Buying Preforeclosure Houses - Which repairs should you do?

by: Leslie Collins - 9/2009
"Knowing which repairs are needed is critical when investing or assigning properties ...

Lipstick Repairs

Lipstick Repairs are expected!A basic or "lipstick repair" on a property is a basic "spruce up" of the potential property. Covering these items is critical to your potential buyers first impression of the property..you want to present a clean sharp first impression. Must have if your serious about selling quickly. These lipstick repairs consist of things like : * New flooring and new paint inside and out * Replacing or upgrading all kitchen and bathroom fixtures * Basic landscaping cleaned up * Section 1 termite inspection * Roof Certificate - 3 year clearance * 3 year warranty on all major appliances You can determine a general cost of the basic lipstic repairs by multiplying the sqare footage of the home by the cost per square foot index, based on the year the home was built.

Complete Rehab

If the home you intend on investing in is in need of more than lipstick repairs, and needs a full out remodel then be prepaired to spend more money. This could consist of tearing out walls, replacing kitchen cabinets, upgrading plumbing and electric to meet codes. Its critical that you estimate your project correctly to insure your profit margin is locked in...are you still making 30% profit after repair? You may want to consider if the extra cost of a remodel is worth it. After costs is the property still competetive the active comps in the area?

Cost of repairs

For example, a 1500 square foot home built in 1990 will cost about $15.00 per square foot - $22,500. That's considering only lipstick repairs. However, the older the home the more expensive to do these upgrades. A 1500 square foot home built in 1950 would cost about $35 a square ft - or around $52,000. Thats because the older the home you may need more than just lipstick repairs. You may need new roof, new appliances plumbing and electric. Learn to do contract assignments and flip preforeclosures and abandoned properties the correct way. You wont need any of your own money to make big profits. Find and Assign for Profit, the sales page has tons of real information describing EXACTLY what you will learn, and the steps involved. Also this course has all the legal docs you'll need to protect yourself, and make your contracts binding.


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