6Feb/100
Finding Buyers When House Flipping
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.
By: Brad Wozny – INSTANTRealEstateSolutions.com
About the Author:
“Want To Generate $7,000 in the next 7 Days?”
Click Here Now to Watch How Investors are Finding, Funding, and Flipping Real Estate Deals Online at North Americas' ONLY source connecting you to residential wholesale deals, private real estate investor partners, and investment financing to accelerate your wealth.
4Feb/100
Seven Ways to Flip a Property
Flipping” is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV! What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental. Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let’s start with the most common form - the good, old “fix ‘n flip”. This process involves buying a property that needs work, fixing it up, then selling on the “retail” market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell. Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms. Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy. The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years). When your tenant exercises his option to purchase, you reap a larger profit, since you don’t have to pay a broker’s fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip “As Is”
Don’t like to do fix-up work? Consider selling the property “as is” as a light fixer upper. If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in “transitioning” neighborhoods. Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won’t make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month. If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete. If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year! Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can’t sell for more than you paid. Use this approach very carefully...
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the “bird dog” who finds potential deals and sells the information to other investors. Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential. The Scout can expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.
Flip Strategy #7: Illegal Flipping
OK, I am not advocating this approach, because it is illegal. Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices. In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. The end result is a buyer that paid too much for a house and cannot afford the loan. Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives is flipping to be illegal.
The fact is, “flipping” - as I described in the beginning of this article - is NOT illegal. Loan fraud in the process of flipping is what is illegal, so don’t confuse the two. The other six ways to flip are very legal, very ethical and very profitable!
Click Here for more info for Seven Ways to Flip a Property
By: Attorney William
About the Author:
Written exclusively for Legalwiz.com by Attorney William Bronchick, Certified Registered Nationally-known attorney, Author, Entrepreneur and Speaker.
3Feb/100
Myths And Misconceptions About Working With A Real Estate Agent
If you have ever looked for a home, you have received a lot of advice and heard a few horror stories. Most likely a well meaning acquaintance has passed along some of these ideas that aren't particularly truthful. These are the most common misconceptions that agents are faced with frequently.
Myth #1 Working with multiple agents will help you find more home options faster.
All agents use the same MLS to look for properties that suit the buyers criteria. Chances are multiple agents would show you the same set of listings multiple times. In addition, having multiple agents involved confuses loyalties and damages a relationship that is essentially based on trust. In a small market like SPI word of duplicity gets around quickly.
Myth #2 Going direct to the listing agent will save you money.
The listing agent is under contractual obligation to the seller to get them the best price with the best terms. They are also obligated to keep any sensitive information to themselves. That includes facts like how negotiable the seller may be and what his bottom line really is. The listing agent may be in a position to negotiate their own commission as they are enjoying both the list and sales side. However, I would not count on this generosity as part of your business plan. It is usually better to have someone fully representing your needs and interests on your side of the negotiating table.
Myth #3 Go to the busiest agent in town.
Many people choose to buy from the biggest name in the phone book rather than ask for recommendations or interview prospective agents. The busiest agent is in fact very busy and while success doesn't come without customer service, they probably have long standing clients standing in line ahead of you. Choose an agent with the schedule, interest and personality to devote time to your buying needs.
Myth #4 Realtors are just as bad as used car salesmen, don't tell them anything.
Clients sometimes prefer not to tell their agent their true price range thinking that the agent will then only show them the most expensive listings. There usually aren't enough listings on the MLS or enough hours in the day for active agents to play these games. Give your agent a true range and be clear about your needs. Realtors are trained professionals with licenses, government agencies and the prospect of lawsuits watching over them. They don't pawn off the lemon on the lot on an unsuspecting consumer. But they do need the most information to find the correct property among the options.
Myth #5 Going direct to the seller will save money.
Some lucky people do get this to work out. But, the vast majority are buying a property blind. A real estate agent has access to market comparables that help them see what the real cost of a property should be. They can advise you if you are over paying. They can also put you in touch with a professional community that can inspect for termites, structural damage or title problems before an expensive mistake is made. Legal problems can also arise from botched negotiations or inappropriate contract paperwork. Let an agent accept the liability and do things right.
