Fareham, Hampshire -- (SBWIRE) -- 10/26/2012 -- It's been a long recession. So a lot of people may have trouble recalling so much of what went on during the last housing boom - back when one of the most popular ventures going for independent entrepreneurs was buying, refurbishing and then reselling distressed properties for a tidy profit.
It grew to be called 'flipping houses' in real estate industry vernacular, a term that stuck even through the market decline that has gone on for the better part of a decade.
A market decline, by the way, that also took the profit out of flipping houses, which in turn has led to a glut in unoccupied distressed properties currently available for sale.
So when prices finally recently bottomed out and sales figures started to pick up, once again industrious entrepreneurs have begun to see potential profit in dressing up neglected homes and then putting them back out for sale.
At the same time though, building renovation experts warn that it's 'buyer beware', because just because a home is run down and abandoned doesn't mean that it's a profitable turnaround.
Talk to people who have actually renovated distressed properties and they will say that one has to avoid buildings that have major structural repair and foundation issues. Instead look for buildings that will have one doing primarily surface repairs and treatments, such as painting, light trim carpentry and drywall repair.
Those who have done it before will also say that it's best to learn about costly pitfalls by research rather than personal experience. Septic systems, for example, may be underground and unseen, but a dodgy septic tank and leach field can easily take a big bite out of homes resale profit potential.
Attempting to add value to a home by adding square footage with an addition, in most cases, also turns out to be a losing proposition. All too often, what looks good on paper during the planning process usually turns out to be far more involving in terms of both labor and money once the project gets underway.
Then finally, getting good advice from a loan expert before one even begins to shop for a distressed home or commercial property to refurbish is an absolute must.
There's a broad shopping list of various types of loans, and each one has its set of pros and cons to consider. Then some loans have stipulations regarding the condition of the building that it will be issued to purchase. www.findamortgageonline.co.uk is an unbiased and completely independent online whole market mortgage consulting and brokerage firm that people should take into consideration.
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