Increase home value

Kitchen, Home, Real Estate, Living RoomHelotes Wildlife Removal live and die by their ability to add value. With no added value, there are no gains. This is true with any business, but what makes real estate such a great business and a wonderful investment, is the number of ways that you can add value and cash in on big profits. Here are three ways that you can add value to your properties. For instance, I have a client that adds square footage to each house he buys. He actually likes the inner city properties because they are the hardest to include square footage. You either have to finish an unfinished basement, or add another story. There is not typically enough land on the lot to bring an addition by increasing the foot print of their property. This client does a lot of basement finishes and”pop tops,” but where he’s made the most money is the basement that’s only 5 or 6 feet deep. Something most investors wouldn’t think of, so he’s able to get the deal most other investors pass on. I have also seen some investors find homes that don’t actually fit into a neighborhood and they make them match. This could be limited bedrooms or bathrooms or funky floor plans. All that can be changed. Clearly many cosmetic fixes like kitchens and bathrooms add a good deal of value too. There is a whole lot more to it than this, but the idea is to get a property at its true’as is’ value, (do not over pay), and then add value with all the repairs and updates.
Owner Finance: I really like this one because it’s so simple to add value with very little to no work. You will need to wait to cash in on your own profits, but it is a means to boost a market significantly. You may also use this strategy to increase tax gains over a few years, instead of taking a big hit all in 1 year. When you have a property for sale there are a limited number of buyers for the house, although right now that pool of buyers seems pretty large. If you can increase the pool of buyers, then the requirement for that one house increases, which forces the price to go up. Someone that cannot be eligible for an ordinary loan, restricting the supply of homes to pick from for that buyer, will likely buy your property. That also increases the price. You are adding value by giving them the chance to own a house that they normally wouldn’t be able to have. For this value, you should be compensated with a higher cost and a good interest rate on the profits, while you wait for the buyer to refinance and pay off you in full.
Shared Units: This is one area of real estate that I have not dabbled in, but it is very inviting. The idea here is to offer your property to multiple buyers. You’re seeing this a lot in resort cities. It is always a vacation or second home. They are pretty enticing aren’t they? We decided to go since they offered us free tickets to Disney. They were quite good at selling the”idea” of the time talk and had my ex wife sold. She asked me to move forward with the deal, but I couldn’t bring myself to do it. I advised her that I was not comfortable with an emotional purchase and that we had time to think it through. was my response. As we rode back to the hotel that afternoon, I started considering the math. Each unit can be offered to 52 distinct people because your buy only gets you 1 week a year. Add that to the annual maintenance fees and the numbers are staggering. I know people who have flipped time shares successfully, since you can get them for free or near free on Craigslist, but it is not an investment I was interested in. With that said, I’ve considered doing a half or quarter share on a home in a ski town in Colorado. In this scenario, you are sharing a home with 1 to 3 other people so there’s a lot more flexibility. You may use or rent out your weeks and you can be guaranteed valuable high demand weeks each year. It is a way to acquire a second home without the full expense. 1/2 a share of a home is going to cost the buyer more than 1/2 of the fair market value. I’ve seen business plans from investors that would buy a house and quarter share it out. The idea was that after they improved the property and sold 3/4 of the home to 3 distinct buyers, they would have the last 1/4 free and clear. Obviously this strategy will work best in areas where folks want second homes. The downside is if there are any improvements or significant difficulties. I can see there being disagreements, so this is something you would want, as a buyer, to work out with all the other owners in writing before you purchase.

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