Over the years, real estate investing has become more and more popular. There are many seasoned investors out there with a huge portfolio of properties – and a very bright financial future. There are also plenty of people that are new to real estate investing who are looking for ways to become more successful when it comes to this type of investment.
If you are serious about making a go of real estate investing, you need to learn the basics. As a new investor, the chances are that you will be limited in terms of resources, so you need to familiarize yourself with what you need to do in order to boost your success as an investor.
For instance, one of the things that you need to look into is rehabbing properties. There are various factors that you have to consider when it comes to rehabbing properties, and this is something that anyone that is involved in real estate investing should learn about.
Valuable Tips to Help Real Investors
Many seasoned real estate investors will already have the money and resources to have experts come out and do all of the rehabbing sides of things for them.
This includes everything from checking the investment property to carrying out all work. As a new investor, however, you may need to get more involved so that you can use your money and resources as wisely as possible. Some tips that can help you to do this include:
1: Do your checks
One of the things you need to do is check the property so that you can assess any works that need to be carried out. You need to be able to estimate costs as well as determine whether any permits are required for works required, so doing a thorough check and walk through is an essential part of this process. Looking at vital areas such as electrics, plumbing, and structure is crucial, as these could end up being very costly.
2: Decide whether you need a professional
There are some things that you may be able to do yourself with it comes to repairs and maintenance. This could include things such as decorating and other standard tasks.
However, unless you have the training and qualifications, don’t try to attempt things such as electrical work because you could endanger yourself and others. Based on what needs to be done, you should work out whether you need to get a professional on board.
3: Think about supplies
You will need certain supplies to get the work carried out when rehabbing properties. If you are doing the work yourself, you will need to get the supplies sorted out before you start.
However, if you are getting a professional in, get them to bring the supplies they need with them even if it means paying them a little extra. This could save you money in the long run as well as numerous trips to go and purchase supplies.
4: Don’t let the world know what is happening
One tip to keep in mind is the importance of maintaining a low profile when your property is being rehabbed. You don’t want to alert everyone to what is happening. Otherwise, you could run into a range of problems particularly when it comes to code enforcement.
Instead, keep things low key and try to get those helping you with your property to avoid using commercial vehicles with the company name plastered all over them.
5: Look into permit requirements
Make sure you take the time to look at permit requirements for the work that needs to be carried out. Of course, you only need permits for certain types of work such as electrical and plumbing but being aware of the permit requirements means that you can save yourself time, hassle, and delays.
6: Don’t advertise prematurely
It can be very tempting to start advertising the property while it is still being rehabbed, as you obviously want to generate interest as early on as possible.
However, this could be a costly mistake as you don’t want people coming in and seeing what is likely to be a huge mess. Instead, wait until the work is almost done before you advertise – this way, people that are interested in the property can see it when it is pretty much completed.
7: Check on the buyer’s pre-approval
As a real estate investor, you cannot afford unnecessary delays when it comes to the investment property. This is why you need to check that any buyers that come along are pre-approved for a mortgage otherwise you could end up waiting around for them to get approval even if they are interested and put in an offer.
8: Find a suitable accountant
If you are new to real estate investing, one thing you may not have at the moment is an accountant to help you once the rehabbing is over and you are ready to sell. Well, it is well worth getting one sorted and make sure they have plenty of real estate experience.
These professionals can be worth their weight in gold to real estate investors, particularly those that are new to the industry and could end up making very costly mistakes.
9: Don’t cut corners
It may be tempting as a new investor to try and do things on the cheap as much as possible, but if this means substandard workmanship and low-quality materials, forget it.
Doing this will have an impact on your ability to sell, so you could end up losing a huge amount of money rather than saving a little bit. It is, therefore, important to invest in quality when it comes to the work that is being carried out.
10: Keep it well maintained
Once the property has been completed, you may still have to wait a while for a buyer. In the meantime, make sure you keep the property well maintained so that it is ready to go when the right buyer does come along.
By following these tips, you can enjoy making a great success of your career as a real estate investor, and you can boost the chances of rehabbing and selling your investment properties on with greater speed.