Good Day Readers,
I hope you all are great. As we all know real estate and construction is one of the profitable business these days, but this industry became very competitive these days, you have to find various methods to earn profit from these. As a professional realtor in Bahria town, i will quote the situation from Bahria town, situation in your area may differ.
They Key Ingredient:
The two ways that you can make money in this business are to make money when you buy (i.e., purchase so far below market value that you have potential even after the renovations- Try to buy 20% to 30 % less than the market value.) and/or make money when you sell (i.e., increase the value so much with the renovations as to put the property in a new class when you sell).
How to renovate?
In order to create more value than the actual cost involved in renovating a home, the following must be met.
- The renovations must give the feel of being new. People in general will pay more for an unused home/kitchen/car/clothes/toilet/anything.
- The cost of the renovations must be at WHOLESALE PRICING.
- The renovations must capture the heart of the common buyer for that particular area and or type of real estate.
- The renovations must not be personal, they must be for the common potential buyer.
- The renovations must be current, not outdated and tasteful with good workmanship.
- For flipping the houses you need the skills as renovator as well as sales person
Buying the houses:
- Buying the houses takes some time, good negotiations skills and good eye.
- Market research is very important factor for buying houses it will give you insight of what you can offer for a particular house.
- In case you offer cash, you will also be able to close the deal quickly as well as cheaper.
- You also need to maintain good relationships with few realtors to get the best deal to buy and sell.
Selling the house:
Spend some budget on marketing to find the best potential buyer, If you dont have enough time or expertise, hire a realtor to market your house and sell it at the best possible price.
Keep in mind the market situation, like in BTL, houses demand is higher in summer season as most people are in hurry to move because of load shedding in other areas.
Add the right value to the product, any USP, so when a potential buyer compare it will find your offer more attractive.
I am looking forward for your reply,