Flipping A House For Cash

A lot of people these days are preaching about the buying and holding method of gaining wealth with real estate.  There indeed may come a time in your life or business when you’ll want to hang onto a piece of property, although you’ll only be interested in keeping certain types of property.  If you’re just starting out, flipping a house may be an ideal way to get started.

Basically, there are three ways that you can flip a house, although each one has it’s own terms, motivation, and type of property.  The first method is known as retailing.  What this means, is that you buy a house in bad shape, do the repairs to fix it up, then turn around and sell it.  There are a variety of houses in need of repairs out there, and several ways that you can quickly flip a house to net profit.  All you need to know are the techniques that will get you the most money in the least amount of time.

The second way you can flip a house is though wholesaling.  Wholesaling involves finding a home for sale then flipping it to an investor for a fast, yet small profit.  To do this, you’ll need to know the real estate investors in your area, the types of homes that flip the best, and how to fund your property so you can flip it to them.  If you live in a big area or a city, you’ll find that using the wholesaling method of flipping houses is actually easier to accomplish.

The third way to flip a house is by assigning the purchase.  Using this method, you’ll commit to buy the house.  Instead of closing the deal yourself, you’ll assign it to a real estate investor – of course for a small fee.  The investor will take the contract over and close the purchase themselves – flipping the house.  This can be very profitable, especially if you invest in the right home.  You don’t need to have your contract worded any special way to be legal, although you will need to determine the assignment fee.

If you’re looking to break into the real estate market and make big bucks, you’ll need to learn all about flipping houses.  Flipping houses is very profitable, especially once you have learned the basics. The first and third methods are the best, although they will both take quite a bit of work on your part.  Restoring homes isn’t easy, and you’ll need to have a team qualified to handle any repairs.  Assigning the purchase may be difficult when you first start out, although it will get easier with time.  If you stay at it and do your best to make a profit – you’ll be an expert at flipping homes in no time at all.

Determine The Listing Price

When it comes to buying a home, most potential buyers will use the listing price to as the number one factor to determine the homes that they look at.  Even though you and a realtor may determine the asking price, the buyer will determine the selling price.  If the price is too high, most buyers won’t give it a second thought – which is why you want to determine the listing price carefully.

If you set the correct price, you’ll notice a much faster sale.  Setting the right listing price will also attract more potential buyers to your property as well.  You’ll also notice an increase in response from realtors, and receive more calls about the property.  The listing price is very important – and it can ultimately determine whether or not you sale your property.

A home can be overpriced due to several reasons.  Overpricing is something you want to avoid, as buyers tend to steer clear of homes that have been overpriced.  Normally, this happens when a buyer asks a lot more than the home is worth or valued at.  Some buyers ask a lot more than the value of the home due to location.  Although the location is very important, most potential buyers won’t give the home a second look if they think the price is too high – and more importantly out of their price range.

When you put your home up for sale, most activity will happen within the first couple of weeks.  If you put the right price on your home, you’ll notice immediate interest.  There are always buyers looking for homes in their price range, waiting for new homes to be listed or homes to be reduced in price.  Buyers who are waiting to purchase may miss seeing your home completely if the price is too high.

To determine the listing price of your home, you should always have it appraised before you put it on the market.  This way, you’ll know the full value of your home.  You can sell it for market value or go a little under, although you should never attempt to go way over the value.  In doing so, you’ll miss out on a lot of potential buyers.  The home market is very competitive these days, which is why you want your home to draw as much interest as possible.

Keep in mind that realtors really have no control at all over the real estate market, only the plan behind marketing.  Realtors don’t determine the asking price – the seller does.  You can ask a realtor for advice, although you are the decider of your listing price.  If you do things right and take each thing step by step, you’ll set the listing price in the right area and have no problems selling your property.

Buying Unfinished Homes

Unfinished homes present a great way to save a lot of money and get yourself a new home in the process.  If you buy an unfinished home, you can keep your monthly mortgage payment low and also lower your initial investment.  You may also be able to buy a larger foundation size as well, which you can easily add on to and save money in the process.

Normally, unfinished starter homes leave the upstairs area unfinished.  The question here, is just how much equity you want to put into an unfinished area.  Sometimes though, an unfinished home may leave the roofing, framing, plumbing, or electrical aspects unfinished.  Before you make a purchase, you should always decide how much money you have to finish what needs to be finished.

