Monthly Archives: December 2013

What to do with Your Fixer Upper

What are your options when it comes to fixer uppers? The low price entry point makes it easy to do almost anything you want with your fixer upper. Here are a few of your options.

Move In

Home sweet home. It might need some work, but you can afford it having saved on the purchase price. You can give your new house a new life with some time and work, and the next thing you know your house will feel like more of a home than the other one you were looking at. It’s very satisfying to see your vision for your home come to fruition, and with a fixer upper you can start from the bottom and create the home you always wanted.

Rent

Another option you have is to rent the house for positive cash flow. Spend some time getting everything ship shape and then find a tenant. If you put the effort in, people are going to want to live in your house, and once you get a tenant, you start making back the money you invested.

Sell

The economy and housing market are starting to pick back up, so now is a great time to get in. Get the house in good shape and put it on the market. Not only will the work you put in increase the property’s value, it will attract potential buyers. The potential for gain from selling a fixer upper is very high, which makes it an attractive investment option.

If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.

Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on Facebook, Twitter, Google+, and LinkedIn for more real estate made simple.

How Fixer Uppers Help the Housing Market

There is plenty of truth to the idea that high quantities of distressed homes can bring down the market as a whole. Distressed, untended properties are an eyesore that decrease property values for everyone in the neighborhood. So in a state where foreclosures and short sales are still high, many real estate investors are putting their money into these fixer uppers.

The low price entry point for fixer uppers is what allows so many investors to get involved in this area. Houses sold at short sales go for significantly less than what they’re worth. Your first thought might be, how can houses being sold for less than their worth be good for the market as a whole? Well, many investors are choosing to invest in significant repairs, both structural and aesthetic, to these houses. This brings their value back up to a normal market level. Then these houses, which were once a blight on their neighborhoods, are returned to the market in much better condition, and at a much better value. Now that these houses are once again attractive to potential buyers, the market sees more activity in an area where it was once struggling, and neighborhoods are revitalized. This is all thanks to the efforts of investors who see potential in an undervalued market.

What Are The Benefits of Buying a Fixer Upper?

Thinking about buying a fixer upper? Buying a fixer upper gives you a few significant advantages over other property seekers and lots of options once the renovations are complete. Here are some of the benefits of buying a fixer upper.

Less Competition

A fairly high percentage of people who are on the market for a new home simply don’t consider fixer uppers as an option. They may be unwilling to make repairs or invest time into renovations. Either way, this means that there’s less competition for fixer uppers, making it easier for you to purchase one. Less competition also drives prices down, which means you’ll pay a lot less than you would for a new home.

Acquire Handy Skills

It’s up to you how much of the repairs you want to do yourself versus how much work you decide to contract out. For big repairs, you’ll probably want to hire contractors, but if you’re a handy type, you can easily take on small fixes. Learning how to do these kinds of repairs will help you if you decide to continue investing in fixer uppers in the future.

Post-Repair Options

Now that the repairs are done, you have plenty of options to choose from. You can live in your new home, which you paid a lot less for than you would have for another home in the area. You can rent the home for positive cash flow. Or you can even sell the home for a profit. Buying low lets you keep all these options on the table. Overall, while many shun the idea of buying a fixer upper, it’s actually a great investment, and depending on what you decide to do with the property, you stand to make a very nice profit off your investment.

Source

http://www.realtor.com/home-finance/homebuyer-information/facts-on-buying-a-fixer-upper.aspx?source=web

How To Turn a Fixer Upper into a Great Deal

Many people are quick to judge a house based on its appearance. And while it’s true that many of the homes we offer need some work done, it’s also true that behind a tired exterior, they have a lot of potential. And while others might pass this opportunity by after determining that they’d never live there after a quick glance, those who see this potential see the chance to make huge profits.

Here’s an example that shows the numbers really do add up. We recently had a home with an asking price of $50,000 and in need of repairs, estimated at about $30,000. Fixed up, the house was worth $190,000. We have private money which you can borrow for around 8%, which would allow you to make an interest only payment until the home was repaired and sold. Four months is sufficient for this process. This means you would have a $533 payment for 4 months, which adds up to $2,132. For $2,132, you could have purchased the home, directed subcontractors to do the repair work, resold the home, and made close to $108,000. Making over $100k in 4 months time with 8 months remaining in the year to live off your profits is absolutely a great deal.

Grays Home Solutions has nice homes in move-in condition for sale, and you don’t have to qualify for the loan. Just come up with a small down payment, pay no closing cost, no fees, and the home is yours. The rest is up to you. You can move in to the home, rent to others for positive cash flow, or resell for profit after the market has recovered. We find the deals for you, get you the financing, and you make the money. It really is that simple. You can contact us at any time to discuss a plan that will turn that fixer upper into success and wealth for you.