The real profit is made up front, when you buy the property you intend to sell at a low price. Because your purchase price is a sure thing.
The cost of remodeling, the interest on a loan, utilities, insurance, lawn maintenance, financial cost, and the price you ultimately sell the home for…are all variables.
Many people are eager to buy real estate to sell at auction on the courthouse steps. However, access to inspect these properties is not always available and people are buying properties on sight. What may seem like a good price at the time, may turn out to be too high after seeing the inside of the property. A bit too risky.
It is preferable to view the property before bidding. That way, you’ll have a good idea of what your upgrade cost will be and what’s the highest bid you can make and still make a profit. Take a look at the area of the home you’re looking at and get compensated for recently sold homes in that area, you should already have a marketing price in mind when you make an offer. Remember that winning an offer on a property where you make little or no profit is not winning at all.
You should plan to spend a few dollars on the properties you are interested in to get a certified inspection report. Many times, problems are not obvious to the naked eye on a ride. But a certified inspector will know exactly what kind of conditions he will be working in after the inspection. It’s better to spend a few hundred now to save thousands later.
I suggest hiring a contractor to do the remodeling, but if you can’t wait to get your hands dirty, hire a handyman to help you out. The faster you put the house back on the market, the more profit you’ll make. The longer you own the property, the more your profit margin will shrink. Plan to price the house a little below market to sell it quickly and make money up front.
Know this, people buy monthly payments, you need to know what the payment is based on your sales price and what it is if you took $5,000 less to make the deal. Learn about all the various financing plans available for your home. Sometimes cities will also offer special financing. Be prepared to help sell your home and it will sell faster.