Why Business Owners Should Invest in Residential Real Estate

One thing that we talk about in Catalyst for Business is how entrepreneurs can make smart decisions with their profits. You don’t have to look far to see that residential real estate continues to be one of the most popular ways for business owners to grow wealth.

There are good reasons why this sector attracts long-term investors. Straits Research reports that the global residential real estate market size was valued at $10.64 trillion last year. You can imagine the kind of opportunity that exists in a market that large. Keep reading to learn more.

Real Estate Ownership and Wealth Building

It is no coincidence that many successful people invest in real estate. Nareit reports that nine out of ten millionaires own real estate. You might already have income from your company, but building a property portfolio can create stability over time.

There are everyday investors who find real estate appealing without ever owning a home directly. You should consider that 168 million Americans are invested in REIT stocks, showing how common this asset class has become. It is clear that real estate is not just for the wealthy—it’s also for those seeking long-term growth.

You can’t ignore the role of curb appeal when investing in residential properties. There are buyers and renters who make decisions based on first impressions alone. It is smart to put thought into small upgrades like landscaping, paint, and lighting. You may find that even modest improvements help raise the perceived value of a home.

There are also tax advantages that come with real estate investments. You may be able to deduct expenses, offset gains, or take advantage of depreciation. It is often these kinds of financial benefits that make real estate a smart choice for business owners who want to build something beyond their company.

Want to squeeze every last dollar out of your investment property sale?

Here’s the thing…

Most investors focus on the big stuff — renovations, upgrades, new appliances. But they completely ignore the one thing that makes buyers either fall in love at first sight or drive straight past your property.

I’m talking about curb appeal.

And if you’re selling an investment property, this becomes even more critical. You’re not just competing against other investors — you’re competing against move-in-ready homes that look like they belong in a magazine.

Here’s what most people don’t realize:

Investing around $3,500 in curb appeal can yield around $12,000 in increased value — that’s a massive 238% return on investment.

Pretty incredible, right?

But it gets better. When you’re ready to sell fast, working with experienced cash home buyers in Norfolk can help you avoid the hassle of extensive curb appeal projects while still getting a fair price for your investment property.

What you’ll discover:

• Why Curb Appeal Makes or Breaks Investment Property Sales
• The Biggest Curb Appeal Mistakes That Cost You Money
• 5 High-Impact Improvements That Work
• How to Maximize Your Return Without Breaking the Bank

Why Curb Appeal Makes or Breaks Investment Property Sales

Here’s what happens when a potential buyer pulls up to your property:

They decide in the first 30 seconds. Thirty seconds to decide if your property is worth their time or if they should keep driving.

Statistics from The Journal of Real Estate Finance and Economics suggest good curb appeal can raise a property’s value up to seven percent. For a $300,000 investment property, that’s an extra $21,000 in your pocket.

But here’s where it gets interesting for investment properties…

Unlike regular homeowners who might overlook exterior flaws because they love the interior, investors and cash buyers are analyzing everything. They’re calculating repair costs before they even walk through the front door.

Poor curb appeal doesn’t just turn off buyers — it makes them think your property needs more work than it actually does.

And that directly impacts your bottom line.

Think about it from their perspective. If you can’t be bothered to maintain the exterior, what does the inside look like? What other problems are you hiding?

Data from the National Association of Realtors shows that 94% of real estate professionals suggest sellers improve curb appeal before listing. There’s a reason for that — it works.

The Biggest Curb Appeal Mistakes That Cost You Money

Let me tell you about the biggest mistake I see investors make…

They think curb appeal means spending thousands on landscaping and fancy features.

Wrong.

The biggest curb appeal killers are usually the simplest things to fix:

Peeling paint and faded siding — Nothing screams “fixer-upper” like paint falling off the house. Fresh paint can improve resale value by over $7,500 on average.

Dead or overgrown landscaping — A jungle lawn or dying plants makes buyers wonder what else you’ve neglected.

Dirty windows and grimy exteriors — A good pressure washing can literally add thousands to perceived value.

Broken exterior fixtures — That crooked mailbox, loose shutter, cracked walkway. These small issues add up to big problems.