By: Wendy Hauschildt
About the Author:
Wendy Hauschildt is a Licensed Realtor® with Coastal Properties GMAC Real Estate on South Padre Island, Texas. She is a weekly columnist for the Island Breeze paper and directs marketing for the agency. Visit http://www.SPIproperty.com for more Real Estate information.
2Feb/100
Where to Get Property Investment Advice
Investing in real estate can be overwhelming and scary. It is important, if you are new to investing, to get good property investment advice. It is important to learn as much as you can about the real estate market, property investment, and your local area before you begin investing in properties. Here are some places you can go for reliable advice. The internet is a good place to start gathering general information about property investment. There are scores of websites devoted to real estate investment, flipping houses and other types of properties, and beginner's guides to the housing market. The important thing is to take your time as you sort through all of the information that is being offered to you. Make sure that the web sites you search for information are reliable sources and not just sites trying to sell you something. Real estate agents are another fantastic resource if you want to learn about real estate investing and buying property. Real estate agents in your local area will have tons of information on your local housing market and how to begin investing in it. Your real estate agent will know how to help you find properties to invest in and how to tell the difference between something worth buying and something that should be passed over. Mortgage brokers and lenders are another valuable resource for property investment advice. These are people who understand the money side of real estate investment and can teach you how to make the most from what money you have, and how to tell the difference between a good deal and a bad investment. It is always important to learn about something before attempting it. Finding sound property investment advice will help ensure that you are able to make money instead of losing it.
By: cheryl jack
About the Author:
To find out more about property investment advice, take a moment and visit us at http://www.shortsalesriches.com/welcome
2Feb/100
Types of Foreclosures – Understanding Foreclosures
Today the issue of foreclosure is of great importance because of the astronomical increase in numbers right across the country. More than 4% of all the houses are in foreclosure. There is a desperate scramble to find out causes and remedies.
Broadly speaking there are two types of foreclosures - the Mortgage Foreclosure and the Trust Deed Foreclosure.
Mortgage foreclosure starts with a formal demand for pending dues being made by the lender to the borrower in the form of letter known as the NOD or notice of default. Depending on the location of the unit, the notice will be issued usually 90 days after the last payment has been made. Couched in formal terms this notice is a silent threat to sell the property by taking away all rights from the owner. Eventually it leads to eviction. Mortgage foreclosure can be done only through the court. It is also known as judicial foreclosure.
Nearly half the states allow for mortgage foreclosure for lenders to realize unpaid dues. Until dues are cleared the title deed or lien remains with the lender. Like any other lawsuit it starts with summons to the borrower or to any other body having inferior rights to the property. The attorney representing the lender files the complaint in the court. From the day notice issue the respondent has 20 days to reply to the court that has sent out the challenge. The court in turn has 40 days after receiving the reply to give back an answer. Each correspondence will deal with specific sections of the complaint. This ping-pong game of swinging back and forth might go on for quite some time slowing down the mortgage foreclosure process. It might even drag on for a year. For the lender court proceedings translates into wastage of time, dollars and energy.
A Trust Deed Foreclosure skirts the courts. It is referred to as action by the third party. Here the borrower is referred to as the trustor, the lender is the beneficiary and the third party holding the title or the representative of the lender as the trustee. The latter is there only for holding the title of the property as security against the loan sanctioned. Since there is no mention of the court, the trustee has the right to dispose of the property by selling it on behalf of the beneficiary if and when the trustor lags behind in payment.
Here too the first step will be for the trustee to issue a NOD. Generally 90 days grace will be permitted for the defaulter to become current. Once that period is over, things become nasty for the borrower. A sale notice will be pasted on the main entrance of the house and advertisements regarding sale will be inserted in newspapers. The actual sale will take place three weeks after these latter steps have been taken. Auctions will he held on the steps of the courthouse and the highest bidder will win the prize. Here action is swift unlike the court proceedings.
Home Repairs - DIY Home Improvements
1Feb/100
Home Foreclosures San Clemente, California
If there is any thought in your mind for selling your present home and then after this if you are planning to relocate the same out side of San Clemente then the following package will undoubtedly help you a lot. However, through this you could be in condition to save your thousands of money too.
