Why Renovate Your Investment Property

147697193Real estate is a great investment, especially when you take the time to make the necessary improvements that will either attract renters or help it sell. Whether you wish to rent or flip it, renovations are often needed, or at the very least advised. As Dean Graziosi points out, investment properties can be quite lucrative if you keep up with them along the way. According to an article in Forbes, sellers should think long-term when it comes to making changes.

 

A well-maintained investment property can keep renters in it for a very long time. Each time a tenant moves out, take a look at every aspect of the home to see what needs to be replaced or even completely remodeled. Sometimes just updating appliances and color schemes whether they really need it or not can make a huge difference. A property that is in great shape will attract renters who will continue paying money to live in your home. Failing to update your property can mean huge problems for you in the long run.

 

When fixtures and appliances get old, they stop working properly. Letting the plumbing and electric go without maintenance results in leaks and a high risk of fire or other problems. Upon buying a home, an inspection should have been performed, but it never hurts to go over all aspects again.

 

Begin by replacing warn fixtures. If the home is older, it may be time to install siding or new windows. This will help it remain more energy efficient which will save both you and your tenants more money in the long run.

 

If you are planning to sell it, making renovations will raise its value. Adding more modern fixtures or replacing flooring will make it look brand new even if it is an older home.

 

As Dean Graziosi explains, “There are certain home improvements that will be best for your investment property.” When it comes to making renovations, you need to think about profit.

 

You should begin by assessing both the exterior and interior of your property. Look at not only the home itself, but the rest of the land it sits on and any other outbuildings that may reside there. This includes, of course, the garage. What needs replacing? You’ll want to take care of the actual needs before making other improvements that only serve to raise the value.

 

If you are able to do the work yourself, you’ll save a lot of money. Hiring contractors can get expensive very quickly, but it important if you need them. Doing the work all by yourself will take longer but will be worth it in the long run, and is okay if you have the time. If you need to flip the investment property quickly, you’ll definitely want to have help.

 

Look at the inside of the home. What do the individual rooms need? Make a list of all the renovations that will be necessary and assess the cost of materials. This will help you figure out what the overall cost will be.

 

For more information and tips, visit Dean Graziosi’s site. Be sure to check out his posts on other relevant real estate topics as well.

Why You Should Insulate Your Home

110923247There are many advantages why you should insulate your home. First, it conserves energy by keeping out the cold and heat when necessary. Second, conserving energy will help save you money because it cuts down on utility costs. This is especially a concern in winter. Think of it as a home improvement project. According to a post by Dean Graziosi, “Not only will the proper

amount of insulation help to keep you and your family warm, it will also cost you less to heat your home during the cold winter months.”

 

There are many ways to insulate your home. The most obvious is to pay someone to put up insulation on the exterior. This protects your home and will definitely pay for itself over time. The money you save will outweigh the cost of having it done. When choosing a company, be sure to go with one that has a reputation for doing good work. Ask around to find out who other people you know have used. Refer to Dean Graziosi’s blog for related tips and information.

 

There are other ways you can actually help to insulate your own home. Is there a gap around the piping under your sinks? If so, cold air is getting in during the winter. When this occurs, the kitchen and bathrooms are colder in temperature and it takes more energy to warm them. This cool air can also circulate throughout your entire house which will drive up utility bills.

 

If you find gaps around your pipes, fill them in. There are substances that can be purchased from your local hardware store that enable you to do this. Some of them come in the form of sprays that expand and hardened once applied to a particular area.

 

Make sure your windows are in good shape. Old windows let a lot of air in and out. Have you ever felt around your windows in the winter, only to find there is cold air coming in? If it’s especially cold near your windows, perhaps it’s time for them to be replaced.

 

Use plastic coverings for your light switches and electrical outlets. While these are typically sold for restraining children from sticking items into the sockets, they also work very well for keeping cold air out. Just put your hand over an outlet or light switch in the winter and feel the amount of cold air coming in. While it may not seem like a big deal, consider how many outlets and light switches you have in your house and think of all the cold air you’ll have coming in at one time. Now consider how much harder your heater will need to work in order to warm the interior. Using coverings will keep that cold air out which will allow your home to be warmed more quickly. This, of course, will also help conserve energy.

 

You can get information on this topic and more by visiting Dean Graziosi’s website. The time to begin thinking about insulating your home is now, just in time for winter.

The Risks of Buying “As-Is”

When you buy a house “as-is”, that’s exactly what you get. While this may be a good opportunity to fix up a home just the way you want it, it can also mean big problems. Dean Graziosi sites the economy as one reason for many houses being sold just as they are. If you are planning to make such a purchase, it is very important you know what you’re getting into beforehand.

 

When a home is listed “as-is”, the seller is released from any liability or responsibility for the property’s condition. While buying one could mean you get the home of your dreams, the situation could very quickly turn into an all-out nightmare.

 

Before purchasing a home “as-is”, be sure to have it inspected. It is extremely important you know what you’re getting into before you ever make an offer and later sign for your new purchase. When choosing an inspector, make sure the person has been in business for many years and his or her reputation is top-rate. Otherwise, you might wind up getting the wrong information and making a bad decision as a result.

 

Knowing how the home is being sold will also help you make a decision on whether or not you should purchase it “as-is”. For example, If the sale is a real estate owned property, or REO as it is often called, this means it is a property that is owned by a bank after foreclosure has occurred. In the case of a REO, you might have a good chance of negotiating repairs. This may especially work in your favor if safety is an issue.

 

A short sale occurs when a home owner’s mortgage balance exceeds the property value. It isn’t likely repairs will be required. This is because the owner is selling it in this case and will probably need to make the sale as soon as possible and won’t have money to facilitate any repairs.

 

Often times, buyers will walk away from an “as-is” property because the work involved will be too costly. According to Dean Graziosi, “This is a smart decision, if you discover that the home is in worse condition than you originally anticipated.”

 

Once the “as-is” home has been inspected, you’ll have a better idea of any costs associated with fixing it up. You may get lucky and won’t need to do very much, but odds are, anything listed “as-is” will need quite a bit of work. If this is the case, you’ll need to make a decision. If you do not have the money or means to do the work yourself, purchasing “as-is” would definitely not be the way to go no matter how much you really want the house. On the other hand, if you have the money to hire someone to do the work for you, or if you are able to do it yourself and can afford the materials, an “as-is” property might just be right for you. Check Dean Graziosi’s website for more information on purchasing “as-is”.