Archive for the ‘House Flipping’ Category

Anytime you see a television show about flipping houses, you’re not likely to see the downside of this business. There are many sad situations where people who thought they would do good flipping houses fail and have to deal with the financial hardship. They must find a way to recover their losses and move on with life. Some people are affected slightly by a flip gone wrong while others are greatly affected by it. No matter how bad the effect is, you won’t see this snowball kind of information on a television show promoting the business of house flipping.

What To Do Before You Flip A House

Before you make your opening flip, you need to step back and make a decision not to become one of those house flipper failures that you hear about in chat rooms on the Internet. You need to think positive that you’ll be a success story that is seen on the television.

Take Time To Create A Plan

If you desire to be a success story, you’ll need to do some planning. Don’t make it a “on the whim” plan. It must be thought out. Study and research the properties you are interested in, check out their prices and values and compare them with the rest of the homes in the neighborhood. Remember that this is an investment and it takes months of planning to pick the perfect first flip that will boost the chances of success.

Be Realistic

When you’re planning the first flip, remember to be pragmatic and don’t expect too much out of it. The first flip is likely to be the least successful of all your flips; this is because you’re learning the ropes. You may make some money but it may not be very much. If you’re going into the buy thinking you’ll make money like you did as a full-time employee, you’re going to need to get out now. First flips hardly ever go as anticipated.

Set Aside A Large Budget

For your initial flip, put aside a little more money (typically two to three times more money than you would normally). This will help you cover the tangible costs that are needed including supplies, permits, labor and more. Most people don’t consider these costs initially. If you don’t have much or cannot afford to spend a lot, then it’s time to walk away since the property won’t be a good first time flip.

Plan Your Day’s Events

After you’ve purchased the property, it’s time to get to work. Make sure each day is full, cleaning and fixing up the home. You’ll want to have all the tools and materials at hand and even your lunch/dinner nearby. If you have to do a quick run for certain things, you lower the productivity level and progress made for the day. With proper planning, you’ll avoid these pricey delays and have a real estate house flipping story worth sharing to the world.

One of the best – and first – house flipping tips you need to know is to do your due diligence. It’s possible to make a fortune flipping houses, and it’s just as easy to lose your behind if you don’t know what you’re doing. When it comes to the fix and flip real estate game, there is much more than just rehabbing properties that need some renovation then selling them off to the next guy. So, to re-iterate: the first and best of all house flipping tips is to educate yourself.  

The Definition of “Flipping”

When you are flipping houses, you are purchasing a distressed property at a low price and reselling quickly to someone else at a substantial mark-up. While this is often done with run-down properties in need of renovation or “rehabbing,” properties like this are not the only game in town when it comes to fix and flip real estate transactions. Homes that are “for sale by owner” are great candidates, as the seller is usually very motivated. Foreclosed properties can also be purchased at a great discount; you can find these through banks and realty offices that specialize in such things.

House Flipping Tips Number 2: Tracking And Bagging Your Quarry

Basically, the best candidates for a profitable fix and flip real estate transaction are those on which you can make the biggest profits with the least amount of time and effort. As mentioned earlier, banks and mortgage companies are prime hunting grounds, but you may also find deals at real estate auctions. The only caveat here is that you are up against a lot of competition at an auction; bids get raised quickly, and you may not get the best deal.

House Flipping Tips Number 3: Financing

After you’ve done it a few times, you’ll probably wind up with enough cash on hand to buy properties outright. However, when starting out rehabbing properties or doing your first flip, you’ll probably need to get a short-term mortgage. The best terms can be had if you can make a down payment of at least 5%, and preferably ten.

Of course, it goes without saying that you absolutely must have a ready buyer – or you’ll be stuck with a second house that you cannot easily sell and cannot afford to keep. This alone may be the second most important of all house flipping tips. You can use Internet resources here, but it also doesn’t hurt to have a lot of good networking in the real world, either.

The Most Important of House Flipping Tips

Know the law. Because of past abuses by some unscrupulous individuals, some communities have passed ordinances to discourage the practice of flipping by requiring home buyers to remain in the home for a minimum length of time (usually between six months and a year).

