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Property Education

Online Real Estate and Property Investing Courses, Seminars and Training

You don’t need a degree or to be a guru to be successful in property investing. You just need to know how real estate investing works and what are the rules. We give you all that. All the information investors would have loved to have before this last downturn.

Campus makes it possible for you to learn about property from the comfort of your office or home computer, anywhere, anytime, at your own pace.

Most property investing courses and workshops are now "Instant Access" and some scheduled throughout the year for your convenience. Seats are though limited for each course due to licensing of software. Make sure you book your courses well in advance to avoid disappointment.

With the purchase of any property investing course you get free one year access to Property Investor Network Forum.

For pricing visit the Property Investor Network Shop .

How to Renovate a Property to Make Money

Some property traders and investors choose to buy property for the purpose of renovating and then selling.

This strategy can be used for both "selling for profits" and "renting for profits". In other words, there are 2 systems to renovating a property for profits.

Renovating properties is great way to generate income and some do this for a living. This type of deal is really a specific strategy and can be slightly speculative in nature if one is lacking the correct planning and fundamental considerations. In other words, you can "lose your shirt" doing this is, if you don’t know what you are doing.

Lets then look at the fundamentals and considerations that make property investors and renovators successful in this strategy.

Renovating a Property to Make Profits by Selling

The first and one of the most important things in this system is to ensure that one makes profits, it is essential the purchase price is massively under market value. This means some 50% to 70% under market value.

The first thing that one asks in this case is, "Who on earth will sell you such a cheap property?"

Well we are speaking of rehabilitating a property, which in turn means that the property is not in a very good state in the first place and this is the reason that one would sell for far below value. Some of these properties are literality dilapidating, derelict or have been neglected or abandoned for so long that re-habilitation of the property and the sale of such at market value is where the profits are made.

That said, if the property is just in need of slight renovations, it becomes more risky because the profits are slim. The price is higher and the margin may not make profits, but the effort and cost to improve the state of the purchased property to a better state to sell is there and can’t be avoided.

In simple words, this would mean that the purchase price is not low enough. When you add to that the costs of improvement and then try to sell at an even higher price, you may not be able to attain the selling price needed to make a profit, which may put the investment at risk.

This is the reason why renovating to sell a property has to be done carefully, bought at the right price at the right time.

This also means that the more derelict the property, the higher the profits, because the price between the purchase price and sale price leaves a nice profit margin if the renovations and alternation are done cost effectively.

You may have guessed by now, why most don’t engage in this strategy, even though it can be massively profitable. Buying a derelict property and renovating can be hard work and the more derelict the property the more work and cost it requires.

However, just buying a property in need of renovations is not enough to make profits. There has to be a well calculated plan of renovations and re-habilitation. Without correct purchasing of materials and the correct amount of investment in the renovations, one could see profits eroding, before it even goes on sale.

Therefore, to renovate for the purposes of making profits, the price has to be low and then the costs of renovations has to be reasonable, well planned and effective. Notice that the word "cheap was not used. This means it has to be cost-effective, not "cheap". If one does "cheap" renovations the property may not attract the right price to get the nice profits expected in the first place.

Market Conditions for Renovating Properties

The next issue to make great profits in renovating and selling is the market conditions. Though people need houses all the time, if the market is not in good condition, it may take too long to sell and the investor will carry holding costs, which will erode profits the longer the property remains unsold.

The renovator has to pay the mortgage bond for the property purchased and maybe even a mortgage bond for the cost of renovations, if these funds were used from some sort of financing.

If the renovations money was used from personal money and no financing used, then the return on that cash used will start to reduce with longer holding costs.

To better understand, just imagine a warehouse full of stock that doesn’t sell. That money sits in the stock without return to the business owner. This is true even if the business owner bought the stock from their own money and carry no financing costs. The stock needs to be sold to buy new stock and sells as quickly as possible for the continuity of the business.

Therefore, renovating or re-habilitating in the wrong economic times carries risk and can reduce profits if the renovated property doesn’t sell quickly enough.

The right market is not necessarily a time when the property market is booming, though that would be obvious. Right market is where there is demand. Even in a depressed property market there are areas where the demand is still strong. Therefore, one would need to look at both micro and macro economic conditions.

Renovating a Property for the Purpose of Rental Income

There is though another option for renovating and re-habilitating properties for long term income.

In this case, the purchasing considerations are the same and the price also has to be a low as possible. Therefore the property should be as derelict as possible and then renovated cost-effectively to rent the property to tenants.

What is different in renovating a property for the purpose of renting for income is the renovation plan and market conditions.

In this case, the cost of renovations and even materials used may differ greatly from the first strategy.

For example, in a renovating situation for rental, the investor may choose tiles only in the property to ensure that they don’t have to deal with long term cost of carpet replacements. In a situation where the property is re-habilitated for sale, that may not be a consideration but rather the trends of the homeownership style of living at that time. This means that if wooden floors are in style and most homeowners want wooden floors, the renovator will choose wooden flooring to ensure the property is appealing to a homeowner and will sell fast.

The second thing is the market conditions. To rehabilitate a property for the purposes of sale one would need a strong market for purchasing properties, but for rental the opposite has to be true.

The market has to be in high demand of rental not purchasing to make the profits.

Therefore, before buying a property, the local and national economic conditions have to be assessed and evaluated to suit the renovations strategy. In other words, if there is local demand for rental, one may want to renovate to rent rather than sell.

Renovating and re-habilitating properties for profits is a specialized area in the property sector.

The purchaser may be a trader and renovate only to sell or may be an investor and renovate to rent for long term passive income.

In both cases, the purchase price should be as low as possible. When this is achieved then all it takes is to attach the correct plan to the correct intent.

