Investing in a house you plan to renovate can be highly lucrative if done correctly. It can also be costly if you don’t have all your facts and plans firmly in place before you start. Understanding how the property market works and what renovations will add value to your investment are essential before you begin your search for the investment property.
Buying in the U.S. residential property market makes sense because the buy-in costs are lower than purchasing Australian or New Zealand residences. However, buying as an overseas investor adds another element to understand.
A renovated residential property can increase in value by up to a few hundred thousand dollars, depending on the initial investment costs. Most renovated properties can sell for at least $100,000 above the initial price. If you keep your renovation costs to a strict budget, you can expect to recoup $40,000 to $60,000 in profit.
Area Is Important
Purchasing the right renovation property is essential, and one of the critical selection criteria for your investment project should be area. Location is always important when buying real estate, but your selected place will directly impact your profits.
Some of the critical things to consider when thinking about which area to buy a renovation property in include:
• Worst property in a good street,
• Growth areas and popular suburbs,
• Economic stability and growth in the region and the
• Location of the house itself.
Let’s look at each of these factors briefly.
Choosing the worst property in an excellent street to renovate is often cited as the best option. However, it depends on the worst property. If the house is not structurally sound or is a wrong property for reasons you cannot change with a renovation, it won’t matter how much you renovate it; buyers won’t pay a premium when you sell. Instead, look at properties on popular streets with nothing major wrong with them and that a renovation will change how they appear on the market.
When considering which suburbs, look for growth areas and suburbs that are growing in popularity. There are always areas where it becomes fashionable to live, so these suburbs experience growth in value faster than other areas. Choosing a renovation property in a trendy suburb can help you to increase your profits.
Economic stability and growth in the region are essential. If the whole town relies on one industry or a large factory, what will happen to your investment if the sector fails or the factory closes down? Ensure you buy a property in an area or region with good economic stability and a part where growth is happening. Purchasing a residential property isn’t a wise choice if businesses are closing down in the area. More people will want to live there if enterprises open up and expand in the area.
Finally, the location of the house itself will be a deciding factor. Consider the proximity to local facilities, including schools, access to public transport, and shops. Then look at the negatives of the house itself. Does it have easements or a right of way that impact this house but won’t affect neighbouring places? Is the property next to something undesirable to live next to? Is the property built on a hill?
Considering these factors about potential renovation properties, you’ll have far better ideas and information about the best investment property to buy.
Strategy
Before you choose a property and start transforming it, you need a strong investment strategy. Your investment strategy considers your budget, timeframe, whether you employ a property manager, and how soon you want to access the profits from your investment.
Planning your budget includes not only budgeting for the initial buy-in price of the property. It also allows for all the turnover costs, including currency exchange rates, finance charges, solicitor’s fees, and charges for property turnover by local authorities. Your budget will include planned renovation costs and should indicate the expected sale price at the end of the process.
Your strategy will provide a realistic timeframe for purchase, renovation, and completion of sale. Planning your system includes the settlement periods at either end of the purchase and sale, plus allowing realistic timeframes to market the property.
When planning your strategy, you’ll need to know when to ask for advice or help from others. Especially if you are completing a renovation in a U.S. property, you’ll need to rely on local knowledge and expert assistance to work on your behalf and for your benefit. You may need to employ a property manager to manage the renovations and liaise between you as the owner and the tradespeople working for you.
Your strategy should consider where you will find your expert help and include the costs in the budget.
Setting a strategy for one property will impact your other investments, cash flow, and availability of funds, so you need to know how this renovation project fits in with your overall investment strategy.
Framework
A good framework can help you decide on the best investment property for your circumstances. The framework provides the details for buying a suitable property, checking that you have completed all the required paperwork, paid all taxes, and sorted out the legal requirements, including hiring tradespersons in the U.S. A framework can include checklists that give you the answers you need when comparing properties.
