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The Value Of A Home Inspection Prior To Buying A Investment Property
Posted by: | CommentsMost fixer uppers are homes that usually need a number of home repairs that generally do not require special knowledge or expertise on your part, as the homeowner. Fixer upper homes can be excellent bargains when the “asking price” is significantly lower than comparable homes nearby but in good or excellent condition.
A “fixer” needing a little cosmetic fix-up can be a great investment property. Most generally need some repainting outside and inside, new carpets, some new lighting fixtures, some lite repairs, complete cleanup and landscaping.
If the home necessitates massive repairs such as electrical and plumbing problems that usually are expensive, it will slash your profit back or worst, eliminate it.
Before purchasing any house , a professional home inspection should be completed. The inspector can provide you an accurate idea of what existing problems the home has and what repairs are needed as well as an approximate repair cost.
Here is a list of common issues found during a home inspection.
Roofing
Insulation
Plumbing system
Electrical system
Central heating
Central cooling
Water seepage
Structural (Most of these defects requires expensive repairs especially when talking about the value these repairs will return upon resale.)
Most often, major defects go unnoticed because fixer upper buyers usually can’t see the inside workings, hidden out of view or behind walls. When buying you a fixer upper you need to turn over a few stones.
A broken “heat-exchanger” in the heating system, faulty wiring, termite damage and safety and health problems like lead accumulation, water pipes as well as asbestos insulation are common physical flaws that you can’t see immediately and need to be corrected before a re-sale.
Indications of these problems are as follows:
Moisture stains that can be found on ceiling and walls could mean plumbing problems.
Separations between wall and floor specifically for outer walls could mean structural problems.
Sawdust piles near woodwork or wall corners can be an indication of termites.
A home inspection from a professional
Average professional home inspections can cost about 200-325 dollars depending on the kind of property, location, square footage, etc.
When your going to use a home inspector it only makes sense to get a quote. Look at years experience as well as price for the person you hire.
Several home inspection companies have some kind of computer-like machines which can supply inspection reports and descriptions instantly then the company adds their “pre-printed” sections which are very helpful for you in order to understand the fundamentals of repairing, fixing and replacement.
The most important part of a home inspection is that the inspector supply an entirely impartial appraisal and assessment of the house, inspecting everything carefully from electrical systems, plumbing to structural to make certain that the fixer upper house you are purchasing is sound.
Professional home inspectors can make certain that all major systems (air conditioning, plumbing, furnace) are working properly or they can pinpoint defects to you because these kinds of repairs will cost you a great deal of money.
However not all major repairing problems automatically indicate that you shouldn’t purchase the fixer upper home, because they can and should be added in the home’s price negotiations.
A good fixer upper seller or realtor will and can factor in said considerations or concerns and you possibly can purchase the home for even less if you put it clearly that you will be responsible for the repair or replacements. Just be careful that you don’t get tricked. Never take anybody’s word that the plumbing, the furnace or the electrical have no problems at all; you have to make certain.
Sometimes walking away from a “deal” is the best option. Perhaps it is due to location or a disagreement on price with the current owner.
In order to really make a good investment in a fixer…you need to find the hidden “information”. Most of the time a seller will not go out of the way to tell you. In some cases it isnt done out of spit…it might be information the current owner isn’t aware of themselves.
Doc Schmyz has worked with investors all over the US and Canada. He owns a free website that shares Real estate investing information for all over the US. Find real estate information by state
New To Real Estate Investing?
Posted by: | CommentsSo you have decided to increase your personal wealth, and you looking at real estate a means to get there…good for you! Sometimes people get over whelmed by the amount of information that is out there on the subject. Dont let this get to you. If you invest well, you will be rewarded with returns for years.
How do you start? Well lets take a look at a few time tested methods.
Everywhere you turn these days someone is a member of a Real Estate group. Find where they meet and be willing to ask the most basic of questions.
Most of these clubs are very open with new members or any one interested in investing. So show up and mingle. Most investors love to share war stories or exchange information on purchases they have mad or services they have used.
Before actually buying any investment properties, beginning real estate investors should begin to put their organizations together by outlining a specific business plan. The plan should go over every step in the purchase of a property, from the marketing strategies on through the sale or leasing of a property.
So know you need to decide on the type of investment property you want to invest in. do you like the idea of duplexes? Single family homes? Small apartments? Remember this, if you start out with one type and become familiar with it, then you will learn exactly what you need to do to make the profit from it. Being a specialist in this manner can lead to faster profits.
Building your team is the hardest part of the whole process. You need to find good quality craftsmen who wont break your budget. Contractors, sub-contractors, plumbers, electrical guys…all of these are important. GREAT ones who do good work are harder to find then a good real estate deal. When you find one…hold on to them.
Lets say you choose a “fixer” for your first project. Be ready to put on your team a contractor, an electrician, heating and AC guy…and of course a plumber. Now a word to the wise. IF you can find one…a GREAT handyman will be able to do all the above mentioned and normally at a far cheaper cost.
Working with an investors real estate agent in a dream….but they are a nightmare to find. Interview your agent. Tell them exactly what you want to do. Tell them…I want to invest in real estate…I want to buy x amount of properties a year”. This means you need to have an agent thats willing to do far more for you then just show you a house or two. A good agent will write offers…LOTS of offers, and show you the selling history for a given area.
Have an exit tactic in mind. This is a critical element of investing in real estate. How are you planning on selling this house once it is fixed and ready for market? How much room do you have on price so you sell it and still make a profit?
Every beginning real estate investor will make mistakes that cut into potential profits. It is imperative to recognize these mistakes and correct them before they can cripple the business.
In the end, the investor who runs their business in the most efficient ways will profit, succeed, and grow in real estate investing.
Doc Schmyz has invested all over the US and Mexico. He built a free website shares Real estate investing information for all over the US. Find real estate information by state