Posts Tagged: ‘houses’

Tips to Fix and Flip Houses with Ease

May 19, 2012 Posted by admin

Picture yourself in this scenario: You’ve heard from a friend that if you fix and flip houses today, you can easily build a fortune. So, you decide to watch the reality TV show he recommended. Now you think it really is easy. You decide to try rehabbing houses on your own after reading some materials about it. At the closing, you realize that you didn’t earn much at all after a few months of labor. Now you hate the business because all the hype about it is all that – hype.

But rehabbing houses is hard to dismiss as all hype. It has made a lot of millionaires already and if you failed to fatten your bank account in your first rehab, you must have done something wrong. To help you avoid all, here are some tips to fix and flip houses with ease – and for a lot of profit.

  • Lay down a timeline before anything else. A whole fix and flip project will last only for a few weeks or probably a couple of months. Within that timeframe, you must be able to dispose of the house. The property should not stay with you too long as rehabbed houses that are not sold quickly tend to lose value. To avoid this, you must make a timeline and abide by it. Jot down the date when the project began and when you must finish it. Set daily and weekly goals and accomplish them. For instance, on a certain day, you will target to update the electrical system.
  • Seek professional help when necessary. If you don’t know how to replace roof shingles, do not attempt to do it. You are not only compromising your safety but the safety of the people who will occupy the property as well. You must be responsible when you fix and flip properties. Doing all repairs on your own will save you in labor costs but it will eat up all your time. Also, be sure to check if your state requires only professionals to make certain repairs.
  • Keep your personal preferences at bay. Leave your home fetishes at home. These could make you spend more than your allotted money for repairs. What usually happens to neophyte rehabbers is that they do all improvements they would like to see in their own homes. For example, they want a separate carport for their property. They carry over this personal preference to the house they are rehabbing and include the construction of a new carport even when that property actually has a garage.

To know better what to do when you fix and flip properties, visit rehab-real-estate.com today.

Article Source:http://www.articlesbase.com/investing-articles/tips-to-fix-and-flip-houses-with-ease-1595616.html

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What Repairs to Do First When Rehabbing Houses

May 15, 2012 Posted by admin

Taking the first step, they say, is always the heaviest. But once you get the hang of it, once the momentum is there, the remaining steps will be lighters and easier. Rehabbers are facing the same problem. Most of those who are inexperienced scratch their heads on what to do first. Rehabbing houses could be a headache if you don’t know where to start. To save you from all that stress, here’s a lose list of what repairs you must do first when rehabbing houses.

First thing you should do is create a timeline for repairs. If you have a contractor, consult him and set a deadline for repairs. Will the repairs and improvement be completed in three weeks? A month? Once this timeline is in plane, make to finish the project before or on the deadline.

When it comes to the actual rehabbing, you must address problems that demand immediate solutions first. If you are fixing and flipping a property in a state with ample rain all year round, holes on the roof are problems you must swiftly address. You don’t want further damage on the interior of the property due to leaks. This is also for the safety of your crew. Accidents can happen when the house is slippery and wet. Another example is termite infestation. If a portion of the wall is already being eaten up by these pests, take out that part to prevent other parts from being infected as well.

Next comes the gutting. This is the stage where you clean the property. You take out anything that can hinder you and your team from properly rehabbing that house. Those old cabinets will have to go. All appliances must be taken out of the property. If these are still working, you can sell them to surplus shops or neighbors.  The proceeds will go to your repair budget. If the old paint needs to be scraped, then it will go as well.

Major repairs come next. Remember, rehabbing houses means you are operating with a tight budget. That means you must prioritize repairs that will eat up most of your money. Structural repairs, although shunned by rehabbers, must be done first. Cosmetic repairs will then follow. Correction of a house’s foundation, total roof replacement, and rebuilding of a wall or beam are considered structural repairs.

The HVAC (heating, ventilating, and air conditioning) will be carried out next. Plumbing and electrical systems must be updated if necessary. Cosmetic repairs or beautifying improvements will follow. Installing new lighting fixtures, applying paint, and replacing doorknobs are examples of cosmetic repairs. Want to learn more about rehabbing houses? Go to rehab-real-estate.com today.

REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More

Article Source:http://www.articlesbase.com/investing-articles/what-repairs-to-do-first-when-rehabbing-houses-1576699.html

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Wholesaling Houses? Hold Your Horses

May 14, 2012 Posted by admin

People love spontaneous decisions. There’s this thrill brought by acting on impulse. If you’re among those who are excited because you heard that you can start wholesaling houses without a capital, hold your horses! It is true that you can start in this business even without the money to buy a house. However, it is imperative that you know how this system works. Some pointers won’t hurt as well. So before you start wholesaling houses, read these reminders first.

