Real Estate Investment:
Find the Gems in Old Houses
home equity articles and tips
Many people who have never considered real estate investment before feel overwhelmed when they first begin investigating what goes in to purchasing old homes and turning them into a money-making opportunity. While real estate investment may seem daunting, it can actually be a brilliant investment that will provide you with excellent returns. With that being said, there are certainly some concerns that you should watch out for. Here are the benefits and potential speed-bumps that you may encounter in real estate investment.
The Best Ascetics
Old homes are gorgeous, but may need work. People invest in old houses because they have immense market value; older fixtures and vintage design styles are highly sought after by both renters and home-buyers. Unique construction designs mixed with age give these homes strong personality that can't be found in a newer home. Styles in lighting, flooring, and overall architecture that were used decades ago will not be found anywhere else on the market today. Home shoppers have a hunger for these kinds of features if they are highlighted and sold well.
Know Local Home Improvement and Clean Up Experts
Old homes oftentimes need work before they are ready for sale or rent. Real estate investors might encounter hiccups like outdated wiring, plumbing and even pest problems like insects or rodents. As a home investor, you may want to establish healthy relationships with local electricians, plumbers, and pest control businesses so that you can clean up these kinds of properties quickly.
Old Homes and Location
Typically old homes also have great location. A growing number of the inner city work force actually have higher incomes than ever before. This economic migration is causing many high salary employees to seek residence close to their work. Most urban locations are surrounded by neighborhoods full of old homes. Snatch one of these up, fix it up, and sell the home to one of these employees who work downtown.
Successful Investers Know How to DIY
Many home investors have experience not only in investing their money, but in actually physically fixing up old properties. You don't have to be an experienced handyman to invest in old homes, but some basic construction knowledge is helpful. To be able to fix up the interior trimming, update the bathrooms, and fix up some wiring in the wall goes a long way in “flipping” old homes. This may end up taking more time initially. But the more you are able to fix yourself, the less you will have to pay a contractor or construction service to fix for you. This will result in a higher return on investment.
You'll need to cover your legal and financial bases. As a new real estate investor, you'll need the help of a real estate attorney who can assist you with things like getting a mortgage and insuring your property in case something goes wrong. This can often cause those considering investing in old homes concern, but worry not. There are plenty of attorneys and financial advisers who will be able to assist you with your new investment on a sliding scale basis, allowing you to not break the bank before you even get the keys to your new investment property.
Investing in old homes might be one of the best decisions that you ever make. Above all else, be sure to start slowly. Becoming a successful real estate investor doesn't happen all at once and you'll need to start slowly with one property before you begin to see returns on your investment.
Home Equity Tools