In my own efforts to find fixer properties that fit my investment criteria, I’m constantly looking for specific problems or conditions. I want to acquire properties that I can transform into positive money-makers. This transformation can be the property’s physical appearance or it can be a restructuring of its financial condition. Also quite common for me is changing (removing) the people who occupy tile property. More often than not I’m doing all three types of transformations at the same time.
You don’t get big paydays simply because you own real estate. You earn big paydays from doing something that increases the value of real estate. A value increase doesn’t necessarily have to be a big change in the present market value. Even if a property doesn’t go up a nickel in market value but is made to produce more net income from rents, you’ve created some additional value.
As you search for investment properties, you must make your decision to pursue a deal or pass it up based on your knowledge of what you can do if you own the property. Many folks pass over solid money-makers because they don’t understand the various ways they can profit.