There is a lot of money to be made as a real estate investor. By getting the property up to speed as quickly as possible you will be able to minimize risks and maximize profits. My philosophy is “Rehab, Flip & Repeat.” While the money comes from the sale, you can also make money on the buy. Make sure that you are purchasing a ‘good deal’, ensure that you have a respectable general contractor that can get the job done right, in a timely manner and watch your expenses (and timeline). If you talk to any real estate agent they will probably say that you typically see the best return on investment in the kitchen and bathrooms. Curb appeal is also crucial to a good (and quick flip). Follow these steps outlined throughout the manual and you have the opportunity to be a successful real estate investor. Real estate investing doesn’t take rocket science, but it does take time, money and knowledge. Be sure to carefully think through each step of a rehab and flip, hindsight is always twenty/twenty but in this business time is money.
Work quickly and make sure that the rehab stays on track (as much as possible, no rehab will ever go perfectly as planned). By doing so you will be able to maximize your profits and minimize your risks, somewhat. Just remember that the first couple of rehabs are always the hardest as you learn the ropes, you establish a good rehab team through general and subcontractors, and distinguish what pays and doesn’t pay in terms of upgrading. Just remember to always have an exit strategy in place, I always like to have a “plan a” and “plan b” when it comes to real estate investments as things don’t always go as planned.
My advice to you is not to let repairs scare you away, there’s no problem that money can’t fix. But in all seriousness issues with homes scare buyers away. As an investor it may behoove you to investigate the issue such as a crack in the foundation to see what it would actually take to fix it. In most cases that I have dealt with after having the problem looked at I was confident that I could get it repaired and it wouldn’t affect my bottom line. In most instances the seller knows that there is a problem and they may be more willing to negotiate on price for you to take the problem of their hands.
If you have a good deal in front of you and a well-planned exit strategy then success will be yours. Make money when you buy, keep the rehab simple, be cost efficient and sell for a profit…then repeat! You are now on the path to financial security and freedom.
“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” -Theodore Roosevelt