I Don't Get How Some Of You Make Money
What is it that you do when you get a house? I get the impression that a lot of you don't do much or any fix up, so how are you able to make a good profit? What is a good profit?
Thanks
Josh
Kind of a broad question. There are several things you can do with a house. If you can ask specific questions then you may get some answers that will help you figure things out.
Tom
Rule of thumb: paint/carpet/tile as needed, and then see what else needs to be done to make it appealing to the buyer(kitchen/baths).
Yes, broad question, but will simplify....buy a home that needs repairs but simple repairs and cosmetic things such as patch up small holes and paint the house inside and outside, plant some plants and put mulch. You would be surprised what this can do for a house. Then you resell it for a higher price. simple and basic.
Good Luck, tanya
You see all you do is buy a home then resell it....then.....BAM...profit.
A = Buy home for low
B = Sell home for high
C = Profit
So simple
Josh, everyone is right so far, you have many different ways of making the money but don't be fooled, often it's just not that easy as ABC (but it's the basic idea). There are so many different factors involved, etc.
9 times out of 10, it comes down to knowledge and persistence...both which go hand in hand often. Sweat equity or sweat that pays off in the end is going to give you much more in the long run than jsut buying books and courses without doing anything hands on.
As I am sure many people on here will tell you, you can make money doing anything...you just have to start. Many of these people have been doing this for many, many years and they make it seem easy because to them it's kid's play now. It takes baby steps and it really does, because if you get into too much too quick, you will find yourself in a possible world of trouble.
There are alot of different ways to do deals without money, so talk to people in the forum such as lease/options or wholesaling...these are great places to start and learn. More than likely at some point in time you may have to put down money to learn this stuff, but just find someone who knows what they are doing and get references, etc.
But best of all, good luck,
The Solutions Kid
[addsig]
Hi Solutions Kid
How about:
D = Repeat as needed
Mike
[addsig]
A Buy run down multi-family
B Fix up
C Raise Rents
D Hold (or Sell)
Just another perspective.
Ron
Great advice SolutionsKid!!! AND the rest that follow are precious little "jems."
So, move FORWARD....but keep an eye out for the QUICKSAND.
John
Quote:
On 2003-10-21 18:30, ronjung wrote:
A Buy run down multi-family
B Fix up
C Raise Rents
D Hold (or Sell)
Just another perspective.
Ron
buy sub-2 or get a loan?
fix with your cash, or someone elses?
raise them slowly, or plan to get all new tenants?
Do you have so much cash flow you can pay back what you spent in A&B? or is that how you determine if you are going to sell or hold?
Sorry, you said multi-family and it got me excited. I know of a multi-family right now that is listed as-is, owner hold the first, rents well below market.
chrisxg20636,
I just noticed you asked me a question so I am only now responding.
All but one of my properties have been through loans (one land contract).
My strategy has been this:
If the multi-family is vacant, I seek a loan that will cover both the property and repairs. I present it as a rehab. If the cost of rehab goes over the money I borrowed I will either refinance after the work is completed and have tenants that can justify the refi amount or I just get the money back over time from the rents- it depends on my financial situation at that time.
If the place has tenants, the place is usually a real junker, but probably cash flows great. I keep the tenants, but let them know that the rent will be increased in 6 months. I use this time to do some outside work- paint, landscape, etc. and clean up the basement. When the tentants see they can no longer be complete slobs and misfits in my unit they leave (or are greatful and willing to pay the increased rent). When a tenant moves out, I redo their apartment and the rent goes up even more. Ideally, I'd have all new tenants in a year or so. Then I can either get some money back out of the property or enjoy the great cash-flow or sell it for quite a profit. De Cima has a book on fixer-uppers that follows this strategy.
Ron