As most developers know, earning top dollar for developed residential properties means buying the right property at the right time, making some improvements, then selling the property at a profit. Known as flipping, this strategy can be very lucrative, if care is taken when selecting real estate. Here are a few clues that can help you identify property that is likely to appreciate in value by the time you have the property ready to resell.
Check for revitalization. Older neighborhoods where a few people have moved in and begun to restore houses may prove to be the next big thing in your town. If the trend is solid, you can purchase properties cheap today, put a minimal investment in making basic repairs, and sell the properties at a hefty profit.
Follow the franchises. Big name fast food and motel chains spend millions in projecting where expansion will take place, and then build in the area. Save yourself a few bucks and make note of any flurry of building activity involving motels, restaurants and similar new construction and buy acreage before the prices begin to rise.
Note where employers are building plants, office buildings, and similar facilities. Securing property nearby could put you in the driver’s seat for developing a new housing section, condos, or just holding on to the property until a big name hotel chain offers you top dollar for your land.
Look for nearby sports arenas and other types of entertainment venues. Chances are that part of town is expected to grow. Purchase nearby properties and build your own housing or wait for a buyer willing to pay up to twice what you paid for it.
Tips amp; Warnings
Don’t purchase on the strength of one single factor. Affirm the potential by evaluating several signs of future growth, then make an offer on the property if you are reasonably sure you can at least recoup your investment and any related expenses.
Always seek professional advice in your real estate dealings. Instinct is nice, but talking with someone who knows the market well could turn up some question or factor you had not considered previously.