How To Renovate Your Way To Wealth In 2018

How To Renovate Your Way To Wealth In 2018

How To Renovate your way to​ Wealth in​ 2018
The real estate market has taken a​ tumble in​ many areas, that much is​ old news .​
Smart people are looking for​ an​ upside and​ of​ course there is​ one if​ you are in​ a​ position to​ make a​ purchase then buying real estate in​ a​ depressed market is​ not a​ bad play .​
The same basics hold true today as​ they did 10 years ago, in​ property you make money when you buy and​ right now it's a​ buyers market, prices will go up again at​ some point in​ the​ future.
For the​ smart investor or​ property developer opportunities are everywhere, the​ buy is​ where you make your money and​ in​ a​ depressed market buying well should be easy .​
So how do you buy well? Its a​ good idea to​ learn the​ market in​ your chosen area so it's time to​ hit the​ real estate websites and​ the​ real estate agents .​
Start to​ collect data on local house prices, its a​ good idea to​ look at​ least 100 properties before you even think about making your first offer .​
The reasons for​ this are simple, 100 or​ more properties will give you a​ great base of​ market knowledge to​ work from, when you spot a​ barging you will know it's a​ bargain .​
Keep in​ mind we are looking to​ make money on the​ buy, when you start negotiating it​ has to​ be from a​ business perspective not an​ emotional perspective, this is​ what brings many people undone .​
The idea is​ not to​ fall in​ love with a​ house it​ is​ more about falling in​ love with potential returns .​
I will say it​ again keep a​ business perspective and​ let the​ numbers make the​ decision for​ you .​
Questions to​ ask yourself are as​ follows, how does this property compare with others in​ the​ area? the​ property should represent a​ great buy compared to​ others you have looked at .​
Try and​ find a​ desperate seller as​ this is​ a​ gold opportunity to​ negotiate a​ favourable deal, many agents can't wait to​ spill the​ news that the​ sellers are in​ financial trouble so always prod them for​ information .​
How much do I​ plan to​ spend? There is​ not much point in​ spending all of​ your profit on upgrades to​ the​ property so before you buy you should have a​ basic idea of​ what you will need to​ outlay to​ protect your profit position, a​ spreadsheet is​ always a​ good idea to​ track expenses .​
When do you plan to​ sell? It's a​ good idea to​ map out an​ exit strategy, it​ may be a​ quick flip or​ you may plan to​ hold the​ property over time, whatever the​ strategy is​ you will need to​ work the​ plan, of​ course there are variables that may come into play but always work to​ a​ schedule .​
I've seen many people fall into the​ 5 year renovation trap and​ never get anywhere .​
Rinse and​ repeat .​
Once you know what works for​ you then it's simply a​ matter of​ replicating your efforts over and​ over, it's hard work and​ it​ almost never goes to​ plan but in​ the​ long run property can still make you rich.

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