There are alternatives to having lots of cash on hand to purchase real estate. Sweat Equity is one of the least utilized tools at everyone’s fingertips.
What Is Sweat Equity?
Sometimes I’ve hear it referred to as working for equity — same difference.
Simply put, find the neighborhood you’d like to invest in, and then make an offer on that “ugly” house. You know the one… the one with the fence falling down and peeling paint. This is exactly where you will get a real good deal. Plus, it’s often possible to buy the “ugly” house with no down payment!
Typically these types of homes are in good neighborhoods, but the owners have lost interest due to financial problems or some other life changing events. Many times they just want out so they can make a fresh start elsewhere.
Here’s where your “sweat equity” comes in — after closing you put in your own time and effort bringing the home up to neighborhood standards. Or think bigger and make it a pretty home to flip (at a nice profit). Most buyers are looking for that turn-key home, and are willing to pay over market if a house has already been improved. If you have vision, you can easily capitalize on this market.
I make offers on these homes everyday, and I can tell you it’s a great way to invest in real estate, especially right now, and get ahead of the real estate market curve.
In fact, I have an inventory of “ugly homes” that I haven’t started my own sweat equity… call me if you’d like to take any of these over for yourself… (864) 663-2244.