Archive for August, 2008

Flipping in Housing Bubble or Slow Market

It has become quite evident over the past months that the housing market is experiencing a significant slowdown; in some parts of the country this has been more evident than in other areas. This change in the market has created wide speculation about what is happening as is always the case with everything that ever happens in any market, be it oil, stocks, commodities or housing.

I am sure by now that everyone has heard the speculation referring to the slowdown as a housing bubble, meaning that home prices are drastically inflated and that a “burst of the bubble” or drastic nationwide decline in home values is inevitable.

I personally do not believe that a bubble exists but I do think price adjustments are and will be occurring in some areas of the country based simply upon the supply and demand.

The current excess in supply comes not only from new construction but also from a record number of foreclosures happening as a result of rising mortgage payments “resets” on adjustable rate mortgages, making it impossible for some to pay for their home.

With all of this activity and uncertainty in the market it can be very discouraging and quite easy to join many others that have gone to the fence to sit and watch. My thoughts are that money is never made by sitting on the fence doing nothing; my experience has been that doing nothing has always got me nothing!

Flipping a house in slower market conditions does represent greater risks and requires more caution and due diligence to what housing prices are doing and what you can buy and sell for, it is definitely a time to be more selective and certain about the choices you make. House flipping always requires a good understanding of your market and what it is doing but the bargains can always be found no matter what conditions exist.

When housing prices are in decline it is a good idea to keep things more on the simple side, lean more toward the cosmetic fixers. Limit the scope of your makeovers and upgrades to what you know will add value, don’t over due things.

Have a solid plan before beginning your rehab projects and know exactly what improvements you plan to make to the house. The more work you can do yourself the better your profit potential will be. If you do hire work to be done be sure of your help, you don’t want to be at the mercy of undependable hired help slowing you down. Keep your turn around time as short as possible so that the house is back on the market as quickly as possible. Don’t flip out, keep flipping!

Joe Cabrera Flipnfix.com

Flipping Houses To Make Residual Income Through Real Estate

A person can make a lot of profit from residual income through real estate by the practice of remodeling, buying or reselling houses. An easy way to make money is to flip a house. Homes that enter a foreclosure period will always sell at a value lesser than that of the original price of the property. Foreclosure is a great time to acquire an investment property at a cheap rate and resell it at a higher price. Hence every successful sale will mean more residual income through real estate.

The potential of income is limitless if you have more than one house in the remodel stage and one or more houses that have already entered the process of sales. When you purchase a home for an amount less than its cost price and sell it at higher rate, you definitely don’t want to spend more on remodeling the house. The key here is to plan out every thing accordingly. Start by making a list of area statistics and furniture that needs to be repaired, refurnished or replaced. This will give an idea of expenditures which you might incur for getting these done.

You should not unnecessarily spend on heavy duty replacements. There are lots of convenient stores that offer building and repair materials at a low price. Try to do most of your projects rather than hiring some one else for them. A project should be completed in weeks instead of months. The value of a house diminishes if it sits vacant in the market for a long time. It is extremely essential to pay attention to time line if you want to make profit from residual income through real estate.

Once the property is flipped and sold, you should immediately start looking for a new property. If you work as an individual then you shouldn’t take more than one house at a time. But if you have other helpers, you can go in for more houses. However at no point there should be a lag in getting a property otherwise the profits will not be consistent.

There is an advantage of having more than one property to flip i.e. you can always move on to the sale of your next property if the other one takes longer time to sell. This way your revenue and time will also be free to make the next investment. A windfall of income can be created if real estate investing is handled properly. The profit from residual income through real estate can continue as long as there is property that is in the process of being flipped by you all the time. Therefore you should always be alert, vigilant and aware of what is going on the real estate market in your targeted location.

James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing