Have you thought about investing in real estate property after failing in stocks and mutual funds over the years? How about investing in fixer-uppers? If this is your first time and you have been fascinated about how they renovate those rundown properties on TV, you can try to do the same thing too. But only if your learn more about how to do it.
Getting started with fixer-uppers is about finding the best deal that will make sense to your pocketbook. Here, you should not be trying to look for the perfect blue ribbon house down the street close to the well-known super market. Instead, focus your attention on the one that you will stumble past but haven’t thought about much at first glance. That’s right! Those grade B and C houses at any Ranch Land Auctions are what will make you money. The best way of approach in the beginning of your house hunting venture is to look for a property that you can add value to for the long run. Older fix-up types tend to provide these features most of the time. So, before passing up an offer on that Victorian style house and lunging for the nicer looking unit, think again.
Many real estate investors who are into fixer-uppers and who made big with such deals, look for rundown properties, be it a single family house or apartment. They make sure that the properties they are buying meet their financial objectives as well. This is how you gain lots of experience and knowledge. Coupled with seminars, books and other resources, you can practice how to fix houses and add value. Fixing a fixer-upper is not everybody’s thing. Most agents and investors look for all properties available in the market before eyeing on older properties. What you need to do instead is to concentrate your effort on only fixer-upper so that whenever a new property arrives in the market, you will be the first one to get notified of its presence.
You can flip as many deals as possible at a time, given that you have created the perfect blue print of how to transform it to a livable condition that meets certain standards. Real estate investors and agents in an average market make as much at $10,000 per month. In a high-end market, this amount can go up to $100K or even more. Some investors have a full-scale operation with a few staffs working for them and helping them resell many deals at a given time. What you want to do with the property in order to turn it into a profit is up to you. You can either choose to fix it up and sell yourself or delegate that task to another flipper. It is also your job to determine how long you want to hold the property before putting it in the market. For this, you will need to figure out the number of days it takes to sell a similar property.