In certain trades of products and services, there are times when the demand for it has its own seasonal peaks. For example, depending on where its location is in the world, certain countries will have its seasonal peaks with the influx of tourists from all over the world. Let us say for Germany, the case would usually be during the summer and most especially during the 2nd week of September up to the 2nd week of October which is the time for Oktoberfest where people indulge in the country’s famous pints of beer. Even for tropical countries in Central America such as the Caribbean and Hawaii, the seasonal peak for it is during the Summer season where you can witness people of all races, getting that perfect sun-kissed skin under the tropical sun.
Just as in vacations and holidays, there are certain months wherein influx of tenants would be going around the state or country, looking for the perfect apartment for them to stay. The reasons vary somehow, it could be they are just new in the town or state so they need a place to stay, a family which needs a bigger home for their kids or they could be just ordinary college students studying in a university and they need a great apartment which is conveniently near to their university. During these peaks seasons is when you should make yourself totally available to accommodate the best tenants possible, so when does this happen?
During Winter season
Winter season is usually the time for hibernation, well at least metaphorically, but it is the time when the demand for new apartments by prospective tenants are low. The turnover is low as well since it will be a hassle for prospective tenants to move from one place to a new one during a time when everything is just cold, usually making the activity or the process of moving out, relatively slower.
During Summer season
There is no doubt that the demand for apartments from prospective tenants usually happens during summer wherein most people are available to be able to free up their time to move to a new place. Also, the consistent weather makes it possible for one to move anytime without any fear of a snowstorm and such unlike during winter season. It is also because during this time as well, recent high school graduates which are now college freshmen will be looking for apartments near their university. Recent college graduates would also be looking for a new place to stay wherein they can start new career opportunities. With these demands, there is no doubt that the turnover rate is significantly higher compared to winter season.
With these in mind, you as a real estate investor, should prepare yourself anytime of the year to accommodate prospective tenants. However, please make sure that you scan your tenants carefully in certain ways such as checking their credit history to make sure you would not be robbed off of inconsistent rental fee in the future from an irresponsible tenant.
When it comes to real estate investment, you will have to be ready to deal with a lot of unforeseen circumstances and as well as self-preparation to be sufficiently ready as real estate is not as simple as selling in retail stores, it involves a lot of smart decisions, a large sum of money, a lot of time available, skills to be used, a lot of patience as well and you must be knowledgeable when it comes to self-advertising and marketing.
When you lack these number of factors, it may be more challenging for you to deal with these circumstances. So how to know if you’re not yet ready to flip houses yet? These factors might help you realize just that:
- Short on budget
It is a hard truth to face but a truth anyway, you cannot just choose to flip houses if you do not have a large sum of money in your bank account or a large income which can help you secure a great loan from the banks. However, your first expense will always be the property acquisition cost and that means you will have to deal with paying interest, which also means that every dollar you cash out for the interest is another dollar to earn from your sale just so you can break even. It is important to always search for possible financing options rather than settling for what is known and comfortable.
Not only that, the renovation cost will also be a struggle as you will be needed to have the budget to be able to provide resources and the financial capacity to reconstruct whatever needs to be fixed in your property. You also need a budget for the payroll of the inspector, contractor and its employees, and as well as advertising and marketing budget after the reconstruction is done.
- Lack of time
It cannot be denied that venturing into the real estate is time to consume at its finest. It may take a lot of months before you will be able to find the property perfect for you and another set of time for you to be able to secure the deal and enlist the property under your name. Then you will have to spend a couple of months renovating the property for it to be visually pleasing for prospective buyers. However, it does not stop there, you will have to spend time with inspectors to ensure that your property coincides with the building codes and if not, another time will be spent just to get it right this time.
- Lack of patience
It is important that as a real estate investor, you do not just settle for any property just because you are exhausted from looking for the right house to flip or you do not know any other contractor other than what your colleague recommended to you, and you cannot just help but ask your contractor to rush the work without giving them the right resources to do so.
It is evident that selling houses for flipping will never be the easiest task, certain real estate investors may make it seem so but with projects like that, the real estate investor is similar to a swan: graceful-looking on the outside as it glides through the water and yet beneath it is a pair of hard working and struggling palmates, paddling and paddling just to keep on moving forward.
