Pretty Profits From Ugly Homes

Pretty Profits From Ugly Homes



Pretty Profits from Ugly Homes
Because of​ general stereotypes related to​ what constitutes real estate value – perpetuated by advertising and media hype – most of​ us are led to​ think that the wealthy real estate moguls got that way through high-priced mansions and posh resort property .​
But in​ reality, many of​ the world’s rich and famous got that way via the time-tested path of​ buying and selling the ugliest houses they could find .​
Buying ugly houses is​ profitable, for those who know how to​ see beyond the blemishes and cosmetic flaws.
The gorgeous houses on the block stand out like supermodels .​
But if​ you happen to​ be the proud owner of​ the worst looking house on a​ street where other houses are fashionably turned out, your property will look like a​ diamond in​ the rough .​
And that is​ good for business if​ you are a​ real estate investor .​
Do nothing to​ it, and the value of​ it​ will still rise, because location is​ so important, and your drab house is​ located next to​ the expensive homes .​
Do a​ little cosmetic work – such as​ paint, a​ new roof, and some landscaping – and you can turn a​ cheap house that was an​ eyesore into a​ thing of​ beauty, both physically and fiscally .​
And chances are that your profit margin will far exceed the margins of​ those houses that had expensive face-lifts before investors purchased them .​
The value you add to​ property becomes your equity, and when you sell for a​ price that includes that additional worth, you can make extraordinary profits .​
Along the way it​ is​ possible to​ get financing based on the equity you are creating, so you can let your home improvements pay for themselves as​ you proceed with your fix-up project.
For that reason, some experienced investors will only deal with properties that are rejected by others .​
By concentrating their energy on neglected houses, they accomplish two important goals .​
First of​ all, they limit the competition .​
If you’re buying houses nobody else wants, you will never get into a​ bidding battle and you will probably never have to​ pay full price .​
Secondly, buying ugly houses involves essentially the same process each time .​
You buy it, fix it​ or​ sell it​ to​ another investor, and sell it​ or​ rent it​ out as​ income producing property .​
By repeating the same strategy over and over, investors can hone their skills and focus on developing a​ niche in​ an​ otherwise undervalued market .​
If you decide to​ rehab properties, you can create a​ crew of​ professionals to​ assist you as​ a​ team, and move your crew from one project to​ the next .​
One person handles paint and wallpaper, one does the plumbing, and one tricks-out the landscaping .​
Many investors move with their contractor teams from one place to​ the next, and continually make cash to​ invest in​ future projects .​
Buy the worst looking house on the street, dress it​ up, and you will cash in​ on one of​ the oldest and most fundamental principles of​ real estate investment success.




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