5 Things You Should Know Before You Flip A Property
Word Count:
787
Summary:
Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high.
Keywords:
foreclosure, foreclosure list, pre-forclosure,Property Flipping, flipping, house flipping, home flipping, house flip, flip this house, real estate
Article Body:
1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5 $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at the home, not the sell.
2. Get an inspection on the home - Get a complete inspection done on your property. By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. Foundation, Pest, Wood Rot, Etc... By, getting a full inspection you can rest assured that you know every thing that is wrong with the property before its to late. In the contact for the house you need to make sure that you have 7 days to have a inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to spend you can get out of the contract with no penalties.
3. Don't do the work yourself: - Get a contractor or several sub-contractors and have the work done quickly. You need to have you house flipped ASAP, so that you can get it on the market and get it sold. When I started flipping my brother and me did a house together, and we did all the construction. I had a construction background and figured it would save thousands, but it took us over 4 months to get the work done that a contractor could have had the work done in a month. But, we trying to save money on our flip did all the work on our time off and after work, and it just took to long. On our 2'nd flip we used contractors for almost everything and had the house completely flipped with a new roof, new air conditioning, new hardwood, and much more in only 3 weeks. We did not have to spend all our time working on the property and were able to spend that time looking for the next deal. This is how you get rich in real estate.
4. Place the property 1 to 2 percent below market value: If you are wanting to flip real estate and make money the object is to buy and sell the property as quickly as possible, so that you can move on to the next house. If you purchase a house and try to sell it at top dollar to make and extra couple of thousand dollars on your flip, and end up holding it for 6 months you are loosing money. Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions. On our second house the market for selling house went down do to the housing market as a whole, and the tightening of the loans across America. We were told that you could not sell a property in this market, but we went ahead anyway and flipped our house. After 3 weeks on the market we had 3 people wanting to buy the house. Why, because we offered it at such a great deal that people wanted to jump on it. That is what you have to do especially if the market is slow.
5. Use a real estate agent - Do not try to sell you house on your own. Harness the power of a real estate agent and the power of the MLS system. When you do a FSBO you are depending on people driving by your house and seeing you sign, with a real estate agent you have some one actively marketing you house to get it sold. Once again this will free up more time for you to look for more great deals. If you want to help the process I have found that craigslist and listing you house in google adwords help to, but I use these tools with the help of a agent to make sure I have all my bases covered.
I hope this article has been helpful with the basics needs of flipping a house. If you will study and learn you will make money. But, do your homework before you purchase a house, and make sure that you can pull a profit on your deal. Then, make it happen!
Showing posts with label flipping. Show all posts
Showing posts with label flipping. Show all posts
Friday, March 4, 2011
Monday, February 28, 2011
4 Dangers In Flipping Real Estate
4 Dangers In Flipping Real Estate
Word Count:
338
Summary:
If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. If you hope to "flip" the property there are 4 things you must be aware of that can put a crimp on your profits.
Keywords:
real estate investments, property taxes, renovations, tenants, landlords, flipping, appraisals
Article Body:
If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. If you hope to "flip" the property there are 4 things you must be aware of that can put a crimp on your profits.
<b>1. Property Taxes.</b> Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.
<b>2. Renovation Expenses.</b> You may have purchased a "fixer upper" at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?
<b>3. Insurance and Mortgage Costs.</b> You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.
<b>4. Rental Pressures.</b> A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?
Of course, you can limit your risks [and costs] by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn't easy flipping a home, but with a lot of pluck and determination it can result in strong profits for you.
Word Count:
338
Summary:
If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. If you hope to "flip" the property there are 4 things you must be aware of that can put a crimp on your profits.
Keywords:
real estate investments, property taxes, renovations, tenants, landlords, flipping, appraisals
Article Body:
If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. If you hope to "flip" the property there are 4 things you must be aware of that can put a crimp on your profits.
<b>1. Property Taxes.</b> Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.
<b>2. Renovation Expenses.</b> You may have purchased a "fixer upper" at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?
<b>3. Insurance and Mortgage Costs.</b> You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.
<b>4. Rental Pressures.</b> A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?
Of course, you can limit your risks [and costs] by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn't easy flipping a home, but with a lot of pluck and determination it can result in strong profits for you.
Saturday, February 26, 2011
3 Surefire Ways To Sell Your Homes On Steroids, While Other Investors Can't Give Away Their Homes
3 Surefire Ways To Sell Your Homes On Steroids, While Other Investors Can't Give Away Their Homes
Word Count:
1407
Summary:
So you need to sell your home?
