Are you interested in rehabbing properties for a profit? If so then this article can help you understand what to do, things not to do, and also will provide you with 4 deadly reasons not to overdo it on rehabs (since it is going to cost you a great deal of headaches and money if you do)…
There are lots of rehabbing shows on TV, and they can be quite entertaining to watch. Regrettably, too people see rehabs as a simple and fun way to get rich fast, which rehabs are definitely not! Yes, it’s possible to earn decent cash on rehabs, but it is also likely to overdo it and wind up losing money. Listed below are 4 deadly reasons not to overdo it on rehabs.
4 Deadly Reasons Not To Overdo It On Rehabs
Reason #1. Your Budget Can Easily Go Out The Window
On a rehab, you set a budget of time and money — just how much cash you would like to spend and how long you intend to spend it in. Regrettably, it is very easy for this budget to go out of the window and you might wind up spending more money and more hours than you planned.
This can occur for any number of reasons however it especially happens when you overdo it because even simple additions to your plan can raise the money or time you ought to spend.
Reason #2. People Will Change It Anyway
Buyers want a home they can move in to right away. And some buyers may want a home that’s done up really well, although many buyers want something plain so they can incorporate their own personality in to.
In fact, some buyers might even alter the décor as soon as they move in, so your expensive and elaborate paint job or cabinet doors may wind up being covered over! Simply stick with neutral and plain decoration to stay in budget.
Reason #3. Money Is Only Made When You Sell
Among the most overlooked reasons not to overdo it on rehabs is due to the fact that you only make money when you sell. The more time you’re working on the house, the longer you delay your income.
You have to come up with a straightforward plan, get in there, do the work, then get the home sold ASAP. Overdoing it is only going to delay you more.
Reason #4. You Are In The Rehab Business
You’re in the rehab business, not the house decoration business. Your job isn’t to shock people with just how beautiful the home is or how great your taste is in paint; rather, your job is to create a nice house that somebody will want to buy from you. Period.
Summary
It’s easy to go overboard and do too much on rehabs, but if you follow the above 4 deadly reasons not to overdo it on rehabs then it should help you make more money and keep more of that money as your profit.
If you’re looking for off-market properties at an attractive price or even just an introduction to someone who can help you on your rehab, click here now and fill out the form or give us a call at (210) 807-6567