This business is defined in the simplest terms as quickly buying and selling property for a profit. You don’t technically buy the house because you just put it under contract. You will then sell that contract to buy the house to another wholesaler or a rehabber. You will get an assignment fee for this. It is important to note that you will work under time pressure because a contract to buy a house will only valid for days. If you don’t find a buyer fast, you will pay holding costs and that will lessen your profit.

Wholesaling houses is about hunting for motivated sellers. Do you even know who they are? These are home owners who are “motivated” to sell their properties. For various reasons, what they care about is selling the property fast. This puts you in a better position to negotiate and dictate the price of the property. Recent divorcees are considered motivated sellers. They just want to sell their property because they are probably exhausted with the proceedings. Owners who have lost a loved one in that property or those who inherited the property in question are also considered motivated sellers. Apart from owners who are struggling financially, families who have already bought a new property and motivated to sell their old home.

Lend an ear. Showing a little sensitivity to your seller is a sign of a good negotiator. Remember, you need good negotiation skills in wholesaling houses. It will also help to take note that you are dealing with motivated sellers and these people may be battered emotionally. Don’t make it appear as if you want to dump more pain to them by taking away their property. When negotiating with the seller, be sure to listen to their story and why they are selling the property. Tell them that you help them by offering a reasonable price for that house.

Lastly, be sure to check sites like REIwired.com that offer quality education about wholesaling and other forms of real estate investing.

REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More

Article Source:http://www.articlesbase.com/investing-articles/wholesaling-houses-hold-your-horses-1576713.html

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Wholesaling Houses: The Secrets to Success

December 18, 2011 Posted by admin

According to many real estate investors, wholesaling houses is one of the best ways to make money in the housing industry. You don’t need huge investment capital to get started in this business. In addition, because you’re not exactly buying a property, you’re not exposed to huge risks that can badly affect your career as an investor.

In the real estate business, wholesaling basically refers to the process of placing a property under contract and then selling or “passing on” that contract to another buyer. The wholesaler somewhat serves as middleman between the home seller and the buyer. He makes money from the “assignment fee” he collects from the buyer of the property.

Although wholesaling houses look simple from the outside, it requires patience, hard work, and dedication. You also have to consider a lot of things to ensure that your business is on the right tract. To help you succeed in your chosen career, here are the things you should do:

  1. Create a seller’s list. Such a move can help you obtain a stable source of properties that you can wholesale. Many wholesalers quit the business because they can’t find houses that they can place under contract. To avoid this particular setback, you should get yourself acquainted with as many motivated home sellers as possible. You should also befriend probate attorneys and other individuals who know people who might be willing to sell their properties.
  2. Make a buyer’s list. After generating a seller’s list, the next important task is to create a buyer’s list, which can help you move properties quickly. To have a strong list, you should join the local real estate investing club because it allows you to meet fellow investors, who can be your potential clients or business partners.
  3. Create good marketing strategies. Having a good marketing plan allows you to find properties and buyers easily. Be as creative as possible.
  4. Improve your relationship with appraisers, lenders, closing attorneys, and other people involved in the business of wholesaling houses. Just like in any other business, having good rapport with the people you work with can help ensure a smoother work flow. Therefore, it wouldn’t hurt to build good relationships with such individuals.

Wholesaling houses can bring you big profits and great opportunities if you just play your cards right. So if you want to learn the ins and the outs of being a wholesaler, visit www.Rehablist.com, a website that provides quality real estate education.

Rehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether you’re into rehabbing houses, property investment buying, or fix and flip, we’ll teach you everything you need to know so that you’ll earn MAXIMUM PROFIT in each and every deal.

Article Source:http://www.articlesbase.com/investing-articles/wholesaling-houses-the-secrets-to-success-1525369.html

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The Essentials of Rehabbing Houses

November 14, 2011 Posted by admin

Did you know that rehabbing houses can make your dreams come true? Yup, you heard it right! The business of fixing and flipping properties is one of the most lucrative industries in the world of real estate. With a dose of patience, hard work, and dedication, you can earn big bucks in this type of real estate investing without having the need to obtain a Ph.D. from some fancy university.

As a rehabber, one of your main tasks is to find a property that you will renovate. To do this, you can search property listings or look for homeowners who are eager to get rid of their properties. Also known as “motivated home sellers,” these people are those who are in a hurry to earn cash because they could be facing foreclosures, divorce, or moving to a new city or state. You can get bigger discounts if you will buy an investment property from motivated home sellers since most of them don’t usually ask for a higher selling price.

Next is financing. You have to make sure that you have a considerable amount of cash on hand when rehabbing houses. To obtain financing, you can either apply for bank loans from traditional lenders, such as banks and mortgage unions, or ask the assistance of hard money lenders.

Hard money loans are asset-based, meaning private lenders base their decision to approve a loan on the value of a property, which is being offered as collateral. So if you have trouble securing a loan because of your low credit score, you can definitely ask these private lenders to help you out.

