Buying a fixer-upper property is a big decision. Naturally, every investor wants to find a bargain, especially when it comes to an investment as large as purchasing real estate. While everyone’s dream of real estate investing may be different, the trouble with fixer-uppers differs little, despite which type of property you invest in, they share some common issues. Sadly, buying properties that are in less than perfect condition can become a nightmare. Without the experience and knowledge that successful investors require regarding every aspect of investing in older properties, you could be caught holding the proverbial bag. Bad real estate investments can be a time-consuming, emotionally draining, and expensive piece of luggage. The fear of making a bad investment can often cause those who otherwise are ready to invest to hesitate. Hesitation in real estate can mean the difference between grabbing a bargain or being a day late and a dollar short. Some never begin their investments into real estate, feeling overwhelmed by the possibilities of what could go wrong, due to a lack of experience. We’ll cover what to look for when buying a fixer-upper property in Chicago.
So you are excited about buying your first fixer-upper and getting started. While you may believe you have found the best deal going on the market, if you don’t know what to look for when buying a fixer-upper property in Chicago, you could be making an enormous blunder with your finances. Unanticipated repairs can end up causing the time you budgeted for has been surpassed by weeks or even months, meaning you are falling behind schedule, which will end up costing you even more. The best way to avoid this is to hire a professional home inspector to ensure that you aren’t getting into a tangle of unending bad surprises. It is also wise to have a professional appraisal so that you can be certain you truly are getting a bargain for your investment dollar. While it may be expensive to hire professionals to assist you, it could save you quite literally thousands of dollars by learning all about the property before ever making an offer.
No matter if your plans include a quick flip of the property for profit after completion of any repairs or renovations, or finding a bargain to hold, either as your own or as an investment property. If you have spent any time in the real estate industry, you will know that location is the first thing to look for when buying a fixer-upper property in Chicago. By investing your money in property with as many factors as possible that make up what is considered a good location, you ensure demand for your investment. Because there is only a limited number of properties in any given area, the supply is limited and holds an even higher value. If you are flipping, while the location might not matter so much to you, wise investors understand the long term value of a good location and the lasting power it gives to the amount of equity gained on the property over time.
Repair Expenses and Timeline
Professionals in the construction industry should be contacted to provide an estimate for the necessary repairs as well as any renovations or upgrades. They are experts at knowing what to look for when buyers contact them about a fixer-upper property in Chicago. They should also be able to provide a timeline of the job, should you have several repairs, you may wish to hire one licensed contractor to coordinate all of the work. it is suggested that you contact at least three professionals to ensure that you are getting fair estimates to make your determination about your ability to afford the property. Should you endeavor to undertake repairs yourself, be certain you are up to the task. Do not bite off more than you can afford to chew, you could become physically and financially exhausted.
A great deal of data is pulled together in order to determine a realistic budget for fixer-upper properties, as well as a complete understanding of the time involved and what that adds to the bottom line. Wouldn’t it be nice to have a professional in your corner, looking out for you? At Chicago Home Buyers our experts have the experience to spot hidden problems buyers may miss when buying a fixer-upper property in Chicago. Chicago Home Buyers has built a network of professionals you can rely on in every aspect of the real estate and construction industry. At Chicago Home Buyers we help investment buyers determine which repairs are worth fixing and which are too expensive every day. Our job at Chicago Home Buyers is to help you make your real estate investment dreams a reality. Why not start reaching your investment goals today? We welcome you to send us a message or call Chicago Home Buyers at (312) 300-2043 with any questions you may have, with no obligation.