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How to invest in real estate if you have a small budgetBY: DrRitu | Category: Finance | Post Date: 2009-12-27
It's very common to find huge residential colonies getting build up all across you. How difficult it is to resist the urge to own one of those properties. Both from the point of view of investment or for personal use, the properties coming up these days are fantastic. Plush location, furnished with all amenities like, shopping malls, multiplexes, parks, swimming pools, clubs etc. Personally I find my mouth watering seeing those properties come up and I can do nothing about owning at least one of them. I was always thinking what I can do at least give a small push start to my real estate investment venture. I had a nice idea and I will like to share it with you. Not all real estate investment requires a huge starting capital. If your budget is scarce you can do what I did successfully. I had a friend named Jack. Both of us are huge investment enthusiast, but we were never able to enter the market of real estate investment. The problem was huge first hand cash requirement of real estate investment. We did not want to take a fat loan and start our investment. Instead we decided to build a partnership amongst us. If a real estate property will cost (say) $X, I will pay $X/2 and he will put $X/2. By this our risk was automatically halved. Now our next goal was to keep the value ‘X' as low as possible. But we knew all good real estate property had prices sky high. We had some brainstorming and some research and found a great solution. Once we visited to see a house offered for sale. The location was reasonable, the complex was secured and floor plan was good. But the aesthetics of the house was horrible. We thought, I we would have brought this house for our self what we would have done to the interiors to make it manageable. The first thing we observed in the house was its shabby entrance. We decided to change the main entrance door, and do a bit of wood work at the entrance to make it more presentable. We provided a savvy name plate holder at the entrance. We provided beautiful golden color locking arrangement for the front door. The objective was to give a look to security but not compromising of the finish and outside beauty. This whole work at the main entrance cost us $365. After doing a bit of renovation for entrance, we decided to put all sliding windows for the complete house. The agency charged us some $430 for the total refurbishment. After windows we decide to give at least one wooden cupboard for each bed rooms and a wooden (trendy shelf) for the living area. We decided to give this as a total package to one agency and they charged us a reasonable $750. After doing our bit for entrance, bedrooms, living areas we decided to do a do some major modification for the toilets and bathrooms. There were two toilets. We made the tile work redone in white, we changed the taps, showers, wash basin and toilets pans altogether. It was not cheap and the agency charged a handsome $4000 for this work. After this we did a small distemper and coloring of the house which billed us an additional $1000. But after doing this it was not the same house what we purchased. We purchased the property at $32000, invested few more $6545 in renovation. Our total cost was around $40000 including transportation, follow up etc. Within 3 months from the purchase of our house we managed to renovate it and sell it at $45000 to a family with one child. Our profit was $5000 (12.5% in three months). We not only shared the risk but also managed to generate a good profit. Article Source: http://www.writearticles.org About Author / Additional Info: Additional Articles: * God of 22nd century * Avatar vs. Titanic: Two Great Movies of Our Generation * God of 22nd century * Tips To Make Learning Easier For Students With Learning Disabilities * Four Great Place To Spend Christmas Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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