Investing in Fixer-Upper Homes: Sometimes You Win, Sometimes You Win

Buying properties that need some renovation givesactivity that truly has the potential to yield a
you the greatest potential for a high return on yoursix-figure income. Once you have several properties
investment. You might see these homes advertisedin your portfolio, it's not very difficult to make more
as handyman specials. One reason why fixer upperthan $100,000 in a year, even when you take selling
properties are such great opportunities is their lowcosts, legal costs and closing costs into account.
purchase price. The lower your initial price, the easierFire Your Boss
it is to make a profit. The need for repairs oftenWith this kind of income potential, you may reach a
gives you an advantage in price negotiations.point where you can move into full-time real estate
There's also a larger potential market of homeinvesting. Even if you don't have money to start out
buyers looking for homes in lower price ranges. Mostwith, you can start with your own home. The
handyman specials fall into this lower price range. Butincreased equity you gain after a quick makeover
not many home buyers are interested in doing thecould finance your first investment. With some desire
repairs themselves. If you can buy a fixer upper at aand motivated action, you could quickly reach your
low price and give it a little TLC (tender loving care),goal of being a full-time investor.
you'll have people lining up to buy when you put itEarn Now or Earn Later
back on the market. Rehabbing - the process of buy,You have a choice to buy, fix up and sell for profit
repair, resell - is one of the best ways to startnow, or buy, fix up and hold for profit later. And
making money quickly.while you're holding the property, you can rent it out
Accelerate Your Wealth Buildingfor regular income. This allows you to meet current
When you buy properties that need fixing up, youfinancial needs and prepare for your retirement.
can instantly increase your equity just by doing someControl Your Risk
home repair. This newly created equity in the homeWhen you build your property portfolio using these
can be used to finance your next purchase. As youmethods, you stay involved with your investment.
keep duplicating the process, your wealth buildingMany other investments are handled by strangers
begins to accelerate, and you can build a largewho aren't really at risk. There's also no need to
property portfolio in a surprisingly short time.worry about market forces. You can see returns
Profit Instantly in Any Marketfrom the beginning regardless of market conditions.
You can always profit over time by investing in realFixer-upper homes have a lower purchase price
estate. When market conditions are less favorable, itbecause most potential buyers don't want to face
might take several years to see significant capitalrenovation as soon as they move in. When you buy
gains. However, when you buy and fix-up propertiesa fixer-upper and do some improvements, you
for resale, you can profit instantly regardless of thequickly increase the home's value and make it more
market. Your repairs add instant value, easily 10 to 30attractive to a larger segment of the home-buying
percent. And if you hold the properties in a growthmarket. Buy transforming a handyman special into a
area, you stand to make even more.beautiful, "new" home, you've almost guaranteed a
Find a Six-Figure Incomehandsome profit for yourself.
Flipping (buying, fixing up and selling) properties is an