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HOW CAN YOU BUY AN APARTMENT TO RENT OUT FOR PROFIT

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By Joe Arias

Investing in apartments is one of the easiest and best ways to make money as a real estate investor. Apartments will always be in demand, especially as younger demographics continue to wait until later in life to buy homes. Aside from the regular maintenance, renting apartments for profit is a generally hands-off process, making it great for beginners just getting into real estate investing. In this article, we will share how you can buy an apartment to rent out for profit.

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Why You Should Buy an Apartment as an Investment

Before explaining how you can buy an apartment as a real estate investment, it’s important to address why you want to. When done correctly and knowledgeably, apartments can be a very profitable real estate investment strategy. With apartment investing, you have a guaranteed amount of money that you know will come in every single month. Many other real estate investing strategies do not have this reliable income stream. Apartments are also generally easy to maintain. As long as you are not investing in a large complex – which is not recommended for beginners – you will not need to rely on paying any management companies. Since demand is high for apartments, they are seen as low-risk investments, which is perfect for any beginner. It will be very easy for you to keep vacancy low and profit quickly.

How to Buy an Apartment for Real Estate Investing

There are many steps to buying an apartment for real estate investing. You will have to pick where it will be, find a good fit, conduct an analysis, look into options for financing, get it appraised, and then get tenants to start making an income from it. Below are the steps broken down into specifics to help you get started in apartment real estate investing.

Decide on a Location

The first step of buying an apartment is to decide where you will buy. There are important factors to consider: median home value, median age, unemployment rate, population growth, median salary, and job growth. All of these factors give you a little more insight into the area and the direction in which it is going. Areas with high job growth and low unemployment rates mean there are plenty of jobs. This, in turn, will lead to population growth and will result in more demand for apartments and eventually allow you to charge higher rates. Choose somewhere that is growing but not outright unaffordable for buying your first property.

Find Apartments for Sale

Once you have decided on a location, it is time to start looking for apartments for sale. At this point, you need to start considering what you are looking for in an apartment building. Consider things like the number of units, whether or not you will need to renovate, and home value. An apartment building may be a perfect fit with unit types, but it may not be the best option for your first investment property if it is pricey and will require work.

Perform a Property Analysis

Once you have narrowed down your search and found a few properties that you think could be a good fit, it’s time to perform a property analysis to understand further which property is the best option. Use the investment property calculator to get an idea of each property’s cap rate, positive cash flow, and cash on cash return. These numbers will let you know the property is a good investment or not.

Look Into Financing Options

Now that you have a better understanding of the costs of the apartments you are looking at and the return you expect to get, it’s time to look into your financing options. Most real estate investors do not have the capital on their first deal to buy it outright. Using financing will allow you to buy the property and use the income to pay it off quickly. You can either choose to finance through a traditional mortgage, a home equity loan, or private financing. Most beginners prefer to do a traditional mortgage for their first property, but you must do your research and find the financing option that works best for you. If you already have a home, you may be better off with the home equity loan.

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Get the Apartment Inspected and Appraised

Once you decide on the apartment you feel is the best investment, you need to have it professionally inspected and appraised. The inspection is essential to ensure you are not buying a property with any damage you were not aware of. Structural damage especially could be very costly. Your mortgage provider will require an appraisal to ensure the purchase price is similar to the appraised value.

Renting the Apartment

Once you have purchased the apartment, it’s time to rent it out and make some income. For the best results, you will want to invest in making any necessary home improvements and ensuring the apartments have a modern look with updated appliances and amenities. Make sure to screen all potential renters to lessen your chances of dealing with eviction or undesirable tenants. Hire an attorney when you first start off to deal with all of the legal aspects of renting out an apartment.

Summary

Learning how to buy an apartment is essential to a successful real estate investment strategy. It’s an excellent way for beginners to start making a reliable income from their investment properties. Apartments are generally very little work once they are purchased and are an easy way to make passive income.

For more tips on real estate investing, make sure to check out the rest of our articles.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Learn About Legacy Invest and Build Your Legacy

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Sponsored Post

Legacy Invest specializes in turnkey real-estate solutions, offering meticulously renovated properties that are tenant-ready and low-maintenance in St. Louis, MO.

This city has has emerged as Legacy Invest’s focal point, offering investors a thriving market with affordable yet appreciating properties.

Founded on principles of integrity and client care, Legacy Invest stands apart in the competitive landscape of real estate investment.

Legacy Invest, a company deeply rooted in family values, aims to provide top-notch properties that enable clients to build and sustain generational wealth.

