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Do you ever get tired of hearing about real estate tycoons who make a living buying and selling houses? They seem to have pulled it off, simply by buying places and renting them out for a while, then selling them off for a massive profit when prices go up. They probably started with just one or two properties, and then gradually worked their way up the ladder by being calculated and careful. If you think you may have what it takes to join these guys, read on and see if you feel the same way after reading this article.

understand the concept

The basics of real estate development are pretty simple, you need to buy a property first, and eventually sell it for a nice profit. Before you make your first purchase, you should make sure you understand what to look for. If you are in any doubt, you should pay to have your prospective purchase inspected by a local builder before you take the plunge. One of the easiest mistakes for a first-time buyer to make is purchasing a property that requires too much work. By doing this, he can easily underestimate the costs of the work required when carrying out repair and modernization work.

Budget

You should have a pretty good idea of ​​how much money you have to spend on the purchase of your property. But do you have a budget calculated to allow for the additional work that may be required? Here is a checklist of figures you will need to consider:

• How much does the property cost?

• How much is it really worth?

• How much do I need to spend on improvement work?

• How much will I be able to sell it for after this job?

• What is the profit I will get from this project?

• If I can’t sell the house, will I be able to cover the mortgage costs?

real estate agents

Real estate agents may not be your favorite people, but you will need to communicate with them often. You can also put yourself on good terms, as you will benefit from their knowledge and contacts. Ignore the newbies and look to the experienced agents, they can see potential you can’t.

Offer and demand

You must be able to detect what type of properties are in demand in your locality. Do some research and ask your real estate agents about places that are selling fast and for a good profit.

Regulation

Once you have made your purchase, you need to think about the work required to increase the value of your property. Before this has even started, you need to understand the current regulations for building improvements. Make sure you have the correct planning permission before you start any work.

not customize

This is one of the biggest mistakes new real estate developers make. Do not design the house according to your own tastes. Try to think neutral when designing that living room or kitchen. Otherwise, you may lose valuable time waiting to sell your improved property.