subject: Real Estate Investing In Rundown Properties [print this page] Think of real estate investing and high class subdivisions will surely come to your mind first. You see brand new homes or newly constructed towers. But have you ever thought of investing in rundown properties? Some people wont even be able to imagine putting their money in such properties, which are often considered a blot in the landscape. Wiser ones, however, know better.
For those who do not know, there are actually ways of making money from such properties. These modes are effective because of the affordability of these rundown properties, which are also known as fixer upper homes. They are cheap for obvious reasons: they are not as liveable as other properties. Rundown houses often need repairs for them to be considered homes again. Real estate investors are in charge with turning these old houses into new homes, and making huge money in the process.
The first real estate investing method that involves fixer upper homes is called rehabbing. This is the actual process where you make necessary repairs on a property so it can be attractive again. What you need to do is to purchase a cheap, vacant, rundown house and then improve its condition. Once it looks good anew, you will be able to sell it at a price that is comparable to other good houses in that area. Where will you buy these cheap houses?
Thats where the business of wholesaling houses comes into play.
Rehabbers often purchase properties from wholesalers, who sell houses at a wholesale or discounted price. Since investors who rehab houses are too busy with the repairs, they leave the job of hunting for rundown properties to wholesalers. In this real estate investing method, you will look for fixer upper homes in your area. Once youve found one, convince its owner to place it under contract. That agreement will give the holder the right to purchase the property. You will then look for rehabbers or other investors who are interested in the property and assign the contract to them for a fee.
There are other methods real estate investors make money from these houses but these two are the basics. Other effective methods of making money from rundown properties include short sales and rentals. Those two, however, are more complicated. But if you want to learn what they are, and if you want to get more information on the first two methods, you can go to REIWired.com right now and read helpful articles.