I’ve been looking to get into this. I heard people that find a house for sale then say there going to pay for it within 30 to 60 days then puts a for sale sign on the yard and sells It for 2% fee of what the house is cost.

How would I go about doing this type of real estate investing
for example. What do I tell the person I’m buying the house Dom and what do I tell the people I’m selling to about the 2% fee?

Flipping Houses Made Easy

You, too, can be a House Flipper and have a flourishing House Flipping career!  Because of today’s slow, yet appealing housing market, there’s never been a better time to begin buying, renovating and selling homes.  The possibilities are endless.  If you’re interested, and have the necessary tools and skills, you can do ‘almost’ everything!  As an owner of a property you can accomplish almost all of what are ‘certifiable tasks’, i.e. minor plumbing and minor electrical.  You may still have to subcontract HVAC, major plumbing and major electrical, but can save hundreds, if not thousands, of dollars by accomplishing the simple tasks on your own.  If you tackle them, and succeed, you’ll have a sense of accomplishment and will reap great monetary rewards for your efforts! Flipping Houses could become the most exhilarating experience you’ve ever had!  Even if you’re a skydiver!

‘YOU’ CAN BE FLIPPING HOUSES, TOO!

From Florida to Washington, and from Maine to California, people just like you, are taking the plunge into House Flipping waters to realize their dreams of self-employment, self-fulfillment and self-determination.  The economy has made it harder to achieve, but it’s still within reach.  The overriding fact is that every single American NEEDS a place to live!  It is with this in mind, that you should consider the obstacles and rewards of Flipping Houses.

There are several TV shows on now that highlight many issues you may face.  From leaky toilets to ‘wood rot’, to foundational problems and all issues between, you’ll need to learn what issues are ‘show-stoppers’ and which can be easily overcome.  Experience will teach you.  But, you must gain that experience in a variety of ways, study hands on and House Flipper trial and error.

WHAT TO CONSIDER WHEN FLIPPING HOUSES

In general, minor plumbing and electrical issues can be corrected by taking a quick trip to Lowe’s, Home Depot, or any of your local hardware stores.  And, of course a trip to your computer or the library, to get up to speed concerning the tasks at hand.  If you’re a lifelong piddler, like me, you’ll know how to do most things.  And, can easily learn what you don’t know.  It’s a blast to learn new things.  And, to save, or make money, along the way!

IT’S FUN AND PROFITABLE TO FLIPPING HOUSES!

Even if you have to hire out most of the work, Flipping Houses can be fun and profitable!  Because of the economy, properties are available in most markets at unheard of prices!  GO find them!  Put on your thinking cap and do your due diligence in finding inexpensive properties!  If you do, and you’re determined, smart, resourceful, likeable and can communicate well, there’s no limit to how much fun you can have, how much MONEY you can make, or how many people you can bless with a HOME!

Buying properties at a LOW price, then producing desirable homes to sell at a REASONABLE price is the KEY to success!  We all NEED a place to LIVE!  I wish you luck in all your endeavors! For more about Flipping Houses visit www.HouseFlipper1972.com

House flipping is a concept that was introduced to the real estate market where someone will purchase a home, fix it up, and then turn it around for a profit. When the economy was strong, the idea of house flipping was a practical opportunity for most because of the high demand that was related to the acquisition of upgraded or remodeled homes.

With the latest decline in economies worldwide, there has been a shift in the house flipping idea. Now house flipping includes making a profit on the spread in a pure wholesale transaction. This involves finding consumers trying to find homes to modernize or own and receiving an inventory of homes from distressed sellers at the lowest price. When you find yourself considering the flipping houses opportunity, its vital to keep in mind three tips that would aid your efforts.