In addition to single-family homes, Legacy Invest offers opportunities for investors to explore duplexes and multifamily properties. While turnkey solutions remain the firm’s forte, Legacy Invest has flexibility in accommodating individual preferences and investment strategies.

Learn more about Legacy Invest and the burgeoning St. Louis market today.

Tax Deeds & Tax Lien Sales Investing – Part 1

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By Tamera Aragon

When homeowners fail to pay real estate (property) taxes, the government has the right to sell their property in a state “tax sale”. In a Tax Lien state, homeowners have an opportunity to pay back the amount owed within a specific time frame even after their property has been “sold” to an investor. The investor may be paid back with interest. Should homeowners miss the pay deadline, the investor becomes owner of the property at great savings. In a Tax Deed state, investors bid for immediate ownership of a property or are eligible for the deed and ownership of the property after a redemption period passes.

By law, Tax Deed sales must be announced to the public, and are usually sold to the highest bidder. The winning bidder purchases the deed to a piece of property, becoming the new owner and obtaining all rights to the property – clear of any mortgages, liens, deeds of trust, etc.

One interesting thing to note is very few people know much about Tax Deed sales. So, competition may not be as fierce in this niche as it is in others.

Why Is Tax Lien & Deeds a Good Investing Niche to Consider?

  1. Tax Deeds are sold in almost every state throughout the United States. 50 states are governed by state-mandated laws to protect & reward investors.
  2. You can pick Your Price. Research the list and pick ones out that are in your price range.
  3. You can obtain properties which allow for all types of exit strategies (flip, rent, or live).
  4. Investors & Banks have been using this strategy for over 150 years.
  5. The rules vary from state to state. In certain circumstances you can obtain an entire property for only the taxes and penalties owed. Generally, you will pay between 50 to 90 percent below market price.

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General Downsides of Investing in Tax Lien & Deeds Niche?

  1. Lacking Liquidity of Funds: In a Tax Deed transaction, you can have your money tied up for several years before you can sell the property, because title companies may not issue title insurance on the property until all liens are cleared, and it is obvious that clear title can be granted. This process will sometimes take more than a year. Fixing up and or remodeling properties to maximize your eventually sale can also take considerable time.
  2. Time and Complexity: Tax Deed laws vary from state to state and sometimes from county to county within a state. This requires a time commitment to learn the rules of a state and its counties, research properties and attend auctions. In addition title companies sometimes will not issue title insurance for at least the first year on any property bought at a Tax Deed sale. This means it could be hard to get a loan until it is clear.

Investing Risk: Purchasing property at a Tax Deed sale definitely has risks if you have not done extensive due diligence. You must do your homework, title searches, drive buy inspections, history reports etc. Once you buy a Tax Deed, you will own the property including all of it potential problems. The major thing to keep in mind is that at a Tax Deed sale, unlike a Tax Lien sale, you are buying the real estate and we believe that the required level of due diligence becomes extremely high. The other thing you want to know at a Tax Deed sale is if the property is being purchased free of all other liens and encumbrances. There are a number of states where this is true and a few where it is not true. You need to make sure that you get what you paid for. This requires knowledge of what the values are and what the potential hazard could be.

In summary, Real Estate tax sale laws vary from state to state, as do the redemption periods, and there are risks investors should be aware of in addition to the potential rewards of buying tax sale properties.

Pros and Cons of Tax Lien & Tax Deed Sales

TAX LIENS: A lien is a financial claim made against a property. A Tax Lien is a claim for unpaid property taxes issued by the local taxing authority. Failure to pay real estate taxes is one of the leading causes of distressed properties leading to home loss. Investors typically buy Tax Lien properties through an auction after a homeowner fails to heed warnings by the tax authority to pay property taxes. Most states allow homeowners to reclaim their property by paying off the debt in full by a certain date. This is called the “Redemption Period”. The redemption period offered varies from state to state. However, in some locations, investors may have to wait two full years before being paid back or gaining the deed for the property.

Tax Lien Pros

  • Possibility of good returns in interest (up to 24 percent in some states) paid by homeowners.
  • Possibility of owning property at a fraction of its true value.
  • Option to sell, rent or hold the property for additional profit once title is held.
  • Lower Investment Risk: If the homeowner doesn’t pay up, the tax purchaser is first in line to own the property. No tenants, banks or brokers to deal with.