If the home you are looking at has plans for a garage, you can save thousands if you decide not to go with the garage.  On the other hand, if there is another attached room that is planned to go onto the house, you can save just as much if you decide to forgo it.  There are always ways that you can save money just by looking at the plans.  Unfinished homes may have other planned on additions as well, in which you can save a lot of money just by leaving them out.

The is something that you should always keep in mind.  When builders acquire a piece of property that they plan to build a home on, they will do everything they can do make as much money as possible on their homes.  You might be able to get them to agree to some of these ideas, although they probably won’t agree to all of them.  Building homes can be a very profitable business – which is why most companies like to build their homes exactly as the plans call for.

When looking at unfinished homes, you also need to look at what banks are willing to accept.  If you are planning to get a mortgage, most banks will need to ensure that the home is up to local codes and in living condition.  What this means, is that there will need to be a living room, bedroom, and other rooms finished.  If the home is lacking quite a bit in terms of being unfinished, most banks won’t give you a mortgage.

Most banks are also known to turn down unfinished home mortgages that they feel will have trouble selling in the event that you default.  Normally, the entire downstairs area will need to be finished, along with most of the landscaping.  You might be able to do some of it yourself and save money, although in most cases the home builder will need to do a majority of the topsoil and grass just to satisfy the bank.  Banks have strict requirements when it comes to unfinished homes, which is why you should always check with your bank before you invest in an unfinished home.

As most of us already know, buying an unfinished home provides an excellent way to get into the housing market and get your very own home.  Unfinished homes also allow potential buyers the chance to grow into their home along with their family.  If you are interested in saving money, you should be sure to talk to the builder.  This way, you can go over the plans and decide what doesn’t need to be there.  In most cases you can save a lot of money and still get a home that will provide years and years of memories for yourself and your entire family.

The Good the Bad and the Ugly of Investing in Real Estate

Like any other profession, there are good and bad things about what are available.  Each of the things that happen in the profession is just part of the business.  If you want to know what you are getting into, you will want to make sure that you know all sides of the coin of the profession.  This will help you to be prepared for looking into property or buying into the occupation of real estate.

The good part of real estate is that you will be helping others to find a home.  Anyone involved in real estate will say that the largest perk of being in the profession is that you are able to help people with their living situation.  Another good benefit of being a real estate agent is that the finances are usually stable and do not come in small doses.  For those that love their jobs in real estate, they will most likely base it on these two factors.

Despite the benefits of being a real estate agent, there are also some tough parts of being involved.  One of the major frustrations is that the properties that are available will be dependent on the type of market, the neighborhood and the sales of that area.  At times, there may be an overflow of properties available, while at others, everyone will be holding onto their property.  For those involved in finding or buying real estate, this can cause for a challenge in finding what you want and when you want it.

Of course, for anyone becoming involved in real estate, other frustrations may come from the terms and the details that are used in the process as well as the process itself.  It is not uncommon to find a home, have it inspected and then not have the ability to buy the home because of the condition of the home.  There also may also be financial problems with real estate during the process of finding a home for an individual.  All of these factor in to spending a lot of time looking at homes without the benefit of buying.

Whether you are buying or selling, it will be important to know what to expect from real estate.  By factoring in the different parts of property, you will have the ability to decide what is best for you and can stay ready for the potential problems that may occur while you are going through the process.  Knowing what to expect will help you to get past half of the battle of the real estate market.

What’s your excuse?

Nick Vujicic gives inspiration to the masses

This was a very inspiring video and I think if more people thought like Nick then we would stop making excuses why we can not do something and just go make it happen.

Flipping Properties

If you want to maximize your profits off of a property, then the way to do it is to flip properties.  Flipping properties is a term that is commonly used in real estate.  It is where someone will walk into a property, put in some small changes, and resell the property for more profit.  If you want to invest little and make more, then this is a great way to get into the real estate business.

Usually, you will begin flipping a property by finding a home that is under priced for the current real estate market.  These are usually called ‘fixer upper’ homes and are available all the time on the market.  Any type of foreclosure, home at an auction, or home that has been neglected can be bought for a lower price.  Flipping properties will most likely be done by dealers or retailers, but it is possible for anyone to take part in the art of flipping properties.

After you have found a home that needs some fixing, you will buy it like you would any other home.  Usually, you will be liable for going through the mortgage process and will sign a deed of trust for the property.  When you do this, you will want to make sure that you do it as a business instead of an individual.  As soon as the paper work is done, you can move into the home, make some changes, and put it back on the market for a higher price.