This article is exactly what you need to do, to sell your home or create a bunch of leads of individuals, who are HOT prospects to buy your home.
Keywords:
real estate, fl real estate. real estate investing, real estate investing guide, flipping, rehab, fl, mike perl, foreclosure, tcreia, real estate club
Article Body:
So you need to sell your home?
This article is exactly what you need to do, to sell your home or create a bunch of leads of individuals, who are HOT prospects to buy your home.
Before, I share my 3 steroid ideas on selling your homes; you need to take a few simple steps...
PREPARATION
1. You need to locate and interview an aggressive Mortgage Broker, very knowledgeable, with a GREAT TRACK RECORD of closing deals, especially difficult ones.
I cannot stress enough the importance, of having a great broker on your power team. I own and run, the R.E.I.A. (real estate investor club / http://www.tcreia.com/) in my area, so whenever I hear a member, say they got a difficult deal closed, I always make sure to inquire for an introduction, because this might be the broker who can get most of my deals funded.
Remember, you can sell a home ten times, if you can't get the buyer funded by a mortgage company...who cares, your wasting your time.
2. You should make some effort in fixing the home up; even if it's a hunker, I'd still get the lawn cut and maybe throw a coat of paint on the property. You'd be amazed at the improvement to even an ugly property, with a simple coat of paint on the front of the property.
3. Go to your local community financing office or local grant and home buyer bond office. For example in my area (South Florida and Palm Beach County), both counties run a FREE class for your buyers on becoming a first time home buyer and when they take the class, they then get a voucher from the county, giving them $10,000.00 toward the purchase of their first home. The best part is sometimes the loans are even forgiven, when certain criteria are met by the new homeowner.
LET'S DO SOME MARKETING ON STEROIDS
Let's be frank, your going to have to be more aggressive, smarter and persistent than 99% of all your homes neighbors.
There's no magic pill, but this has been working for both my students and me, for the last year, and we're always testing and fine-tuning the system.
And I can tell you, that while every other investor, is sitting with their heads in their butts, my students and I are able to sell all of our properties, during one of the worst RE slowdowns in history, and this is in South Florida, one of the most depressed markets in the Country,
1. Buyer First System
Basically you create your own buyers. The best example would be converting a lifetime renter into the American Dream a homeowner. Just so happens, that while becoming the American Dream, they also end up buying your home.
Very simply, create a flyer or postcard, and market to communities of people who would be a great prospect to buy your home.
Who doesn't want to be a homeowner in America? Nobody, that's a stupid question, everyone wants to be a homeowner, and it's bred into us as kids.
The real key is you must understand, that these individuals renting, most are under the impression they CAN'T get a mortgage. They might have tried in the past, and we're shutdown and embarrassed, only to believe they would live the rest of their lives as a RENTER.
These are the best leads you can focus on, because it's not a matter of IF they'll buy your home, they will, the key is can you get them funded or is it the right house for them, financially affordable.
I must also share with you, this strategy will take some of your time and initiative, because their is hand holding involved, mortgage brokers, and helping them get any government help in First time homebuyer money.
2. Fish in some one else's pond!
Go where the most prospects are for your home. I'll give you some examples, you need to go where the most and the best prospects are to buy your home, assuming it's a good deal (priced right, and there's still built-in equity for your buyer).
If you have any contacts or a friend of a friend, now is the time for using it and your expectations are for these contacts to open doors for you, to their sphere of influence.
For Example, one of my students, Courtney, leveraged a contact he had, his cousin (she was a middle school teacher), and she introduced him into the schools, where it just happened that the schools are in the same area, that he was selling a great starter home.
He sold the home that he needed to the most, but then, once word spread of what he was able to do, the rest of the teachers came out of everywhere, wanting him to help them. He's since helping the 1st teacher, sold another 5 homes, to 5 different teachers, earning him over $30,000.00 for this simple, leveraged relationship.
So what ponds can you fish in, with your marketing? Think about whom you know (friends, family members, and associates)?
BEST: Teachers, Cops, Firefighters, Government Employees, Bus Drivers, Department of Transportation. (These careers are loved by lenders, they mostly have good credit, and their income is basically guaranteed and very stable.)
GOOD: Large local employers: Supermarkets, Local telephone company (Bell South), Home Depot, Wal-Mart, etc.
3. Use the Internet...
You should definitely have an individual website for your property.
You can get a simple site built for under $100.00.
