weeks so that the property will not sit for months. If the property sits for too long, then its value depreciates. Of course, other factors that should be considered. Another downfall of taking too much time to rehab and sell the house is that you will not find a suitable buyer that quickly. If this happens, you will end up shouldering the cost of maintaining the home.
Set aside your personal preference
One of the reasons you go over your budget when rehabbing a house is you get too personal. You treat the house as your own, and you spend more until you reach a certain level of satisfaction. This is initially good until you realize that you already exceeded your allotted budget. When it comes to rehabbing a house, you have to understand that you are doing it so that it becomes a home to other people. If you want to maximize your profit, focus on what is necessary.
Check the cosmetic details of the property
Your goal as a rehabber is to make the property aesthetically appealing to buyers. So, from the time you buy the house, you have to examine the building thoroughly to watch out for structural problems. Any problems in the structure of the building can lead to expensive repair. Damage to the walls and roofing are also costly undertaking. Cosmetic wise, you have to pay particular attention to the paint, carpet, as well as the landscaping of the property. These are the things that make the property appealing and attractive to the eyes of prospect buyers.
Dean Graziosi as a real estate mentor
Dean Graziosi purchases foreclosed properties at an auction remodel the houses and sells them for profit. Dean has written several best-selling books on real estate investing.
House flipping is trendy right now. It can offer huge returns, but it can also possess a lot of risks. Overpaying the house, underestimating the cost of repair, overpaying the contractor, and overestimating the resell value are just some of the challenges you may encounter. To significantly reduce the risk when doing house flipping deals, you should keep in mind the following:
Buy a property for as cheap as you can
In the real estate investing method like flipping, you start making money the moment you purchase the house. Contrary to what most people believe that you are only going to make money after successfully flipping it. Finding an ideal property to flip at an affordable price is the first goal of a house flipper.
Make an offer – you should be proactive in making offers. Do not be embarrassed to offer way below the market price, after all, what have you got to lose? You can have a lot of budget for renovation if you spend less on buying the house. You can do whatever you want in the house because you bought it at a low price.
Generate leads – another great way of finding ideal properties to flip at an affordable rate is generating leads where you can find great deals. It increases your chance of finding a house that is still in good condition but sold at a low price. The many leads you get the better. You will not be pressured to turn each lead into a deal thinking that you are going to lose a precious deal.
You can never go wrong with using a fix and flip investing strategy. A lot of people have used it, and they were able to enjoy a huge return in just a short period of time. You should not only find an ideal property to flip. You should know how to flip it right. Hence, make sure you enrich your house flipping knowledge and skills.
The Success Path event is a real estate seminar designed for people who want to make it big in the real estate investing industry. It is a series of event, which tackles not just the basic but innovative ways to invest in the real estate market. It is endorsed by Tarek and Christina El Moussa, the host of the show Flip or Flop. They are professional flippers who’s been in the business for many decades now. More inputs about the event are available on this sitehttps://www.facebook.com/successpathevent/ .
Investing in the real estate sector is a great move. You will be able to earn a huge profit as long as you do things the right way. As an investor, you should understand how the investing process works for you to generate good returns. The industry is divided into two broad categories, and these are the residential and commercial real estate.
When deciding which sector to concentrate, you should take into account the following factors:
It is easier to finance a residential property than the commercial property. Residential properties can get a financing of up to 90% whereas commercial properties only get up to 60%. The interest rate is higher in commercial properties than the residential. If you have sufficient capital, then go for commercial investment. If you are starting in the business, then you should invest your money in the residential property.
Commercial properties do not have tax breaks, unlike the residential ones. There will also be an interest deduction but is only applicable to first time home buyers.
If you want to generate a continuous flow of income through property rental, then you can get a high return on the commercial property. Up keeping the commercial property is easier than that of the residential property. You don’t have to spend cash on the furnishing as the tenants will handle it.
Selling the Property
When it’s time for you to liquidate the real estate property, you might find it quite difficult to find a buyer. In a commercial property, in particular, finding a buyer is quite slow for it greatly depends on the socio-economic condition of a certain industry. On the positive note, you have the option to part-sell a property. You do not have such advantage in a residential property.
Investing in the real estate market does come with pros and cons, be it a residential or commercial unit. Before you decide which investing method to choose, it is important to understand what the industry is all about. Take some time to know what real estate is all about and how you can sue it to your advantage.
Scott Yancey conducts a real estate seminar which is beneficial to both novice and seasoned real estate investors. The Scott Yancey real estate training walks and guides you through the investing process. At the end of the training, you will feel that you have what it takes to succeed in the business. Click here https://www.facebook.com/scotteyancey/reviews to find out more.