To make money in real estate and recover your investment capital, you would naturally have to sell the rehabbed home. Therefore, you have to create sound marketing strategies to easily attract the attention of your target market. However, you have to make sure that all the repairs are complete or almost complete when advertising the property because a buyer seeing the house before its pre-rehab state might turn him off.
I keep going back and forth reading this posting! I am trying to decide whether the post is relative to rehabbing homes?
I rehab properties as one avenue of investing and I have become really good at doing it, and I have done a lot of properties in a year.
I agree that Marketing is very important to quickly selling a property at the best possible price, however I disagree as to whether a property needs to be complete or not, we sold a property last summer that was about 50% complete at the time of the listing, we worked with our realtor to market the property for 2 weeks prior to listing.
At the time of the listing we were about 50% complete but had a lot to do, we had our realtor input the listing on a Thursday morning and by Friday night we had had 13 showings logged and 4 written offers recieved in 36 hours, a bidding war ensued and we sold the property for significantly more than our listing price and closed 50 days later.
We were able to complete the property quickly, make some custom consessions and create value for the buyer, in fact the appraisal more than supported our agreed upon price by substanciating the cost and value of repairs and upgrades.
I am in real estate to make money, selling a property prior to finishing has it’s merits and problems however if GC’s can remodel homes from old to new, buyers can certainly see the vision provided all walls and doors are in place, time is money and the quicker a property can be turned the better.
For every turned off buyer there is certainly one who will see the value and vision.
Agree with Gold River, I have a house currently under contract and I still have 7-10 days left to complete the rehab. I closed on March 31st(started the rehab right away) and I got an offer yesterday that was at the top end of my anticipated asking price. I have established enough of a reputation at this point that people realize the quality of work that I expect from my contractors and that has allowed me to let people in to take a look even before I am done. And I am doing a few upgrades that she has asked for also. Will close within 60 days and should net 16-17K even after capital gains taxes are figured in. Not bad for less than 3 months of work.