Adding Value to your Lake Nokomis Real Estate

Warren Buffet is worth $52 billion. He is the richest person in the world and considered by many to be the greatest investor ever. His first rule of investing is, “Don’t lose money. Rule #2, see rule #1.” This rule might seem obvious, but it is one that gets over looked by many. Just like your old baseball coach used to talk about practicing the fundamentals, it is the fundamentals in real estate investing that are the most important to not lose money. My hardwood floor sanding company does a lot of work on Lake Nokomis houses. I also live in Lake Nokomis and I have sold a few houses in the area too. One way to protect your real estate investment, build equity and increase your chances of making money is to add value to your home. You add value by finishing the basement, adding a bathroom, a bedroom, refinishing your hardwood floors, updating the kitchen or existing bathroom. For example, there was a house for sale by the lake this winter. It was a government owned foreclosure. I was thinking about buying it, but I decided not too because the ceiling height in the basement was a little lower then I would have liked, but it still had a lot of potential. It had an unfinished basement, but you could add two bedrooms, a living room, bathroom, and a laundry room. The upstairs just needed an updated kitchen. The house ended up selling for $105,000. The person who bought it, fixed it up, finished the basement and it is now on the market for $229,000. They probably put $50,000 into it. I think it will sell for $215,000. After Realtor commissions the profit will be around $40,000. Not too bad for a few months of work. It is going it be hard to lose money in this situation because they added value, they added equity. If you’re thinking about buying Lake Nokomis real estate, ask yourself, Can I add value to this home? Warren Buffet would be proud if you do and can.