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Tax Lien Cons

  • May Not Make Any Money: There is no guarantee the homeowner will pay off taxes and interest on the lien. The process of getting the deed at the end of the redemption period isn’t simple and may require a lawyer.
  • Required Capital: You must pay what is typically a large amount of cash for your bid at the tax sale. You definitely will need more capital to buy properties at Tax Deed sales. Although it varies from property to property, from county to county, and even from state to state, you will likely need a minimum of $5,000 to $10,000 to get started in Tax Deed investing. A good credit rating may also be necessary to sign finance contracts. Check local rules and regulation as well as the history of Tax Deed auctions in an area to get a feel for the capital you may need.
  • Uncertainty of property condition: With no prior home inspection, there is no guarantee of the property’s condition or value.
  • Property Owner may Be Foreclosed on: If you foreclose, you are stuck with the hassle of selling the property from which you may profit but on the other hand you may not recoup your initial investment.

TAX DEEDS: A Tax Deed is a legal document indicating ownership of property, also referred to as “title.”When the government intervenes to put properties delinquent in real estate tax payments up for auction, investors can pay the back taxes and own the property for well below market value. To locate and invest in Tax Deed sales, check local newspapers, local tax collectors or the Internet, where many websites post relevant information.

Tax Deed Pros

  • Quick and easier way to become a property owner.
  • Opportunity to acquire existing equity.
  • Opportunity to purchase property directly from the property owner at bargain-basement prices prior to a Tax Deed sale.

Fortunately, investors who sow the seeds of diligent research can reap the rich rewards of tax property sales. DUE DILIGENCE is required for Tax Lien and Tax Deed investing deals. This concludes my article on Investing in Tax Deeds and Tax Lien Sales – PART 1.

Please watch for my next investing article that will wrap up all you need to know to start investing in Tax Deeds and Tax Lien Sales – PART 2. I’ll be going over the steps real estate investors should take for Tax Lien and Tax Deed Investing deals.

Tamera Aragon

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Inflation, Home Price Swings, and Wealth Distribution

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By Rick Tobin

Between January 2020 and October 2021, the M1 money supply (cash or cash-like instruments) quickly rose from $4 trillion up to $20 trillion in just 22 months. Money velocity, or money creation speed, is the true root cause of rapidly declining purchasing power and skyrocketing inflation. The more money in circulation, the less purchasing power for the dollar.

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In January 2024, Americans were paying $213 per month more to purchase the same goods and services one year earlier in 2023 because of rising inflation and the declining purchasing power of the dollar. As compared with two years ago in 2022, Americans are paying $605 more per month. Sadly, we’re now paying $1,019 more PER MONTH ($12,228 more per year) today for the same goods and services we purchased three years ago in 2021.

Shipping, trucking, and other transportation costs are quickly rising amid geopolitical tensions. Historically, increasing transportation and energy costs are a root cause of inflation trends. Don’t be surprised if inflation rates and interest rates are both higher later this year instead of lower.

Home Value-to-Income Ratio in the U.S.

The U.S. home value-to-income ratio is calculated by dividing the $342,000 median home value by the $74,580 median household home, according to Economy Vision. If home prices had grown at the same rate as income since 2000, the median U.S. home would cost nearly $294,000, or 31% to 32% lower than today’s prices.

U.S. households need an average income of $166,600 to afford a home, but the median household income is $74,580. The lowest home price-to-income ratios in large metropolitan regions are in Pittsburgh (3.2x), Buffalo (3.5),and Cleveland (3.5), while many California regions are near 10 to 20x. Some smaller suburban or rural regions in Southern Illinois and other Midwest regions are closer to 1.5 to 1.8 for home price-to-income ratios.

Increasing Distressed Residential and Commercial Mortgage Numbers

Millions of Distressed Residential Mortgages

The federal government keeps extending the millions of distressed FHA and VA loans, or offering discounted loan modifications, partly so that they don’t push the national home listing supply skyward and reduce home prices at the same time.

The C-19 foreclosure or forbearance moratoriums for millions of FHA and VA borrowers began back in the fall of 2020. As a result, many of these home borrowers haven’t made a mortgage payment for more than three years.

The FHA forbearance moratoriums for FHA borrowers expired on November 30, 2023 while the VA forbearance moratoriums were extended until May 31, 2024. At some point, these loans will need to be brought back current, sold, or foreclosed.

In the previous housing crash that was especially bad during 2008 to 2012, only about 2% (or 1 in 50 mortgages) of all residential loans were delinquent. Yet, these distressed home mortgages became future lower value comps for the nearby homes while driving their prices downward too, sadly.