Renovating and reselling is the major art behind flipping properties.  If you want to stay ahead in the market and begin to profit, then understanding the basics of this and how to work as a business with real estate is one of the potential ways to make a living.  There are several who have worked with real estate and flipping properties that have had the ability to make a large amount of money off of the investments.

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Things to Avoid When Flipping Real Estate

Flipping property is rising in popularity as a form of real estate investing. The truth of the matter is that this is one of the more entertaining methods for many investors that are simply ‘itching’ to get their hands a little dirty. The sweat equity involved in these transactions, while attractive, can also be daunting when skills are inadequate and out and out dangerous in some situations.

If you are one of the many around the world who consider the appeal of flipping property with huge dollar signs in your eyes, you should take care to avoid the following things in order to minimize your risks while maximizing your potential for success.

1) Do not fail to have a qualified inspection of the property before any money changes hands. If you do not have any idea of the types of work that needs to be done then you cannot possibly make an educated estimate of the costs involved in rehabbing the property.
2) Do not underestimate the budget for repairs on the flip. This is one of the most common mistakes that even seasoned professionals make and it can mean the difference between a profit and a loss on the property if you aren’t careful and do not stick to the planned budget.
3) Do not overestimate your abilities. This is another common mistake. The fact that you’ve seen something done on television doesn’t mean that it is something you can do on your own. It costs more money and time to have someone come in and repair your mistakes than to have had a professional do the work from the beginning. This doesn’t mean that you can’t learn how to do some of the work or that doing so would be cost effective. The trick lies in determining where your skills and abilities can really take you rather than where you hope they will take you. Plumbing, electrical, and structural work are generally best left to the professionals unless you have specific experience or training in these fields.
4) Do not fail to hold yourself accountable to your timetable and your budget. Real estate investing puts you in the bosses seat and while that is often simple when it comes to driving others, we often have a bit of difficulty when it comes to holding ourselves accountable for time and money along the way. Unfortunately, failing to do so can be a very costly blunder.
5) Do not forget to keep up with receipts, bills, etc. and reconcile the facts and figures daily. It is far too simple to allow a couple of trips to the local home improvement center escape careful scrutiny. Add a couple of these trips per day and you could easily find thousands of dollars missing from your budget with no paper trail to explain the transactions. You could also find that some tools will not work or be needed for the project. Those items cannot typically be returned without the original receipts.
6) Avoid having too many chiefs on the project. If this is your ball game then you need to run with it rather than having 10 people giving contradictory orders. Schedule meetings regularly to discuss progress and any adjustments or changes that may need to be made.
7) Avoid poor planning. This is one step that is the difference for many would be house flippers between success and failure. Plan out every step of the project in an order that makes sense. You do not want to paint the ceilings or walls after you’ve installed new floors. Nor do you want to rip out walls in order to replace plumbing after you’ve painted them. Plan things out in the proper order and allow a day or two between subsequent projects in case extra time is needed. The last thing you want to do is pay a group of contractors to stand around waiting for the paint to dry so they can begin the next step in the process.

There are risks involved in any type of investment. While real estate is one of the greatest things in the world in which people can invest, there are still risks involved. Following the advice above however can significantly lower those risks and give investors the opportunity to have great expectations when all is said and done. Whether this will be your first flip or your fortieth flip there is much that can be reviewed in the steps above that will reaffirm many of the things you’ve learned along the way.

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The Flipside of Flipping Houses

Television programming and infomercials of all styles will have you believe that flipping houses is a fun and fascinating way to turn a serious profit in real estate. It is just that, though it is also so much more. There is a lot of money that can be made by flipping houses (buying homes in various states of neglect or disrepair, making the repairs, and then selling for a sizeable profit) by the right professionals. However, there is a massive amount of work that is actually involved in the process of making that money.

The sheer volume of work, the time consumption, the sleepless nights and days, and the sometimes disgusting chores that must be done in order to get a run down property in sellable conditions is often glossed over on these television shows for various reasons-most of all the reason that the average Joe sitting at home wants to believe that he too can do this kind of work for quick profits and these images are not conducive to that illusion. In other words, this is a tough racket no matter how easy they attempt to make it seem.

