When it comes to buying properties, there are a number of things you have to think about in order to make the best decision for your business.
Knowing the highest and best use of a property is probably one of the most important factors that will go into your decision making process on whether to buy a property or not. Is it the kind of property that you buy and wholesale the deal to someone else? Is it one that you’re going to make beautiful and sell retail? Are you going to hold it long term and keep it as an income property?
Once you figure that out, you also have to assess the desirability of the property as well. Is it a property that even after fixing it up it will never be a family friendly property because of the neighborhood it’s in?
The highest and best use of the property is what will determine the kinds of repairs and renovations you’re going to want to do, if any. If you get this part wrong and don’t calculate your costs accurately it could mean losing money instead of making a profit.
For properties you intend on holding on to, one of the best tips I can give you is to spend some time looking at higher value houses to see what kinds of amenities and materials they use so you can incorporate them into your property. Being cheap on the repairs can cost you later on in the price you can charge.
If you plan on doing some sort of rehab on your property in the future, my Tricks of the Trade course will give you the tools you need to make sure you don’t get ripped off.
Get your free phone script on how to negotiate with sellers over the phone by going to larryharbolt.com/register