Just like the house’s framework provides the structural strength to hold up the roof and walls, your framework will hold up your investment portfolio and give you confidence in your decisions. The framework will provide checklists and details for the renovation project management and will help you when you decide to sell the finished house.
Where to go Next?
Once you have decided to buy a renovation property in the U.S., you’ll need time to work out your investment strategy and find the proper framework to suit your needs. Luckily, you do not have to do this all on your own. Plenty of investors have tested the waters in the U.S. property market before you and know where the shallows and shoals to avoid are.
Completing a course to understand the advantages of investing in the U.S. property market could help immensely. Aligning yourself with a company of investors and market experts can help you to gain the knowledge and experience you need to ensure your renovation property is a success. Choose a course that enables you to talk directly with mentors and experts and helps you plan and execute your strategy and framework in property investment.
A robust framework, expert advice, a well-thought-out strategy, and local area knowledge will help you to achieve your investment dreams. To discover more about formulating strategy, plans, and a good framework for investing in property in the U.S., you can read our blog on Why Invest in the U.S.
U.S. bank collapses and the impact on the property market for foreigners.
/in Uncategorized /by Lindsay StewartThere’s been quite a bit happening in the last week in the U.S. financial markets with the 2nd largest banking collapse in the history of the U.S. – Silicon Valley Bank (SVB).
With around USD212 billion in assets and funds, SVB was the 16th largest bank in the States. As their name suggests, Silicon Valley Bank specifically targeted tech start-ups and the venture capital investors and firms that support these.
What happened with Silicon Valley Bank?
Silicon Valley Bank (SVB) was essential a bank targeting tech start-ups, and the venture capital investors that fund them. The pandemic and particularly post pandemic period has been very tough on a lot of tech companies (particularly new start-ups) and crypto and we have seen both shares in these companies and crypto values plunge in the past 12 – 18 months. This put a large strain on several tech companies who then needed to recall any cash reserves they may have had, and/or the investors invested in these start-ups try to recoup cash to cover expenses.
This left SVB with very low reserves, so the bank then went out to market to attempt to raise capital to boost reserves, which was unsuccessful. This activity has spooked the market somewhat and started to create a ‘bank run’ on the bank.
What is a ‘bank run’?
Essentially a ‘bank run’ is when many customers all try to withdraw their funds within a short period of time. Or, as possible in the case of SVB, even just a few customers withdrawing large amounts can be problematic.
Banks will generally only hold around 10% of deposited capital in liquid reserves, with the rest being lent out or used for investment returns as profits for the bank. This is how banks earn their profits. By paying customers a small amount of interest on their deposit, they then use these funds for investments or loans and earn a higher rate, the difference being their profit margin.
What did the bank do?
With the capital raise unsuccessful, the only option SVB had left, was to sell a large number of 10-year Treasury bonds they had purchased as an investment. For those that are not familiar with bonds, these are essentially IOUs purchased from the government or central bank. They pay you a yield on each bond based on the current interest rate, for the term of the bond – generally 5-10 years, at which point the government buys them back. Essentially lending money to the government for a fixed period at a fixed rate. Generally, a safe investment…. right?
Issue was, the bonds they owned at pandemic interest rate levels of around 2%, are significantly lower than current bonds that can be purchased from the Fed at around 4%+ yields, so they needed to sell early at a greatly reduced price to entice buyers, hence realising a massive loss…
Shareholders and customers got wind of this, and a massive bank run ensued until the U.S. Government stepped in…
What is covered by the U.S. Government?
Small financial institutions in the U.S. are not necessarily covered by government regulations, but most reasonable sized banks that adhere to the federal banking regulations and have a reasonable credit rating, are. The U.S. Government has what is called the Federal Deposit Insurance Commission scheme (FDIC). This guarantees all deposits in any bank with FDIC up to US$250,000 are safe.
What the government has also done is stepped in and said that they’re going to guarantee all funds and Silicon Valley Bank to all their deposits or the clients. Note: this does NOT cover the bank itself, or the shareholders/ bondholders of the bank.