Poor planning is the bane of a property flipper’s existence. In order to have a successful flip (and by that I mean maximum profit-minimum investment not any profit at all) you must carefully create a plan of action and implement that plan as quickly and cost effectively as possible. You must also realize that there are likely to be rain delays, hiccups, and disasters along the way. Proper planning can eliminate some of the disasters that may occur but it will not eliminate every conceivable possibility that will come along. More importantly than anything else however, proper planning can limit these occurrences as well as their severity to the overall time schedule and budget.

Another important thing, which falls under proper planning, is having a proper inspection done. The importance of this step cannot be stressed enough. Knowing the problems and potential problems that exist in a property can help you create a workable timetable and budget for the property flip. This also notifies you of potential problems you may encounter along the way. The television shows that deal with this week in and out often leave out this oh so important step and many would be investors find themselves investing in a money pit rather than a home that has potential to turn the quick profits they are hoping for.

You should make every effort to insure that your first flip is a simple cosmetic flip (this is something that a good inspector can assist with). In fact, this should be the case for your first few flips and then you can move on to more substantial flips that involve more work. The reason is simple-while the profits will be somewhat smaller on these cosmetic flips it gives you, as the investor, the opportunity to learn to budget, set timetables, and live within those budgets and timetables. This is where most investors go astray when taking on projects that are above their means. A house flip is no small endeavor and there is a lot of money to be lost along the way when this particular real estate investment doesn’t pan out. Start small and ignore the dollar signs in your eyes, then work up to more extensive projects.

Another pitfall that many investors make is not catering to the audience they are hoping to attract in the property being flipped. A bachelor’s pad does not need 3 or 4 bedrooms. At the same time, a family home typically needs at least 3 if not 4 or more bedrooms. Other considerations should be fenced in yards, landscaping, and maintenance requirements. Low maintenance lawns are in high demand these days particularly low maintenance lawns that appear to be well landscaped.

Keep these things in mind when flipping your real estate and you should see some degree of success-just remember, the rewards when you are doing things you never thought you would be doing during the process.

Is an Inspection Really Necessary?

One question that seems to be commonly asked among those who are interested in real estate investment, particularly in flipping properties, is whether or not a real estate inspection is really necessary. The long and short answer to that question is absolutely and I will do my best to explain exactly why this is so.

First of all, a real estate inspection is the act of having a qualified (and in many states, licensed) professional take a look around the property you are considering and informing you of obvious and potential damage or problems with the property. This is not something you want your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know what to look for in an inspection and know what those things could mean.

Many who are planning to flip properties enter into the situation (particularly first time flippers) with the attitude that they know there are problems with the property and that is why they are purchasing the property. The problem is that the untrained eyes may miss some problems that should be addressed before moving along to other problems.

For instance, if there were obvious signs of plumbing problems that could result in a leak behind the wall, you wouldn’t want to paint that wall or replace the floors until you had the possible leak checked and either confirmed or denied and repaired if necessary. Otherwise you would likely need to undo the work (wasting both time and money) that had already been done by the time you found out about the leak that a competent inspector would have told you about before you even began working on the property.

Inspections are great before placing the bid on a house because they actually give investors a bargaining chip. For the true (at heart) investor this is a fact that simply cannot be ignored as it directly affects the bottom line price. If the roof needs to be replace you are justified in offering a lower amount. If the electrical system needs to be updated, this is something that should be adjusted or amended in the final offer. These are also things that are easily identified by a qualified and competent property inspector. Any thing that can save time and money is great when investing in property and an inspection can do both.

Another great thing about a good property inspection is that it often sheds light on the amount of money that will be needed in order to get the house in good working (or flappable order). Knowledge is very important in this line of work and can mean the difference between taking on a project (if the repair budget won’t exceed the eventual value of the property) or walking away if the expenses would be too great to turn a decent profit. As an investor you should never take on a property that is pretty much guaranteed to be a failure, it is simply not a wise financial move to make. It doesn’t matter how much the property calls to you on a personal level in the business of investing the bottom line is the only call you should be taking.

More importantly however than any of the things mentioned above, a proper home inspection can inform you of potentially hazardous conditions within the home that the untrained eyes may not take notice of. Some of these things include toxic mold, which can be financially disastrous as well as hazardous to your health; foundation issues, and structural damage that is threatening the integrity of the property. An inspector should also notice the structural integrity of homes that could affect your home if they are weakened or fail all together. While these things seem so simple, it is often the simple things that lead to the greatest disasters. Whether or not you realize it, a good home inspector is one of the best tools you can have in your arsenal when it comes to flipping real estate as an investment venture.