How to Make
Money with Fixers
By Jeanette Joy Fisher
Answer to email question: Can
you still make money with fixers?
Real estate investors have made
money by buying unloved houses, fixing them up, and then
selling them for years. It's not a new real estate
investing method.
What if you live in an area
where homes sit on the market and sell at less than full
price? Can you still make money investing in real estate
by fixing houses under such market conditions?
The simple answer is yes, if you
do your research, find the right seller, and follow
proven strategies.
Research Your Local Real Estate Market
It's been a sellers' market in America for a number of
years, with more buyers than houses, which meant that
sellers weren't as motivated as they were back in the
80s, when interest rates were sky high, inflation was
running rampant, and mortgage lenders were more
cautious. Today's market is shifting towards a buyer's
market and real estate investors find home sellers more
willing to bargain, because like in every age, people
get into trouble for various reasons.
You must know what houses sell for, under what terms the
property sells, the conditions of houses sold, and how
long the average home sits on the market. Once you know
your market, you will know how much to offer a motivated
seller.
How do you find the right house?
You might think you're looking
for a bargain house, but what you're really looking for
is a motivated seller. Look for sellers that have found
themselves in financial distress, for whatever reason,
and who need to sell quickly. Sellers with difficult
situations have motivation, and will be willing to work
with you to overcome the difficulties they face. Those
are the houses that will make you money, regardless of
the overall market in that area.
If you look at houses on MLS, tell your agent to request
that the seller be present. This way, you have the
opportunity to talk to the home seller and see what
problems prompted the home sale. You can also run ads
that say "We Buy Houses."
Fix the House Right
To give yourself the edge when you go to sell your home,
don't just paint everything white and have boring beige
carpeting installed. Today's home buyers look for a home
that makes them feel "at home." Learn how to profile
your home buyer and make decorating choices to target
that buyer. You don't need to spend extra money fixing
up the house; just make wise design choices.
Learn how to redesign houses
with the magic touch--interior design psychology.
Sell Your Buyer's Dream Home
Since most home buyers look for houses with real estate
agents, don't waste your valuable time trying to sell on
your own unless you have sold many houses and know
exactly how to manage all the disclosures and paperwork.
Find an agent who is willing to show the house, not just
place a lock box and forget it. Every time the house is
shown, it needs to be staged with lights on.
Learn about marketing
psychology. Most of the time, you will need to help
your agent because they still make home sales flyers all
wrong.
You can still make money investing in real estate in
today's market. Do your homework, learn as much as you
can and follow proven strategies.
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