What was the cause?
While the poor performance of tech shares, and crypto values of recent times certainly started the issues SVB had, their large exposure in Treasury bonds also is being looked at. Truthfully, such a large exposure in long term fixed bonds, ‘banking’ on the interest rates to stay low, was certainly a mistake. Whether the bank had sufficient regulations in place to manage and monitor such a risky investment decision is being questioned, but likely all too little too late now.
The underlying current volatility in economic & financial markets globally is certainly putting a strain on the economy and that’s when we can start to see cracks appearing. While I do not believe this is solely the cause for the failure of SVB, the strain of the current economic times has brought to head several questionable decisions made by the bank.
How does this impact the U.S. Residential market?
This has been no impact directly on the US. housing sector. With the bank being predominately a tech industry bank, it’s not likely to have an effect. Most residential mortgages are held with large nationals, which, while not happy with the U.S. government tipping into the banking fund to bail out the bank, are largely unaffected.
One of the things that the U.S. Government or the Federal Reserve Bank may do though, is pause on interest rate rises. There’s a very good chance now that they may let the dust settle first before they look at any additional rises. There was forecasted a rise for March, which I believe is now unlikely. Again, it may even change their entire policy moving forward altogether, although unlikely. A lot will depend on how much impact they see this collapse and the smaller banks also collapsing is having on the financial sector.
Where to from here?
All I can suggest is diversification is probably one of the best things you can do. The adage – “Don’t have all your eggs in one basket” comes to mind. This volatility is impacting global markets and even here in Oz, our housing market, rental market, job market is all affected. Diversification is the best method of hedging against any market volatility.
I will certainly watch this space going forward and let you know any further developments. If diversifying your property portfolio is something you are considering, or even looking at investing in property
Essential Things to Know Before Investing in Your First Renovation House
/in Uncategorized /by Lindsay StewartInvesting in a house you plan to renovate can be highly lucrative if done correctly. It can also be costly if you don’t have all your facts and plans firmly in place before you start. Understanding how the property market works and what renovations will add value to your investment are essential before you begin your search for the investment property.
Buying in the U.S. residential property market makes sense because the buy-in costs are lower than purchasing Australian or New Zealand residences. However, buying as an overseas investor adds another element to understand.
A renovated residential property can increase in value by up to a few hundred thousand dollars, depending on the initial investment costs. Most renovated properties can sell for at least $100,000 above the initial price. If you keep your renovation costs to a strict budget, you can expect to recoup $40,000 to $60,000 in profit.
Area Is Important
Purchasing the right renovation property is essential, and one of the critical selection criteria for your investment project should be area. Location is always important when buying real estate, but your selected place will directly impact your profits.
Some of the critical things to consider when thinking about which area to buy a renovation property in include:
• Worst property in a good street,
• Growth areas and popular suburbs,
• Economic stability and growth in the region and the
• Location of the house itself.
Let’s look at each of these factors briefly.
Choosing the worst property in an excellent street to renovate is often cited as the best option. However, it depends on the worst property. If the house is not structurally sound or is a wrong property for reasons you cannot change with a renovation, it won’t matter how much you renovate it; buyers won’t pay a premium when you sell. Instead, look at properties on popular streets with nothing major wrong with them and that a renovation will change how they appear on the market.
When considering which suburbs, look for growth areas and suburbs that are growing in popularity. There are always areas where it becomes fashionable to live, so these suburbs experience growth in value faster than other areas. Choosing a renovation property in a trendy suburb can help you to increase your profits.
Economic stability and growth in the region are essential. If the whole town relies on one industry or a large factory, what will happen to your investment if the sector fails or the factory closes down? Ensure you buy a property in an area or region with good economic stability and a part where growth is happening. Purchasing a residential property isn’t a wise choice if businesses are closing down in the area. More people will want to live there if enterprises open up and expand in the area.
