Archive for August, 2008

Flipping Houses is Not Illegal

Flipping houses is one of the most popular investments in real estate. In fact the advertisements for flipping houses are all over the television and on real estate magazines covers. Flipping houses have always been viewed as a get rich quick scheme or an illegal activity, but in this article that myth will be debunked. If done in the correct manner house flipping cannot be considered an illegal activity.

Flipping houses cannot be considered as an illegal activity. It got a bad name due to dishonest real estate agents, brokers and appraisers who created the concept of quick get rich formulas to victimize hard working people.

Therefore it is necessary to conduct a research on any type of investment to ensure its legitimacy. However, just because certain brokers hand out a raw or dishonest deal does not mean that the whole industry is corrupt. There are plenty of perfectly moral and legal real estate flipping investments that are available to the investor. Money can be made in several ways by flipping houses. It is a good choice to start with home owners who are constantly struggling to make payments or in foreclosure. You could buy their property and then resell the property at a profit to the home owners. This way there is a certainty that there will be an improvement in their financial situation.

You could also find home owners who want to get rid of their property quickly. A sales contract can be created which in turn can be resold to a real estate investor or developer. Another thing you could do is buy a house that needs to be fixed up and repair it accordingly and then sell it at a price above its original market value.

The first thing you should do when you invest in flipping houses is to get your credit and finances in good order. A house cannot be mortgaged if you are already suffering financially. Next, concentrate on doing some research on the target location. Try to find out the market value of the land and the houses in that area. It is important to know the market value of the surrounding houses and properties because you will find it easier to pick out the bargains.

When you work with home owners who are in foreclosure it is important to understand human nature and stress in order to negotiate. Another important thing is to find a good real estate agent who has experience with flipping houses. The quicker you can make a deal the better will be your profit.

If you do not know how to go about house flipping then you need to hire someone with expertise, you could also take real estate classes in order to learn the nuances of flipping houses.

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

Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer

Many real estate investors enjoy ‘flipping houses,’ or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don’t turn a profit.

If you’re looking to get started investing in real estate by fixing and flipping houses, you’ll want to know what type of property to buy.

THREE TIPS TO HELP YOU FIND THE PERFECT FIXER

1. Know Your Market

Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer’s costs?

Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Also, look at model homes. Buyers often buy resale homes because they can’t wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you’ll know what attracts buyers and you’ll make smart redesign choices.

2. Know When ‘Ugly’ Means ‘Gold’

When you first start out in your real estate ‘flipping fixers’ business, you’ll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.

Don’t be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won’t look good to most buyers, but other real estate investors see them as gold mines.

3. Know When ‘Ugly’ Means ‘No thanks’

When you’re new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.

If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.

Turn Yucks into Bucks

Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.

When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.

You can make a fortune fixing nasty houses. Know your market. Know when ‘ugly’ means profit in your pocket, and when to keep looking for the house with the hidden gold mine.

For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher’s Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free ‘Design Psychology for Selling Houses’ Report http://doghousetodollhouse.com Questions?