Steps to recovering your investment in a fixer upper

Written By Steps To Faculty Published June 14th, 2010

Are you looking to refurbish a dilapidated home to make a profit? If so, now is a prime time to buy houses that require some or even a lot of cosmetic improvement and then resell the home at a profit. Usually these fixer uppers are foreclosed homes, but can also be regular small homes in prime locations. So what does it take to make profit flipping houses? Let’s take a closer look.

Step 1 Choose a good location

Buying a home based upon the proximity to workplaces, art and cultural centers, and schools are always a good bet. When the time comes to resell the house you refurbish, potential buyers will want a home that is conveniently located and in a safe and clean neighborhood.

Step 2 Look at the real estate market

You should also consider the overall regional or geographic real estate market of the area. Check to see if the general area is declining in home value or if many residents are migrating to other locations. If so, the region as a whole may not be a good spot to buy a fixer upper. Chances are you will not be able to recoup your initial investment or turn a profit. You need to purchase a fixer upper in an area with increasing home values and also select a home that can be sold at a comparative price to the other houses of similar value in the neighborhood.

Step 3 Contact real estate agents

Often times, banks and real estate agents have an inventory of foreclosed homes or fixer uppers that they are more than happy to offload to buyers. Contact local real estate agents and look in the classifieds, such, to find some fixer uppers.

Step 4 Sell the property

Now that you have found the diamond in the rough you are ready to sell it. There are many wholesalers, such as, who are willing to pay top dollar and cash for a well refurbished home in a prime location.

Remember, a little research and a lot of elbow grease can give you a good return on your investment.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.