Finally, the location of the house itself will be a deciding factor. Consider the proximity to local facilities, including schools, access to public transport, and shops. Then look at the negatives of the house itself. Does it have easements or a right of way that impact this house but won’t affect neighbouring places? Is the property next to something undesirable to live next to? Is the property built on a hill?
Considering these factors about potential renovation properties, you’ll have far better ideas and information about the best investment property to buy.
Strategy
Before you choose a property and start transforming it, you need a strong investment strategy. Your investment strategy considers your budget, timeframe, whether you employ a property manager, and how soon you want to access the profits from your investment.
Planning your budget includes not only budgeting for the initial buy-in price of the property. It also allows for all the turnover costs, including currency exchange rates, finance charges, solicitor’s fees, and charges for property turnover by local authorities. Your budget will include planned renovation costs and should indicate the expected sale price at the end of the process.
Your strategy will provide a realistic timeframe for purchase, renovation, and completion of sale. Planning your system includes the settlement periods at either end of the purchase and sale, plus allowing realistic timeframes to market the property.
When planning your strategy, you’ll need to know when to ask for advice or help from others. Especially if you are completing a renovation in a U.S. property, you’ll need to rely on local knowledge and expert assistance to work on your behalf and for your benefit. You may need to employ a property manager to manage the renovations and liaise between you as the owner and the tradespeople working for you.
Your strategy should consider where you will find your expert help and include the costs in the budget.
Setting a strategy for one property will impact your other investments, cash flow, and availability of funds, so you need to know how this renovation project fits in with your overall investment strategy.
Framework
A good framework can help you decide on the best investment property for your circumstances. The framework provides the details for buying a suitable property, checking that you have completed all the required paperwork, paid all taxes, and sorted out the legal requirements, including hiring tradespersons in the U.S. A framework can include checklists that give you the answers you need when comparing properties.
Just like the house’s framework provides the structural strength to hold up the roof and walls, your framework will hold up your investment portfolio and give you confidence in your decisions. The framework will provide checklists and details for the renovation project management and will help you when you decide to sell the finished house.
Where to go Next?
Once you have decided to buy a renovation property in the U.S., you’ll need time to work out your investment strategy and find the proper framework to suit your needs. Luckily, you do not have to do this all on your own. Plenty of investors have tested the waters in the U.S. property market before you and know where the shallows and shoals to avoid are.
Completing a course to understand the advantages of investing in the U.S. property market could help immensely. Aligning yourself with a company of investors and market experts can help you to gain the knowledge and experience you need to ensure your renovation property is a success. Choose a course that enables you to talk directly with mentors and experts and helps you plan and execute your strategy and framework in property investment.
A robust framework, expert advice, a well-thought-out strategy, and local area knowledge will help you to achieve your investment dreams. To discover more about formulating strategy, plans, and a good framework for investing in property in the U.S., you can read our blog on Why Invest in the U.S.
Flip Houses Like an Expert from TV
/in Uncategorized /by Lindsay StewartYou’ve seen the television shows – Americans love a good house flip. Flipping a house means buying a property for a low price compared to other properties in the local market. Usually, it will be cheaper because it needs renovations. Once the renovations are complete, you can sell the house for a profit.
You might not know that Australian and New Zealand investors can flip properties in the U.S. and make a good profit. It is entirely possible to flip a house just like they do on Flip or Flop, Flipping 101, and Property Brothers.
The shows might make you believe that they are there everyday – but in fact, they are barely there and they don’t need to be. They are able to manage the entire process from anywhere at anytime using tried-and-tested processes, systems and techniques that you can adopt too.
The reason I say this is because investing in U.S. property can be easier than buying property in Australia or New Zealand, as there is usually a lower buy-in price.
Why Flipping a House is Great for Cash Flow
Buying a property in the U.S. can be very affordable, especially at the lower end of the property market. It’s easy to grab a property in the U.S. for less than a downpayment in Australian or New Zealand.
