If you’re in the real estate market, your goal is to pay as little as possible for the property. Of course, there are numerous ways to achieve this goal, but there is one method that can save you even more than you realized was possible, if used correctly. Investors that flip houses for profit often use a similar method, but it will also work for a buyer who intends to live in the house, or rent it out as an investment, as long as you’re willing to do a little work. Here’s how to save lots of money on your next real estate purchase.
The perfect property
First of all, you have to find a property that fits what you’re looking for. Of course, you’re looking for something that fits you’re needs, but you’re also looking for a house that has not been taken care of. Find a house that is in need of repairs, but only for inexpensive, appearance related issues. For example, if a property doesn’t have a functioning HVAC system and part of the roof is falling in, pass on it. You’re looking for something that needs a new paint job, and maybe has a couple small holes in the sheet rock. Maybe the door handles are old, or there is a lot of trash that needs to be removed.
Once you have found the perfect property for you, you should be able to buy the property for much less than what it would be worth in good condition. Then, you can complete the repairs needed with some hard work and only a little money.
This is a relatively simple system, but if used correctly, you can obtain a $100,000 house for $60,000 plus maybe $8,000 in repairs. Of course, it takes a lot of work, but if you’re willing and able, it can be more than worth it. Have more questions about the real estate industry? Don’t hesitate to contact us.