To make the most money possible in real estate, the standard philosophy is to
"buy low, sell high". Most people try to do this, and many do not succeed
because it's hard to do. When trying to get the highest return possible, keep your
costs down and do everything possible to draw in the highest bidders.
Once you own the property, do as much of the repair work yourself, as long as it
is of a professional level. You can hire out, however make sure there is enough
money in the deal for everyone. Shoddy work and inferior materials will cost more to
correct later. With difficult projects, hire a trained professional from a small scale
operation. Large contractors with several employees have to factor their large
overhead into their prices.
When looking to maximize
your profits, try to save money with your lender. Look
around for cheaper loans with the less popular lenders. The large banks and
financing companies usually have high fees and rates. Don't accept overpriced
fees. For example, your lender is charging $75 to deliver a few papers a short
distance, ask for it to be reduced.
By educating yourself on the legal and accounting aspects of real estate
transactions, you can save yourself thousands of dollars. If you learn the basics
of these two areas you will know when to ask for a professional's help.
When negotiating, be firm but flexible. Attempt to find a win-win situation where
both you and the other party walk away from the table happy. Be clear on what
you want, and what you can be flexible on. If the other party walks away angry
and feeling cheated, they might try to sabotage your attempt to make a profit.
If you are selling your property, it's important to also shop around and negotiate
for the best prices on high priced items, real estate commissions, and closing
costs.
"Staging" is setting the scene by making your property look its best. You will get
the highest price for a property that has been properly prepared.
Actively market your property and you'll get the largest pool of potential buyers
possible. It is a benefit to the seller if there are several interested parties in your
property.
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