I love restoring and renovating homes, and I’ve learned a few tricks over the years from making a good profit from the homes that I remodel. If you really want to be successful in the real estate business, you have to be able to turn a profit. This is something I’ve thought a lot about lately, and I want to share a few tricks I’ve tried to help me really max out the profit I make on homes.
Look for Properties to Buy in “Dead” Times of the Year
While you should always be looking for great deals on properties throughout the whole year, I’ve found that January and February always provide the best prices on homes. The weather is gloomy, the holidays have come and gone, and most people see the real estate market as “dead” during these months. So, if you find a house you want and you show interest while the owner isn’t getting any other buyers nosing around, they’re likely to accept a lower bid than they would at a different time of the year.
DIY Everything You Can—But Be Realistic
When it’s time to start renovating your home, think about what you need to do and how much time you have to complete it. If you’re working under a pretty strict deadline and you aren’t already a master carpenter, you may want to call in some help. On the other hand, if you have more time than money on your hands, you can save a lot of cash by getting your hands dirty.
I’ve had my fair share of experience with knocking down walls, hanging drywall, laying floors, and a many more remodeling tasks over the years, and I actually find it quite enjoyable. Plus, when it comes time to sell, I am always impressed with how far I was able to stretch my budget.
With that in mind, if you aren’t skilled at something, and it’s a dangerous task, don’t take risks that you don’t have to. I’m not a fan of telling people to electrocute themselves just to save a buck or two.
Figure Out How Much Your Time Is Worth
Of course, if you take a year to renovate a house and you don’t have any other income coming in, you could be looking at a great profit on paper that doesn’t really add up in real life. So, before you decide to do something yourself, you do need to think about how much money your time is worth and how much time that job is going to take. Sometimes it’s worth it to spend a little bit of extra time on a fun job, but sometimes it’s better to get it done right the first time so you can sell the house and move on to more projects.
In general, if you want to sell a renovation for a profit, you’re probably going to hire more people to do the work than if you’re rebuilding a house for you or your family to live in. You will often find that you’ll do some projects more for the love of it and others more for profit. That will help you determine which things you take on yourself and which tasks you should hire out to contractors.