If you’re considering investment property for sale in Cincinnati, wholesale homes are a great option. However, if you do not know much about wholesale homes, and would like to foray into buying these investment properties, here are some guidelines and tips to help make your experience the most profitable and enjoyable. Any venture involving investments is worth careful planning and education, and your diligence will go a long way if you have prepared thoroughly for this exciting investment world.
1. Think about REO properties if you have the option for them. REO properties are houses that have been foreclosed on, and the bank now owns them (Real Estate Owned).
- The market for REO properties is hot, as our economy fluctuates and housing market outlooks vary from area to area.
- REO properties are not listed so prominently, so you will be wise to engage in searching online, looking through a newspaper, and additional research.
- Negotiations on REO properties, like all negotiations on wholesale homes we go better with a bank when you have cash in hand to pay.
2. Once you have located wholesale homes you would like to purchase, you should evaluate the investment property for sale using current comps.
- If you are using the services of a real estate agent, they can provide these for you
- You can ask an agent for an “as-is” value and an “after repair” value of the home you have selected. This allows you to properly evaluate the deal, as well as market a wholesale house if necessary.
- Actually go to the home. Many people wanting to break into the wholesale home market trust strictly in the numbers when it comes to their investment properties; those who are successful in wholesale homes will visit the property. Not only do you get a better feel for the deal but you can better assess any damage as well with your own eyes before sending in your contractors for an additional opinion.
3. Getting a good estimate on the repair or rehab costs of the investment property for sale is paramount.
- Having a list of things to check when walking through home for the first time will save you a few sleepless night trying to remember if you missed anything.
- Once you have evaluated the costs of repair or rehab of your investment properties, it’s a good idea to add an additional percentage to your budget to count on when it comes to unexpected issues in the investment property for sale. If you’ve done your due diligence on the estimated repairs and have been honest with yourself the worst that could happen is that something small and unexpected might arise that you can immediately cover. The best thing is that you will make a little more profit than projected.
- If you are using a contractor have them meet you at any wholesale houses you are planning to buy. His estimates might not be the same as yours, so being on the same page from the beginning requires some communication.