Many are making huge profits from real estate investment while some will never make or keep on loosing because they fail to take little things that seems unimportant but very valuable.
These are the various things you must watch out for
1.Have an eye for fixing and renovating seemingly poor but good houses.
There are so many houses that looks unattractive but only needs a little fixing here and there to raise their values. Their paints may be washed out and you easily conclude they aren’t worth any trouble ,but not until someone snaps them up and turn the buildings to goldmine
The ones that are the easiest to fix are constructions with peeling paint, holes in the wall, stained carpeting, or even trash in the yard. It is necessary to keep in mind that these houses do not look attractive to most buyers and this is why investors see them as possible gold mines. It helps to use your imagination while viewing these homes, if you can visualize the finished product in spite of all the negatives one gets to see at the first glance, and you are convinced you will make a kill then go for it.
2. Avoid Houses with Structural problems if need be.
No matter what every building professional may say to get relevance, I think the most important thing in a building is not only the space organisation but the structural disposition of the building, so if need be you can avoid one with such problems when choosing a house to flip or better you consult an engineer to check the stability of the building.
But services renovation like plumbing work, electrical are okay if you are considering what to look for. Plaster walls peeling off can also easily be replastered and painted.
3.Understand the Market
Real estate like every other bussineses require you to have a step by step knowledge of how it works. Don’t just jump into it blindly, knows where and how you can get the most profitable buildings you can flip. No doubt the properties in highbrow areas in Nigeria usually exceed expectations of investors in real estate. Imagine a plot of land in Banana Island that was formerly sold for N32m naira just within three months rose to N60m check out the profit.
You can begin with looking at houses for sale in your area. While it is important to keep track of sales and how long the houses take to sell, it is also necessary to ask about the terms of these sales, since this enables you to understand how sellers tend to market their property
4. The Cost
It is cognisance to take note of the costs you will incur both real and hidden costs or virtual.
Almost every home will require you to spend some money before the deal is even finalized. It is a good idea to plan on writing out checks to the title company, government agencies – such as recording fees, your attorney, and an application fee for a mortgage (unless you are in a position to pay cash), and any other closing costs.
During the period that you own the home you can expect quite a few expenses towards property taxes, utilities, lawn maintenance, homeowners insurance, mortgage payments, and many more. The longer you keep the home, the higher are expenses you are likely to incur.
Home Improvement Costs
Before going all out and splurging on the beautification of the house you intend to resell, it is essential to make sure that the price you will eventually sell it for will cover all the expenses that you will make.