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Do you find yourself asking whether renovating for wealth is right for you?
Are you looking to jump onto the house flipping bandwagon but are afraid you don’t have the skills or the know-how to get you through the project?
Or maybe you would love to earn a few extra dimes renovating on the side, but don’t see how you can juggle it around kids and family and commitments and everything else that life seems to throw your way.
Well I’m here to tell you that it is possible to renovate for wealth and still enjoy life; and it definitely doesn’t have to be a huge drama or stress fest like what you see on those popular TV shows. What’s that saying… you can have your cake and eat it too? Well, you can renovate AND make money by doing so. You just need to make sure to lay out the groundwork first.
Which brings me to exactly what today’s post is about. I have a few tips to help you throw that fear in the bin where it belongs and help answer those nagging questions in your head.
Or listen to the audio below on Reno Radio
Before we get into the nitty-gritty, you should always keep your end goal in mind. It can be easy to get lost along the way. Don’t lose track of the finish line and what you, personally,want to get out of your renovation project.
There’s no point in jumping in to a project that will, realistically, take time, effort and dollars, if you don’t know why you’re jumping into such a big commitment in the first place. Think of it as a contract with yourself: Would you sign on the dotted line if you didn’t know what you were signing for?
So, what IS your end goal then? Are you looking to get your hands dirty in a serious hobby, or use renovating to carve out a nice 6 figure a year profit generating machine? As long as it’s not for a get-rich-quick scheme (stay far, faaar away from this mindset), then renovating for wealth is definitely something you should consider.
Just be mindful, renovating for wealth involves real properties–and real properties can be very expensive. So you should never, ever, EVER (did I mention ever?) start a new project without first doing loads of proper planning, thinking and researching. Okay, so now we’ve established that having an end goal is super important.
But wait, what exactly is renovating, anyway?
Well, to put it simply, renovating is pretty much the act of taking a property and making it more awesome. Ever heard someone say, ‘If it ain’t broke, don’t fix it’? Well, don’t listen to them. It might not be broken, but if it looks like old granny Doris used it in the 19th century to bake apple pies with and it hasn’t been used since, maybe it is time for an upgrade.
These kind of improvements can include fixing what IS broken, or upgrading things that are on their way out or look old (and not in the good vintage way). And this is where your end goal comes in; the improvements can be big or small, depending on your vision of the renovation.It doesn’t have to be a huge gutting of the property either.
There’s no camera crew following you around or producer telling you that you have to rip up the kitchen, bathrooms and walls and have open-plan-everything.But there is plenty of opportunity in that in-between state of the property’s original condition and the renovation rip-up.
So that explains renovating. But what about renovating for wealth? Renovating for profit, house flipping, house rehab–there are so many ways to describe it!
Those renovation shows on TV have definitely popularized the idea of house flipping for profit, and everybody wants a piece of the pie.
There’s a really popular saying in the property industry: “buy low and sell high”. It’s pretty self explanatory. But how exactly do you get to that ‘high’? Sure, you can buy a property and sit on it for years while riding the market growth. But that is not what
a house flip involves. And that’s not what we are here for. What we’re looking for is to add value and improve the property through renovation–and make money while doing it!
So here are the three main steps you need to get to that golden ‘high’ when renovating:
This first one involves the actual purchase of the property. You want to nab it at a price that won’t make renovating pointless. I’m talking either at or below market value–obviously the lower the better! There’s no point paying an inflated price for a property that mayor may not make you profit. That risk of loss is not worth your time, money or effort.
The second step is all about pumping value into that property that you scored below market value. This is where renovating comes in. And not just any renovating either–it’s super important at this stage to really look at the key elements of the property.
Will putting in floor-to-ceiling windows add value because they allow a view out onto the water? Or is it more a neighbourhood that couldn’t care less about that chandelier in the front foyer. Don’t fall into the temptation of going overboard and creating an open-plan-everything if the market you are in doesn’t demand it.
Lucky last! This final step is all about the selling part of the renovation project–which is the part you make your money, woohoo! The key here is obviously to sell or rent your finished masterpiece for a higher value than was possible before you put your time, effort and money into it. Obviously if you don’t sell or rent it, you won’t really be able to see the added value of the renovation. When you do let it go, you will have increased capital, equity or rental yield to put into your future projects. Then you can keep renovating for profit!
So there it is! Now you know the three steps that are involved in renovating for wealth, and are hopefully better equipped to answer those questions that keep running through your head.And if all of this information is making your hands itch for a renovation project of your own, come check out the Rapid Renovation Formula and see how we can help you achieve your rapid renovation goals!
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