Keeping it real in real estate

When your remodeling a home the first thing you need to decide on is what your going to do with that property? Are you going to rent it? Sell it? Land contract it? This will make a huge difference on what you want to put into the property.

Rentals are usually always the least expensive. You can go with one color in the paint department. You don't have to lay tile on the floors(lay linoleum instead). You can also use less expensive lighting and fixtures for the home. There are a lot of investor and investor consultants that will tell you that you need the best of everything in this type of home, but you don't. If an area is getting $900 a month that's basically what you will receive n your rent. When potential tenants come in and see a nice clean freshly painted property that will usually suffice that type of client and seal your new tenant.

On the flip side of investing you need the nicer tune up on the property. When your selling it you'll want to dual paint the property(I put a third color on some homes). I personally like high end lighting in my flips. I look around for the best deals on upgraded lighting at used lighting stores or internet. I also look for discounted new lighting stores like Hinkley's and other ones. The flooring will need to be upgraded in all rooms. I like wood and tile. These are great flooring's that help show off your property! For color ideas I go to the home store and get painting flyer's some fresh ideas in my living areas. They have a lot of ideas that you may not know and they are put together by professional interior decorators. Keeping the colors in the home bright and a little different can always give you a bigger wow factor when people go through it versus other properties for sale in your area.

Land contracted or optioned homes need somewhere in between a rental and a flip. I always make the paint about the same as a flip. Where I cut some cost is in the lighting and fixtures. I still want a wow factor because the client has to put money down on the property. We like to get 3% of the purchase price which go go over $2500 in some cases. So you need to make sure that the client really likes the property. The upgrades will also help your appraisal when they go to close the transaction and hopefully put massive amounts of cash in your pocket.

As you can see there is a difference in these three types of properties and the difference saves you thousands of unneeded cash you can save for another day! If you have any questions please email me at brett@lowcostinvestmenthomes.info or you can go check out my videos at rooftopvideo.com Brett Young Valley Realty