Real estate investors live on their ability to add value to their property. If they are unable to add value, they could not earn any profit, where the point of a business dies. Every business works on the rule of investment and profit, and real estate is a great business in this way that you can add value in multiple ways to your business and can earn the profit. Below are three ways that you can use to add value to your properties.
Upgrade and Repair: It is understood that upgrading and repairing your property add value to them and make them earn more money. Some repairs add more value than it takes to do that repair. If you are more creative with the improvements, you can add more value. You can add value in different ways like, you can add square footage to every house that you buy. The inner city properties are hard to add a square footage, but if you manage somehow to do so, you got a big profit. You can also build a basement or a second story. Normally there is not enough land to add a new portion by increasing the footprint of the property. So you can add a lot of value by building a 5 to 6 feet basement. And you get more clients that most other investors pass on. Bedrooms, kitchens, and bathrooms also add a lot of value. There are many other things to do, but the point is to buy a property on its true value and then add value by upgrading and repairing.
Owner Finance: This way is so effective and easy with very little work. You will need to cash in on your profits first, but this way significantly increase the sale price of a property. First, there are a limited number of buyers of a specific property, but if somehow you are able to increase the number of buyers for that property the demand for that house goes up which automatically increases the selling price of the property.
Shared Units: The idea of shared units is to sell your property to multiple buyers.
This strategy is being implemented in resort towns, which is a vacation or second home. Have you ever heard of a time share idea? Each unit can be sold to 52 different buyers because it only gets you a week per year for your purchase. This idea really works because you can get people for free or near free. in this scenario, you share your house with 1 to 3 people. You can use yourself or rent out when the property is free and every year you get guaranteed valuable high demand weeks.