How To Profit From Real Estate By Rehabbing And Retailing

How To Profit From Real Estate By Rehabbing And Retailing



How to​ profit from real estate by rehabbing and​ retailing
Buying houses low and​ selling them high is​ called retailing .​
This is​ the​ most easily understood method of​ investing in​ real estate .​
It's the​ art of​ buying at​ a​ low price, often doing some repairs, and​ then selling at​ retail price and​ usually cashing out .​
a​ lot of​ money is​ made through this method .​
Some people do it​ part-time, turning 2 or​ 3 houses a​ year, and​ make more money at​ it​ than they make on their regular jobs .​
Others do it​ full-time and​ turn 40 to​ 80 houses a​ year with an​ average profit from $20,000 to​ $35,000 per deal.
Rehabbing and​ retailing houses is​ very profitable, but it​ is's also the​ hardest way to​ make money in​ real estate and​ is​ layered with costly entanglements .​
a​ lot of​ satisfaction comes from rehabbing .​
Following is​ a​ list of​ tips for​ rehabbing and​ retailing:
1 .​
Buy in​ areas where qualified buyers want to​ live.
2 .​
Never close your purchase without confirming your assumptions, that is, after repaired value and​ repair estimates .​
Do your due diligence and​ get the​ purchase appraised as​ completed; buy title insurance; have a​ termite inspection; get repair estimates from qualified contractors; and​ get estimates to​ fix any other traps you can avoid .​
3 .​
Always borrow more than you need to​ buy and​ repair .​
The job will always cost more, take longer, and​ yield less profit than you expect .​
You better have a​ cash reserve .​
4 .​
Keep a​ tight leash on contractors .​
They'll play you like a​ yo-yo, which can - and​ probably will - be one of​ your biggest learning experiences in​ the​ School of​ Hard Knocks .​
But hey, don't worry; I​ graduated from that same school top of​ my class, and​ I​ survived.
5 .​
Don't tie up your cash .​
Tying it​ up is​ a​ good way to​ become a​ motivated seller .​
The greater your need to​ sell, the​ longer it​ will take.
6 .​
Do a​ nice renovation job .​
It'll pay handsome dividends in​ saved holding costs and​ in​ satisfied customers who'll send you more buyers.
7 .​
Find a​ good loan processor or​ mortgage broker to​ get your buyers financed .​
It's the​ difference between success and​ failure .​
This person has your paycheck in​ his or​ her control,, so make sure the​ person you find knows his or​ her business and​ follows up.
8 .​
Master the​ art of​ selling houses as​ fast as​ humanly possible .​
Slow selling is​ the​ biggest weakness for​ most yet one of​ the​ easiest to​ fix .​
If you sell houses the​ way most untrained investors do, it'll be a​ while before you get paid.
9 .​
Never do your own repairs .​
If you do, you're working as​ a​ laborer, not an​ investor .​
You make money by locating and​ buying good deals, not swinging a​ paint brush .​
If you adhere to​ tip 3, it​ won't be a​ problem; you'll have the​ money .​
Some people tell me fixing houses is​ their therapy .​
I​ say if​ you lay hands on a​ house, you need therapy.
10 .​
Get trained at​ this craft of​ quick turning real estate before you have to​ pay an​ ugly price for​ your education .​
Education is​ a​ lot cheaper than ignorance.




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