Real estate investment is a very speculative game. Like any other type of Real-Estate-Investinginvestment, be it stocks, bonds or private equity, real estate comes with some degree of risk. Low risk investments like government bonds and treasury notes have a correspondingly low rate of return on investment. Real estate is a high risk investment, so you can count on a high rate of return if you are successful. The housing market is distinct from other investment markets in one important way – you can control the quality of your house. When you buy a stock, you can’t polish it up and fix its foundation to watch its value rise. But with a little spit and elbow grease, you can turn a foreclosure fixer upper into a worthy investment. Buy low sell high is the name of the investment game. When you buy a foreclosure at a low price, it may have significant structural defects. Make these two simple repairs and you can increase the home value and hopefully turn a profit.

Landscape design

The landscaping around a foreclosed home is the first thing a prospective buyer sees when he arrives and the last thing he sees when he leaves. This simple change can completely alter a potential investor’s opinion of your property. In all likelihood, the homeowner that occupied your new property before the foreclosure was in a tough financial straits. Chances are he or she didn’t have much time to take care of the lawn. Give your new place a haircut. Trim the shrubs and place a pre-emergent herbicide to preserve that emerald green lawn, then watch your property’s value inch up.

Lighting

Something as simple as the right lighting can add a much more appealing ambience to the interior of a home. If your new property is low on natural light, try some brighter bulbs in the kitchen and living room. A property with some interior damage can be disguised with softer lighting. Use light bulbs to your advantage and your buyer will be much more likely to look past your property’s flaws and meet your asking price.

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This is filed under Foreclosures.


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