How To Start Doing Home Renovations – Starting Small
You can make a lot of money in real estate through development and renovation. However, many people go into renovating with the goal of doing a massive house, knocking down walls, changing floor plans and room layouts on their first try. If you have ever watched the show property ladder the key to being a successful developer is starting out small and then continually improving and doing bigger scale properties as you learn and as your skill set improves.
I advise that if you really want to get into property development as a money making strategy, or possibly even a full time job then you start small. What are the two main advantages of starting small?
* There is less risk
Firstly there is less monetary risk involved. You can start by investing in units and you risk a lot less if you fail. You will only need a small deposit to start, and then even if you fail then you only stand to lose a few grand. Where as if you started with a massive property you risk losing a lot more money (and if you do this can put you out of the property gain for a longtime). So starting small is good because there is less risk when you don’t really know what you are doing
* You can learn as you go
Starting on smaller sized property developments allows you to build up your skill base over time, as you learn about developing and you can develop skills in trade and different areas you need for property development. A lot of people under estimate their skill level (especially when it comes to managing a property development). If you start small you can build up your skill base and then you will be ready to do larger properties.
So now that you know the advantages that there are to starting small and building from there, then how to you start small? How can you get into the property game. What are a few tips I can offer you on how to start doing home renovations.
* Save up a deposit
Saving up a deposit is your first step towards starting your property development. Saving up a deposit can seem hard, but with a few practical steps it can actually be easier than you think. The more you save the easier it will be to get a loan and the less your costs in repayments will be. Even if you only plan on holding a property for a few months and then reselling a sufficient deposit can mean less fees and more profit in your pocket. CLICK HERE to Read More on Saving Up for your House/Unit Deposit.
* Do Your Research
Doing you research is going to be vital to your success. Firstly research how to do property development and learn all your can from books and seminars and training session. Some things you will have to learn on the job but there are many things you can learn before which will save you a lot of time and money. So research how to do property devlopment well. Secondly, research your price range. What can and can’t you afford. What areas can you afford in. Be realistic. Thirdly, research the area in which you want to buy. Look at who lives there are who your target market is (familiys, old couples, newly weds, singles). If you know your target market you can develop your property to suit them making you more money.
* Be Patient
Don’t just go out and buy the first house you see on the market. Be patient. The real estate market is flooded with properties which just aren’t right for you, wait for the right one, it will make the difference between a profit and a loss. Often waiting 6 months or more means you can find the right property for you that is cheap and great value and you can make a much larger profit than if you just jumped into it. So be patient.
* Learn from Skilled people
Many people when they start out developing want to do all the work themselves to save money. This can be useful if you have the time, but many people don’t. If and when you do get skilled people to work from you, follow them around and ask them questions. Learn everything you can from them so next time around you can do it yourself, or at least you can not get ripped off. Don’t worry if you annoy them a little bit, think of all the future properties you will do in which you will need that information.
* Be willing to take a risk
This is the final step and the hardest one for most people. Many people learn how to do development. They read the books and go to the seminars, but they never take the risk and take action.
Don’t be afraid of failing. Failing means you can learn something not to do next time. Be always learning from your mistakes and always seeking to improve. Then even if the risk you take turns out a failure you are all the more wiser for next time.
So when it comes to home renovations, start small. Start with apartments doing simple face lifts and making the place look nice. Then once you feel you have mastered that move onto bigger and better things.