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Sell to Buy another one
By admin | February 18, 2009
In a way this home buying and selling scheme is one profitable business niche in the real estate market. This is obviously profitable because you have personal knowledge on what exactly the money that had been spent for the home and giving the possible profits to get when you have the chance to resell the home.
After buying and later resell the home, you could not avoid to make some changes or enhancements of the home. Unless, of course, if the doesn’t need anymore fixing. After all the buyer will obviously don’t have prior knowldge of what is really the cost of the house.
If you want sell that newly bought hoe, do not post a price or make your price almost doubling the amount you paid for the house. Less than %50 percent from the total capital used will be more than enough. This is if your did some renovations, but if you did nothing, then it advisable that you sell the home only a lowere price.
it is just the same as rolling your money out to gain certain profit. This type of buy and sell scheme needs to be done in a shorter period of time because obviously, your investment will not grow if it will take longer time. A miximum of six months from the date you acquired should the longest time before you could be able to resell the home. The shorter time frame, the better because you can roll the money again into another project.
Topics: Finance |