Real estate investors live and die by their profits. There is no profits. This is true with any business, but what makes real estate such a great business and a great investment, is the number of ways you can add value and cash in on big profits. Here are three ways can can add value to your properties.
Upgrades and Repairs: Okay, this is the obvious one and is the reason fixes and flippers can make money. The more creative you are add You really need to finish an unfinished basement, or add a second story. For example, I have a client that adds square foot to to every house he buys. This is a lot of foundation finishes and "pop tops," but where he has made the most money is the basement that is only 5 or 6 feet deep. He will go in and dig out the basement to a full 8 or 9 foot height and then finish it. Something most investors would not think of, so he is easily to get the deal most other investors pass on. I have also seen some investors find houses that do not reall There are a lot and there are limited bedrooms or bathrooms or funky floor plans. There are a lot more. There is a lot more as is & # 39; value, (do not over pay), and then add value with the repairs and upgrades.
You can also use it if you want to wait to cash in on your profits, but it is a way to increase a sell price significantly. You can also use this strategy to defer tax gains over a few years. When you have a property for sale there is a limited number of buyers for the house, right right now that pool of buyers looks pretty big Someone that can not qualify for an ordinary loan, limiting the supply of houses to choose from for that buyer, will For this value, you should be compensated with a higher price and a decent interest rate on the profits, while you wait for the buyer to refi nance and pay you off in full.
You are seeing this a lot in resort towns. It is always something you are is dumbled in, but it is extremely inviting. We vacated or second home. They are pretty enticing are not they? About 13 years ago my ex wife and I were in Florida and got sucked into a time share sales pitch. She asked me because they are very good at selling the "idea" of the time share and had my ex wife sold. "I can have bring our disney tickets?" was was comfortable with an emotional purchase and that we had a time to think it through. my response. As we rode back to the hotel that afternoon, I started looking about the math I know people who have flipped time shares successfully, because you can get get them for In this scenario, you are sharing a house I have been investing in a craigslist, but it is not an investment. I have been investing in a half or quarter share on a house in a ski town in Colorado. From 1 to 3 other people so there is a ton more can you guaranteed valuable high demand weeks every year. It is a way to get a second home without the full expense. From the I have seen how it is a way to get more than the house. I have seen business plans from investors that would The idea was that after they they impr The downside is if there are any improvements or major issues. I can see that being disagreements, so this is something you will want, as a buyer, to work out with all the other owners in writing before you buy.
