As a new real estate developer, you mostly stick to single-family homes. These units are simple to acquire, and the alterations don’t take too long. However, if you want to get ahead in the real estate industry, you must expand to apartment redevelopment. Follow these steps to restore your first multi-family unit.
- Acquire Enough Funding
Because apartments are so much bigger than houses, they tend to be more expensive. Assess your savings account and determine how much capital you need to purchase your building. Reach out to your investors and see if they’re interested in increasing their shares, or find new investors through crowdfunding. Don’t rule out mortgages and other loans. Remember, once you acquire the property and fix it, you’re likely to make a profit. The careers of Steven Taylor Los Angeles, a young leader in the real estate industry, and countless other landlords prove this. You just have to get the capital first.
- Pick a Property
Now that you have the funding you need, it’s time to choose your newest investment. Steven Taylor LA emphasizes the importance of choosing the right property; if you can’t fill it with tenants, you risk having a single tenant who can’t afford the rent. Choose a property that’s within your budget even when you take the renovations into account. Start small; the time to purchase ten-story apartment buildings is later in your career. Once you’ve figured out what property you want, have it professionally inspected. Ask the owner to take care of issues that the inspector finds, or request a lower price.
- Renovate the Building
You’re the owner of your building, and you’re ready to renovate it. First, decide whether to keep the existing unit divisions or make your own. Then, determine which amenities each unit has. For example, do your tenants all have their own washing machines, or is there a communal laundry area in the basement? As you move on to actually fixing the building, start with safety concerns and then take care of aesthetic ones. For instance, removing asbestos should happen before removing stained wallpaper. Don’t forget to walk through the building after you’ve completed renovations to see if you’ve forgotten anything.
Although renovating an apartment complex seems like an overwhelming job, it really only requires these three steps. Then, you’re ready to advertise your units, work with real estate agents, and welcome your first tenants to their new homes.