BEFORE INVESTING IN VACANT PROPERTIES, HERE’S WHAT YOU NEED TO KNOW
Cornelius Jackson
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ave you been saving for long, and you’re now considering investing in vacant properties? If yes, you’ve made the right decision. Often, real estate investors overlook vacant properties, but if you are lucky to find a suitable property, they have incredible investment potential. However, if you want to be a successful vacant property investor, there are some things you first need to know. They are:
IT MAY REQUIRE RENOVATION
Most vacant properties require renovation. Therefore, as a vacant property investor, you shouldn’t be discouraged by that. Nonetheless, before you invest in such a property, you should endeavor to run an inspection. Check through the property to see if you’ll find any red flag. After the inspection, if you notice any part that needs to be renovated, endeavor to do some math. Calculate the cost of the renovation, and check if investing in the property will still be profitable for you. If the renovation cost is more than the expected profit, then it is not a good investment; you should stay back. If, on the other hand, the renovation won’t cost you much, you may want to consider investing in the property.
LOCATION MATTERS
Often, properties remain vacant due to their poor location. Thus, as an investor, you should consider the location of the property in relation to what purpose you want it to serve. It may be a poor location for one venture but an excellent location for 52
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THE POWER IS NOW MAGAZINE | OCTOBER 2020
