Real Estate Rehab Learn from My Mistakes

I have rehabbed one house and I made no money. The reasons for this is what I will tell you about here. I did go to one of the big Real Estate gurus seminars and read allot of their manuals before I jumped in. Do not get me wrong here, I am not saying the guru was giving bad info, but know what you are getting into before you jump on a deal that looks good. Real Estate Rehab Learn From My Mistakes do not get burned.

The very first 3 things that are important is location, location and location. Get this wrong and you are doomed from the beginning. I have a friend that bought and lived in and fixed up his home. When he sold it it went for less than he payed for it. He had been in it for 5 years and the market was not bad at the time he sold. Look at properties in the price rang and figure what it will cost to rehab them. Are you doing the labor or are you going to pay to have it done. A little education in home inspection will save you a boat load of money here if you get it wrong. This is one area I miss on in my venture. My house ended up a total gut job. I had to strip it down to the studs. Walls and ceilings. I did it all my self and it was allot of hard work.

Lets consider how are you going to buy your fixer upper. Unless you are setting on allot of cash you will have to get the money to buy outright or get a home loan. But remember too you will not only have to buy your investment, but you will need money to fix it up with too. If you already own you own home and have equity in it you can get the money there. You can find private lenders that are in the rehab business. They are a good way to go if you are just starting out because if they are willing to loan you the money they figure that the property you are looking at is worth it. What they will do if you do not pay them it they will take your property and do to it what you had started. The down side to using them is most want a large interest rate.

Realtors, this can be a good thing or bad thing in its self. Get one that has some experience with rehab work if you can. They should be able to point you to areas to buy in and be good at getting your property sold when it is time . You should look it to your realtor as hard as you look at your properties. Ask around and find out about them as much as you can. Some can be very short sighted as to all they want to do is get you to sign on the line to buy the property they want to get ride of. They will give no thought of the possible sales down the road after you have done the first one with them. Also ask them how creative they can be to get you rehab sold when the time comes. There are allot of ways buyers can finance your property.

Doing the fix up right or just make it look good. This is a fine line allot of rehabers walk. I did the very best job I could do or payed to have done when I did mine. You will save allot or spend big bucks in this area. This will make or break. I went first class all the way when I did mine as I said. And it cost me any profit I would have made. Now I am not saying to cut corners here and sell someone a sub standard home. The people buying your property are spending their hard earned money and trust that you did them good. If you want to make a living at this you can get a good reputation or get know as a slime bag and have allot of trouble down the road. Just use good common sense.

All in all I did not get hurt bad when I was done with my first rehab. Will I ever do any more? I am not sure. But there is big money to be made in rehabbing homes. You just have to buy low enough to have room to spend what it takes to fix up your property to have it be a good deal for someone to buy and make a profit. If you Like you can check out Home Repair Done Your Self for any tips you might be looking for.