InvestingInProperties.com

  • Facebook
  • Google+
  • Twitter

  • Current Events
  • Financing Property
  • Locating Property
  • Build Your Team
  • Fixing
  • Rentals
  • Resources
    • Real Estate Investment Calculator
    • Mortgage Calculator
    • ROI Calculator

Archives for March 2019

Cheap Old Houses: Tips For Finding and Flipping Them

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.

a cheap old house excellent for flipping
Quick Navigation
Go for the Cheap Old Houses
Everything Needs a Little Work

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.

duplex properties ready for flipping

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.

a property ready for flipping

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.

a foreclosed real estate property

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.

house with garage

Look Constantly

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.

house with a modern look and a pool as its attraction

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.

Ask Around

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.

couple consulting an agent

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.


Email, RSS Follow

Filed Under: Financing Property, Property Investors Resources

Real Estate vs Stocks: Which Way You Should Go?

Real Estate Vs Stocks

The glory of the investment market lies in its infinite ability of choice. There are too many markets to enjoy, too many opportunities to pursue than can be sought in one lifetime.

Quick Navigation
Do You Like Real Estate?
A Sense of Control
Long-Term Income Generator
The Responsibilities that Come with Investing in Real Estate
Investing in Residential Property
Investing in Commercial Property
Do You Like Stocks?
Liquidability. 
Which Is Better: Real Estate vs Stocks
What Should You Choose?

If you’re looking for a future where you can invest, then you’re going to come to a crossroads: real estate vs stocks. While they may be similar, they’re benefits and functions are vastly different. Investing is complicated. Knowing what to invest in, what not to invest in, and what are the best opportunities takes a lot of work to understand. 

woman having difficulty to decide where to put her money

In the end, whether to choose real estate vs stocks comes down to your personal preferences. There’s ample opportunity for success in both sectors after all. Are you a hands on person, or do you prefer sustainable, intangible profit? In reality, one is not better than the other. There’s no superiority, only a difference in field and focus. Each style of investment would have come up with vastly different results in various parts of history. For the modern age? It comes down to what you personally prefer to invest in.

Do You Like Real Estate?

real estate property

Real estate is comprised of properties, whether they be intended residential or commercial. The fact of the matter is that they are real and tangible investments that can be physically interacted with. Having a preference toward investments that are physical is absolutely something to take into consideration.

A Sense of Control

When it comes to real estate, there’s a greater feeling of control. Unlike with stocks, having the capability to interact, change, and improve your properties gives an incentive to appreciate your investment value. If something is broken, you can fix it either yourself or by hiring a qualified company. Having the capability of altering your property can result in greater returns.

a house

Long-Term Income Generator

clock and coins representing income generation

Real estate is one of the oldest methods of investment. For as long as civilization has existed, people have needed somewhere to live. In the more modern era, real estate provides consistent, dependable returns, both initially and for the long-term. Establishing yourself as a real estate investor means a steady supply of income for years to come.

The Responsibilities that Come with Investing in Real Estate

However, there’s still the price to pay with that investment. Unlike with stocks, investing in real estate usually comes hand-in-hand with down payments, hefty real estate prices, and recurrent expenditures. Purchasing real estate comes with the responsibility of tending to that property. You’ll need to repair it, cover fees, running costs, and ensure that there are tenants to provide income.

With hands-on control comes hands-on responsibility. If you’re able to handle the issues with your own handy capabilities, then all the more power to you. However, you may own properties that are out-of-state, or you might not be a handyman yourself. Being able to handle a physical investment is  double-edged sword.

a guy standing with skyscrapers as background

Investing in Residential Property

residential properties

If you decide to invest in a residential property, then you’re going to be dealing with tenants. Typically, any residential real estate can house up to one to four families before being considered commercial. While purchasing residential property can result in becoming a landlord, there are other options. For instance, you can flip the property or develop the land score higher profits.

Investing in Commercial Property

Alternatively, if you decide to invest in the commercial side of things, then tenants aren’t going to be an issue. Rather, your primary source of income is derived from rent or from profit-generating activity, like businesses and and the like. You’re less likely to have to deal with consistent damage, but investing in commercial real estate does come with higher startup costs.

skyscrapers and commercial properties

Do You Like Stocks?

