Top 10 Tips If You Are Buying A Property For Resale

Flipping houses requires callous efforts, and deep pockets. If you think it’s as easy as shown on television advertisements then you are surely misguided. Finding good deals, to buy properties at below market value, takes months and in case even years. And once you are able to fins one, you need to move really fast.

So how people can buy properties for resale without making a loss? Well here are some tips that one may consider while planning to buy a property for resale:

1. Always Buy At Auctions

If you are planning to buy property at least 20-30% below market value, then you need to keep a close eye at ongoing auctions in your locality. Auctions are the best place to buy property for resale. At auctions you can easily get a chance to acquire realties at much lower prices. But make sure before sealing a deal, that the property you are considering to buy is not in a very bad condition. Try to get details about the condition of the house so that you can work out how much it would be costing you for repair and improvement.

2. You Should Have Seamless Access To Cash

Always having sufficient cash in hand is very important while you are considering investment in a property for resale. Because you never know how long it would take for you to find the best deal or even a customer in the market for your realty. And in the mean while, costs of maintaining and running the property will fall on your head.

3. Shop For The Best Mortgage

Buying properties for investment bring about different loan requirements. Investors should have funds to cover the down payment and closing costs in order to acquire the investment property. Thus take out time and find the best lenders in your market, to acquire funding for your realty business.

4. Get Information On State’s Regulations

Moreover, you should be well aware of state’s regulations on realty business. Because in some countries, people either flipping houses as investment or as business are not allowed to resell the property before three or six months of purchase. And during this time, only you are responsible to bear the maintenance expense.

5. Screen For Tenants

Before you buy a property for investment, decide your target market. If you are targeting students or young professionals, go for an apartment with more bedrooms and attached bathrooms. If you are planning to target families, then invest in apartments with more space storage, parking and lunging etc.

6. Always Consider Lucrative Locations

Investors planning to buy properties for resale should not only bother about the condition of the building, but its location as well. Because if you are able to find a property in a desirable location then the likelihood of attracting greater number of home buyers becomes very high.

7. Buy More For Less

If you have already done with sales of houses and you have planned to advance and go big then try this simple formula. Instead of buying 5 units, consider investing in 10. Here is the catch! When you buy more units, the price goes down for every additional unit. And moreover, you can spread your maintenance costs easily over more units, than on just one unit.

8. Don’t Put All the Eggs In The Same Basket

If you are planning to invest in more than one realty unit then make sure you don’t spend money on only one type of property. For instance you should not buy five residential apartments together, instead you should go for a mix portfolio i.e. buy one office building, one studio apartment, one shop and two residential apartments. In this way you can better find your niche and attain your goals.

9. Maintain A Strong Network

Having relationships with other investors and real estate agents is very important when you are in a business of buying property for resale. In this way you can keep yourself updated and receive practical information about realty market so as to predict future trends, and plan things accordingly.

10. Don’t Get Impatient

Always take your time. There is no need to rush if you want to maximize profits. The longer you would take to purchase, renovate and sell the house, the better will be the quality and the greater will be the returns.