It is suggested to list your house firstly and through this you can be in condition to save lots of money. With a reason, you are allowed for full representation and all together you will be provided with all the marketing and the services unlike, most of the brokers. You can undoubtedly expect the interest rates for the marketing and the services almost around 6 % to 7 %. It is unquestionably important to have a broker for your house when it is sold. The reason behind this is as these brokers really work exclusively well for the betterment of you. In fact there is provision made for the agent's world wide which are certainly well experienced with their all knowledge. These brokers always see to it that you are in no loss and also make sure that your rights are sheltered. They are the only ones who see to it that the price of the house you get is the fair one or not. All together, these all the brokers or agents will be standing always behind you as your back up by their welcomed advise and then they always see to it that they give a hand to the entire transaction in detail.
If you are in search of real low priced property than the best option for you ill be none other then Foreclosure. You will undoubtedly face many of the houses with certain discounts. The future home owners need to invest in foreclosed property as this will be a really necessary asset for you all readers at the same moment. The foreclosed properties have lower rates then market price. San Clemente Foreclosure home are the best assets where buyer is in no need to incur expense. You can plan for San Clemente Foreclosure home as this is offered at certainly low rates. The prevalence for San Clemente Foreclosure home is seen due to miss payments of the borrowers. So due to the miss payments in density the bank or the financial institutions have legal rights to have a firm hold over the house.
Water Filters - Reverse Osmosis - Whole House Water Filters
1Feb/100
Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth
“Matthew's newest book, Investing in Apartment Buildings, couldn't have come at a more poignant time in our lives. He offers a modern day, step-by-step survival guide for the ever growing economic war on the middle-class. Win your own financial war by arming yourself with Matthew's systematic, hands-on experience and sound principals for investing in apartment buildings.” --Ryan Zahoruiko, principal, Forest Street Property LLC “Matt Martinez is able to take (more...)
1Feb/100
Understanding the Home Appraisal Process
If you’re planning to sell a piece of real estate, it is important to get your home appraised. While you can look at market trends for houses similar to yours to generate a rough estimate of what you think your home should be worth, only a certified home appraisal will give you a number that you can be truly confident about and one you will be able to present to potential buyers.
How An Appraiser Rates Your Home
The real estate appraiser will generally start by doing an analysis of the physical characteristics of the property. How much square footage is there? How much useable square footage? How many bedrooms? How many bathrooms? How much undeveloped land is part of the property? How old is the property?
He’ll then collect sales data for similar homes that have sold in the same neighborhood. He will use these figures to gain a basic understanding of how much a property like this should be valued at in the current market.
Finally, there is a field inspection. The first part of the field inspection is the subject property inspection, which involves an exterior and interior inspection. The exterior inspection consists of taking pictures of the front and back of the home, the back and front yards and the street in front of the home. The interior inspection consists of noting the condition of the walls and fixtures within and making notes on anything that might increase or decrease the value of the property in this regard. He should draw a floor plan of the home during this part of the inspection. The second part is the exterior inspection of comparable properties, which he will use to help him estimate the final value of the property being appraised.
The Importance Of Home Appraisal
A good appraisal can make you thousands of dollars more than you might otherwise get. Be sure that the appraiser you use is highly trained and trustworthy. Try to get references from others who have used the appraiser successfully to be sure you are working with someone who will give you a true and honest accounting of your home’s value. To make sure you get the most favorable appraisal you can, take the time to prepare for the appraiser’s arrival. Give the home a fresh coat of paint, make sure the home is clean and take care of any minor repairs before he arrives.
By: Craig Berger
About the Author:
Acreage Anywhere provides a global marketplace for vacant land ownership opportunities of all types. Featuring an easy-to-use vacant land search tool, streaming video tours of available communities and interactive mapping of many land developments. Easily find land for sale all over the country, whether you're looking for ranches, rural properties, second homes or recreation properties.
31Jan/100
Truths and Fiction About Foreclosures
There are a lot of fallacies that come out whenever you hear the word foreclosures. Actually, individuals are puzzled on what is the true explanation about foreclosures. That is why they are messed up whenever foreclosure begins to knock on their doors. There are facts about the whole procedure of foreclosure and it will all depend on the person on how he will make himself knowledgeable about this.