1. Face to face Meetings

Business advancements such as the internet have taken a great deal of the human interaction from business. When the economies declined, more clients discovered themselves looking for the business interactions of the past, and one-on-one interaction became a necessity once more. When you’re entering the flipping houses market, on line communication and five minute telephone calls are not sufficient to attain the objectives you have set for your business. People long for attention and crave interaction. When you’re the individual feeding that need, you turn into a primary focus of these people when it relates to flipping houses. This places you in a prime location to maximize your efforts and make a considerable amount of cash.

2. Make Mistakes

People always say that mistakes linked to flipping houses can be catastrophic to a business effort. However, if you are afraid of making mistakes, you’ll be unable to discover new and more powerful means to excel in your business. The great thing about mistakes is that they teach you lessons in life and in business so that the next time you have a house flipping opportunity, you will be capable of managing the condition from experience. Experience is usually overlooked by many, but in the wholesale property market, your experiences and attitude will be your main weapon to help you succeed in your business efforts.

3. Find the Right Tools

When an individual sits down to do a job, it is usually essential that they have the right equipment to aid them in their efforts. When you access the best flipping houses books, you get precious tools and insights into the secrets of successful house flipping, plus checklists, resources, and sample documents to do it properly. With flipping houses books you will learn from the mistakes of others, and find out how you could increase your rates of success.

Of course, it is vital that you get the best flipping houses books on the market. You need no-nonsense, clear instruction from a real estate pro who is really making money flipping houses. Do not make the mistake of reaching for a generic, canned product.

Have no money to put down. Own my own house now, but do not want to take HELOC loan to start. Property I’m looking at is located in WI. Strong university market, average turn time, etc. Cosmetic and minor rehab needed. Looking for low cost funding from WI, or contiguous states. CA, FL and TX lenders not acceptable. Properties in those markets are a joke. Can any professionals help?

The national debt is very high these days. The consumer debt is also very high. Credit cards and easy loans have put many in financial dire straits. This is prompting many to start thinking about their financial situations. At the same time, the topic of future financial health is also coming into focus for many of these same people. Not only does the average person need to get out of debt but they need to start building wealth for the future.

Armando Montelongo has become famous from his Flip This House television show. The show is about buying and selling houses. Specifically, to buy a property and fix or repair anything that is needed and then resell the property. This is a good way to make money in real estate. Even in today’s market, where the foreclosures are at a high, the good news is that creates a buyers market.

In a buyers market, its possible to get low prices. You can build wealth by buying a property or house at a low price, and then sell it at market value, which is low because of the buyers market and many properties available on the market. So, you plan on making your profit when you buy the property instead of when you sell it.

Build your wealth and pay down your debts using real estate. Hire a Real Estate Coach for guidance and assistance. To make money, you need to have a good real estate plan going in and once you find a property, do your homework and figure in any repair and home improvement cost and any cost for anything. Make sure you know how long you can carry the mortgage if the house doesn’t sell as quickly as you had planned. Get debt relief using Armando Montelongo house flipping style or real estate and build your wealth and financial future.

There are a lot of things to consider before getting started. One of the most important is finding the right kind of property to flip. You have to really research a house before making an offer. One thing you need to know are the comps of the neighborhood. Find out what the other houses in the neighborhood are selling for. Also check for the most recently sold and how much they sold for. You then need to compare other features of the houses such as square footage, land square footage, condition of the house, etc.

Another beginning step is to figure out how you will pay for it. This needs to be decided before you make an offer. You hear a lot about no money down deals and creative financing but those methods will not work in all cases, so you need to be prepared with alternatives.

One of the methods of financing is getting a mortgage loan for the property. This can be long and drawn out and you will need to have good credit and show your ability to handle the note until you can sell the house. You will also have to have enough money to make any necessary repairs.

Another way to finance a real estate deal is to get a HELOC on the house you are living in. A HELOC is a home equity line of credit that you get approved for. You don’t have to use the money, but it is there if you need it. For example, you get a HELOC for $100,000.00 (you can only get a HELOC for a percentage of the value of your house). This money will just sit there available until you want to use it. If you want to buy some investment property for $70,000.00 and need another $10,000.00 for repairs, then you could withdraw $80,000.00 from your HELOC. Using this method you can have a quick closing and be able to offer cash for the property. You can sometimes get it cheaper if you pay cash. Some HELOCs require interest only payments to pay back the amount you used.

