Real estate investing is an excellent way to make a lucrative living. It may not be as easy as the get rich quick infomercials make it seem, but fixing and flipping properties can be a steady source of great income. If you are going to be successful with the sort of real estate rehab Maryland professionals excel at, you need to understand exactly how the process works.
When you look at a property that you think has potential, you must thoroughly examine it. You should take pictures of all the defects, record measurements, and take notes. If you're not a contractor yourself, it's a good idea to bring one along. While you are noting everything that must be done, you should have in mind what might be changed or added to make the property more appealing to buyers.
After you have finished a thorough inspection, you need to go home, sit down, and write down all the work that has to be done to the house, in minute detail, and how much it will cost. Experts suggest making three lists, what is essential, what you want, and optional items. You must always have a line item for the unexpected. This should be a percentage of the total scope of work.
Once you have a dedicated crew of your own, you won't need outside contractors. Until then you'll have to hire a good contractor who is reliable and honest. If you don't already know one, you need to do some research to find viable candidates. When interviewing the candidates you should question the contractor's referrals, licenses, experience, insurance, and subcontractors.
Actual work on the property begins with demolition. On the inside, any walls, ceilings, and floors that are damaged beyond repair must be pulled up and thrown out. On the outside, dead trees and shrubbery, old fences, and rotted porches will have to go. Trash has to be cleared after the demolition. If there is any framing or foundation work needed, it will be done at this time.
You will have to work with the contractor on the plumbing and electrical issues. Depending on the age and condition of the systems it may be possible to update. If not, a complete new installation will be necessary. Before blowing in the insulation, you must contact the building inspector. The individual will come out and approve the job up to this point or require changes.
The final steps include an inspection, payment of the contractor, and preparations for the open house. Kitchens, master bedrooms, baths, and the living areas have to be staged. The lawn must be sodded and shrubbery planted. It's a good idea to add some fresh flowers and have refreshments on hand for the prospective buyers.
Buying real estate for resale is a great way to make a living, if you begin slow and stay conservative. It helps to have the kind of talent that sees potential in run down houses. If you buy low, prepare for the unexpected, and keep to the budget, you will have a good chance at success.
When you look at a property that you think has potential, you must thoroughly examine it. You should take pictures of all the defects, record measurements, and take notes. If you're not a contractor yourself, it's a good idea to bring one along. While you are noting everything that must be done, you should have in mind what might be changed or added to make the property more appealing to buyers.
After you have finished a thorough inspection, you need to go home, sit down, and write down all the work that has to be done to the house, in minute detail, and how much it will cost. Experts suggest making three lists, what is essential, what you want, and optional items. You must always have a line item for the unexpected. This should be a percentage of the total scope of work.
Once you have a dedicated crew of your own, you won't need outside contractors. Until then you'll have to hire a good contractor who is reliable and honest. If you don't already know one, you need to do some research to find viable candidates. When interviewing the candidates you should question the contractor's referrals, licenses, experience, insurance, and subcontractors.
Actual work on the property begins with demolition. On the inside, any walls, ceilings, and floors that are damaged beyond repair must be pulled up and thrown out. On the outside, dead trees and shrubbery, old fences, and rotted porches will have to go. Trash has to be cleared after the demolition. If there is any framing or foundation work needed, it will be done at this time.
You will have to work with the contractor on the plumbing and electrical issues. Depending on the age and condition of the systems it may be possible to update. If not, a complete new installation will be necessary. Before blowing in the insulation, you must contact the building inspector. The individual will come out and approve the job up to this point or require changes.
The final steps include an inspection, payment of the contractor, and preparations for the open house. Kitchens, master bedrooms, baths, and the living areas have to be staged. The lawn must be sodded and shrubbery planted. It's a good idea to add some fresh flowers and have refreshments on hand for the prospective buyers.
Buying real estate for resale is a great way to make a living, if you begin slow and stay conservative. It helps to have the kind of talent that sees potential in run down houses. If you buy low, prepare for the unexpected, and keep to the budget, you will have a good chance at success.
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