August 2, 2014
Successful businessmen know the secret behind making big money, greater investments lead to greater profits, they are never afraid of putting down money, once you get that Gut feeling that it’s going to be a great deal, you have to have faith in yourself and go all in. Taking about real estate investments, the same rules apply, a great property that you know will fetch in big bucks, just might, if you have faith in yourself.
Business Trends are ever changing, the idea that a property has to be sold a low rates just because it’s distressed, and that no negotiations can be made for a higher sum on a foreclosed property are outdated, if you have a good piece of real estate that you have invested in, make sure to not undervalue it before putting it up on sale.
It’s true that you can charge full retail on your rehab property, you just need to know how you can negotiate your position with the buyers, and how to highlight the best features of your property, the more you are able to project the quality of the product you have developed and the more you can build a sense of ownership for the client you are negotiating with, the stronger you position yourself for a good bargaining edge.
Extensive alterations
Extensive alterations to the original property, possibly including a pool, or some other aesthetic elements, such as statues in the driveway, or a cobblestone path leading up to the house, extensive work on the yard , or detailed interior designing in the house, all within a reasonable budget could possibly go a long way into increasing the value of your property and allowing you to pitch it for full retail.
Analyzing your Target Market
If you get a property that is suitable for a middle sized family, design the aesthetics of the house accordingly, try to add a swing set in the yard, build a sense of ownership, envision your clients before they step in the door, and market your property in niche segments where you are most likely to hit your target clients, offering an irresistible deal tailored to a client’s needs is the best way you can get full retail for a rehab property.
Always Buy Low.
The Profits of the flipping are in the buying. If you buy low, and invest in your property to make it look good, that initial low price will give you a great margin of negotiation, if you do extensive alterations, and plan the build for a target market and pitch your property to the right family, you will get a great margin of profit from your property, it all depends on your homework, the more you plan out your build the better you’ll be able to give your clients a deal they cannot refuse.
Mind Games
You need to be an expert conversationalist if you want to be able to sell high, most deals will matter less on how beautiful the property is and more on your ability to charm the family that walked in the door to check out the property, be a great listener and read between the lines, notice subtle clues of what appeals to them and what they do not find to their liking, offer to make adjustments regarding specific things they want done inclusive of the sale, be polite and understanding yet persuasive.