The difference in consideration would be the renovations plan and then the market conditions.

If planned correctly, with correct timing, both strategies can make huge profits for the renovator or property investor.

As you have seen, rehabilitating a property to make a sale has different considerations than renovating a property to rent the property for long term.

When you buy a property to rehabilitate you must know what you want to do with the property before you put your offer and you must know that your intentions are correct to the market conditions to ensure that you will realize and maximize profits.

If you ever thought of entering the game of renovation and re-habilitation of property for the purposes of selling them, take into consideration all the necessary points to make great profits and maximize on your returns.

To understand how renovations may affect your property strategy you may want to take the Calculating Residential Buy-to-Let Investment Deals and if you are new to property investing you may want to look at Getting Started as a Property Investor to learn more about all the strategies available to you.

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mzazit - facilities management   | Registered | 2009-04-14 05:14:18
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I am interested in facilities management where can i get relevent information as in the in`s and outs and basics of facilities.This is specifically for office accommodation.
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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.





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Student Reviews

I did the initial Calculating Residential Deals workshop and refreshed my knowledge with the online course.  The course was well presented and the course materials up to date and informative.  It eased me into understanding the key financials behind decision I had been making instinctively.  Upon completion of this course, I now knew not just which numbers to calculate or how to calculate them, but more importantly, I knew how to read and understand them.  This basically gives the rounding off to your gut feeling when deciding to buy an investment property or not.  We often hear people say that you need to fall in love with the numbers/financials of an investment and not the unit itself ... well, without this course I would not have been able to do so.  I am now able to make sound financial investment decisions as I actually understand what I need to look for or where I need to change my offer to ensure a desired outcome.  

Probably the most important part of all of this is the fact that my understanding of the numbers/financials now give me an opportunity to put together a much better request for finance document for the banks than I could previously do.  Once you can show a bank, in their own language, why something is a sound investment, you won't struggle as hard to get financing and support.  All in all, I think it the course was value for money, filled with good content and ultimately, and a necessity for any property investor. Eugene Pienaar - JHB





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Having recently completed the above course at home, I enjoyed being able to do the course at one's own pace. The audio and visual impact of the presentation was effective, improving my concentration. Manipulation of the variables entered as lumpsums and additional monthly payments was most insightful. Generally there were many useful tips and facts given by the tutor and this was also enlightening and helpful. Richard Fouracres - Ladysmith KZN





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I have had 4 tenants over a period of 10 years. I was very fortunate in that they were all good, reliable tenants. I had however seen a few of my colleagues go through absolute hell with bad tenants. I’m talking about really BAD tenants. While searching the internet for a lease agreement I stumbled upon the PINN webpage and signed up for their “Investor Letting Workshop “

It was the best choice that I have made in a long time. At the end of the day I was more confident in my role as a landlord as I had just learnt. Don’t end up like my colleagues whose experience was so stressful that they sold their properties. Rather arm yourself with knowledge that will make letting a win – win situation. Take the opportunity to learn, I am truly grateful that I did - Elaine Fike

 

Thank you for the Calculating Residential Deals course, it was a real eye opener for me, I wish I could have taken this course some 3 years ago when I made some pretty bad buying decisions. Now I will try to sell those properties and start investing in properties that will make me money. Joshua S., JHB.





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As a matter of fact ... of the 3 places where we've used the new contract and new practices that we were taught, we have yet to receive a late payment (or non-payment) on the rent or experience any problems with the tenants. - Eugené L. Pienaar - JHB

My partner and I attended the PIN Investor Letting Workshop in Feb 2008 with no expectations as we already considered ourselves to be rather knowledgeable in the art of letting property.  We have a few properties on our books and have been using standard contracts and 'gut feel' screening to place tenants and manage the properties.  Needless to say, we were in for quite a surprise on the day. 

Within the first 15 minutes, we realized that we had better start taking some notes as we clearly had LOTS to learn.  We started the session going through the legalities of renting properties out ... I was amazed at how many things I did not know pertaining to both landlord as well as tenant privileges.  It was not long into this session that we also found out that the advice we have received from other guru's in the property market would see us lands us in trouble if followed and done in the matter they advocate.

Karen and Sean then shared some 'nuggets of wisdom' on how to find and screen the right tenants, how to manage them and how to evict them legally if they become non-performing tenants.  We received some key contact information and most of all - we were given AND taken through (step-by-step) a legally sound contract for residential letting that favors the landlord and empowers him to deal with all types of issues.

We walked out of the seminar feeling that it was money well spent and have recommended it to our friends that are currently dabbling in property investment.  We then sat down and went through our letting agencies methods, contracts and administration.  We ended up giving them notice as we felt (after discussions with them) that we were better equipped to handle the letting process than they were.  I was, in fact, getting a huge kick informing them of issues that they were not aware of. 

As a matter of fact ... of the 3 places where we've used the new contract and new practices that we were taught, we have yet to receive a late payment (or non-payment) on the rent or experience any problems with the tenants. 

I can recommend this course as the one course you MUST do before renting out your own or someone else's property (rental agents ... take note!).  It is money well spent and the support received from Sean and Karen on the PIN forums after the course rounds off the total package rather nicely.  All queries were answered within 24 hours (or less!).  Well done Sean and Karen.  Keep up the good work and keep the education coming!". Eugené L. Pienaar - JHB

 

I attended the Letting workshop down in Durban, as a full time property investor whos business is property I learnt a lot from this workshop. It is full of "meat and potatoes" facts and tools to make our lives as Buy to Let property investors a lot easier whether you manage your tenants yourself or you outsource to a letting agent. Worth its weight in gold! - Brennan Carey

 




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