Spend Money to Make Money

HGTV glorifies the process of fixing up a home and making it the best looking place on the block. It’s hard to deny that the transformation some of these homes go through is captivating and leaves you wanting to do the same. So why not give it a try for yourself? Fixing up a house isn’t just reserved for the ultra-rich and elite, rather it is something each and every person has the opportunity to take advantage of. By fixing up a house and therefore adding value to it, a person has the potential to build a serious amount of wealth.

What is a value add?

Adding value is a very broad term in that it can range from painting the rooms in the house or going through a full gut rehab. In its most basic form value add is simply making a property better than it was before.

Benefits of adding value?

• More appealing for better tenants or buyers.

The process of fixing up a property makes the property seem much more appealing for potential tenants in the case of a rental or more appealing for a buyer in the case of a sale. Wouldn’t you want the best tenant possible in your rental who treats the property as their own and pays you more than others would? Fixing up your rental will attract this kind of renter because they actually want to rent from you.

• Last longer.

By fixing and updating your property it will in turn take longer for you to have to go back and fix certain things in the property. Using durable materials will pay off big time in the long run allowing you to manage your property stress free.

• Option to refinance.

After fixing up your property, it is likely that your property's value will have gone up and you have the option to refinance. By refinancing, you can pull some of the money stuck in the property out and use it for future real estate deals.

Value add has the potential to help you out in multiple ways making your real estate journey much smoother. You will be left with more money in your pocket and less of a headache knowing that your property is safe and secure. Go out and give value add a try!