The real estate market brings in millions and billions of dollars every year for eager and soon-to-be wealthy investors. Why not get into real estate investment with fixer upper houses while you can to bring in extra income for life?
All over the country the economy has become rather shaky. Corporations and large businesses aren’t living up to the expectations of our elders. No longer is anyone able to get a job with a good company and expect to stay with that company until they retire. The average worker can’t live off their pensions anymore. Social Security was never meant to be a long term retirement solution either so don’t depend on that check for your old age. The only real ways to make sure you are taken care of not only in the here and now, but in the future is by taking care of yourself first. That means setting aside your own money and growing your own capital. One excellent way to increase your savings is through investment in handyman special homes.
Real estate investment is a proven method for growing your capital and even set money aside where you had none before. Real estate rehabbing in particular is an easy area of real estate to get into.
- There are very few special tricks to learn about buying handyman special homes.
- You don’t need to learn about special contract negotiations with the banks or mortgage holders.
- The property looks so good when you put it on the market that it’s not hard to sell.
New real estate investors can start off slow with small rehabbing projects that only need cosmetic work before delving further into the realm of fixer upper houses. There are a plethora of older homes in need of some tender loving care for new investors to get started in.
Plus, it’s not hard to make the purchase from a homebuyer. Most investors simply approach the deal as if they were buying a traditional home. That is, after a little of their own research to ensure that they can stay on budget with the property and make a profit on its resale. This process is even simple too. All it takes is knowledge on estimating remodeling costs and the full selling price of other nice looking homes in the area.
When you begin investment in fixer-upper houses, take some time to research the process from beginning to end. You’ll quickly learn how easy it really is to buy handyman special homes, fix them up and sell on the traditional home market. The pitfalls are there, but they only catch the unprepared investor. Many investors do get over eager in their desire to start off in the real estate investment world. They don’t learn the process and make many mistakes along the way. Real estate investors can tell you that these are the most common pitfalls of investing in fixer-upper houses.
- Paying too much for the fixer upper house.
- Not taking the potential buyer into account when remodeling.
- Asking too much for a house.
- Picking a bad contractor.
- Not securing permits.
- Not enough money/loans to complete project.
- Making mistakes and getting off schedule.
Each of these pitfalls is avoidable and fixable. It’s the poorly prepared investor that makes them and doesn’t get the help or knowledge to fix them. Plus, few of these pitfalls will prevent your handyman special homes from selling in the long run. The worst case scenario is losing some money in your investment. The best case scenario is earning more money and growing your investment at a rate of at least 10% per year.
While you can lose money in real estate, it is unlikely to happen with the proper research, determination and most of all a good purchase price. A rehabber’s profits are usually earned in the purchase price. If you get a really good price on those fixer upper houses, then you’ll usually be able to make a profit even if your remodeling costs are double what you thought.
A minimum 10% increase in investment is well worth the risk of investing in handyman special homes. Plus, many investors make more than that on their investments. It all depends on your experience, locale and that purchase price.
To Your Success,
Udo Ginczek
