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The Operation
Determining a House's True Potential
Say that EquityBuild identifies a real "fixer upper" in a good neighborhood that should cost $80,000 if it were in perfect condition. We are able to determine this price accurately for several reasons. EquityBuild knows the neighborhoods. We know what comparable houses are selling for and we constantly monitor real estate prices and trends. Our realty experts use the latest information and track local sales constantly. Additionally, we rely only on the best and most capable assessors. Most are LandSafe certified who have special training and meet stricter than normal standards. EquityBuild's Team of Renovation Experts When we know what a house in perfect condition would sell for, EquityBuild's expert renovation team then examines the property. Because of our extensive experience bringing damaged structures up to par, we are able to determine exactly what it will take and how much it will cost to fix completely. More importantly, we have the skilled craftspeople to do it quickly and well. So, in this typical example, we buy a house that should cost $80,000, but we pay only $35,000. This is not unusual, especially with houses that need extensive or complex renovation. We would then spend, for example, another $15,000 to turn it into a perfect home. Our renovation experts take pride in their work because they know EquityBuild rehabilitates houses to last. Too often, craftspeople are asked by property owners to do as little as is necessary to make a house look good enough to sell. EquityBuild, however, rehabilitates homes for the long run. We don't ask our team to do a "good enough" job. We tell them to do a perfect job. We use only the best materials but our volume allows us to buy at far lower prices than typical contractors. We take care of home aesthetics as well as structures. Through long experience, we have learned that spending more to fix a house in the beginning can save much, much more down the road. Renovating a house to meet EquityBuild's rigid criteria assures relatively low maintenance costs going forward. We demand that the structure as well as the heating, plumbing, and electrical system be in absolute top condition. The adherence to the highest standards enhances the quality of our tenants' experience and leads to longer stays. This lowers maintenance costs and enhances the value of your asset. Aesthetically, our objective is that every prospective tenant who walks into a house falls immediately in love with the home. This solves the marketing challenge and creates happy, grateful tenants. The Jackson, Mississippi Outlook In 2006, Partners for Livable Communities named Jackson, Miss, one of America's Top 30 Livable Communities. The population according to the 2000 census, was over 500,000 people. About 185,000 live in the city of Jackson while the balance live in its suburbs. Homes prices are extremely undervalued compared to rental prices -- which are appreciating in the Jackson metro area. The same 2000 census report showed the median single-family home price in Jackson was $64,400, less than the state average of $71,400. This makes Jackson metro one of the least expensive housing areas in the nation though median home prices in the suburbs are much higher than the city. Property taxes are low and 42 percent of all homes are rented. According to the National Association of Realtors, single-family homes have consistently appreciated at 8.9 percent annually, which reflects a correction caused by the fact that is the 9th most undervalued metro region in the U.S. According to March 2007 Housing Valuation Report by National City Corporation, Jackson ranked in the top 3 percent of 317 metro areas based on housing affordability. While housing prices are low by national standards, rents are higher. According to HUD statistics, the 50th percentile rent for a 3-bedroom dwelling in 2006 was $826 per month. All of these factors combine to make Jackson a perfect positive cash flow environment with minimal downside risk exposure and an enhanced potential for appreciation. |
Mortgage Seekers Find Rates Are Down, Credit Standards Tighter
This Bloomberg article does a good job of describing the situation. EquityBuild properties, however, ...
Harvard Housing Expert Says, "Rental Housing Supply Down. Demand Up."
Nicolas P. Retsinas, the director of Harvard University's Joint Center for Housing Studies, points out ...
Bubble Collapse Causing Retirement Fears
This article in USA Today does a good job of reflecting the widespread fears felt by many baby
boomers ...
Why Investing in the GO Zone makes fiscal sense
According to leading real estate investors in
America, now that the United States is entering the lowest ...
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