A typical example will be buying a house valued at $100,000 USD. You then renovate the home for $40,000, including a new kitchen, new bathroom fittings, painting, and new carpet. This approach results in a typical 20% ROI which are numbers we don’t typically see here.
You now have a chunk of cash to invest into your next flip property or provide a deposit towards an Australian or New Zealand home. Flipping a property means you can access the cash or equity in the property much sooner than if you wait for the property value to increase naturally over many years.
How Americans Make Money By Flipping Houses
Flipping houses is becoming a popular way to make money in the U.S., but you must know what you are doing. Otherwise, your flip may become a flop. It’s one of the reasons why there are so many popular television shows about flipping property.
The best flippers know how to manage a team, understand the market, and work to a budget and time restraints. All of this can be done from afar or even abroad. This is why our Fix and Flip Academy focuses on predominately on these skills rather than the ‘what to change’ aspects of property flipping.
How to Make Flipping Houses Work For You
There are several steps to getting your flip right. You want to find the right property, usually in a growth area or an up-and-coming trendy suburb. The adage of buying the worst house on the best street is primarily factual, providing that the home has firm foundations and won’t cost you a fortune to repair and renovate. However, sometimes you are better off buying a slightly better property with an excellent structural base.
Plan your renovations and stick to your budget. When flipping a house, you do not intend to live in it, so your choices are about what will appeal to potential buyers. Paying slightly more for luxurious finishes like fancy taps can sometimes pay big dividends when it comes to the sale price. Some properties don’t need complete renovations, but a good quality paint job and new finishes can brighten any house, adding thousands to the price.
Doing your research, including learning from others who have successfully flipped houses in the U.S., will help you to choose the right home to flip and manage the renovations from overseas. Building a trustworthy team is a make-or-break when it comes to flipping.
Communication is critical when purchasing, renovating and then flipping your U.S. property. Working with someone in a different timezone can be tricky, so it is always great to look for onshore resources who specialise in your investment country. This way they can help you understand the market over there and also the practical side of running it from over here. Think about avenues such as membership groups, property coaching or a course. Having experts who know how to achieve your financial goals in your corner makes all the difference. You can train yourself to learn more about the U.S. property market.
When your property is ready to sell, you’ll need to create excellent marketing to achieve the highest price. It would be best if you had a real estate agent you could trust to sell your property well. If you are part of the Fix and Flip Academy, you will have instant access to our boots on ground directory which is full of used, trusted and creditable professionals.
It is possible for investors from Australia and New Zealand to successfully buy, fix, and flip property in the U.S. Savvy investors know when to get help. Flipping a property in the U.S. can provide you with a decent profit in a few months instead of waiting several years for your investment to appreciate. Star Dynamic’s Fix and Flip Academy offers all the support you’ll need to flip U.S. properties successfully. You’ll receive full training in how to use a U.S. property to make money.
What Paperwork Do You Need to Buy Property in the U.S.?
/in Uncategorized /by Lindsay StewartBuying property in the U.S. can provide a tremendous ongoing income or a profit when you sell. Either way, investing in U.S. residential property can significantly increase your wealth and create a diverse investment portfolio by including property in a foreign country. Australian and New Zealand investors have an advantage when selling a property in the U.S. due to the favourable exchange rate, making a profit of $30,000 in USD closer to $45,000 when converted back to local currency.
There are a couple of extra steps to complete when you want to buy in the U.S., but it is relatively easy. Like every investment, you will need to complete paperwork. An experienced coach or mentor expert in the U.S. residential property market can help you through buying property in the U.S. The U.S. government does allow foreign investors to purchase property without making it too complicated, so you’ll be able to grow your wealth by buying U.S. property.
This blog introduces some of the notable U.S. paperwork and forms you may need to complete when you buy a property in the U.S.
Taxation Requirements
Note that you will be paying tax in two countries: income earned from your U.S. investment will count towards your Australian or New Zealand income tax. Of course, you can also claim the expenses on the property investment for that income tax.