If and when the national home listing supply numbers rapidly increase this year, it will eventually have a negative impact on home price trends because it’s all supply-and-demand economics at the true core. When supply of a product or asset rises and exceeds buyer demand, then prices tend to fall (and vice versa).

Concerning Commercial Mortgage Trends

An estimated 44% of office buildings nationwide with mortgages in place are claimed to be upside-down with negative equity here near the start of 2024. Some office buildings are selling for as low as $9 per square foot, not $900/sq. Ft. By the end of 2024, the underwater office building numbers may be well over 50% and the overall underwater or upside-down numbers for all commercial property types may be somewhere within the 20% to 25% range.

Physical and Online Retail Store Numbers

  • In Q3 2023, the amount of U.S. retail space available for lease plunged to an all-time low since the CoStar commercial real estate group started tracking back in 2007.
  • The previous seven years in a row (2017 – 2023) shattered all-time retail space closings per square foot in U.S. history.
  • Through just September 2023, 73 million square feet of retail space closed in 2023, as per Coresight.
  • 140 million square feet of retail space has been demolished in the last decade, according to CoStar.
  • Top 6 online sales percentages in 2023: 1. Amazon (37.6%); 2. Walmart (6.4%); 3. Apple (3.6%); 4. eBay (3%); and 5. Target and Home Depot (a tie at 1.9% each), per Statista.
  • 10.4% of total annual U.S. retail sales were online in 2017;
  • 12.2% of total annual retail sales were online in 2018;
  • 13.8% of total annual retail sales were online in 2019;
  • 17.8% of total annual retail sales were ecommerce in 2020;
  • 18.9% of total annual retail sales were ecommerce in 2021; &
  • 18.9% of total retail sales were online in 2022, per Statista.
  • The full 2023 online year results weren’t published yet.

Record-High Car Payments

Some new monthly car payments are reaching $3,000 per month, while average new car payments are near $730 to $750 per month. Additionally, many monthly car insurance payments are reaching $400 to $500 per month in cities like Detroit and Philadelphia. How much are these car owners paying in gas and maintenance as well?

The national average cost for car insurance rose a whopping +26% from last year, according to Bankrate.

The most expensive cities for car insurance are:

Detroit – $5,687
Philadelphia – $4,753
Miami – $4,213
Tampa – $4,078
Las Vegas – $3,626

The cheapest cities are:

Seattle – $1,759
Portland – $1,976
Minneapolis – $2,044
Boston – $2,094
Washington D.C. – $2,430

The average car loan today is valued at 125% LTV (loan-to-value) for the typical car on the road with a loan with an average negative equity balance of -$6,000. This is partly because so many car buyers are purchasing cars with no money down and adding their registration, licensing, taxes, and warranty fees on top of it before driving off of the car lot. New cars usually drop in value about 20% in the very first year of purchase.

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Inflationary or Deflationary Economic Cycles

Inflation has been described as an increase in the general level of prices of a certain product in a specific type of currency. Inflation can be measured by taking a “basket of goods,” and then comparing them at different periods of time while adjusting the changes on an annualized basis.

General inflation measures the value of a currency within a certain nation’s borders, and refers to the rise in the general level of prices. Currency devaluation measures the value of currency fluctuations between different nations. Some related terms associated with inflation are as follows:

* Deflation is a rise in the purchasing power of money, and a corresponding lowering of prices for goods and services. The Fed doesn’t like this economic period of time and will probably cut short term rates to offset it.

* Disinflation refers to the slowing rate of inflation. The Fed may like this type of economic time period, and may stop raising rates at this point in the economic cycle.

* Reflation is the period of time when inflation begins after a long period of deflation. Depending upon the severity of inflation, the Fed may pause the rate hikes or gradually begin rate hikes.

* Hyperinflation is rapid inflation without any tendency toward equilibrium. It is inflation which compounds and produces even more inflation. It is when inflation is much greater than consumers’ demand for goods and services. The Fed, and the rest of America, do not typically like this economic period, so they may enact a series of significant rate hikes to slow inflation.

The Wealth Distribution Imbalance

Wealth distribution across the U.S. has become increasingly concentrated in the hands of fewer people since 1990. Overall, the top 10% of wealthiest Americans own more than the bottom 90% combined, with more than $95 trillion in wealth for the top 10%.

Here in 2024, the share of wealth held by the richest 0.1% is near its peak with a minimum of $38 million in wealth in just 131,000 households.

