"Curb appeal" is the term used in real estate for an attractive property. In other words, when potential buyers first see the property, you want them to think "Wow! (or as close to "Wow!" as possible). You want them to say to themselves, "This is a property I could live in."

Another benefit of curb appeal is that, in the case of vacant properties, it lessens the chance that vandals will damage or, in the case of arsonists, destroy it completely. It's a cheap deterrent!

A third benefit is that good curb appeal increases the resale value of the property--and the return on your investment! So, maximizing curb appeal is a cost-effective means of turning a bigger profit.

Be clear that maximizing appeal of a property isn't a major rehabilitation on your part-or it shouldn't be. After all, if you've done proper due diligence, you'll have found a property that requires a minimum of repairs and beautification. So, all your efforts should be directed at clean-up and cosmetic improvements. This shouldn't cost you much money. Depending on the size of the property, costs may range from $500 to $2,000.

At the end of the chapter, I've provided you with a basic checklist of items to be accomplished in order to maximize a property's appeal. Feel free to use it as-is or modify it meet your specific needs.

In order to keep your costs to a minimum, I recommend that you budget right from the beginning. Also, keep a checklist of expenses so you have a clear and definite idea of the outlay of your money. You can make up your own form easily or use the example I've provided at the end of the chapter.

If you're a person who'd rather spend time acquiring properties than cleaning them up, I recommend you hire the services of a semi-professional to do the clean up. It's often the case that you can find a local, retired person who's looking for part-time work. Of course, ask around first to find out which individuals have great reputations for doing quality work at cost-effective prices. As you gain experience and knowledge, you'll be able to select the best and use their services on a regular basis, creating a win-win situation for both of you.

Another option is to use professional contractors. But be careful in your selection. There are incompetents and scam artists in this field. So, to avoid them and make sure you get quality work, follow these guidelines:

>> Require a copy of the contractor's general liability insurance certificate. Talk to the insurer to make sure the policy is valid and current.

>> Verify with the local Better Business Bureau that there is no history of complaints against the contractor.

>> Request a minimum of three verifiable customer references. Talk to each reference and ask how they were treated by the contractor and if they would hire him or her again. Remember, a reputable company will want you to check the references because they know it means more business and more word of mouth advertising.

>> Always get written estimates.

>> Make it a requirement that everyone involved in the clean up signs your state's version of a release of lien upon final payment.*

*In most states, any service provider who provides a service, labor or materials for the improvement of real property has a right to file a lien against the property's title for non-payment. Moreover, you're still financially responsible if even you do pay a contractor for a job and he or she fails to pay the subcontractors who supplied the labor and the materials. So, if you lack legal proof that everyone involved was paid in full, you could end up with the short end of the financial stick. Therefore, always, always have legal proof that everyone has been paid in full.

Of course, you should always do an inspection of the cleaned-up property before you make final payment to a contractor to make sure all work has been done to your satisfaction. If items haven't been done, note them and require that they be corrected before payment is made.

Use the following tips to make sure your "curb appeal" efforts are on time, on target, and within cost estimates.

•Establish a budget and stick to it. Before you begin any clean-up, repairs, etc., work up a budget to make sure you don't spend too much and cut into your profit potential. Use the budget to figure your total cost and try to stay as close to that figure as possible. You can use the web sites I mentioned earlier in the book to estimate costs:

oBuilding Cost Calculator http://building-cost.net/

oConstruction Cost Calculator http://www.get-a-quote.net/

oConstruction Material Calculators http://www.constructionwork.com/resources.php

•Supervise the work. In the beginning, it's cheaper and better for you to supervise the work done by contractors to make sure you get quality results. However, as you grow and gain multiple properties, then you'll need to hire a trusted person to do the supervision for you. At that level, your goal should be to focus on the big picture of increasing overall income, not spending time and energy on supervision.

•Set a work schedule. You want your acquired pre-foreclosure property back on the market as soon as possible, so set a date for completion of all the work. Inform contractors of that date and hold them accountable for meeting it.

•Clean, clean, clean-as I mentioned earlier, you want potential customers to be attracted to the property as soon as they see it. That's why you should always clean the exterior first. Depending on the part of the country in which you live and the condition of exterior, this can include a power wash of the siding, brick, stucco or other material. A good cleaning also lets you see if there's any rotten wood or other damaged material that needs replacement.

•Use quality paint-avoid the temptation to go with cheaper brands of paint. A great exterior and interior paint job enhances the value of a property in a potential buyer's eyes so it's well worth a few more bucks per gallon.

•Hire a professional carpet cleaning service-particularly in the beginning of your career, you may be tempted to rent a carpet cleaning machine and do it yourself. While this may work for carpet that's in good shape, it won't work for carpet that's really filthy and smelly. The rental machines are just not strong enough to do the job. Also, it may not be a wise investment of your time. Why should you be cleaning carpets when you could be out looking for more profitable properties? So, I recommend you hire a professional carpet cleaning service. However, make sure it's a reputable one. As with other providers, ask for a written estimate before you hire a company.

•Get rid of any odors in the property-a bad smell in a home will turn potential buyers off fast so be sure to eliminate odors in any pre-foreclosure property you obtain. A simple way to eliminate mild odors is to open the house up (depending on the weather) and let nature do the work. With stronger smells, you'll need to use an industrial-strength odor eliminator. There are many such products on the market.

•Repair before buying-keep your costs low by repairing as many items as possible; e.g., sidewalks, driveways, mailboxes, doors, windows, lighting, kitchen cabinets, landscaping, etc. If an item isn't fixable, then spend the money to replace it.

As you can see from this chapter, maximizing the appeal of a property is mainly a matter of common sense-common sense that can often result in increased profit on a deal. So, my advice is to pay careful attention to this area and then enjoy the rewards!

In the next chapter, we'll look at another way of increasing the return on investment-how to market and re-sell pre-foreclosure properties in order to achieve maximum profits.

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