zack childress-Often romanticized, rehabbing a property is one of the most lucrative options in real estate. Buying a not so good property, investing money and time, flipping the same as a rehabbed property and getting a generous profit is one of the most challenging dreams of several aspiring real estate investors. However, it doesn’t come that easy and there are some important things to take into consideration while rehabbing a property.
The first and foremost question that comes up is how to estimate the repair costs of a home. First, you need to look at the biggest expenses that the house demands and mainly it includes roof, structure, plumbing and electrical and mainly all of these requires a permit. Also, depending on the severity of the breakdown you will have to put in a lot of money to it. So, plan things before it and break it down to what all changes have to be done and discuss with a contractor to know the amount it would cost.
- Check for permits:
There are two threats that revolve around permitting; one is not inspecting the permits for added extras to the property by a previous owner and starting rehab work before having permits. This will result in not being able to sell the property and work stoppage by authorities. Not being aware of the local laws, new investors will run into these permit problems, so before you purchase the property, look into possible permitting issues that exist. Furthermore, complete all your permit approval process and then begin work on a property. When you initiate the process without proper permits, then you will be subjected to fine and you will also be put up with costly and time-consuming processes.
- For scaled up profits, work with the right contractor:
In order to save money, some people sign up for the services of inexperienced contractors who will ruin the whole thing and take away the profits of your project. Assuring lofty promises, tagging along a reputable contractor is what adds to the profitability.
- Having said all that, it is important to be aware of this:
Although real estate rehabbing does allow for substantial monetary gains, it is not a guarantee. Studying about the process of rehabbing is said to help mitigate risk while still increasing the profitability factor. Hope you found this article helpful. If you wanted to scale up practical knowledge of real estate, then keep tuned to Zack Childress real estate seminars that will help you build your skill base and take a client-oriented approach to your business. Zack Childress is a real estate entrepreneur/ mentor who conducts seminars and helps aspiring realtors to learn more about real estate principles, markets, finance and much more.