With $20 trillion in wealth, the top 0.1% earn an average of $3.3 million in income each year. The greatest share of the wealth owned by the top 0.1% is held in corporate equities or stocks and in mutual funds, which make up over one-third of their total assets.

Households in the lower-middle and middle classes as found in the 50% to 90% income and asset brackets are claimed to have a minimum of $165,000 in wealth held primarily in real estate and followed by pension and retirement benefits.

Unless you’re in the Top 0.1%, the odds are quite high that the bulk of your wealth is concentrated in real estate if you’re fortunate enough to own at least one property today. In our next meeting, we will discuss how to find discounted real estate and other investments and how insurance and estate planning can help protect your assets for you and your family.

Extreme Rate Swings, Steady Home Gains

Between 2000 and 2023, the median U.S. home appreciated approximately 10.63% per year. By comparison, California homes rose 12.55% per year between 2000 and 2023.

Doubling Value Forecasts: The Rule of 72 is an investment formula used to estimate how long it may take for an asset to double in value using a projected annual rate of return (72/7 or 7% = 10+years).

A home purchased using the national average annual gain of 10.63% would double in value in just over 6.77 years if purchased this year (72/10.63 = 6.77 years). A California home would double in just 5.74 years (72/12.55) if these same average annual appreciation gains continued.

Home prices tend to go skyward following a Fed pivot when they start slashing rates. When will the Federal Reserve start cutting rates again? Let’s take a look at their calendar for 2024 two-day meeting dates: Jan. 30-31 (no rate change); March 19-20; April 30- May 1; June 11-12; July 30-31; Sept. 17-18; Nov. 6-7; & Dec. 17-18.

Inflation severely damages the purchasing power of the dollar while usually boosting real estate values. Because it’s more likely than not that inflation will continue rising above historical average trends, then real estate may be one of your best hedges against inflation as your wealth compounds and increases as well.

Rates may be lower, the same, or higher by the end of 2024, partly due to our volatile inflation movement and weakening dollar. However, there’s a tremendous upside for real estate investors if you’re willing to stay focused on the opportunities and not let the negative news scare you away.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Elevate Your Experience this Saturday

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What Can You Expect from Realty411’s Investor Summit? 

Watch these videos below to find more information.

Elevate your experience at Realty411’s Investor Summit in Irvine, California, by upgrading to a VIP Guest. Our National Investor Summit is this Saturday, February, 24th, 2024. This event will unite investors from throughout California and the nation!

We are starting a 9 am with networking and a delicious breakfast for our VIP Guests. In addition, our VIP Guests will also enjoy lunch with additional networking opportunities with like-minded real estate investors. VIP Guests will also receive our latest publication.

Don’t forget to Elevate your Experience with a VIP TICKET today. Only a limited amount of VIP tickets remain at $47.

A variety of important subjects will be discussed at our upcoming conference, including: multifamily investing, land banking, industrial real estate, infinite banking, asset protection, real estate development, single-family investing, finance and private lending, lead generation for agents/brokers, out-of-state investing, probate investing, long-distance rentals, mindset for success, and so much more!

Be sure to connect in Southern California THIS SATURDAY, February 24th, 2024. Join us to learn and network with fantastic companies, such as:

Marco Kozlowski, Investor & Author
Marcella Silva, Dirt is Gold
Rusty Tweed, TFS Properties
Abbas M., Model Equity
Amanda Brown, MAG Capital Partners
Barry Duron, AltLender Mortgage
Jonah Dew, The Cash Compound
Jeremy Rubin, The Friendly Flipper
Kaaren Hall, uDirect IRA Services
Kris Miller, Legacy Wealth Strategist
Paul Wilkins, Probate Expert / Investor
Anthony Patrick & Mindy, New Harvest Ventures
Eli Smushkovich, CV3 Financial Services
Linda Pliagas, Realty411.com
And More!

DOWNLOAD AND LEARN TODAY!

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Maximizing Your Home’s Value: Top Interior Design Secrets for Resale Success

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By Michael Alladawi

If you want to maximize your home’s value, a well-designed interior can make a huge difference. Whether you’re planning to sell or just increase its worth for the future, implementing key design strategies can pay off big time.

But before you dive into making changes, it’s crucial to understand what truly adds value. Not every design choice will significantly impact resale value, so it’s essential to focus on the areas potential buyers are interested in.

Use Energy-Saving Fixtures

As the issue of environmental concern grows and utility costs escalate, many buyers now consider energy efficiency as they look for a new home. By adding power-efficient features, you will be able to satisfy this need and improve your house’s value greatly.

