Upgrade Your Investments

Upgrade Your Investments
05-27-08
Everyone talks about getting an upgrade. This can be anything from a new cell phone to a new operating system for your computer. Did you know you can upgrade your real estate investments?

There are times when you find a real estate deal that must be purchased at market value. The first thing the seasoned investor would do is scream sacrilege were he to hear this. There are reasons for doing this. The main reason is you are planning to upgrade your investments.

This can be a bit tricky, but with the proper tools it can be well worth the time and trouble. Every area has a regional planning board. This agency has a listing of all the projects planned for an area over the next five or ten years. This is something a veteran investor checks regularly. There is method to the madness.

When checking these proposals, you may stumble upon a little known plan to develop an area that has been neglected. When a development project takes place anyone who knows real estate knows the property values increase. The smart investor will start looking in the proposed area for properties which are available. There may be nothing but vacant land. This is fine. If you were to buy the land and have it rezoned for the coming development, you have succeeded in an upgrade of your investment.

Another way to upgrade your investment is to buy property at the market value and renovate it. This may mean buying a two bedroom home in the middle of a neighborhood where there are many three and four bedroom homes. By adding an addition you may be able to bring the value of the home up to the same market value of the existing larger homes. This is being done by many homeowners who want a larger home but can not afford to sell.

When you upgrade your investments you are creating equity in the property. This is one of the main benefits to this system. Not to mention you can sell the property for more than what you paid for it in the beginning. There is a downside to this system.


The careful investor knows when enough is enough. You do not want to upgrade your investment past what the market will sustain. You must remember you are doing this to make money. Just because you bought a property and put thousands of dollars worth of renovations into it does not mean you are doing the right thing. It is a matter of sometimes more is less. What this means is the more money you put into a property the less profit you will make. And vice versa.

Although this is a unique strategy which can work, you must be careful. There are times when development plans change or fall through completely. The market could change before renovations are complete on the property. Something can always go wrong. You must have a plan of action before attempting this type of investment strategy.

It is important to research the properties more closely to determine if this investment strategy can work. There are many investors who have done this successfully. The key word is to proceed with caution when upgrading your investments.

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000