How To Profit From “Prehabbing” A Property
Q: I’ve been looking for properties to fix and flip. The properties I’ve found so far need complete gut renovation which I’ve never done before. Do you think I should go for it even though I don’t have any experience? Gus, Bayonne, NJ
A: I don’t think the first fix & flip rehab you do should be a complete gut renovation. You can always wholesale property for profit which does not require you actually buy or renovate the property. If you are going to buy, fix and flip a home, I suggest you buy a property that does not require too much renovation. You can also buy a home and do a light, cosmetic renovation. A cosmetic home renovation, also referred to as ‘prehabbing’ is a way to increase the value of a property without investing the time or expense of a major renovation. Prehabbing is the process of positioning a property for resale by adding minor cosmetic updates and then selling the property to another real estate investor who will complete the full rehab on the property. Thanks for your question, Gus.
For more real estate tips and information visit my blog at geraldlucas.com.