ü Use http://www.elance.com/ or http://www.rentacoder.com/ : Two great sites, for getting your site created, they are both similar to EBay. You post an auction about your project (your home website), and then companies bid on your job, and you get to see samples of their work and read all their feedback, after you decided who wins your job, you choose a winner. Oh by the way, both of these services cost you nothing, their completely FREE. ü Take some pictures with a digital camera of your home and you'll end up emailing them to the site designer, to post on your site. (good example, is http://www.735airoso.com/) ü Treat this as an online, digital brochure, basically being able to do whatever you can conceive. ü You can take a video of the home, with you walking through the home and then have it placed on your site. If you're intimidated by video, like I was at first, don't be, because your web site designer can do it for you, very easily.
Now, when ever you talk to someone on the phone or in person, they can quickly look at your property, on the web. This will be the best $100.00 you'll ever spend on marketing of your home.
4. BONUS: Promote and hold your own, "First Time Homebuyer Seminar".
Before you say anything, I don't expect you to be Tony Robbins, if you can get 10 to 15 people in a room, your going to be successful.
We shared this strategy with my mentoring students, and it's been working excellent for them, from the results I've been receiving back from my future millionaires. In fact, one of my students from Miami, Alex, has been executing this strategy like gangbusters.
Before writing this article, I received permission from Alex to share some of his feedback with you, on the Homebuyer seminars that have been very successful for him.
He's now doing 1 a month, every month. Also, since he's has a few successfully under his belt, he's now selling sponsorship space to his seminars, to Mortgage brokers, credit repair companies, and he's even worked out a joint venture with two different realtors, whom pay him for every property they sell to one of his prospects.
If you're curious how he's filling the room, all he's doing is as follows...
-Flyers in Parking lots, I.E. Wal-Mart, Publix Supermarkets, and local churches.
-Free Advertising on http://www.craigslist.com/
-He uses bandit style signs on the side of the road, 18 x 24, corrugated plastic signs.
-He's even put up a website that the attendees, can pre-register for the seminar. (Sorry, he didn't want me giving out the site, for obvious reasons)
-He also is giving them an ethical bribe for attending the seminar; he gives them a few nooks and tapes just for making it to the event. The best part is he received the books for free on the internet, and he's also allowed to give them away for free and even rebrand them as his own books.
Word Count:
1407
Summary:
So you need to sell your home?
This article is exactly what you need to do, to sell your home or create a bunch of leads of individuals, who are HOT prospects to buy your home.
Keywords:
real estate, fl real estate. real estate investing, real estate investing guide, flipping, rehab, fl, mike perl, foreclosure, tcreia, real estate club
Article Body:
So you need to sell your home?
This article is exactly what you need to do, to sell your home or create a bunch of leads of individuals, who are HOT prospects to buy your home.
Before, I share my 3 steroid ideas on selling your homes; you need to take a few simple steps...
PREPARATION
1. You need to locate and interview an aggressive Mortgage Broker, very knowledgeable, with a GREAT TRACK RECORD of closing deals, especially difficult ones.
I cannot stress enough the importance, of having a great broker on your power team. I own and run, the R.E.I.A. (real estate investor club / http://www.tcreia.com/) in my area, so whenever I hear a member, say they got a difficult deal closed, I always make sure to inquire for an introduction, because this might be the broker who can get most of my deals funded.
Remember, you can sell a home ten times, if you can't get the buyer funded by a mortgage company...who cares, your wasting your time.
2. You should make some effort in fixing the home up; even if it's a hunker, I'd still get the lawn cut and maybe throw a coat of paint on the property. You'd be amazed at the improvement to even an ugly property, with a simple coat of paint on the front of the property.
3. Go to your local community financing office or local grant and home buyer bond office. For example in my area (South Florida and Palm Beach County), both counties run a FREE class for your buyers on becoming a first time home buyer and when they take the class, they then get a voucher from the county, giving them $10,000.00 toward the purchase of their first home. The best part is sometimes the loans are even forgiven, when certain criteria are met by the new homeowner.
LET'S DO SOME MARKETING ON STEROIDS
Let's be frank, your going to have to be more aggressive, smarter and persistent than 99% of all your homes neighbors.
There's no magic pill, but this has been working for both my students and me, for the last year, and we're always testing and fine-tuning the system.
And I can tell you, that while every other investor, is sitting with their heads in their butts, my students and I are able to sell all of our properties, during one of the worst RE slowdowns in history, and this is in South Florida, one of the most depressed markets in the Country,
1. Buyer First System
Basically you create your own buyers. The best example would be converting a lifetime renter into the American Dream a homeowner. Just so happens, that while becoming the American Dream, they also end up buying your home.
