What You Must Not Believe About Rehabbing

Many successful house rehabbers fear as an acronym: False Evidence Appearing Real. This is usually caused by lack of proper knowledge. You can work to build your self esteem on your own but you will surely need help on improving your knowledge. To help you know more about rehabbing, here are some items you must NOT believe about the business.

  1. It dies amid the recession. This is a common misconception. It is true that the recession caused many industries to slump and the real estate market is not exemption. However, there are real estate businesses that are thriving even in an economic slump. Rehabbing is one of them. Much of this has to do with the availability of cheap properties you can repair and sell for a profit. Fixer upper homes are a favorite among rehabbers. These are dilapidated properties sold at bargain prices. Sometimes you will find fixer upper homes that only require a little paint and new light bulbs. You can also rehab REOs, or real estate owned properties. REOs are properties repossessed from owners who failed to settle mortgage or other financial obligations.
  2. You need to have a very fat wallet to be able to rehab properties. It is true that a fat wallet is needed to buy and repair properties. That doesn’t mean that the wallet should be yours though. A lot of lenders are willing to finance deals for those who do not have the money. Hard money lenders are examples. These are private individuals who have ready money. In exchange for the funding, you will pay them the interest. Sometimes they ask for a point, which is equivalent to one percentage point of the loaned amount. You can also borrow money from banks, credit unions, and other conventional lenders.
  3. Watching TV shows about rehabbing is enough to make you succeed in the business. In this business, people who know and use the right strategies make it big. Those who know little stay crawling in the dark. Your real estate education is one investment you will never regret. Buy books and magazines and read them. Attend seminars held by successful real estate investors. You can also go online and learn more about this very profitable business. Try websites like rehab-real-estate.com and click on its e-Learning Center. Rehabbing is rewarding for those who know what to do and apply what they know.  So throw away that F.E.A.R. and start learning more about rehabbing today.

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