Here’s the crazy part — most of these cost under $500 to fix, but they’re costing you thousands in lost sale price.

5 High-Impact Improvements That Work

Alright, let’s get into the good stuff…

These five curb appeal improvements give you the biggest bang for your buck:

1. Fresh Exterior Paint

This is hands-down the best investment you can make. A fresh coat of paint makes your property look newer and cared for.

Pro tip: Stick with neutral colors. Think whites, grays, and soft beiges. Save bold colors for the front door.

2. Basic Landscaping Maintenance

You don’t need a landscape architect. You just need to make it look maintained.

• Trim bushes and trees
• Add fresh mulch around plant beds
• Plant some colorful annuals
• Keep the lawn mowed and edged

Basic yard care and adding fresh mulch can boost home value by $4,500. Not bad for a weekend’s work, right?

3. Front Door Refresh

Your front door is your property’s handshake. Make it count.

• Fresh paint in an attractive color
• New hardware (door knob, deadbolt, house numbers)
• Clean entry mat
• Some potted plants

This stuff is cheap but makes a huge visual impact.

4. Exterior Lighting

Good exterior lighting makes buyers feel safe and welcome. Replace broken fixtures with clean, modern options. Add pathway lighting if needed.

5. Pressure Washing

This might be the easiest win. Clean all exterior siding, walkways, driveways, decks, and fences. You’ll be shocked at the difference.

How to Maximize Your Return Without Breaking the Bank

Let’s talk strategy…

The key is focusing on what buyers notice, not what looks impressive in magazines.

Here’s my simple formula:

Start with the basics — Fix anything broken, clean everything dirty, paint anything faded. These cost the least but have the biggest impact.

Then add strategic improvements — Once basics are handled, add nice touches like fresh landscaping.

Don’t go overboard — You’re trying to make money, not win a landscaping contest. Stick to improvements that pay for themselves.

Consider your timeline — Need to sell quickly? Focus on quick fixes. Save major projects for longer holds.

Know your market — High-end neighborhoods might benefit from more expensive upgrades. Starter markets might not.

The Smart Investor’s Approach to Curb Appeal

Here’s the reality check:

Not every investment property needs a complete curb appeal makeover. Sometimes selling as-is to specialized buyers is smarter.

Run the numbers:

• How much will improvements cost?
• How much additional value will they add?
• How long will they take?
• What’s your opportunity cost?

Sometimes spending $5,000 on curb appeal to get an extra $15,000 makes perfect sense. Other times, you’re better off selling quickly and moving to the next deal.

The key is making the choice that maximizes your profit, not just your sale price.

Timing Your Curb Appeal Investment

Here’s something most investors don’t think about…

Timing matters as much as the improvements themselves.

Spring is prime time — Buyers are most active, and landscaping looks best.

Fall can work — Especially with beautiful foliage. Keep up with leaf removal.

Winter is tough — Focus on paint, lighting, and clean walkways.

Summer requires maintenance — Dead plants in July are worse than no plants.

Making the Final Decision

Bottom line:

Curb appeal improvements can boost your investment property’s sale price, but they’re not always right for every situation.

Do the improvements if:

• You have time and budget
• Improvements will pay for themselves
• You’re in a competitive market
• The property is otherwise in good condition

Skip the improvements if:

• You need to sell immediately
• Numbers don’t work out
• You’re getting fair market offers
• The property needs major structural work

The smartest investors know when to invest in improvements and when to move on to the next deal.

Your goal isn’t the perfect property. Your goal is to maximize return on investment while minimizing time and hassle.

Conclusion: Time To Make Your Move

Curb appeal can be a game-changer for investment property sales, but only if you approach it strategically.

The key takeaways:

Focus on high-impact, low-cost improvements that fix obvious problems and make your property look cared for. Don’t get caught up in expensive upgrades that won’t pay for themselves.

Remember that investors purchased 17.1% of homes that sold in Q4 2024, so there’s competition for buyer attention. A property with good curb appeal stands out.

But also remember that curb appeal improvements aren’t always the answer. Sometimes the smartest move is selling as-is and focusing on the next opportunity.

Whatever you decide, make it a deliberate business decision based on the numbers, not an emotional reaction.

Now get out there and make some money.