Posts with tag 'Real estate investing'

When done right, real estate is generally an excellent investment, especially if you're planning your investment strategy over the long term. I've been working with investors for a long time, and the formula for success is pretty simple: 

1. Buy at the right price. 
2. Renovate at the right price. 
3. Sell/lease at the right price.

Obvious, right? Maybe so, but you might be surprised at how difficult it can be to pull off. Here are two of the most common investments I work with, and the ins and outs of each. 

Rehabbing properties for sale

You've seen it on TV: Someone buys a fixer-upper, renovates it and sells it for a tidy profit — at least, that's the goal. This is the kind of investor I work with most often. This investor is looking for well-priced properties that need some TLC. Sometimes these are foreclosures, but ofte...

Click Here to Read More...

Just like any industry, real estate is full of terms to which many folks haven't been exposed. When searching for a new home, you might run across a property for sale that is described as a "short sale" or "foreclosure."

Sometimes you get lucky, but often these homes aren't in the best shape. These types of sales usually accompany some sort of financial hardship on the part of the seller, who hasn't necessarily had the money to spend on maintenance and upgrades.

Still, short sales and foreclosures can be excellent opportunities, particularly for investors who intend to rehab them and then sell or rent them, or buyers who want to take on fixer-uppers for themselves. Either way, it's important to understand the difference between the two before you buy.

Short sale

A shor...

Click Here to Read More...

Even with home prices rising slightly in some areas around Roanoke, there remains a solid demand among buyers to purchase second properties. I'm a big fan of second homes if the purchase makes sense for you. Because no matter how you intend to use the property, the right second home can be an excellent investment in your financial future.

Before you jump in, let's talk about some of things you should do to ensure you have a clear idea of your options.

Determine the purpose of the property

Very often, I'm working with clients from out of the area who are looking for a retirement (or vacation-to-retirement) home. Perhaps they have family in the area and want to get back this way to be closer to children and grandchildren. In fact, it's sometimes the children who contact me first.

In these...

Click Here to Read More...

I love my job because it's different every day. One day, I might be working with a family who is relocating to Roanoke, and I get the opportunity to show them my hometown. The next day, it might be empty-nesters who are looking to downsize into their next dream home.

I also work a lot with real estate investors. These folks buy homes that are in poor condition, often have been foreclosed on, and are in the hands of the bank or a foreclosure company. After the purchase, the investors rehab the house -- doing repairs and adding upgrades that get the home back in liveable condition -- and resell it, hopefully at a profit. This is also called "flipping."

What I love about rehabbed homes is that they often present super opportunities to buyers who otherwise wouldn't be able to afford a home with all the upgrades found in a rehab: A...

Click Here to Read More...

Buying a property that needs some TLC, whether you ultimately plan to live in the home or resell it, can be a smart investment and a rewarding project. With the ups and downs in the market over the past several years, I've seen lots of examples of ugly-duckling properties that have been turned into dream homes with happy endings for buyers who might not otherwise have been able to afford a home with similar upgrades.

But rehabbing a home takes money, work and perseverance. To make a good business decision about whether to take the leap, you need to ask yourself some questions:

What's my tolerance for the project? No matter who you hire to do the rehab or how many projects they've completed, you're likely to run into unexpected things that cause delays. Within reason, your best approach to simply expect the delays and roll with them. If changes...

Click Here to Read More...