PREHABBING IS THE NEWEST AND HOTTEST INVESTMENT PROPERTY STRATEGY IN DENVER RIGHT NOW.
What is your current Investing Strategy?..
Like most investors a total Property Rehab, Buy and hold or Wholesaling are the only exit strategies you use on a day to day basis. But with market changes like the skyrocketing price of houses and low inventory comes a whole new animal and its called PREHABBING.
Prehabbing is currently the top exit strategy in real estate investing in Colorado: are you doing this?
Investing in real estate is a goldmine of potential profit, and there are thousands of people nationwide that are proving it year after year. But with a hot market and low inventory most investors are not keeping pace with the deal supply of the past and profit margins are dwindling. That is where prehabbing comes in to play, this investment property strategy in Denver is opening up a whole new inventory to buyers looking to make cash and faster and easier then ever. Imagine going from scarce inventory to abundant inventory over night and making more money then ever. Well that time is here.
So what is the Prehabbing Investment Property Strategy in Denver ?
Prehabbing involves simply clearing off the rough edges of the rehab job to allow our prospective purchasers a quick look at the properties potential. If the property is buried in three feet of thicket, then sometimes even those home shoppers with “vision” can’t comprehend what it might end up looking like. So Prehabbing is doing no work or very little work on a property selling it below potential ARV for a great profit.
An example of a deal that I just did in the recent past is as follows:
The home was in a $250,000 neighborhood and needed about $20,000 in repairs. I bought it for $171,000 (after all costs). Three weeks after taking title and doing some prehabbing work, I auctioned it off for $222,000. You can list on the MLS or directly to a buyers list as well.
The terms of the auction required the purchaser to put down 10% in certified funds and buy “as is” with no inspections. Your can even add in additionally that the buyer has to pay 12% interest to me on an unpaid portion of the property up until the day of settlement.with a average 2.5% auction fee this is an easy way to build a steady flow of profit from your investment deals.
After all expenses this deal netted right at $39,000.
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