2 . Repairs Only
In the alternative , you could make only the repairs that are absolutely necessary . But then , before you begin renovating the house , you could flip it to another investor . For example , you find a property in desperate need of cosmetic repairs : paint , carpet , and landscaping . It could also benefit from major renovations , but you don ’ t have the funds . It ' s the smallest house in the neighborhood , and if you built an addition ( i . e . another bedroom and bathroom ) you could bring its value in line with the other houses and make a handsome profit when you flip it . The problem is that you only have $ 15,000 to spend , and you need to flip the house quickly before the holding costs overwhelm you .
In this situation , your best exit strategy might be to invest $ 10,000 in carpet , paint , and basic landscaping , saving $ 5,000 for holding costs ( or contingencies ). Then , when you show the house to an investor , he will see the potential in the property and pay you a premium as a result . In this way , you may be able to double or even triple your $ 10,000 repair investment .
These investors don ' t have time to find properties , evaluate opportunities , negotiate deals , or rehab properties but you do , so take advantage of it !
Image by Sabine Dirksen from Pixabay
These investors don ' t have time to find properties , evaluate opportunities , negotiate deals , or rehab properties but you do , so take advantage of it !
Image by Maite Blümer from Pixabay
3 . Partial Rehab
When doing a quick “ downanddirty ” rehab on a property , you ’ re not transforming it into a showcase home to sell to consumers . Instead , your goal should be to transform the home into a clean investment property that would appeal to other investors . This means only replacing old or damaged carpet , painting the interior with neutral colors , thoroughly cleaning the entire house , sprucingup the landscaping , and replacing light fixtures .
Flipping before all of the renovations are completed may reduce your profits , but it will also save you time and keep your investment costs low . In fact , if you have little cash to invest , this might be your only strategy to profit on the deal . Later , when you ' ve builtup your investment funds , you will have more exit strategies to choose from .
At this point , you may be asking yourself , where do I find these investors ? You can find investors by placing classified ads in your local newspaper . You can also find them by attending local real estate investment clubs . There is no shortage of investors looking to buy investment properties . Often these people don ' t know how to find deals or aren ' t willing to do the work necessary to find them . Some are parttime investors who hold fulltime jobs . Others are brand new . They have cash to invest and resources to rehab a property . Some want to flip the property , while others are looking for longterm rental properties . Regardless , these investors don ' t have time to find properties , evaluate opportunities , negotiate deals , or rehab properties . But you do , so take advantage of it !
The good news for you is that there are always investors looking to buy properties before , during , and after renovations .
94