In any crisis, there is opportunity. A famous adage that is so true these days. The recent financial crisis that hit the world has provided opportunities in the real estate market. Those who are fortunate to be liquid enough with enough cash can purchase houses at 60 to 70% off the list prices. These houses can be easily fixed up at a minimal cost and then with the passage of time and patience can be sold for a profit, even if discounted at 15% of the list price. Here are some things to consider when thinking of doing such a business: - Location, location, location. Choose where you want to invest in this venture. There are some areas that are popular to single and unattached yuppies while the suburbs may appeal to those with new families. Depending on how fast you want to turn over your investment, you can choose to purchase property that is within the city and thus making it easier to get occupied or have a greater mark up in the suburbs. - Refurbish with class. When you start refurbishing your homes, place a mark of excellence in it with the parts you purchase to complete your home or investment. For the front door, you may want to consider an Emtek door knob. This door knob company, Emtek, has a solid reputation for great door knobs and some of the newer models even have touchpad keys for more security and safety. Still, the traditional brass front door knobs are one of the best sellers of the company. You may also want to add an alarm system to the house to give it a safer environment. If you have the extra budget, you may want to semi furnish the home. Getting a bosch semi-integrated washing machine is a good investment for units within the city where space is a premium. You can also add LCD television sets since they are inexpensive these days as well. The little things count especially in investments in units within the city. - Have set budgets for refurbishing. Don't out price yourself by heavily refurbishing. A good rule of thumb is for whatever the amount you paid for the place, allow 5 to 8% for refurbishing costs. Be sure to haggle for the final price and if you are cash heavy, paying outright cash goes a long way and may get you additional discounts. Go low ball and always bid low. There is no harm and shame in trying. Also when you start refurbishing the house and are looking for equipment like refrigerators, freezers, television sets and washing machines, search for good deals online. See if you can find any repossessed units for sale as they are actually done by banks. - Be patient. Set aside a year to have this house or unit refurbished and either sold or rented. You should think of it as investment that isn't mature to collect yet. Also, netting 30% of total cost is a great deal if you have the time to wait. If not, then undercut your price by just a little bit so you can also make some money as well.
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