If you are a typical house or condo buyer, you probably want to purchase a new or [tag]resale residence[/tag] in near-perfect, “model home,” move-in condition. That’s fine. But expect to pay [tag]full retail market value[/tag]. That is not the way to make a [tag]profitable home purchase[/tag]. If you want to profit from your home purchase, as that young lady will, buy a house or condo needing profitable improvements. Extreme cases are called “[tag]fixer-upper[/tag]s.” To be polite, some listing agents call them “tired homes.” Having bought and sold many profitable residences over 40-plus years of investing, here are my top five criteria for buying a profitable house or condo:
The longer I’m involved with real estate investing, the more important I think the key question is “how much the owner paid?” I wish I started asking it many years ago when purchasing investment prooperties. Even if you find a house or condo in excellent condition, before making a purchase offer, ask your buyer’s agent, “How much did the seller pay for this home?” Most buyers don’t ask this vital question. Your buyer’s agent might be shocked. Just explain the reason you need to know is to discover how much negotiation room the seller has so you can buy the property. Your agent will be thrilled to learn you plan to make a purchase offer.
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