Unlike real estate, investing in stocks won’t be nearly as hands on. You won’t have to work nearly as hard to ensure your stocks reach their maximum potential. There are no property fees, no repair expenses, no tenant difficulties. Everything is, for the most part, insubstantial and viable in their own rights. If you find that you don’t want to pour a lot of your time, energy, and focus into maintaining the integrity of your investments, this may be for you.

However, the lack of hands on accountability means you lose the control you would have over your investments. When you invest in real estate, you are allowed a stronger say in how the property is managed. When it comes to stocks, you don’t have that luxury. As long as you’re invested in stocks, the control is levied with others’ business capabilities.

Being forced to suffer from a near total lack of control can turn out to be uncomfortable for some. For some, however, allowing your investments to succeed or fail at the whims of others’ business prowess may be what you’re looking for. Taking a more passive approach to investment, especially when it comes to deciding between real estate vs stocks, helps determine the speed at which you’re comfortable at.

There are, of course, more benefits to be had when investing in stocks than we’ve mentioned. Sure, you may not have the same level of control as you might have with real estate, but do you know what you do have? 

Liquidability. 

It’s easier to liquidate stocks than it is with real estate. Having that capability provides some measure of versatility and leverage power.

various graphs and statistical representations

Which Is Better: Real Estate vs Stocks

It all comes down to what you prefer, in the end. Do you prefer having control over what happens in your investment? Or do you prefer having the versatility in a non corporeal asset?

For the most part, real estate and stocks share common ground in being passive income collectors. You will, of course, need to check in on them to ensure they’re proceeding well. However, you won’t need to be foreman watching over your workers to ensure they’re pulling their weight. You invest, then you wait for your return on your investment.

The biggest difference between real estate vs stocks is your involvement, control, and investment in the matter.

When it comes to stocks, you’re actually more likely to make profit. However, when compared to real estate, stocks are more likely to be volatile and shift with the market. For steady, longer-term commitments, real estate is steadier and more reliable.

Real estate vs stocks is like comparing apples to oranges. They’re both fruit, true, but they’re vastly different in virtually every aspect. They have different purposes, varying styles, and opposing attributes found between real estate and stock investments. The bearing they have on your overall income is reliant on your own circumstances.

question

What Should You Choose?

Our best advice is: go off your gut instinct. If you feel like you’re in a position to passively earn consistent income for years to come, real estate is your best bet. If you’re willing to play the markets and take a chance on a volatile commodity, stocks it is. When you confront the bottom line of choosing real estate vs stocks, there’s no wrong answer. Both real estate and stock investments provide, with proper business acumen and skill, valuable income returns. The most important part when it comes to choosing between them is understanding your personal situation first. Having a firm understanding of your financial situation is truly what dictates what sort of investments to involve yourself in. If you feel the need to take a risk to win big, then follow the route that suits that best. If you have some buffer room to reassure your financial security with, then going for the long game might sound enticing. To quickly round up the differences of real estate vs stocks, we’ll leave you with this.


  • Real Estate: Investing in real estate gives you control over a tangible property, allowing you to have a stronger voice in how your investment operates. While you may not immediately make large sums of money, real estate is historically steady, consistent, and reliable. However, it is also not liquid-able, so you may be stuck with it for a while.


  • Stocks: Investing in stocks restricts the amount of control you have in the matter, but also provides easy, trade-able capabilities. Though you may have liquidity with your investments, it’s also much more prone to the volatile nature of the market.

The bottom is going with the investment that fits your personality the best.

Email, RSS Follow

Filed Under: Property Investors Resources, Tools & Resources

Join 3 other subscribers

Investing Video Picks!

Recent Posts

  • The Right Questions To Ask When Renting A House
  • How Does Equity Work? Things You Should Know
  • How To Rent Out A House Successfully: The Ultimate Guide
  • Positive Cash Flow In Real Estate 101: Definitive Guide
  • 8 Questions to Ask When Buying a House

Copyright © 2021 investinginproperties.com

About · Terms of Use · Sitemap · Contact

This website uses cookies to ensure you get the best experience on our website. Learn more.