Want to buy and sell a house in Latin America to get more money? That used to be the trend before the coming of the last economic crisis in 2008, when prices of homes crashed. But things are getting better now. The real estate industry, especially in the residential sector in South America, is showing signs of recovery.
Sales for new homes went up smartly in the early half of this year, and previously-owned houses rebounded in the 2nd quarter. If youd look at online sites for free classifieds or clasificados gratis in Spanish, youll notice a big increase in the number of sellers and those who intend to buy a housing unit.
That means it is not far-fetched that you will make money if you try the real estate business again. Consider these pieces of advice to help you make a successful comeback.
Buy and Sell Fast
When buying and selling a house with the purpose of generating profit, make sure that you understand well that in this business, it is important to transact fast. The focus should be on how you can increase the number of transactions that you can do in a given period of time. Speed is more important than maximizing profit on each transaction. Delays wonât do you good as they will just increase risks. Sell one property quickly and at a low price and then move to the next transaction rather than maximizing gains on one transaction by selling the house at a high price.
The technique to doing this kind business fast is to buy cheap houses and then sell them at prices under market. You have to be patient, show restraint and try to look for more and more deals.
Be Cautious about Costly Repairs
It is good to have cosmetic repairs on the houses that you buy, but do a little bit of control. Yard touch-ups and replacing carpets are okay, but projects that require large financial investments should be avoided. So, think twice before you do a layout change on an entire house, or update the bathrooms and kitchens of the properties youâre trying to sell. Doing so would delay selling and force you to sell the property at a higher price. Time is a very important factor in this business because anything can change in the market at any given time.
Shun the Debt Deals
If it is possible, never buy properties that you cant pay for in cash. This strategy can make you save money and reduce the risks.
With loans, there are lending fees to pay. Also, if the time to hold your loan is only very short, you wonât be able to make amortizations that are comfortable for you to pay. That means you will not be able to spread payments for a long time so that the impact on your finances can be greatly reduced. Consider a $100,000 loan, nothing more. For fees, it might go as high as $2000, and you will pay that money for three times in a year, given that you intend to dispose three houses in one year. That will amount all in all to $6000 in fees and points. Buy properties with cash and you will not have to worry about these things. Also, those who are using loans to do this business are actually losing a lot of time. Waiting for loans to be approved consumes large amounts of a borrowers precious time.
Post Free Classifieds
Post your offerings on classified ad websites. Thats a lot cheaper than buying media spaces. The most effective classified ad sites are those that allow potential buyers to contact advertisers through a link on their sites. Other sites have features that allow the sending of email to advertisers.
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