If you have the capital or the credit to be able to purchase an investment property, but don't have the time to do the renovations, there is still a lot of money to be made in the Asheville, NC real estate market.
We often hear "I want to get into flipping houses, but I don't have the time." Well good news! You can actually make a very decent profit margin in our area by utilizing your capital and the right real estate professionals. It is very important to clarify what we mean by "right." Your agent should be able to look at a home listed for sale and know immediately that the price is significantly lower then its comparables. They should also be able to pick up the phone and find out why. Assuming there is work to be done to keep this home from toting the ever important "move-in ready" status, they should be able to lean on a trusted construction professional (or in my case have a construction management background,) to give them an estimate on the work to be performed.
This should be enough for them to produce to you, the investor, a proposal for the amount you will need to spend, the amount you will get back and how long it will take. This proposal should include an overview of why this property is in demand with statistics to support it. It should have a net cost and profit sheet with each anticipated line item broken out as specifically as possible to mitigate risk. And of course, it should include an in depth comparable market analysis that shows where the competition will be when the home is ready to put on the market.
Once you have agreed to the terms of the opportunity, you will negotiate the offer to acceptance with your agent and spend as much time as you need during the due diligence period getting quotes from licensed professionals. This will take your modest $500 DD fee and turn this opportunity into as close as you will ever get to a sure thing. If the quotes come in favorable, you close on the home and hire out the work. You can be as involved or remote as you choose during this process. Some people like to just stroke a check and others want to pick out the colors and finishes. Either way, a good investment with no work performed by you will offer a 30-40% return on your investment in a matter of about 3 months time.
If you would like advice about what properties are going to offer the lowest risk or highest reward, or if you'd like to see a proposal for an active real estate investment, give me a call at (828) 707-5642.