Turning Real Estate for Profit
Turning real estate for profit has always been a way to make good money as long as you know what you are doing. If you don't know what you are doing, you could end up pouring a large amount of funds into a losing venture.
Like any investment, the key to turning real estate into profit, is to is to buy the property low and sell it high. The key word here is sell. You can buy any home on the market but if you do not sell it in a reasonable time, there is no profit. And after all, you are doing this to make money. You can make quite a bit of money if you know what you are doing.
You must first research the property to determine if it is a good investment. Once you decide it is worth the money step back and look at if from a buyer's perspective. Start with the outside. Check the curb appeal. If there is none, this is the first place to start when turning real estate into profit.
The interior of the house may be the most immaculate one on the block. Inside there could be all the amenities and perks a buyer could hope for. It may be the model home for the perfect family. None of this means a hill of beans if you can`t get the buyer inside.
Drive past the house. What do you notice? Is it overgrown with trees and shrubs? Do you have a clear view of the house? Does it look run down or in need of repair? If you answered yes to any of these questions, there is a problem. You will have to do something about it.
The smart realtor will tell you the first things a buyer will notice is the outside, the kitchen, and how many bedrooms there are and in that order. Take a look at the outside and decide what you can do to make the house more attractive to the buyer. If you have to tear out shrubs, then do so. You may have to fix broken concrete. The driveway may need repaved. This is where you need to spend most of your money. Everything inside is just cosmetics the new owner will most likely change anyways.
Let us assume you have purchased a home to fix and resell. The home has four bedrooms, 2 bathrooms, and is 2,800 square feet. This would make it the perfect family home. The buyer you want to attract is going to drive by and see what the exterior looks like before calling. When that buyer drives by and sees a broken trampoline in the front yard with dead tree branches overhanging the front porch they will keep right on driving by.
The buyer is looking for the perfect family home. A neat, clean yard is the first thing that catches their eye. After the attractive yard is a nice clean kitchen. Some people say, sell the kitchen and you sell the house. This can be done with a simple paint job and some new cabinet doors.
You do not have to spend a fortune remodeling the kitchen. Add new hardware to the existing cabinets. It's best to paint it a white or off-white color. Make it clean. Women hate dirty kitchens and will walk right out the front door when presented with one. You can save many headaches when turning real estate by just cleaning and painting.
When you paint, always make the colors neutral. This allows the rooms to look neat and clean. It also makes it easier for buyers to envision what the home will look like with their furnishings. They will be able to see themselves living in the home. Bright, bold colors can scare people away faster than a rat in the cellar. Many times people will not spend the extra money to paint a home, but instead will give funds to the buyer to allow them to paint the exterior and interior the colors of their choice.
With these simple tips for turning real estate for profit there is no doubt you can buy and sell with more confidence. You will see the hard work you do pay off in the profits you get from selling the home. You will not lose money by doing remodeling work that is unnecessary. Final result... your net profit will be higher.
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