Here at Home Hunter University by Nicholas Haley, we will be helping you in giving you tips on how to successfully sell your flipped house to guarantee profit and make it all worth it.
- Make sure you have renovated it beautifully
Let us be real, no one wants to buy a flipped house and yet it still looks worn down and not worthy of pride or bragging for your in-laws or your parents. Your prospective buyers will want to own a house they can imagine creating memories in and raising their family in for generations to come. The fact in itself that it is a flipped house which was just renovated, can possibly turn off some of your prospective buyers so you have to please them visually: make sure the reconstruction is great, fresh paint in every part of the room, new flooring, replaced windows and door knobs, well-kept garden and lawn as well as a flawless curb–get all of these rights and you will surely keep on attracting prospective buyers.
- Enlist it in business listings
Take advantage of the internet and the convenience it offers by enlisting your property in business listings wherein it will be easier for real estate agents, fellow real estate investors and as well as prospective buyers to discover your property. However, be accurate with your house description, only enumerate the factors that your house actually has. No more, no less. Do not exaggerate about a wide front lawn when it is actually narrow in real life, your prospective buyers may lose trust in you.
- Produce a home tour video
Producing a home tour video opens a lot of doors: you can reach a wider audience when you upload it on the internet, it allows people who are on their smartphones and computers to be able to visually experience being guided or toured around your property without having to take a step out of their house or spend 30 minutes to an hour of travel just to see your property in person. This form of advertising your property also allows your prospective buyers who live in other states to save time and money traveling all the way to your property but at the same time, encouraging them to consider your house.
- Hold an open house for potential buyers
Holding an open house is creates a buzz around your property. For sure, you’re invited prospective buyers will also call on out to their family, friends, and colleagues who are also on the lookout for a house to buy and you want to make this as your goal. Be sure to invite those who you think can afford to buy your property and have an excellent credit score.
Finding the right house to flip is not as easy as what some may say, experts would even be apprehensive when it comes to flipping houses as it is the type of real estate investment that requires a lot of time, effort, and of course, money to splurge with all the repairs, reconstructions, and unprecedented circumstances to overcome while in the process of flipping it.
However, here at Home Hunter University by Nicholas Haley, we can give you key components or important factors to consider when you are looking for the right house to flip and how to determine if it is the perfect one. As a real estate investor, you must be wise about your decisions and where you put your money in, therefore, we are helping you avoid making any mistake you might just regret later.
Here are the factors to consider when it comes to flipping houses:
A mansion located inside a trailer park is obviously not fit for it, nor is a 2-storey building in the middle of nowhere such as a desert for it has to be in the middle of the town or near other establishments as well. Location may be one thing but it is also everything. Here are 3 different subfactors on why location is important:
You have to ensure that the neighborhood where the house belongs to is a decent one wherein the future clients will be able to imagine living there for decades. Do not just settle for a good house in a bad neighborhood, chances are you will have a hard time selling it in the future.
- Accessible to malls, schools, hospitals, and police stations
When your house property belongs in a great location where malls, schools, hospitals, police stations, and the downtown is accessible, then you can sell the house for a much higher price. That is why you should also consider location as one of the most important key factors.
- In a community with low crime rate
If a neighborhood is known to have a crime rate, you might have a hard time selling it to your future clients as it might scare them away. Also, even if you ask a real estate appraiser, the value of your house property would decrease and this is what you must avoid the most. If you find a great house to flip in a bad neighborhood, leave it be and go find another one
- Get a professional to inspect the property
A house inspector is hired for the very services such as these ones. An inspector would be able to determine the current state of property you want him to inspect and he will be able to give you a full assessment of the condition of the house yet you have to take note that he will not be able to predict the future condition, efficiency and life expectancy of the house but with the information he will give you, you will be able to deliberate whether the house is worth it or not.
We have discussed a few times on how to be able to sell your house property whether it’s a fixer-upper house, a retail house or a rehab home. However, we have not really gone in depth on finding ways how to be able to find potential buyers for your property.
Finding potential buyers for your property can mean from such a simple task of looking for those who seek what you can offer as a real estate investor to such a deep thing like destiny, wherein a person was just at the right and at the right timing to discover about your available property, or maybe that is just plain luck. So here at Nicholas Haley, we will be discussing ways on how you can find potential buyers for your property.