There are many energy-saving appliances now available. Take LED lighting, for instance. The average energy saving through these devices has been noted as being up to 75% less than what amount is needed in standard incandescent lamps, and their life is much longer.

Apart from cost saving, these characteristics can also be a healthier and more environmentally balanced way of living. Smart thermostats, leak detection systems, and smart home systems often attract new buyers and are a good way to increase your home’s value.

Undertake a Kitchen Remodel Project

The kitchen is commonly referred to as the heart of any home. It is the place where food is cooked, and families sit together to enjoy each other’s company. This could make a modern kitchen a great selling feature.

Some of the most common updates that will make your kitchen look much better without breaking the beak include modern appliances, countertops, and cabinets. One of the most common improvements is stainless steel appliances, as they look great and last seemingly forever.

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Granite countertops or quartz countertops are also popular due to their high-end look and durability for regular usage. Adding cabinets to your kitchen also gives you more room for storage and keeps things organized.

But, when you do a kitchen remodel, the aesthetics must be balanced with practicality. If you have a kitchen with a beautiful but less-than-functional design, prospective buyers will be turned away. You can also consider introducing a practical layout, a generous amount of counter space, and easy-to-clean surfaces.

Replace Outdated Carpets and Rugs

Firstly, updating your rugs and carpets inside the house can make a great deal of difference in its overall aesthetics. For example, hardwood floors are what many homeowners turn to because they have a timeless appeal and a better wear and tear rate. They are easy to maintain, flexible, and can fit in nearly any interior design idea you might have.

Another great option is tile, especially when applied to rooms like the kitchen or in a bathroom remodel since they require water resistance. Tiles can also be a great decor solution, available in many colors, patterns, and textures.

The investment in new flooring may appear to be a larger expense initially. However, taking into account the possible return on investment, it can pay dividends in the long term, considering you’ll be less likely to need a flooring remodel in the future as well.

Remove and Restyle Outdated Popcorn Ceilings

Many homebuyers consider popcorn ceilings – which used to be a norm in homes constructed from the 1950s to the 1980s – outdated. From a design standpoint, popcorn ceilings can darken and date the look of any room they are found in. Plus, these textured ceiling coverings made with similarly textured materials may contain asbestos, which is now illegal to produce since 1977.

Removing popcorn ceilings and adding a more contemporary finish make your home look newer. The process includes removing the old texture, fixing any issues with the original surface if needed, and applying a new finish headboard or even just smooth plaster.

Redesigning your ceilings not only adds fresh style to your house but also allows you to improve lighting and insulation. Smooth surfaces reflect light better, which creates a brighter and more spacious room. In the meantime, if you replace insulation during repairs and remodeling, you may likely improve energy efficiency in the home.

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Maximize Practicality with Added Storage and Closet Spaces

Ample storage space is one thing that potential buyers may seek in a home. Insufficient storage can create the impression of a too-cluttered or small home, which is often a no for many buyers.

There are numerous creative designs for storage or closet spaces in underutilized areas. You can, for example, convert the area under staircases into a small closet or put shelves or custom cabinets in hallways or alcoves. For bedrooms, there could be a walk-in closet or bed frames with storage compartments.

These features not only provide you with additional space for storage in your home but also improve usability. The benefits of a well-organized home cannot be overemphasized since this type of environment attracts potential buyers who are willing to pay more in order to live in a more practical space.

Use Strategic Paint Choices

One of the simplest ways to transform and modernize a space is by giving it a fresh coat of paint. A relatively cheap renovation could help you greatly improve the attractiveness of your residence.

In the choice of paint colors, it is wise to go with neutral hues. Even though bold and bright colors can show your style, they may not be attractive to many buyers. Whites, greys, and beiges attract the largest spectrum of users – these colors are easier to match up with interior styles and furniture colors. They also create an illusion of larger and brighter spaces, which is more welcoming.

But neutral does not have to be boring. Make your interiors interesting using different shades and textures within the same color family. Additionally, saturation of the paint should also be considered. The most commonly used are satin and semi-gloss finishes since these alternatives are easier to maintain and last longer.

Get the Most Value Out of Your Renovations

Renovating your home can be exciting, but you shouldn’t forget that not all renovations will increase the value of the house. When planning a renovation, you should consider current trends while also looking at your budget. This could protect you from overspending on unnecessary improvements and also help you to identify which renovation techniques will give you the best return on investment.

MEET MICHAEL ALLADAWI

Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.

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