Sometimes we purchase a new property and we over improve it to the point where we may not get our investment back. We have to consider how the potential buyer is going to value those improvements and see if it’s worth it for us as potential sellers. The key to find success in Real Estate is to make sure that the buyers get a property they want with the improvements they want.
So here it’s a tip for today’s episode: before making any improvements in your property, find a buyer that’s interested in purchasing it and adapt the home improvements to the buyer’s desires to assure you get a great deal!
Do you want to upgrade your property? Then do it the right way, let’s see how!
We’re going to go over rehab loans and what they can offer to homebuyers or homeowners. Rehab loans are a great way to help you create your own home equity fast by bringing your home up to date with the necessary improvements. They are a great way to finance these home improvements without having to put much of a down payments or high interest rates.
Are you a homeowner?
Great! You have the perfect chance to upgrade your property and improve its value by bringing it up to date with all the latest trends based on your specific market. You will first get to know the potential buyers and you’ll see what they’re looking for and once you have that information you’ll know what changes your property needs to get a higher return for it. You don’t have that much savings? No problem, as rehab loans require a minimum down payment of just 3,5%, so that you don’t have to save money forever to pay the down payment.
Are you a homebuyer?
Excellent! A rehab loan will enable you to get a cheap property and improve its value drastically to then sell it for a much higher price. As we said, you barely have to pay down payment but there aren’t also high interests, so instead of trying to purchase a property and apply for a 30 year loan, you could always consider this option along with a rehab loan, where the investment could be smaller and the return higher.
Good luck, and I hope you enjoy your new home for many years to come.
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.