Guide Nails Down the Basics of Profiting From Fixer-Uppers

Whether you’re buying a home or an investment property, “Find It, Buy It, Fix It” by Robert Irwin is the book to read if you want to turn a profit. This informative book emphasizes the pros and cons of buying real estate that needs fixing up.

From finding the property to financing and fixing it, Irwin examines the types of property to buy and the ones to avoid. Filled with examples from Irwin’s 30 years in real estate, the book shows how to make profitable purchases by looking for property in need of cosmetic fix-up rather than major structural repairs.

Although the book emphasizes how to evaluate houses for potential profitability, the author also explains how to find possible investment purchases. He recommends several methods: consulting real estate agents, periodically sending letters to owners of unlisted homes asking if they want to sell and examining the foreclosure and distressed property markets.

Another area of discussion is financing and upgrading fixer-upper acquisitions. Irwin uses several examples of investors who didn’t plan their financing and encountered trouble after running out of funds. The author explains the importance of having backup funding, even if it’s several credit cards that can be tapped for a few months.

Irwin also explains the importance of buying below the estimated market price if the house were in good condition. He cites many examples, such as his attempt to buy a fixer-upper in Sacramento from an elderly widow who refused to sell to Irwin at his target below-market price. Later, another buyer paid the seller’s high price but lost money when the fix-up costs proved higher than expected.

The author shares a property inspection checklist he uses to determine if major fix-up work is necessary or if the property needs cosmetic work such as painting, carpeting and landscaping. For help estimating fix-up costs, Irwin recommends putting together a “dream team” of specialists, including a carpenter, plumber, electrician, real estate agent, attorney and accountant.

Irwin explains how to get a “low-ball offer” accepted and how to use inspection reports to drive the negotiated price down.

This is a book for novice and experienced home buyers and investors who aren’t afraid of fix-up work.