Your home is probably your biggest asset (unless you’ve got a killer stock portfolio). And so often, it’s your best chance to make a lot of money and get a return on your investment.
Flipping homes was all the rage before the financial crisis of 2008. People used to buy homes, wait for them to go up in price, and then sell them on to a buyer at a higher price, knowing that the banks would fork out for the mortgages. It was an unsustainable situation which eventually imploded with the collapse of Lehman, Fannie Mae and Freddie Mac.
That doesn’t mean that flipping a home for a profit is no longer possible. With the return of normal conditions in the housing market, it’s actually still pretty simple to achieve. Here’s what the experts do to turn a profit.
Buy A Dilapidated, But Structurally Sound Property
When you’re trying to make a profit by flipping a home, you’re trying to buy as low as possible, and sell as high as you can. Buying low is an art form in itself: it requires a bit of cunning and strategy. Seasoned property flippers know that a dilapidated house without structural issues is a godsend – an opportunity to make a lot of money. The reason is that dilapidated homes don’t usually require as much money to make good (at least compared to a property with structural issues). Often they sell cheap because of what they look like, not because they are unfit for human occupation. A lick of paint and a tidy up and they’re easily transformed.
Manage Your Project
If you’re new to residential property management, it can be tricky to avoid overspending on renovations. The good news is that there are plenty of consultants out there who can provide direction on where to spend money and what sort of investments will give the biggest return. Consultants know what buyers in particular areas want, and which areas of a property can provide the most bang for the buck. Remember, you want to make sure that you get a return on your investment – that whatever you do to renovate a property costs you less than the property increases in price.
Factor In Holding Costs
Merely owning a property costs money. You have to pay mortgage rates, taxes, and other expenses during the renovation process. Newbie flippers will often forget these costs when calculating the opportunity to make a return, and may seriously overestimate the money that they will make. Again, a property adviser will be able to guide you in this area, showing you just how much money you’re likely to make if you hold the property for three, six, nine, or twelve months.
Join Real Estate Clubs And Groups On Facebook
Finally, it’s a good idea to get plugged into a real estate investing community. Being a part of a community is a surefire way to gain knowledge on a subject quickly, allowing you to take advantage of any opportunities that come your way. Post questions and learn from the mistakes of others.
Don’t want to flip your home for profit?
Why not try downsizing your home!
Easier said than done… See one my article talking about this topic, not everybody have the courage or money to go in a project phase regarding a house reno for money. If your house is too big, you have enough equity available and not too much debt. This could be the perfect opportunity for you and your family.
Small House for the Money?
Living in a house is a blessing for most of us and even more if you own the house or have a mortgage… You find ways to save money, build your credit, keep your job that you love or hate to be abble to purchase or lease this beautiful place.
I see peoples struggling with bills, mortgage payment, credit card debt but i think we never take the time and ask:
- Is this place too big for me?
- Should i downsize?
- Is this decision could help me save money and pay the debt?
All of those questions are legitimate ones, we don’t ask them out loud but should we consider them and say, why not. Why not go for a change, this could help the family, release the stress but again require some courage i think.
What could be the benefits of staying in a small house?
Minimalism.
This word is use constantly but most of the time, not practice in reality. The real practitionner of the discipline of living below your mean in a small place are called minimalist or practicing the minimalist lifestyle. Is it for everyone? Of course not…
- Having a big yard
- Two floor houses
- 5 bedrooms
- garage
- swimming pool
- And many more Big options of a home.
Are we easy to let go and decide to go move somewhere else, downsize our home, change the habits of the family? Maybe not but the benefits for this one could be… You take care of less and have more time for yourself, this is a big plus and don’t forget more time for “La Familia.”
Smaller Home = Smaller responsibility.
When we thinnk about all the things that we have to do around a house is just crazy.
We don’t even have enough time just to seat down for two minutes , imagine having to clean this big house from head to toe. It is possible, your paying someone to clean the house for you but why not have a smaller place and save on the cleaning cost.
Extra savings would mean:
- more money for the vacations,
- emergency fund,
- car repairs,
- less debt
- and more…
This is a much better option for whoever want to have more money in their pockets.
To read more click Here ==> Downsizing your house for extra Money.
Thank you again for taking the time to read my articles, don’t hesitate if you have any comments or questions to ask. Contact : info@bagofcents.com
Enjoy your day and always tell yourself, life is not that bad!
Stanley
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