The objective of purchasing a fixer is to secure an undervalued property, improve it and receive the benefit of the instant equity.
By definition, “instant equity” means: if you sold the home tomorrow, it is worth more than you owe on it or have invested in it. It is a core real estate concept!
Also, instant equity will give you more borrowing power, if needed, and improves your “net worth” as well.
The ideal fixers are those that you pay the least for and require mostly cosmetic improvements like paint, landscaping, floor refinishing, new fixtures, etc. If you can find the right property, this could mean tens or even hundreds of thousands of dollars earned immediately.
If you are buying the home to live in, another great advantage of buying a fixer is the ability to customize your space exactly the way you like. As you complete your projects, often a bond is established between you, your family and your home. Memories have been established during the process and your home means more to you!
In conclusion, a fixer is the smartest and quickest way to earn real estate equity. If you wait for a home to naturally climb in value, you could be waiting a very long time.