Investors Who Rehab Properties Need To Know the Tips of the Trade


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Investing in Rehab Properties can net a retail investor serious profit. These real estate investors need to be able to find the perfect investment properties. They need to accurately calculate the amount of work and money it will take to get a property back on the market. They need to have a well planned out exit strategy and if they can, they should line up a buyer before the rehab work begins.

Rehab investors need to establish solid connections in the real estate industry, especially with wholesalers to ensure that they are getting first dibs on rehab properties that are on the market. They can also do their own research by actively searching out rehab properties on the MLS and scouting FSBO properties. When starting in the retail property industry, it is best to start out with a property that doesn’t need any major work. It is important to start small in order to be able to accurate judge how much money will need to be spent.

Hiring a professional inspector may help establish the project improvements to their entirety. Hiring a professional contractor who has experience in accurately pricing rehab work is also a good idea. They can get a retail property investor started and enable them to eventually make accurate estimates themselves.

Now make all the calculations necessary to understand what is the top dollar that can be offered for this property. Take into account the amount of time the property will take to get ready. Many retail property investors borrow money from a hard moneylender and are willing to pay 15%+ short-term interest rates on the purchase. They know that they will only own the rehab property for a period of 3 to 4 months, so this won’t be a long-term issue. Now take into account the amount of money for repairs and the cost of contractors. Make sure to allow a few thousand dollars for unexpected expenses and factor in the profit you should to earn.

Make sure to understand where the market value of the property is and make an offer accordingly. Have the exit strategy all planned out before making an offer. How do you plan to sell the property quickly? If you can, find a buyer before making an offer. Have a contract set up and ready go, allowing them to move in immediately after the project is completed.

Asking questions with these few tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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