If you intend to flip the house in a short length of time, you could just pay the interest only (if this is the way your HELOC is set up) and when the investment property sells you would then pay off your HELOC. A HELOC can be very useful but remember that it is a second mortgage against your home so use it wisely. Talk to your mortgage company or banker to find out about HELOCs and if it is advisable for you to get one.

You can also get a hard money loan. These are privately financed loans that have a higher interest rate than a mortgage loan, usually 12% to 18%, and they are short term, usually 6 months to a year. One advantage of these loans is that you can have an early closing, sometimes two weeks. If you get the right property for the right price you can sometimes finance the cost of the property and the repairs. In some cases you will have no out of pocket expenses. You really have to look for the right deal for these to be beneficial to you. Research these loans as they can come in very handy. Your local real estate investment club is a good place to talk to and about hard money lenders.

These were just a few ways you can find and finance a good real estate property to flip. As in anything to do with real estate you need to research, talk to mortgage companies, real estate agents, and other investors. The best thing a beginner can do is join a real estate investment club where you can get good advice and maybe even get your first real estate flip.

Real estate investing is a good business to be in but there is a lot of studying and learning involved before you take on your first house flip. Think smart and be diligent in your efforts to learn as much as you can about investing in real estate before you take that first plunge.

I’m trying to find as much info before i begin. Does anyone thats actually done a flip have any advice? Any good books on the subject you suggest? Thanks for your time.

If you are flipping a property, you need to find buyers fast in order to make money. You can find buyers quickly by meeting investors and other potential customers at local business events and auctions and by building online mailing lists that you can send to potential buyers.

House flipping is attractive because it allows you to start making money right away. You don’t have to rent out the property, take care of taxes and management costs for months or years, and you don’t have to wait around waiting for buyers. The idea behind flipping is that you buy distressed property, turn it around, and sell it quickly to someone as soon as the renovations are done. The trick, of course, is to find buyers who are willing to buy quickly. If you’re planning on flipping a house but cannot find a buyer quickly, the delay in selling will mean lost profits.

To sell your investment home quickly:

1)Visit auctions to meet other investors. Local foreclosure auctions are not only a great way to find your next investment property for refurbishing and reselling, but they’re also a great place to pass out your business cards to other investors. Collect the business cards of other investors at the auction in order to build an investor list that you can contact whenever you have a property to sell. This is especially important if you plan on house flipping fairly regularly.

2)Build an e-mail list. Once you have a number of business cards and e-mails of other investors, develop a mailing list and an e-mail list. This way, you can contact investors quickly whenever you are about to sell property. However, keep in mind that you cannot simply send unsolicited information to other people. Have investors sign up for your mail newsletter or your e-mail newsletter, and this way you can send information about your latest home in the latest issue of your newsletter. Use a double opt-in list for e-mail newsletters and e-mail discussion groups, especially, because anti-spam laws can be fairly strict. Also, be careful not to abuse your e-mail list or mailing list. If you send investors a lot of information that they are not interested in, they’ll not only opt out of the mailing lists and e-mail lists, but they will become annoyed and less likely to look carefully over your property opportunities. You may wish to divide your mailing lists into a few groups. For example, send your higher-end properties to those investors interested in higher-end homes, and send rental units to those investors interested in commercial properties. This way, each investor will get the information that they’re actually interested in using.

3)Join business groups in your area. Any meetings, events, or luncheons held by business groups in your area are a great networking opportunity that lets you meet potential investors and investors in your area. Plus, you will be meeting people who are not investors but are still interested in business. These people may still be interested in contacting you when they have a property that they need to sell quickly or hear of a property that is going up for sale. Just about anyone can refer business to you and can refer customers to you, so make friends with lots of business owners in your area.

4)Go online. The Internet has lots of discussion groups, message boards, and forums where you can meet other investors who might be interested in buying your properties. These are great resources if you are house flipping, since you can receive and send information fast.