How to earn from real estate? To Earn
from real estate - the first that occurs to the unsophisticated private investor, not to the person interested to play “the Russian roulette“ with stock market and not trusting to banks after the known last year`s events.
It is good to invest in real estate. But how to earn from it? Here one of the points of view - the working ways of earnings tested personally by me on real estate:
- to buy real estate, to overdo its some time and to sell when the price of it rises;
- to buy real estate in an emergency state, to repair and sell at the price exceeding your costs of purchase and repair;
- to buy real estate in an emergency state, to repair and lease it;
- to foresee increase in prices for real estate in a certain place, to buy object, to overdo and sell a little as the project - “real estate in the perspective place with a potential for business“. For example, the apartment in the old house on the first floor with windows on the waste ground on which (as you know) the huge mall will be constructed.
Today I will stop only on one way - the second - on the example of the usual apartment.
Certainly, the main question - where to find the apartment in an emergency state which seller adequately reduced also its cost ? And the answer is simple - to look for, for and to look for once again. But here what to look for?
Number of rooms. for investment two-room standard apartments are ideally suited. Why? Because they slightly differ at the price from one-room in the comparable area, but the area is higher than them. Three-room loses two-room on necessary costs of repair - both work, and materials on it will leave more.
State . It is desirable that in the apartment there was something, brightly confirming accident rate. For example, the apartment after the fire or the apartment redeemed from declassed elements (simply - at drunks). Also depressing impression is usually made by the destroyed bathroom, the broken-out, destroyed interroom partitions. Why such apartments should be looked for? Because the nonprofessional in this case will be rather simple to be inclined to essential reduction of price.
What should be avoided? Inhabited apartments of “usual“ appearance - at all seeming not cost intensity of their repair they represent the most started category of housing which repair to you will pour out “in kopek“. However owners will hardly agree to reduce the price - for them the apartment is in a state “re-stick wall-paper, come and live“, so and has to cost respectively.
So, we have “the killed two-room flat“. Further - pure marketing. We calculate scenarios of succession of events: for how many apartment it is possible to lease if it in a normal state for how many if “euro“ is able (oh this word), it can be sold in a normal state for how many - in “euro“ and for how many - in the state prepared “under finishing“.
Then we consider the expenses and we make primitive business - the plan (be not frightened, everything is simple).
So, expensesis necessary for
To a normal state in the apartment:
to Replace (as necessary) struts of hot and cold water, and also heating.
to Pokleit an inexpensive tile (very often it looks “is rather import“) to deliver inexpensive, but new santekhpribor.
to Put an inexpensive metal door (“China“ for 100 dollars will quite descend).
to Restore windows (if is what to restore) or to put economic plastic (the cheapest profile, is more not opening - “deafs“ - shutters, a minimum of additional accessories, a plastic rather narrow window sill, plastic slopes).
to Transfer light switches to height of 80 cm from a floor (euro element) and to add sockets.
to Establish inexpensive, but new accessories (sockets, switches).
Pointwise to repair a concrete coupler on a floor (by an example of our road services in the spring repairing roads). To lay inexpensive, but it is fresh the looking linoleum “under a parquet“ (so a look better).
does not need to Level walls - unless especially bright roughnesses. Inexpensive vinyl wall-paper of the relevant structure hides the majority of roughnesses.
to Restore interroom doors (or to replace with inexpensive hollow cloths of production of the near abroad, but any tree from the next joiner`s workshop - or will crack, or at the price will be much higher). to
I of any gypsum cardboard - nobody will pay excess dollar for it!
Such repair (and it at best will cost you in 2 months and 2 - 3 thousand dollars) will quite refresh any “killed“ apartment. Visually it will rise in price at least twice from your investments in repair, and in certain cases - it is significantly more.
What else can be made?
If you are fond of design of apartments - that is a high time to make “author`s“ design now. In the “killed“ apartments, as a rule, interroom partitions are near death. Already and idea for author`s re-planning, for example, associations of one room and kitchen in studio (only do not forget about need to issue everything documentary - differently the apartment to you not to sell. If you did not mention main walls, and often quite so and occurs, then to legalize such re-planning rather simply and inexpensive). And it - already other segment of buyers and other money.
However, and expenses in this case will be higher as it is necessary to straighten also walls (I accent: to straighten, but not to level!) and materials to use slightly more expensively and to add some author`s elements (to paste over walls of kitchen with the cheapest laminate - very simply, and looks at least originally; to paste over slopes of windows with a small multi-colored plitochka, as for pools; to make on walls of an insert of their artificial “wild“ stone). All this recovers an interior, does it unique, unique, and a certain category of buyers is ready to pay for it.
of What does not need to be done?does not need to be done to
“as for yourself“ - you will not earn from it. If you do not plan to live in the apartment, then be not guided by the requirements. Who buys the apartment with repair? Only the unsophisticated buyer whom need to carry out repair frightens. So, and the requirement at it - that did not flow, did not drip and did not hang down, and visually it was pleasant! He never learns that under wall-paper hard putty not Knauf, but its local analog, and in a bathroom not the Spanish tile - and cheaper Belarusian! So - it is not necessary and to spend for it forces, time and money!
It is not necessary to save on the things described above! For example, put mixers let and Chinese, but more - less strong. Also buy them where give a guarantee! By the way, often in hardware stores sell materials of before last year`s collections at very attractive prices. So, the Grohe mixer can be bought for 50 dollars! And one this detail can “extend“ all bathroom from the category “house-keeper“ in category of “elite“ (at the correct giving, certainly!) .
The same with a floor covering: do some shopping - sometimes the remains of very qualitative linoleum can be got with discounts in 50% that does them comparable at the price with inexpensive (and often low-quality) linoleum.
Wall-paper - pay attention to color, the invoice, general impression. Do not take “gipsiness“ with spangles - it is not fashionable years 20, or huge flowers, as at your mother and the grandmother. Let it will be geometrical drawing and the quietest of tone, it is desirable light. They look better and it are pleasant to that category of buyers more on whom your product is focused.
Also do not save on quality of work - hack-work can spoil impression even from the most expensive and qualitative materials while the skilled master can make “candy“ and of the most usual material.
Additional earningscan be earned by
In addition to the product here from what.
to Buy the apartment on credit. Then initial expenses will be much less and as you are going to sell the apartment soon - that your overpayment will not be big. Of course, try to find the credit with the minimum initial payments - I mean an insurance, the commissions and all that does not go to repayment of cost of the apartment.
to Make part of repair work most if it is possible.
to Sell the apartment through the intermediary as whom your friend / colleague / relative will act - then you will also get a half of the fee.
Certainly, it not everything that can be told on this extensive subject. But I had to leave you the field for improvisation?!