Very simply, create a flyer or postcard, and market to communities of people who would be a great prospect to buy your home.
Who doesn't want to be a homeowner in America? Nobody, that's a stupid question, everyone wants to be a homeowner, and it's bred into us as kids.
The real key is you must understand, that these individuals renting, most are under the impression they CAN'T get a mortgage. They might have tried in the past, and we're shutdown and embarrassed, only to believe they would live the rest of their lives as a RENTER.
These are the best leads you can focus on, because it's not a matter of IF they'll buy your home, they will, the key is can you get them funded or is it the right house for them, financially affordable.
I must also share with you, this strategy will take some of your time and initiative, because their is hand holding involved, mortgage brokers, and helping them get any government help in First time homebuyer money.
2. Fish in some one else's pond!
Go where the most prospects are for your home. I'll give you some examples, you need to go where the most and the best prospects are to buy your home, assuming it's a good deal (priced right, and there's still built-in equity for your buyer).
If you have any contacts or a friend of a friend, now is the time for using it and your expectations are for these contacts to open doors for you, to their sphere of influence.
For Example, one of my students, Courtney, leveraged a contact he had, his cousin (she was a middle school teacher), and she introduced him into the schools, where it just happened that the schools are in the same area, that he was selling a great starter home.
He sold the home that he needed to the most, but then, once word spread of what he was able to do, the rest of the teachers came out of everywhere, wanting him to help them. He's since helping the 1st teacher, sold another 5 homes, to 5 different teachers, earning him over $30,000.00 for this simple, leveraged relationship.
So what ponds can you fish in, with your marketing? Think about whom you know (friends, family members, and associates)?
BEST: Teachers, Cops, Firefighters, Government Employees, Bus Drivers, Department of Transportation. (These careers are loved by lenders, they mostly have good credit, and their income is basically guaranteed and very stable.)
GOOD: Large local employers: Supermarkets, Local telephone company (Bell South), Home Depot, Wal-Mart, etc.
3. Use the Internet...
You should definitely have an individual website for your property.
You can get a simple site built for under $100.00.
ü Use http://www.elance.com/ or http://www.rentacoder.com/ : Two great sites, for getting your site created, they are both similar to EBay. You post an auction about your project (your home website), and then companies bid on your job, and you get to see samples of their work and read all their feedback, after you decided who wins your job, you choose a winner. Oh by the way, both of these services cost you nothing, their completely FREE. ü Take some pictures with a digital camera of your home and you'll end up emailing them to the site designer, to post on your site. (good example, is http://www.735airoso.com/) ü Treat this as an online, digital brochure, basically being able to do whatever you can conceive. ü You can take a video of the home, with you walking through the home and then have it placed on your site. If you're intimidated by video, like I was at first, don't be, because your web site designer can do it for you, very easily.
Now, when ever you talk to someone on the phone or in person, they can quickly look at your property, on the web. This will be the best $100.00 you'll ever spend on marketing of your home.
4. BONUS: Promote and hold your own, "First Time Homebuyer Seminar".
Before you say anything, I don't expect you to be Tony Robbins, if you can get 10 to 15 people in a room, your going to be successful.
We shared this strategy with my mentoring students, and it's been working excellent for them, from the results I've been receiving back from my future millionaires. In fact, one of my students from Miami, Alex, has been executing this strategy like gangbusters.
Before writing this article, I received permission from Alex to share some of his feedback with you, on the Homebuyer seminars that have been very successful for him.
He's now doing 1 a month, every month. Also, since he's has a few successfully under his belt, he's now selling sponsorship space to his seminars, to Mortgage brokers, credit repair companies, and he's even worked out a joint venture with two different realtors, whom pay him for every property they sell to one of his prospects.
If you're curious how he's filling the room, all he's doing is as follows...
-Flyers in Parking lots, I.E. Wal-Mart, Publix Supermarkets, and local churches.
-Free Advertising on http://www.craigslist.com/
-He uses bandit style signs on the side of the road, 18 x 24, corrugated plastic signs.
-He's even put up a website that the attendees, can pre-register for the seminar. (Sorry, he didn't want me giving out the site, for obvious reasons)
-He also is giving them an ethical bribe for attending the seminar; he gives them a few nooks and tapes just for making it to the event. The best part is he received the books for free on the internet, and he's also allowed to give them away for free and even rebrand them as his own books.
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