Getting some foreclosure facts and learn how the entire process can be a big help in turning you to become a wise property investor. These common foreclosure facts and misconceptions can enlighten the investors and aspiring homeowners so that they can easily handle the situation if there will come a time that foreclosure will hit them. Thus, you need to learn and distinguish the foreclosure facts and fictions to be able to prevent you from being messed up if you become a candidate in the future.
Normally, there are individuals who know that purchasing a foreclosed house from a bank is the ideal way to buy a foreclosed property. Well, this is totally not true because you can not maximize the saving that you can actually get from your investment. Indeed, buying properties from banks can be safer in getting foreclosed houses but bear in mind that it can be risky too. Acquiring properties directly from banks means a tedious legal process has occurred and there are lesser risks related to purchasing foreclosures. But the possibility of negligent lenders is still unavoidable.
In some way, there are talks that lenders are carefully avoiding themselves from any foreclosure transactions. Although, it is fact that banks are eager to dispose foreclosed properties, this intention comes from their objective to increase their revenues or simply to prevent from incurring possible loss. But for the lenders, they normally sell these properties immediately with a greater advantage to the part of the home buyer.
In addition to that, buyers and investors must learn that not all lenders who sell foreclosed houses use similar marketing strategies. Lenders have their various selling techniques and some of them transact the business on their own. But others get the services of real estate agencies to help them dispose the properties faster.
Aside from announcing the foreclosed properties, there are banks that advertise their Real Estate Owned properties in the local papers and ad listings. Some of them even store details for their stockholders and their accounts.
It is completely false to think that banks have to sell foreclosed houses with similar rates that they charge to score ownership and do not have any profit. This misconception is derived from the fact that banks or other lenders may not ask payment from homeowners of foreclosed properties over the regular existing balance to any accrued interest, delayed payments, taxes, fees or other charges to the lender.
However, once the bank has scored ownership of a foreclosed house at an auction, they assume that such is owned by the institution like any homeowner would. This covers the repairs, the leasing and the disposal of the property in a price that they find appropriate for it.
Discount Halloween Costumes
Recent Posts
- Investment in real estate – things you should know to increase your return on investment
- Finding Buyers When House Flipping
- Seven Ways to Flip a Property
- Myths And Misconceptions About Working With A Real Estate Agent
- Where to Get Property Investment Advice
- Types of Foreclosures – Understanding Foreclosures
- Home Foreclosures San Clemente, California
- Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth
Categories
- Dealing With Contractors
- Flipping for Cash
- Flipping Land
- Flipping Real Estate
- Foreclosures
- Mistakes In Flipping
- Real Estate Investing Resources
Interesting Sites
Tags
accurate estimates
avoiding common mistakes
Budget
cash flow
Commercial
cosmetic improvements
diy or hire
draw schedule
Dummies
Estate
fix and flip
fixed price
fixxer upper
FLIP
Flipping Real Estate
foreclosure
Foreclosure Process
Foreclosures
Getting
Guide
hiring contractors
holding costs
Home Foreclosures
Houses
inadequate financing
Investing
Lenders
Make
miscommunications
mismanagement
Money
no inspection
option to purchase
Paperback
poor planning
Profit
Real
real estate
real estate investing
rehab
Rehabbing
rehab financing
Selling
Started
unlicensed contractor
My Twitter Feed
- Updated my blog with Advantages of Outsourcing http://tinyurl.com/yk7rvul
- Updated my blog with Robotic Arm Edge: Wired Control Robotic Arm Kit http://tinyurl.com/yjxlmoz
- Updated my blog with Mastering Digital Photography Lighting http://tinyurl.com/yjy5249
- Updated my blog with Digital Photography Tutorial - Taking Portraits http://tinyurl.com/yhouaz5
- Updated my blog with BPO and Call Center Outsourcing Countries http://tinyurl.com/yk8cj85
- Updated my blog with Top 12 Kids Christmas Gifts For 2008 http://tinyurl.com/yfxkjwz
- Updated my blog with Outsourcing Laws Introduced in the US http://tinyurl.com/yzj9wce
- Updated my blog with Outsourcing Done the Right Way! http://tinyurl.com/yh4mbyh
- Updated my blog with Electric Cannon Kit W/ping Pong Ball http://tinyurl.com/ykgw6wu
- Updated my blog with Foreign Outsourcing of American Jobs http://tinyurl.com/ygkpo6d