Applying for an ITIN as a foreign investor is a simple process. To purchase property in the U.S., you will need to complete income tax statements in the U.S. too. You will need an ITIN equivalent to the U.S. Social Security Number to meet your taxation requirements. It is your unique government identifying number, so you must provide proof of identity and address.
People you will likely employ while investing in U.S. property include property lawyers, real estate agents, property managers, and tradespeople who renovate or maintain your property. If you are hiring anyone in the U.S. to undertake any tasks for your investment property, you need an Employer’s Number. It is like an ABN in Australia, and your employees will quote this number when completing personal income tax on the payments you make.
Property Paperwork
You will need to get the prospective property you consider buying inspected before purchasing the house. The property sales documents you need and fees payable include:
If you rent the house, you’ll need a copy of the rental receipts and the exchange rate documentation for your income tax. The receipts will verify how much rental income you have received in the financial year for tax purposes.
If you have a mortgage on the property, you will need to keep records of all the interest payments you make, as you can deduct these against your income tax. Ensure you have copies of all documents concerning any costs for the property, such as a maintenance bill from a tradesperson or the cost of rental collection by a property manager. Each charge is deductible from your total taxable income, reducing the overall costs of your investment.
Mortgage Requirements
To get a mortgage for a U.S. property, you will need to provide all the usual credit documents as you would for local property, such as proof of identity, proof of income to show you can service the loan, and information on your current expenses. However, the mortgage requirements are less because the buy-in price for property in the U.S. is generally lower.
Suppose you wish to get a mortgage from a U.S. lender. In that case, you will need to ensure you have a credit rating in the U.S. It can take several months to establish a credit rating acceptable to banks where you want to purchase your property, although it is an option.
Many investors who need a mortgage to cover the total costs of the investment will try an international bank or a large bank with international banking options. You are less likely to get approval for a loan from a small Australian credit union to buy property in the U.S.
Remember that the mortgage will require international currency exchange between AUD or NZD and USD to purchase the property.
Money Exchange Service
As a foreign investor, you must employ a currency exchange system. You will need to change your Australian or New Zealand dollars into U.S. currency to purchase the property and to pay for all renovations or maintenance. You will need to pay for reports in the pre-purchase property stage, insurance while you own the property, and marketing costs when you are ready to sell the property.
You will also need to change the U.S. dollars you receive for rent or when you sell the property back into Australian or New Zealand dollars. Note that the exchange rate is usually favourable for this, so the income you earn in the U.S. will be increased once changed into local currency.
You will need a sound exchange system with lower fees and reliable services.
Getting Help from the Experts
While it is relatively easy to complete the paperwork for purchasing property in the U.S., there are enough differences and practicalities to consider that getting some help could be worthwhile. Experts who frequently help others to buy property in the U.S. will know all the steps and the current legislation that may impact your investment decisions.
A property coach can ensure you tick all the boxes, have a plan that meets your investment goals, and provide you make wise choices as to what to buy and when to sell. If you have an expert working with you, you will cover every essential step in the process. You’ll be sure to complete all the paperwork necessary to purchase your investment property in the U.S.
Renovating and Flipping Residential Property in the U.S.
/in Uncategorized /by Lindsay StewartDid you know that Australian and New Zealand investors are making big profits by buying, renovating, and flipping residential property in the U.S? It is very possible to buy a property for under $100,000 USD, spend $20,000 USD on renovations, and then flip or sell the property for $200,000 within a year. That gives you a profit of $80,000 USD, which is more when converted back into NZD or AUD.
Only some properties will have the potential to flip for such huge profits. Still, profits in the tens of thousands are ordinary for investors who buy suitable properties in the U.S. If youve used American house shows like Flip or Flop, youll know that the profit potential is good. The trick is understanding the U.S. property market and what makes an excellent property to flip for quick profits.
