7 Ways to Build Sweat Equity in Real Estate Investments

By 

Ben Mizes

Updated 

July 13th, 2019

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Building sweat equity in real estate investments helps you alleviate some of the financial burdens that come with repairs and renovation. Paying with time instead of money is great, but how do you do it? Here are seven ways to build sweat equity in your real estate investments.

Building equity in your home is an important step, especially if that home is an investment and you want to flip it for a profit. Real estate investments carry a lot of risk at times, which is why you need to do everything you can to ensure you get a return on that investment.

Investing in sweat equity, or labor-intensive rather than money-intensive activities, can help you achieve that ROI. With a few hours and some inexpensive materials, you can make a huge difference in the marketability and value of your investment property.

So how do you build sweat equity in your real estate investments? Here are seven ways to start with.

Upgrade Your Lighting

Lighting fixtures usually don’t cost a lot, and they’re easy to install. For most people, some basic electrical skills (or a quick Google search) and some relatively inexpensive materials can help you turn your investment property into an instantly more desirable home.

Lighting is critical because few people want to live in a dark, dingy house. What’s more, nobody wants to deal with cracked, peeling, or unattractive fixtures. For this reason, upgrading the lighting can make a big difference in how quickly you’ll be able to sell your investment property.

Stain the Wood in Your Home

If you have wooden floors, molding, or furnishings that are a little worse for wear, staining can do a world of good. Newly stained wood gives it an even finish and, if polished well, makes it look refined and beautiful.

Instead of going all in and replacing wooden fixtures for cosmetic reasons, simply staining them can drastically improve the look and feel of the entire home. The best part is, it’s really inexpensive to do.

Focus on Lawn Care

Curb appeal is a real thing, and it’s one of the most important areas to focus on if you want to impress potential buyers. From mowing your lawn, planting beautiful flowers, and decorating your porch area there’s a lot you can do for the appearance of your property just by sprucing up the curb appeal.

Don’t forget the backyard, either. Once people are inside, they’ll want the backyard to look just as good as the front.

Add Crown Molding

Crown molding isn’t expensive and it’s relatively easy to install. However, the outcome is dramatic. Not only is the ability to include crown molding on the listing a plus when it goes to market, but it adds actual value to the home. Crown molding makes your home look sophisticated, refined, and elegant, and that’s something that prospective buyers will appreciate.

Not sure what updates will improve your investment?

A Clever Partner Agent will tell you what local buyers want.

Repaint

A coat of paint can make a world of difference. Not only is it easy to repaint, but it’s inexpensive, too. Go through the house and repaint the walls and molding. If there are any walls that have loud or overly bright colors, choose a neutral color to paint over it.

It’s best to neutralize the home as much as possible so when potential buyers walk through, they can visualize living their life there. Remove as many distracting colors and elements as possible.

Install Hardwood or Laminate Flooring

Carpeting is fine for bedrooms, but where possible, install hardwood or laminate in the main areas of the home. Not only does it provide a clean, beautiful aesthetic for the home, it also increases the value of your property.

Additionally, there are a range of options and price ranges to choose from, and you can easily install beautiful hardwood or laminate flooring at a price range that fits almost any budget.

Add Daylight Bulbs

Finally, while you’re updating your lighting, make a small investment in daylight bulbs. When compared to yellow, darker bulbs that are more typical, daylight bulbs flood a home’s interior with, as the name implies, white light that mimics natural lighting. You’ll be amazed what a little lighting can do for your property, and how much your potential buyers will love it.

Building sweat equity in your investment properties is a great way to increase the value and resale price without having to eat up your profit.

While these tips can help get you started, it’s important to remember to always consult with a qualified real estate agent who can guide you through the investment process. Whether it’s your first investment property or your tenth, a local real estate agent with investment experience can help ensure you obtain success and sell your property quickly.

All Clever Partner Agents are flat-rate, full-service agents who work for a fraction of the cost of a traditional realtor. Contact Clever today, and we’ll put you in touch with a top performing agent in your area for a no-obligation consultation.

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