subject: Rehabbing A Home: How To Increase Your Profits? [print this page] Rehabbing homes is not only profitable. It can also be a lot of fun. However, if you plan of getting into the real estate business, you also need to understand that the whole the business can be risky and demanding. In this article, we will share with you some tried and tested tips to help you rehab homes and hopefully increase your chances of having more profits in the end.
Before you start your rehabbing business, be sure that you are 100% sure that you are ready to take on the challenge. It takes a lot of confidence and determination to sell houses in the rehabbing business. You also need to be realistic. Do not expect that your property will sell at the top of the market. Most rehabbers price it at around5-10% below what it should list. This allows you to move quickly and make more money.
When rehabbing homes, be sure that you understand all costs. If possible, itemize all costs rehab costs, closing costs, holding costs and selling costs. Plan your budget and stick to it. You may also include all contingencies for unexpected problems and repairs that you may encounter throughout the project.
More than just your budget, your timeline is also very important. Make a detailed schedule and stick to it. Bear in mind that sometimes, it can take months before you completely finish rehabbing a home. Every single day that you own that property, you incur costs taxes, heat, electricity, insurance and interests just to name a few. Extending your project would mean less profit. Keep the project moving and on time.
If you plan of rehabbing a home on your own, make everything realistic. Be sure that the quality of your work and materials satisfies your selling price. You may also consider hiring a professional talent or maybe a contractor if you are not sure of you can do the project.
The potential profit margin of your property will be responsible in setting the amount of work that you need to do. However, beginners are advised to start with properties which do not need too much remodelling.
Rehabbing a home can be fairly easy if you ask for the help of a contractor. Hiring one is highly advised especially if you are on your first project. This allows you to save time and effort. More than just that, you will also learn a lot with him as you go along. For more tips on rehabbing houses and real estate in general, go to www.rehab-real-estate.com.
by: Daniel Mc Grey
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