Real estate investing is a tried and true way to earn an excellent living. Whether you invest on the side or make it your full-time position, just know that it’s a worthwhile venture that can lead to fruitful living. But it’s also far from guaranteed to be an instant moneymaker. In fact, many individual investors in the US invest in property and either fail and lose money or barely break even.
Guess what? We’d like to share our four best tips about investing today. Believe it or not, there’s lots of money in investing in run-down and neglected properties. If you buy them at the right price, you can turn around and sell them for a hefty sum of money because you made it look beautiful, safe, and attractive once again.
To help you become better at property investing when buying fixer uppers, please use our four valuable tips below to help you get started and also you can visit ISoldMyHouse.com.
Tip #1: Add Value to Your Property by Focusing on Security
When fixing up a home to flip it, one area investors tend to overlook is home security. They fail to realize that by adding additional home security measures and putting them in place, they are making a home safe, secure, and definitely more attractive to potential buyers.
Even better, the additional home security adds even more value to a property with a Fast internet connection. If you add a home security system with alarms, cameras at the windows and doors, security enforced windows, and other security measures, you’ll have a property worth even more money than originally expected.
Why? Simply put, people want to buy a house that has all of the right security systems in place already. They do not want to go through the trouble of figuring out the right security measures themselves. So focusing on security to add value to your property is a good way to raise your asking price by making your home more valuable than other potential choices in the neighborhood.
Tip #2: Create a Budget for Your Fixer Upper
The only way to succeed in the fix and the flip game is to have a budget in place before you begin making massive changes. You need a budget for a few reasons. Most important of all, you need to know how much you can spend to fix up the place and still turn a healthy profit.
It’s also important to have a budget because you don’t want to go overboard when you initially begin fixing up the place. You need to know how much money you have available to spend in certain areas and you need to stick to it so you can fix up your investment and maintain your finances all at the same time.
Tip #3: Renovate and Remodel Your Home to Add Maximum Value
The goal of buying a fixer-upper is to renovate it yourself and charge a higher price when you sell it. Ideally, you’ll be able to fix the place for a low cost and sell it for a much higher price, whereas you make a nice chunk of change in the middle.
As an example, let’s say you buy a fix and flip the property for $150,000 in a neighborhood where properties typically sell for $300,000 or more. You estimate that it will take $75,000 to fix up the property to get it in tip-top shape. So if you theoretically stick to your $75,000 budget, you can turn around and sell the property for $300,000 or more, netting you roughly $75,000 in profit.
Granted, other expenses are going to come up so it’s unlikely you’ll make the entire $75,000. But then again, if you fix it up nice enough and make it safe enough you can maybe sell it for even more than $300,000 to make up the difference.
Tip #4: Purchase a Fixer-Upper for Family Members
Last but not least, you can always buy a fixer-upper that’s run down and in need of work and allow your family members to live there. Not only do you want us to focus on the aesthetic appeal, but you also want to beef up security by adding cameras, alarm systems, security bars for the windows, and much more.
By purchasing a fixer-upper like this, you’ll give one or more of your family members an amazing gift that they will cherish for a lifetime. You can let them live in it rent-free or very cheaply for as long as you see fit. And when it’s time for them to finally move on, you’ll have a gorgeous valuable property that you can turn around and sell for a handsome profit.
Clearly, there’s a lot that goes into property investing when you buy a house and fix it up. There are security measures to consider, making the house look beautiful, and deciding whether you should fix it and keep it or fix it and sell it right away. Ultimately the suggestions shared today will help you decide on the correct path so use them to your advantage today.