"Cheap is expensive" says that old saying that we have all heard at some time. And yes, it is true that many times when you want to save on quality by opting for an economical option, you end up spending more than necessary. But whoever came up with that iconic reflection is clearly not in the real estate sector. In the housing market, which is on the road to post-pandemic recovery, many interesting buying opportunities are emerging for every investor. Today, buying cheap is not necessarily based on the concept of saving, but on the reality of being able to capture as investors these business opportunities offered by the market.
Now: "Once I have bought cheap, how can I sell at a better price?" The answer is simple: REFORM. To reform is to innovate. To reform is to change and improve in order to achieve a favorable impact on the market. It is to add value to a property seeking an economic benefit at the time of sale.
While it seems like a simple business dynamic, it is not. It is important not to confuse the new with the good. Not all reforms are going to add the necessary value to a property that improves the business at the time of sale. A reform will guarantee an improvement in any real estate project as long as it is carried out properly.
There are a series of variables that it is essential to take into account when reforming a property based on an improvement in the profitability of the business. Having the ability to project the value of the remodeling, determine the corresponding term of the same and manage to define the focus of the reform that the property requires, and other essential concepts for a successful investment strategy. When we talk about reforms, each property will have a different reality and its own analysis according to its characteristics. The great secret is to be able to determine which is the reform that will effectively add value to our property and will allow us to increase the sale price.
Once the reform has been devised and implemented, it is time to sell. The sale is the time to monetize all the work done. A successful reform will allow us to increase the sale value between 15% and 25%. In addition to making the business profitable, the reform will give the possibility of speeding up the home sale process. A renovated apartment, whether with a comprehensive face lift or not, will have shorter sales times than a floor of questionable quality.
In general terms, beyond having a certain degree of complexity, we consider the “fix and flip” a business that is ideal for those savers who want to start becoming an investor.
And then… How can ICrowdHouse help me in this wonderful process?
The answer is simple. Well, we are with you all the way. Once you find the ideal property, it is time to knock on our doors. From Icrowdhouse we take care of:
- Validate the viability of the project.
- Advise on the presentation of the reform with face and eyes
- Obtain the financing to cover the reform and part of the asset, if necessary.
- Provide all the necessary communication tools with your new investors
- The possibility of creating a name as a brand for future operations
- Investor loyalty
And much more!
From Icrowdhouse, we always rely on the same bases: Any agent or developer who has a property or capital in order to buy and reform, has a gold mine in their hands. The important thing is simply to be clear about the bases: buy cheap, reform and sell at a good price.