Maximize your profits while minimizing your expenses. That’s essentially what investment can be talked down to: doing the most with little. It’s smart business practice, and can prove to have excellent results.
Real estate has always been a hotly contested sector regarding competition, but no less so than in recent years.
The 2008 housing crisis put the entire stock market into a bit of a chokehold, after all.
Yet, despite after such catastrophe, the market has rebuilt itself, especially when it comes to real estate. There are opportunities to be had all over the country, so long as you can capitalize on the juiciest bits available. While many investors may be looking at expensive properties, lavish homes, and exorbitant structures, you may want to take a step back. Consider all of your options. Why go for what everyone else is going for, after all?
Go for the Cheap Old Houses
That’s right, invest in what no one’s looking at. Investment, after all, is a long-term game. While these properties may not look like much now, with a little love, care, and effort they can become highly profitable at a fraction of the price. Cheap old houses can be found just about anywhere you look, and they aren’t getting a whole lot of love and care.
Sure, you’ll need to put some effort in to bring this property back up to sellable shape, but that’s a part of the job. In reality, the money you pour into fixing up a cheap old house will still be less than you would have paid for a new one. Not only will you be renovating and obtaining a new property at a much lower price than you usually would, you can even consider it a gift to the neighborhood.
Of course, now the question might be on the tip of your tongue: where can you find these cheap old houses? That’s why we’re here. Finding these sorts of houses isn’t all that hard, so long as you know how to look for them. You’re just a few tips away from finding new investment opportunities.
Find What’s Been Sitting on the Market for a Long Time
Let’s face it, cheap old houses are generally not at the top of the list when it comes to purchasing real estate. The longer they sit, and the worse shape their in, dictates a certain value about them. These properties tend to fall to the back of the line, where they’re left without any new buyers to view them. Think of it like finding a dog at the pound. Ideally, the longer a house sits on the market, the lower the seller will sink to to get it off their hands. No one wants to be paying for two houses at the same time. That’s extraordinarily expensive.
Old houses usually have problems that buyers aren’t interested in dealing with: structural damage, poor location, fees and the like. They might simply not be looking far enough ahead. Cheap old houses aren’t going to be first on the list, that much is clear.
Your job is to find the diamond in the rough.
Make sure to ask the right questions as well. Why has this house been on the market for so long? What’s the neighborhood like? What caused the previous residents to vacate the premises? Gathering information is crucial to evaluating the worth of a property.
Find Houses That Have Been Foreclosed
The very thought of having a foreclosed home may send shivers up your spine. However, if you’re investing, then it could very well be the next best opportunity for you. Someone may be miserable because of it, but what’s done is done. You can make your move now.
Foreclosed homes happen because a homeowner fails to pay their mortgage. If they do, the bank takes their home, and they’re forced to sell it. These offer some of the best deals you can find on the market. You may be thinking that these are relatively recent vacancies.
That’s generally not the case. There are more than enough foreclosed houses that banks have been sitting on, waiting to get rid of. That’s where you come in. Sometimes these foreclosed homes may be in horrific shape, but certainly not all of them. It might take a bit of picking through the rubble, but you’ll find gems amongst the ash and dust. Sort them out, brush them off, and give them a thorough examination. If you don’t find something that fits your interest, give it time. Something is bound to show up. Foreclosed homes generally have a bit of a stigma to them. They’re considered to be less than viable investments, properties that have irreparable damage, or are below market value for good reason. That’s certainly not always the case. While other investors may be looking at the higher-end models, finding a cheap old house can easily beat them out in the long run.
Search Low to High
This tip may seem a bit obvious, but it’s easily overlooked. Whenever you’re looking for new real estate opportunities, make sure your search takes into account what you’re looking for. For the most part, real estate searches list potential properties by high to low, by what have been put up most recently, or by some other category. They never start off by listing low to high.
Now, these properties don’t take into account several important factors: neighborhood, condition, or competing values. However, these are the best sources to start with when you’re looking for cheap old houses. They may not look like much, but they offer more than what you can see from the curb.
There’s a good chance you won’t find what you’re looking for immediately. You may get lucky, absolutely, but we wouldn’t wage our best on that happening. Those who persevere are those that find the most success. Perhaps you don’t find your ideal house at first, but you need to keep looking until you do.
Cheap old houses are tossed around the market, transferring from owner to owner. There are plenty of sellers that don’t appreciate their real estate for what it could be. Essentially, their loss is your gain. If you spy a property that fits something like this description, take initiative. If you aren’t sure, don’t be afraid to ask questions. Your peers will provide you with all the information you need.
Networking is the most essential resource in the investment market. Communicating with both fellow investors and sellers permits untold amounts of information to gather valuable intel for investment. The fact is, one piece of information leads to another, and that leads to another. Everything is connected.
The most you ask, the more likely it is you’ll find something you need. The more cheap old properties you find, the more offers you’ll be able to make. Don’t be afraid to skimp on the amount of offers you make before making your perfect offer. Make as many offers as you can afford. Sure, you might find that ideal property you’ve been looking for, but there’s no guarantee that you’ll get it. If you make offers on several properties, you’ll have more chances of succeeding on one of them than none. You don’t want to come away empty-handed, after all.
Everything Needs a Little Work
You might get lucky and find a cheap old house that doesn’t need much in the way of repair. Those opportunities are certainly possible, but waiting for one to fall in your lap is optimistic to say the least. Rather than expecting success to waltz across your doorstep, you should go out and earn it. These properties may not be the nicest at first glance, but they certainly can be. Being an investor is a source of pride. You need to have pride in your work, pride in your investments, and pride in yourself. What’s more impressive, investing in an established property or building something up from nothing? Finding value where there initially seems to be none is the hallmark of a great investor. If you need to put a little legwork into perfecting a cheap old house, all the better. When you flip it, it’ll be making all the more money for your efforts.