When renovating a property, you can either hire professional contractors or do the repairs on your own. Many investors, especially those who are skilled at handyman projects, don’t seek professional help in order to save money. However, most rehabbing experts warn against doing the repairs by yourself because it could take too much time and effort. In addition, you can’t be sure if the renovations would turn up okay.

One of the most important things to remember when doing fix and flip projects is to create a budget and a timetable. Such a strategy can help you avoid spending too much time and money on the property. It can also help ensure that you’re rehabbing business will run smoothly.

If you want to better understand the business of buying and fixing properties for profit, visit REIWired.com. The website is home to valuable real estate write-ups and videos that can boost your fixing and flipping skills.

Article Source:http://www.articlesbase.com/investing-articles/the-essentials-of-rehabbing-houses-1399819.html

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REIWIRED: The Buzz About Wholesaling Houses

January 4, 2010 Posted by admin

The real estate investing world is abuzz over what people are calling wholesaling houses. Although this business has been attracting considerable attention over the past few years, it is becoming more popular nowadays. Much of this has to do with the economy trying to recover from the recession.

Because the real estate market is still rising from a slump, property prices have yet to pick up. This is giving investors a rare opportunity to snap up properties for bargain prices. Those who are into wholesaling houses are making huge money from this phenomenon.

Where do they get all the capital they need to purchase the properties they sell? Actually, they started even without a massive capital. They didn’t need to have enough money to buy a house because they don’t buy houses. What wholesalers do is place a property under contract. What they “sell” is the contract to buy that property. By assigning that contract to a buyer, they will get an assignment fee. $10,000 is a normal assignment fee. Imagine earning $10,000 in a matter of few days just by find properties and buyers.

You earn money without putting down any capital. Because of that, this business is known as the doorway to the world of real estate investing. When you secure enough capital, you can start rehabbing properties. In the future, you can even have enough money to venture into real estate development. But if you don’t have the funds, wholesaling houses is the way to go.

Just remember, this business is fast-paced. From finding properties to finding buyers, you must operate fast. That is why it is also called flipping houses. When you place a property under contract, that agreement will only be valid for a few days or weeks. If you don’t “buy” the property within that period and want to extend the contract, you must pay holding costs. If you choose to let go of it, you’ll lose an opportunity to make huge money.

What you can do to avoid these scenarios is advertising your business. Tell people you meet that you are buying properties. They might refer home owners to you. That way, you will find more properties to wholesale. You can also try building a buyer’s list. This is a list of buyers who are ready to purchase properties. Wholesaling houses is easier with this list. Upon finding a property for sale, all you need to do is place it under contract and then contact the names in your buyer’s list.

Want to learn more about wholesaling houses? Go to REiwired.com today and you’ll know what keeps the real estate investing world a buzz.

REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More

Article Source:http://www.articlesbase.com/investing-articles/reiwired-the-buzz-about-wholesaling-houses-1662419.html

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Is Flipping Houses Against the Law?

December 21, 2009 Posted by admin

Flipping houses is a term widely used in the real estate business to describe the act of buying properties and then quickly selling them for profit. It is usually used interchangeably with wholesaling, which is another method of investing in real estate. To flip houses, real estate investors mostly buy undervalued houses before selling them at a slightly marked up price.

There are two common methods to flip a property: multiple investor flipping and fix and flip. In multiple investors flipping, Investor A will buy a property at a discounted price. Then he will sell that property to Investor B, who will find an end buyer for the property. The end buyer is likely to use the property for residential or investment properties.

Also know as rehabbing, the term fix and flip applies to the purchase, renovations, and eventual sales of an old property. Most investors who are involve in this type of real estate investing usually fix up distressed properties before selling them at a higher price, which is something near the house’s full market value.

Although flipping houses is a great way to make money amid these trying times, many people have reservations with using this particular type of real estate investing to make a living. Because of the negative media reports on flipping houses, most people believe that buying investment properties and quickly selling them for profit is against the law.

However, there is absolutely nothing wrong with buying and selling houses. In fact, flipping real estate is the same when you buy, let’s say a pair of shoes and then sell it at a higher price. And you don’t go to jail by simply selling a pair of shoes at a higher price, now do you?

Flipping houses only becomes illegal when it involves mortgage fraud. Mortgage fraud involves criminal activities such as paying appraisers to inflate the value of a property to get bigger loans, as well as the falsification of documents required in the processing of a loan application. A real estate investor can also get in trouble if he or she lies about a property, which in reality is in bad condition, and sells it to an unsuspecting buyer just to get a loan closed.

As long as investor follows federal and state laws when buying and selling properties, then there is nothing to be afraid. Thus, it would be wise for a real estate investor to keep himself informed about the latest rules and trends in the real estate investing business.

For more details on flipping houses, visit www.Rehab-Real-Estate.com.

Article Source:http://www.articlesbase.com/investing-articles/is-flipping-houses-against-the-law-1605955.html

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