Purchasing homes is an emerging trend in today’s market
Sometimes people cannot afford the mortgage after a divorce or the passing of a loved one. Other times, necessary renovations make it hard to keep up the home, and the owner decides to sell it to keep from losing any more money. Several companies are buying houses in an “as is” condition. Many individuals are also participating in the newest trend. For some, residential real estate investing has become a favorite way to make a bit of extra money. People and companies are buying homes for cash, remodeling the properties, and selling them for a profit. Sometimes these homes are fixed up and rented out to give owners some residual income, but this can come with several dangers.
Buy now and save for later
Many people are beginning to use residential real estate investing as a way to fund retirement. The ability to purchase a home or two and sell it down the road is a sound investment for aging Americans. They are typically buying homes for cash, fixing them up with reputable contractors and remodeling companies, and saving them to sell down the road. The money they get from future sales is then put into a high-interest account to use after retirement. Between buying and selling these homes, people are using them as vacation properties and rentals. Some people are even using one home as a rental to pay for their mortgage on their current home when the prices match.
Companies are buying properties to increase their brand identity
Businesses are always looking for new ways to get their name out in the public domain. Many firms have seen their neighborhoods lose value and properties torn up from freeloaders. To remedy this situation, these companies are investing in their communities to help repair the damage from the foreclosure crisis. Many are purchasing homes as bank-owned properties and fixing them up before selling them to people who are looking to move into their area. Other businesses are finding extreme profits in flipping homes quickly. This involves taking a newly purchased home and getting it fixed up to resell in 30 to 60 days. In the right market, these flips can net the company thousands of dollars. Companies are also using these homes to boost tourism in their community by fixing them up and using them as rentals for tourists. Renting a home while on vacation is another fast growing trend in America. Houses are cheaper and more spacious than hotel rooms.
Here are some houses we bought for cash and improved:
Which is your favorite before and after photo?