Flipping a Property in the current U.S. Residential Market
This section will discuss the current economic market, including that you can purchase a U.S. property for under $100k, renovate then flip that property for a profit of up to $50k within a few months or a year. Due to the differences in the economic and property markets in the U.S., compared with Australian and New Zealand property prices, it is highly possible to find affordable homes in good condition, needing only a quick update in the kitchen or bathroom to sell at a profit.
Search for U.S. properties under $100k, as you could be shocked to see the quality and size of properties available. Properties have a smaller buy-in price in the U.S., making the houses more affordable. In Australia, we would consider that a house under $100k would be cheap and nasty, but this is not the case in the U.S.
The affordability of the buy-in makes investing in U.S. residential property a key to diversifying your investment portfolio to include property, especially if you cannot yet afford property in Australia or New Zealand. You can invest in a U.S. property to flip it for profit and use the profit to create a deposit for your home down under. Then, re-invest the initial investment to buy another U.S. property for your portfolio to keep building your wealth.
Buying a U.S. Property to Flip
Buying a property to flip is different from looking to buy a property to live in yourself or as a long-term investment, where you want the rental income to build your wealth. When you want to flip a property, you want a low buy-in price, so you can sell it quickly for a profit to make your wealth.
Looking for lower-priced properties in popular or growing suburbs can be a great way to select a property to flip. If the area is experiencing a boom or growth period, people will be interested in buying a newly renovated property.
You can find bargains that may only need a few renovations, as the vendor needs a quick sale to cover other debts or due to changing life circumstances. Sometimes, a house from a deceased estate will sell at a lower price to sell quickly because the heirs prefer the money to spend on maintenance on a house they do not want.
Understanding the local property market can significantly assist you in assessing whether a house is a good option for a flip. Getting help understanding the market and what you need to look for in a flip investment property from a property coach and people who are experts in the U.S. residential property market will help you successfully buy your property.
You want to find a suitable house with good foundations without needing complete plumbing or electricity connections overhaul.
A minor renovation, such as knocking down an inside (not a structural wall) to create a modern open plan living space or updating a bathroom or kitchen, will not add too much to your renovation bill. It could, however, add a great deal to the sale price of your property after the renovation.
How to Organise the Renovation
Once you have purchased your property in the U.S. to flip, youll need to organise the renovation. The reports you receive during the buying process will help you to understand what is needed. Before you finalise the property purchase, you should create a plan for renovation, including costing and time to know how to budget for the renovation.
Hiring a local well-trusted property manager can assist you in getting the right tradespeople working on your investment property. Youll also find that communication between countries can be challenging, especially with time differences. Hiring a project manager or property coach who understands the processes involved and how to communicate across time zones will help ensure your renovation costs do not balloon.
Plan a definite and clear scope of work for engaging the tradespeople to complete the renovation. Be specific about what is included and any unnecessary items for the work. Commit to a payment schedule that is connected to work completed. Plan the stages carefully and know each stages budget so you can release the funds quickly. Tradespeople who have been paid for Stage 1 are happier to start Stage 2 quickly.
Selling the Renovated Property
The renovation is complete, and it is time to flip your property. Selling the property well will make a difference in your profit. It may be worth getting your original real estate agent (the one who sold it to you) to do a new evaluation of the property. They will know how much has changed and appreciate the value your renovations add to the property.
Marketing the property as a high-quality, newly refurbished, or renovated property in a sought-after area can help increase your profits. As an investor from Australia or New Zealand, youll realise higher profits than a U.S. counterpart selling the same property because of the advantage of the exchange rates between USD and AUD or NZD.
Getting expert help in buying, renovating, and flipping a U.S. property can make a massive difference in the profit you realise. Finding a property coach who can help you to learn through this process will help you to diversify your investment portfolio and make a profit, not only on this first flip property but on the following properties you buy in the U.S. Gaining knowledge and learning from experts who have successfully navigated the U.S. residential property investment market can help you in your journey towards wealth creation.
To discover more about the current U.S. property market and how to find a suitable property to flip to create your wealth, click here.