Investing in real estate in Hampton Roads, Virginia can be a highly profitable enterprise - for those who know what adds value and what attracts buyers.
Whether it’s a rehab project or a full teardown, here are four ways to meaningfully maximize profit on your next real estate investment in Hampton Roads.
1. Build for the Buyer (and Never Over-Build)
When you’re choosing a neighborhood in Hampton Roads, it’s important to take note of the other houses in the area and what they offer to potential buyers. Why? Because this tells you what potential buyers will expect from your house once your work is complete.
This can also help you from falling into one of the most dangerous traps in real estate investment: over-building your house. Sure, you can put $150,000 worth of work into a property, but if you bought the house for $200,000 and nothing in the area is selling over $250,000, you’re probably going to end up taking a loss. Take careful stock of what buyers expect to pay in addition to what features they expect from a house - this can save you an awful headache when it finally comes time to sell.
2. Don’t Neglect Tech
Hampton Roads’ growing economy is great for real estate investors - new jobs bring new residents, and an increasing standard of living means existing residents might be looking for an upgrade.
With that in mind, it’s important that your house be wired for the tech-savvy buyer. The scope of this work is up to you, but it can range from small touches (USB ports on the outlets) to more extensive smart home systems (a smart thermostat, for example). Whatever updates you decide to incorporate into your investment property, technology can go a long way towards helping your home stand out from the crowd.
3. Keep Building Costs Down
One of the toughest parts of real estate investing is building cheap without feeling cheap. Luckily for you, there are a few easy ways to do this.
First, you can identify low-cost materials. While shopping around can help you find the best deals, there are also a few tricks to getting the absolute cheapest materials possible. For instance, when it comes time to paint your house, your local hardware store will probably have a section for deeply discounted paint (commonly known as “oops” paint) - whether a customer opened and returned the paint, or the hue is slightly off, as long as the color works for your house then you can acquire it at a fraction of the regular cost.
Next, no matter what kind of work you’re doing on a property, you should always get competing bids from multiple contractors - this can help you understand what options are available, and will ensure you get the best price possible for the job. Negotiating is the easiest way to reduce your costs, and requires the least amount of work from you.
4. Get Funding From Walnut Street Finance
The final way to maximize profit on a Hampton Roads real estate investment is to acquire funding through Walnut Street Finance.
Walnut Street Finance offers hard money loans that meet the needs of nearly any type of real estate investment project. Unlike traditional lenders, our loans can be secured easily and quickly, don’t require perfect credit, and come with decades of experience working with real estate.
If you’d like to learn more, contact Walnut Street Finance today, or check out our free ebook Building Your Real Estate Empire: Borrower Basics 101.