Jacques Coquerel
Knowing Which Houses Can Be Renovated For A Profit.
Copyright (c) 2007 Jacques Coquerel
Flexing Your Real Estate Investing Muscles
Real Estate Investing involves a lot of money and entails
the risk of losing lots of it if you don't know how to do
it the right way. When starting out in this industry, it
is best to look for bad-looking houses that you can
refurbish and sell easily at a much higher price after the
repairs. Most likely, these will be entry-level houses
that would only need a quick face lift. A little
accessorizing here and there, a new touch of paint inside
and outside, viola the house is a beauty once again.
The Handyman
If you know a thing or two about construction work and are
willing to do some of the work yourself, then this will
definitely save you a lot of money in the beginning of this
new venture of yours. However, if you don't have a talent
for fixing things and would probably do more harm than good
then it is best to leave the work to the professionals. In
this case, entrust the project with people you feel
comfortable with and who will give you the best value for
your money. It is a good idea to be honest with your
budget constraints early on so no unnecessary expense will
be made.
The Sub-Con Partner
On the other hand, if you don't have any budget allocated
with fixing up the place and beautifying it, then you can
talk to a subcontractor who will be willing to do the
repairs for you at a fraction of the earnings that you will
make from the sale of the house. Otherwise, you may look
for a partner who would want to share the expenses with you
and with whom you would also share the profits with.
Take note however that not all ugly houses will be good for
refurbishing. If you're working on a limited budget and
experience, make sure that the house you intend to purchase
is not in need of any structural repair. If the house is
in a pretty bad shape, don't quickly assume that you can
spruce up the place easily. There might be structural
repairs you are unaware of which will cost you a lot of
money. In such cases, you'll end up not being able to sell
the house at a price that will allow you to recover your
capital and make profit. So it is best to get repair
estimates from contractors who will give you an honest
assessment of the house.
The Next Level
Gaining more experience in real estate investing will allow
you to build confidence in buying houses that need major
repairs. By that time, you will also be prepared to tackle
such projects because you already know which houses will be
profitable despite their bad condition. The advantage of
being able to bid on such houses is of course, the less
number of competitors on that level. Moreover, you will be
able to use the cost of repairs as leverage for a lower
sale value.
So be patient and be timid in investing. The time will
come when you will be able to handle more difficult
projects and you'll have sufficient time, money, and
experience to back you up.
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Jacques Coquerel is a real estate investor based in
Atlanta, Georgia. He has made more than 750 transactions
since 1996. You may visit one of his sites
http://www.reonline101.com and receive a 13-part FREE
ecourse on real estate investing.
