Are you interested in rehabbing properties for profit? If you have considered it then this blog post will help you know what to do, what not to do, and will give you 4 reasons not to over do it on rehabs. If will save you a lot of money and headaches!
There are a lot of rehabbing shows on TV and they can be pretty entertaining to watch. Unfortunately, too many people see rehabs as an easy and fun way to get rich quick, which is certainly not always the case! Yes, it is possible to make good money on rehabs but it’s also possible to overdo it and end up losing money. Here are 4 reasons not to over do it on rehabs.
4 Reasons Not To Over Do It On Rehabs
Reason #1. Your Budget Can Easily Go Out The Window
On a rehab, you set a budget of money and time – how much money you want to spend and how much time you plan to spend it in. Unfortunately, it’s very easy for that budget to go out the window and you may end up spending more money and more time than you intended.
This can happen for any number of reasons but it especially happens when you over do it because even simple additions to your plan can increase the money or time you need to spend.
Reason #2. People Will Change It Anyway
Buyers want a house they can move into immediately. Some buyers might want a house that is extremely detailed and specific, but most buyers are looking for something plain that they can add their own personality to. In fact, some buyers may even change the décor as soon as they move in, so your expensive and fancy paint job or cupboard doors might end up being completely changed! Just stick with plain and neutral decoration to stay in budget.
Reason #3. Money Is Only Made When You Sell
One of the most overlooked reasons for why you shouldn’t over do it in your rehab is because you only make money when you sell. The longer you are on the property working, the longer you delay your income. You need to formulate a straightforward plan, do the work, and then get the house sold ASAP. Overdoing it will only delay you.
Reason #4. You Are In The Rehab Business
You are in the rehab business, not the home decoration business. Your job is not to shock people with how beautiful the house is or how good your taste in paint is. Instead, your job is to create a nice house that someone will want to pay you for. Period.
It’s easy to go overboard and do too much on rehabs but if you follow these 4 deadly reasons not to over do it on rehabs then it should help you make more money and keep more of that money as profit.
If you’re looking for off-market properties at an attractive price or even just a great introduction to someone who can help you on this rehab, click here now and fill out form or call our office at (443) 863-9808