As complicated as real estate investing may seem, it really boils down to becoming proficient at finding good deals. For example, here is what you’re to look for.
Discount Properties: There are always people wanting to liquidate their properties because they are in desperate need of cash. In other words, people with financial difficulties are anxious to sell their properties even at a discount price. Their crisis may be caused by one of the following: failed business ventures, loss of employment, transfer, protracted illnesses, accidents, deaths, divorce, debts, lawsuits, estate problems, or fees for their children’s education. To be sure, it is wrong to prey on others’ misfortune. But you can choose to be observant and sensitive so as to prevent their misfortune from becoming a disaster by buying their properties and helping them to get back on track. Such action on your part could be a godsend as far as they are concerned. So, look for sellers who are anxious to unload their properties. To them, peace of mind is more important than property ownership.
Because of their individual circumstances, one seller might take Rs.5,00,000 cash, while another might prefer an income stream from a Rs.8,00,000 offer. Between these two extremes are hundreds of combinations of prices, terms, and financing sources that allow you to structure purchase offers to meet a wide range of seller-needs.
Distressed Properties: Look for properties that are run-down and need major repairs. All the about-to-fall-apart structures or damaged walls may seem frightening at first, but if you’re not opposed to a little sweat---or if you can hire some home repair professionals to do the sweating for you---you can save money on the more damaged, fixer-upper type of houses. Often a total face-lift will give you the ability to dramatically increase the property value or rent prices.
If the distressed property you have acquired needs only cosmetic improvements, all you have to do could be the following: a fresh coat of paint on the front door, a new front door knob, a new welcome mat, fresh sparkling clean windows, fresh paint in all rooms, new tiles in the kitchen and bathrooms, shiny sinks and tubs, laminate flooring for the living room, a clean oven, and new light fixtures or bulbs. As for curb appeal, you can add simple landscaping and clean entry way. This is how you could give a new look to a run-down house and increase the property value for rent or sale.
Buying a distressed property in a good neighborhood can be a great deal. You can spend a lot less for a distressed house than you might not typically be able to afford, and build equity as it increases in value. As a matter of fact, both Dimapur and Kohima have a lot of distressed properties in prime locations. Let’s say, if our government were to pass a law to demolish all substandard houses or condemn all structures that are not in compliance with building codes, some people could make a lot of money by dealing with these distressed properties. Would you be one of them?
Conversion Opportunities: Look for opportunities that are ripe for conversion to a more profitable use. This could be a vacant land which can be converted into residential plots or a commercial zone. When you convert something from one to another, it can often dramatically increase its value. In the case of Nagaland’s unique land ownership laws, in which non-locals are not eligible to purchase our land, you could possibly adopt some creative arrangements to do real estate business. For example, you could build above-ground structures such as single family houses, multiple residential flats, or commercial building complexes for sale to anyone, including non-locals, although all legal requirements must be thoroughly checked first. If everything is legal and proper, such a creative arrangement could become a win-win deal for all parties involved: First, you could make a lot of money while still retaining land-ownership. Second, you could help attract non-locals from middle-income families who are generally more stable or productive for the community. Third, more house-owners means more revenue for our government as it can collect more property taxes (say, 1% - 2% of the property value) each year.
As someone who’s very interested in real estate development, I have taken on a lease-basis certain community-owned jungle areas in a not-so-easily accessible mountain side somewhere, which have been lying idle, or unused, for as long as one can remember. No, I haven’t acquired them for logging or extraction of stones to make easy money. Nor is my intent for conversion into residential plots or commercial zones. Rather, it’s for development of eco-tourism as a means for income generation and job creation. Did I put in a lot of money to obtain this real estate deal? Certainly not, but this could turn out to be a very profitable project. My point, however, is this: anyone can convert even jungles or so-called non-usable rocky cliffs into income generating sources, without having to destroy nature or disturb mother earth. Indeed, opportunities to make a lot of money in real estate abound in Nagaland. But the question is, can you add value to properties or find good deals before others do?
.JPG)
