The one thing that every single real estate investor needs to be successful at is adding value to properties they own. If value is not added, profit cannot be made. This is actually true for every single business out there. Real estate is a wonderful business and investors can make a lot of money in the process. However, this is only possible through property value increases. Gordon Tang talks about various ways in which you can increase property values below.

Repairs And Upgrades

This is the obvious thing that you want to think about when you want to add property value. Flippers can easily make a huge profit through upgrades and repairs. There are repairs that are going to add more value though. The truth is you need to be highly creative and you should add value whenever you want to eventually sell.

As an example, you can add square footage for every single house you will buy. This is going to easily increase property value because of the fact that it is normally quite hard to add some square footage. However, you can do this through finishing a basement or by adding the second story.

Normally, there is not enough land so you cannot increase property footprint. If this is the case, you want to be sure that you focus on basement finishes. Those that are around 5 to 6 feet deep are great. You can dig out most basements to a height of around 9 feet and then finish them.

Another thing you want to consider is to find real estate properties that do not actually fit in the neighborhood. These normally have a lower market value because of this very reason. Then, just make them fit. Besides this, you want to make cosmetic changes, especially in bathrooms and kitchens since much value can be added.

Owner Financing

This is something that you normally do not think about but it makes it so simple to add property value. You do not even need to work hard on it. All that is needed is waiting and you can cash in on profits. At the same time, it is a wonderful way to increase selling price in a truly significant way. The strategy can be utilized in order to defer tax gains in the following years and avoid a huge one year hit.

If there is a property that is available for sale and you do not have many interested buyers, it is time to consider financing. When buyer pools are increased, demand also increases. Prices go up. If you cannot qualify for ordinary loans, limit houses supply so you choose from the buyers the one that has a much higher likelihood of buying. Value is basically added by the fact that you offer real estate properties to buyers that could not actually, under normal conditions, own something like what you offer. You are going to be paid over time, sell at higher price, get interest, all while buyers refinance and then pay you off completely.