The Art of the Buy and Sell: Flipping Foreclosed Properties for Maximum Profit
When it comes to taking advantage of the growing real estate business opportunities, nothing comes close to the benefits of a foreclosed home. Compared to buying existing homes with owners, dealing with the banks has its perks. For one, they are rushing to basically liquidate these assets at the fastest time possible to ensure quick return on investment. This means that those who want to make a business out of it can ensure low prices and bigger earnings on the sale.
But not all foreclosed properties are created equal. There is a need to take a closer look at these properties to ensure that everything is done legally and at the same time be able to build a better home for another owner:
1. Design upgrade possibilities
The secret to successful buy, improve, and then sell is in seeing what a property could be versus what it currently is. And this includes the possibility of building a beautiful and livable home than the one being purchased. As much as possible, look at houses with the eyes of a designer – can it still be improved? Can it be divided into several houses or several apartments for more money?
Also, ask yourself: how much do I need to invest on improvements alone? It’s not advisable to spend more than 30 percent of the actual value of the house for design as it simply becomes an economic nightmare trying to sell to recoup so much money spent. Learn to walk away from a place that will drain your money away so much before it brings anything in.
When it comes to designing, it’s also good to hold one’s horses. A paint job is necessary, complete gutting of a whole roof can be too much of a stretch. The goal is always to make the home look presentable enough to be re-sold. If the property needs a complete makeover, it is best to hire a renovation company and an interior designer who can help you increase the home’s value. Ask them to present options in 3D renders so you can see the improvements that can be done to the property before you invest. 3D renders are photo-realistic presentations used by architects, interior designers, and property developers to help clients better visualize their work.
2. The paperwork
One of the best ways to maximize a sale further is acquiring a house that has the proper documentation and taxes filed. Buyers don’t sell foreclosed property, they are selling a dream. And one of the best ways to live one’s dreams is by not being buried in legalities and faulty paperwork.
Get the proper papers from the bank as it also helps legalize every transaction and make it easier to sell the property.
3. Pest and structure problems
The presence of pests can be such a turn off. That is why prior to renovating, a thorough checking of a professional exterminator is par for the course. They can literally clean the place and certify the place as inhabitable by humans, making it all the more attractive to clients.
Checking of the material used on the house is also important. Usually, older homes made use of lead or asbestos, both of which are health hazards. If this happens, the renovation needed to correct it may take much longer to accomplish.
There is really no greater happiness than making a home for someone else and making money out of it in the process. Go ahead and make it happen!
Planning to renovate a foreclosed property in Redlands and Capalaba? Contact 4sk Constructions & Renovations.