The Cheapest Real Estate on the Market

Where is the cheapest Real Estate on the market? The houses or apartments needing the most work. Don't get me wrong, when I started investing I didn't want to do any work to the property. I would buy and start renting it out right away. One problem; I paid for someone elses work, which equals to top dollar price. What I am going to tell you may surprise or scare new investors.

When you start investing in houses, look for ugly or run down houses that need a lot of work. These houses are going to be cheaper to purchase. The will require work on your part to get them ready for retail and resale. When you begin look for houses that need light work. Look for houses that have overgrown yards, that need heavy cleaning and paint. The worse the smell the lower the price. You don’t want to buy a house that is too run down. It could cost a fortune to repair, but you get the idea.

You can save a lot of money if you think that you can do the repairs yourself. There are many companies that will haul off debis for a small fee. If you hire a contractor to do the repairs, make sure that they are qualified and licensed. Before I look at a property I will have talked my contractors for their general pricing. If I am really interested I will bring the contractor back with me to give me a general estimate of the costs. Keep in mind this is JUST an ESTIMATE. Sometimes there are hidden areas that you didn't factored in; so pad the estimate. If you decide to stay in this business, you’ll learn what things cost, but you should always hire a contractor when you first start out. Once you get all of the estimates together, you can make that final decision on how much of an offer you want to put down on the property.

After you have a team together and successfully renovated and resold several homes, you’ll begin to feel quite a bit more confident with buying homes that need repairs. All it takes is time and practice - and you’ll be buying homes that the average investor wouldn’t think twice about. This can be a huge advantage when you are looking for homes to buy and resell, as there will be less competition to worry about. You’ll also be able to get a lower price when buying the home, simply because you can use the cost of the repairs to your advantage.

Once you are able to do repairs on homes, including structural problems, you’ll have a huge advantage in the market. You’ll be able to buy virtually any home, including those that other investors choose to ignore. Doing so can be very profitable for you, especially if the house is in a well known and well desired neighborhood. After you have done the repairs, you can resell the home for a much higher price than you paid to acquire the home.

When you start looking for houses that you can repair and resale, you should always take your time and buy the right homes. You won’t have the money, time, experience, or support to buy the bigger houses at first, which means you won’t have any room for mistakes. Once you have purchased and resold a few smaller homes, you’ll eventually be able to work your way up to the bigger homes - which is where the big profits will come into play.

Always keep in mind that when you first start out, you’ll need to take things slow. You can expect profits to come overnight, as it will take you some time to learn. Once you have been at it a few years and have several houses to your credit, you’ll be ready to tackle anything. At that point - you’ll make a lot of money in a career that is truly exciting.