How to Utilize the Settlement Period for Profit?

You must know how to utilize the settlement period to your best advantage. Once you have bought your investment property it is the perfect time to organize everything that needs to be done to the property before the clock on your mortgage re-payments starts ticking.

There are few clauses you must insert in the agreement to take advantage of the settlement period to the fullest. Firstly you should you must always try and get a delayed settlement. I have seen contracts with delayed settlements running into several months or even years. This will give you time not only to plan your work but also take advantage of any increase in value of the property in a rising market.By delayed settlement you control the property without actually buying it.

You must also insert a 'Prior Access' clause in the contract that allows you to make improvements to the property during the settlement period. This is possible only if the property is vacant. In case the property has tenants or is owner occupied you must have a clause in the contract that allows you to take trades people through the property for inspection to give you quotes for the the renovation jobs.

Some of the things you can do during the settlement period are:

* Make a list of all the revamps/renovations that you would like to achieve.If you wish to change the carpets or get the floors polished get the quotes. same is true for painting jobs or any other repairs. Tradesmen are so busy at times that you may need to book them a few months in advance. Once you have all the quotes in hand you can hit the ground running as soon as you settle on the property.

* Get your advertising organized for renting/ selling the property.

* Take prospective buyer or tenants through the property.

* Flip the property for making a quick profit prior to settlement.

It is vital that you use the property settlement period wisely whether you are planning on doing some renovations or rent the property. The last thing you want is to be paying the mortgage whilst you looking for a tenant or carrying out renovations. If you use this period wisely and effectively everything that follows will be ten times easier.

Remember the famous words of Benjamin Franklin, 'By failing to prepare, you are preparing to fail'

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