- Ask help from your real estate agent friends
Some people you know who are real estate agents may know some people who are looking for certain properties that for some reason, is in your possession and you are selling it to the market. This certain way of referral can be effective in creating a wider connection of network for faster selling of properties.
- Place an ad online
This is a no-brainer as it is evident that ads placed online can have more reach than flyers and posters spread around the neighborhood. You can enlist your property in business listings where it has a heavy traffic of users and potential buyers who are looking for properties to buy. It is also important to be creative and specific when it comes to your online ads, do not sugar coat everything with what amenities and utilities you are offering or is included in your property. State what must be said and make sure to enlist certain information such as if the property is near hospitals, schools, police stations, malls, and recreational areas such as parks.
- Go to online forums
Some potential buyers go to forums and place their shoutouts with specifications of the type of house they are looking for. Make sure you know where most people lurk on the internet for these sites as it can be helpful if you join the forum, place your ad and market your property, therefore, heightening your chances of raking in that potential buyer. Make sure you are interactive and do not give the specific address right away, have the upper hand of being able to be one to show the potential buyer around the property itself and inside the house.
- Use your car as a mobile ad
I am sure you have been stuck in traffic amongst the sea of cars and trucks and there will always be the sleek sports car, family SUVs, cars owned by students who are still in college, your car, and of course, the car with an ad on the back with very specific information such as “House for Sale, Call 1-800-xxx-xxx”. Honestly, let us admit that it does sound silly however you cannot deny that it is very eye-catching and a simple marketing strategy such this can garner in more potential buyers.
Selling a house is definitely the most basic part and the starting point of becoming a real estate investor. The goal is to be able to find the right buyer, get paid according to the agreement settled with and to be able to earn a huge profit from the deal itself. However, what some real estate agents or investor faced with is the problem of not being able to sell the house as soon as they possibly can. Some may take a few months to a couple of months and then to a year and that can be extremely frustrating on your part as you just want to get on with it, and the dreaded part may come wherein you might just settle for a lesser price out of exhaustion from trying to sell it for a long time.
- Improve the house
Trying to sell a tattered house will just end up with you having to sell it at a much lower price. If you want your selling price to be higher, add some improvements to your house such as a new flooring, new set of carpet and even repainted walls for a fresher look. If there is a leaking in the roof, you might want to fix this as well to avoid any complaints or problems in the future. Do not neglect little things such as a new doorknob if one of them is faulty and replace blinds if they need to be changed or if it has turned yellowish already. Aside from interior improvements, you might as well not forget the exterior design of your house, and that includes your curb, the landscaping of your garden and your front lawn, make sure that the exterior itself is appealing to definitely lure in prospective buyers.
- Compare prices among the nearby properties and settle with a realistic price
It is inevitable if another house property is being sold in the neighborhood, therefore, you have another competitor. By looking up at business listings wherein you will be able to find properties near you that are being sold online, you will be able to determine which ones are selling fast and which ones are not if you just spend a bit of time observing the changes in the properties. You will notice which ones are sold already once they are removed from the business listing or if they have been indicated as sold. By studying other prices, you will get an idea on how much you should sell your property for, however, it is important for you not to settle for just any price, settle with one that is according to the value of your property, you can sell it at a higher price if you want, but definitely not for a lower one.
- Advertise your house online
Simply putting up a “For Sale” in big bold letters outside your house is not just enough. With the age of advanced technology wherein information is just at the tip of your fingertips: a tap on your smartphone or one click away from your laptop, prospective buyers will look for properties online. Put up your house in business listings, you can even create a montage of photos or a video of a home tour all around the house. Prospective buyers will definitely be encouraged once you do this.
- Make sure your property is ready for showcase anytime
Whether day or night, your house has to look appealing. During daytime, it is quite easier to showcase your house from the outside as people can easily see it. However, it is a different scenario at night wherein you have to turn on the front light so it can still garner attention from prospective buyers driving by at night by coincidence. If it is possible, hold an open house and invite all the potential buyers and even the neighbors, they might just spread the news of an available house for sale to their family, friends, and colleagues.
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