Last week we talked about getting into Real Estate because it is so much fun and good agents make it look quite easy.
This week it about inexperienced buyers who are ready to buy low and sell high and fast.
Let's talk about rehabbers, i.e., flippers.
During the week, callers ask for cheap homes in disrepair to fix them and make a ton of money.
Some do very well in RE, and some who do very well at rehab properties.
When you are ready to purchase and see what was paid for the house last year and the new listing price, you may think, WOW, now that's a great return, I'm ready to make that kind of profit.
If it sounds too good to be true, you might want to check it out.
When buying into your first investment/rehab home, there are many things to watch out for.
Do you have someone who can keep an accurate account of all expenses? From rekeying the locks on the first day to ordering big-ticket items like flooring and don't forget the cost of dumpsters, demolition, permits, and electrical updates. Don't forget to count the small expenses like tools, hardware, paint, drawer pulls.
Are you that handy? Can you expertly fix items, and will they be up to code? Don't forget to factor in the cost of a general contractor, plumber, electrician, roofer, radon mitigation, landscaper, HVAC, painter, and so many others.
Get a home inspection even though you are buying "as is," so you have an idea of the hidden costs like sewer, termite damage, or mold. Many of those are not visible until demolition has started.
During the week, it not unusual to get a call for distress properties. The latest call from a woman who wanted to get her sons in the business. She asks me to send a list of cheap homes so her boys can make a nice profit. There was no thought of how much or of the location. It was interesting that mommy called and not the sons.
There is more to it than finding the cheapest property!
Want to talk about a home
Call Margaret Rome