Wouldn’t it be INCREDIBLY USEFUL to know in advance, before you purchased an investment property, if the local market was going to REQUIRE that you make a certain EXTREMELY EXPENSIVE CHANGE to that property in order to sell it? Find out what that change is and which HOT MARKETS DEMAND IT today. I’m Carole Ellis. This is episode 19.
One of the biggest problems a real estate investor can face is not being able to exit a deal in a profitable way once they have purchased it. For many investors who flip and rehab properties, the ideal exit strategy is a relatively fast sale. However, in certain markets in the United States these days, buyers just are not all that likely to make that quick purchase if you don’t do a certain something to your property before you put it on the market – and that certain something doesn’t come cheap.
I’m going to disclose exactly where in the United States this is happening and the exact dollar amount of this HEFTY UPGRADE in just a moment, but before I do I want to mention an easy upgrade that buyers are just falling all over themselves for this spring. I’ll give you a hint, it has to do with family gatherings, marshmallows, and good memories, and it can cost less than $600 to install. Find out the details right now by checking out our story, “The MUST-HAVE DESIGN ELEMENT for 2016,” in the News & Networking Section at REI.Today.
Now, back to our PRICIER ISSUE…
According to a study by BuildFax, a company property condition database that services the insurance industry, more homeowners than ever are REMODELING their homes. In fact, nationwide, the total number of residential remodels has SKYROCKETED 40 percent since the government declared the Great Recession “over” just a few years ago. While a lot of the remodeling activity has to do with homeowners remodeling their homes for enjoyment purposes now that money is not quite so tight, the remodeling trend has gone “off the charts,” as BuildFax researchers put it, in certain areas of the country.
In fact, in three particular markets, one out of every 10 homes has been recently remodeled, which puts HUGE PRESSURE on real estate investors buying to rehab and flip properties because they’re competing with a lot of new, trendy upgrades when they put their homes on the market. Those remodeling-wild markets are:
Colorado Springs, Colorado
Orlando, Florida, and
As you can see, those are some PRETTY DESIRABLE markets for a lot of investors, so this little tidbit of information could dramatically affect your investment projections. For example, if you buy in Colorado Springs, the remodeled home population in that area is actually more like 15 percent, so you’ll want to check out the competition and see if you’re competing with a really extensive remodel that can add serious time and money to your projections, like a kitchen remodel (one of the most popular out there) or whether you’re looking at something a little faster and relatively less expensive, like hardwood finish floors, which can run much less than a kitchen remodel (though I’d hesitate to say they’re “cheap”) and offer huge appeal to buyers who want a more luxurious look on a budget.
Other popular remodel options in these markets include adding or re-doing the master suite – that could add a little extra time and money depending on the property! – and putting on a new roof – a particular seller favorite since a new roof is one of the few renovations that tends to recoup more than 100 percent of cost immediately upon resale. If you want to get the exact numbers for these hot remodel markets and get all the inside details on exactly which remodels will give you the most bang for your buck while bringing buyers flocking to your investment property’s door, head on over to the www.rei.today/remodel for a full report. If you’re not yet a member at REI Today, get access right now by texting REI Today, no spaces no periods, to 33444, and I’ll provide fast, free access to that information as well as a lot more seriously insightful stuff that will make your real estate investing safer, faster, and more profitable. So just text the word REITODAY with no spaces or periods to 33444 or visit REI.Today/remodel to get access now…
When you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country! Just text the word REITODAY with no spaces or periods to 33444 or visit REI.today/remodel right now for your free membership.
REI Nation, some of you have mentioned recently that you’re hitting an unusual stumbling block in your real estate investing business. You’ve said that you love real estate, but for some of you, the residential market is just “too small.” You guys have what I like to call “One-Deal-Itis,” and it’s not a bad thing, but you’ve got to take control of it before it takes control of you and puts your investing business on the skids. If you’re tired of making four- and five-digit profits on your real estate deals and well, you’d just prefer to go big or go home and make six or seven figures on a single deal well, you’re in luck. Our next episode is all about making BIGGER DEALS, specifically six- and seven- figure ones, happen no matter whether you’ve been investing for two days or twenty years. And I’ll go ahead and tell you, you probably haven’t considered this type of investing because honestly, most people who do it just plain don’t want to talk about it. I’ve got a guest who’s willing to spill the beans, however, and this former struggling art teacher has been successfully involved in this HUGE industry for more than a decade. Get the whole story in the next episode. If you’ve always wanted MORE in real estate, you can’t afford to miss it.
REI Nation, thanks for listening in and until next time, always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.