| In the last post we talked about your return on investment of time. You can still find the article posted here. Some items on your renovation checklist will improve the property, but will take so long to accomplish they are not worth the investment of time. Now let’s talk bout investment of actual dollars. How would you like to put a dollar into a project and get a reliable $1.50 back? How often each year would you try to do this? For some of you – one project a year is fine. It’s a nice part time side hustle. Others of you may like to do 4 projects a year. Others may enjoy flipping 10 or more properties. No matter what your goal is – you have to pay attention to your investment of time AND your investment of dollars. At this point you should have a quick property analysis sheet that will help you calculate a proper offer price. Even a very simple property analysis will keep you from over bidding on a property. When we talk about putting a dollar in and getting a dollar fifty back you realize very quickly where those numbers come from. It’s as simple as this – Let’s invest $100,000 into a property and list the property for $150,000. Now I know some of your are frustrated with the market. Maybe you can’t find “deals”. Maybe you have never seen the process up close and are skeptical that it even works in our area. Maybe you just need some practice. I used to teach a weekend course, many of our long time WREIA members will remember, where I talked about going to government auctions or bankruptcy auctions and trying to flip items that were very specific equipment for businesses. In those days, I did it just for practice, but it also provided some nice “walking around money” between renovation projects. I bought all the luggage from a luggage store. Same with a lamp store. One of the most interesting was a local aquarium store that went out of business. We bought all the products from the store, and sold them to a vendor in Virginia Beach. Flipping property is the same concept. You find a property that has some needs that you can fill, and then find a buyer that wants to live in your updated and renovated property. But let’s make sure you don’t over do it by either paying to much, or getting trapped at the end when you over-renovate a property. And that is the goal this month. Let’s answer the question we all need to ask when starting a renovation – Is this the right investment and will it be profitable for this project? I’m going to give you some specific items for your renovation checklist that you can get a good return – quickly. But try not to get carried away – and this month – let’s show you some of the places you can invest in your property and actually get a profitable positive return. Should I spend money on the kitchen or the bath? I hear solar panels increase the value of my home. Is it worth it? Where is the best place to spend money outside? How do I know I’m doing the right thing when it comes to adding a floor? Should I stage the property? Should I add a home office or a spare bedroom? And much, much more… Join us Monday night for our April WREIA meeting. The topic for WREIA this month is: “Profitable Renovations” Bring some questions Monday night. We have a great group of investors who tune in to watch, interact and help other local DC area investors each month. Come join us! My sole focus for the April 2022 WREIA meeting is: Helping you understand where to spend when renovating a property that maximizes your return. Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road. See you Monday! Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the April 2022 meeting Monday at 7PM. Go ahead – grab a ticket. (And yes, there is still no charge to attend.) |
| Taking Action Is A Key To Success. |