Comet Settlement Real Estate » flipping houses

Flipping Houses Flipping Homes for Quick Cash

admin — Mon, 17 May 2010 08:08:09 +0000

First, right off the bat, off let’s tackle the “Is flipping houses illegal?” question. Flipping homes or flipping anything for that matter, real estate or otherwise, is perfectly legal. The term has recently been used in the mainstream media to describe what is essentially mortgage fraud. In a mortgage fraud scheme multiple people collude to inflate and falsify appraisals, doctor and falsify loan applications, invent fake people etc. That is definitely illegal and can get you serious jail time. But here’s the thing I could never understand… you can only do that once or twice and then, even if you get away with it up front, you are a fugitive for the rest of your life! Is one big check worth that?

Real, honest flipping is defined generally as one person finding an undervalued opportunity in real estate and getting that property under contract to purchase it. He or she then sells or “assigns” that contract — for a fee– to another investor and that person actually closes on the property. The person buying the property usually does not even need a mortgage – they just write check. It’s really a pretty symbiotic relationship. Finding great deals takes time and people with money and the resources to fix properties don’t usually have lots of that. People who are interested in getting involved in the business usually have lots of time so they do the leg work to find the house. Also people, like me, who dislike the management of crews and the time consuming work of a rehab project prefer to be the wholesalers and to make a business of it. I actually prefer the term “wholesaling houses” to flipping. All business have wholesalers in the distribution chain, this is no different.

For over seventeen years now I’ve felt like a kid on a treasure hunt every morning. My job is to dig up the gold, to find the diamonds in the rough.. This the only really high paying profession I know of that you can start with just a small amount of education and mentorship and a little bit of guts. A profession where you make your own hours and YOU determine how much money you’re going to make.

I’m often asked “how do you find all those great deals, Mike?”

Finding undervalued houses is not rocket science. I call it “reverse sales”. By reverse I mean you aren’t selling something you’re buying it but most of the same principles apply.
You need to prospect or create a steady stream of sellers to talk to. Now like the new salesman you can start by knocking on doors and cold calling or you can work the smart way. You can advertise to find home sellers motivated to sell now!

Advertising driven wholesaling is changing the face of the real estate investing business very rapidly. Large companies like the huge HomeVestors, small mom and pops and smart individuals are all advertising to buy houses. Advertising works, plain and simple, you see bandits signs, billboards, television and radio spots and of course the ads in the newspapers.

What the new or inexperienced wholesaler does not know yet is the term or concept of ROI, that’s return on investment. The phone will ring but is it cost effective? Are you keeping track of what it costs you to buy each deal? Do you know which method is producing the best returns for your invested dollar? Study marketing not real estate.

The business of finding undervalued deals is changing so fast that almost no one can keep up. Don’t be left behind. The advertising driven, ROI business model is taking over the once private, very localized business of flipping houses. Big, organized companies are now getting involved because there are big profits to be had. Don’t be under the misconception that you need lots of money to start. I started with hand written signs on telephone poles and three line ads in tiny local papers – very inexpensive.

Get in the business now and stake claim to your niche in your town. What other business can you earn fees of $3,000, $5,000, $10,000 or more for a few hours work driving around looking at houses?

Mike Collins is the CEO and founder of http://RehabList.com/ – a nationwide marketplace for undervalued deals in real estate. If you would like to find a handyman special in you area or list one you are trying to sell visit us at http://RehabList.com/ listing a property and searching for one to buy are both FREE. We are also searching for Local Partners to work with us in each county nationwide. Mike has been wholesaling houses full time for over 17 years. He loves to teach others the business of wholesaling houses.

Tags: flipping homes, flipping houses, real estate investing, rehabbing houses, wholesaling houses

Flipping Houses Common Mistakes That Flippers Make

admin — Sun, 27 Sep 2009 10:05:01 +0000

In my profession as a home inspector, I get to witness some amazing flipping deals. Some are profitable, some aren’t. Here are the common mistakes I see flipper continuing to make.

#1. Falling In Love With The Home: Hey, it’s just a house built out of sticks and clay. There are thousands more. If you can’t keep from falling in love with every home you see, then flipping homes isn’t for you. Never forget it’s a business, treat it that way.

#2. Keep Your Mouth Shut! There’s an old saying in the Navy. “Loose lips sink ships”. More than once I’ve inspected a home for an Investor and have the Investor call up a week later saying they lost the deal to someone else. Some people just can’t keep their mouth’s shut. Wait until you walk away from the closing table to tell everyone what a deal you made!

#3. First Impressions Are The Most Important: Spend the dough on the landscaping and exterior of the front of the home. I’ve seen more homes sold and more homes fallen in love with (see rule #1) from a great first impression than any other single item. Clean and shiny door knobs, door knockers, coach lamps and address numbers will add to the impression. If it doesn’t add cosmetically to the home, get rid of it.

#4. Don’t go overbored The simple fact is that most homes can be flipped for a decent profit by cleaning and replacing the carpet and paint. Too many times flippers think they need to sink thousands of dollars on a home to make it sell.

Many times what happens is they will remodel the home and it ends up being priced higher than anything in the neighborhood and sits on the market untill the Investor drops the price. Take a page from the flipping pro’s book. Keep it to the basics. You’re trying to make a profit, not make the front cover of a glamour magazine.

#5. When In Doubt, Reread Rule #1 Some people need Rule #1 stapled to their forheads!

#6. Don’t Get Greedy! If you’ve priced your home well, then take the first offer that comes along. It’s not worth your home setting on the market for months because you’re too tight to come off the price a thousand or two. Reread rule #1!

Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a Houston Home Inspection company. If you’re interested in investment opportunity’s in Houston Tx, see his Houston Real Estate page.

Tags: flipping a home, flipping houses, home inspections, houston, real estate, real estate investment

Flipping Houses

admin — Wed, 18 Feb 2009 09:05:33 +0000

Some real estate investing “teachers” advise beginning investors to find many houses and to flip the houses quickly for outrageous profits. Perhaps you’ve seen the claims of real estate gurus telling you how you can make $30,000 to $50,000 per month, without any physical work, and for little or no money out of your pocket. In fact, these promoters tell you that you can get money back when you close.

Let’s take a closer look at these fast flips.

How do you find a bargain for $30,000 or more under market, for no-money down, and flip it right away? First, you would need to find a seller so desperate that they sign over their home to you. I’m not saying that this can’t be done. It’s just nearly impossible in today’s real estate market. Today’s sellers know they can sell their home fast and still get a fair price by only discounting the property by $10,000, without the seller carrying the financing. This is because there are so many home buyers looking to purchase a home to live in.

How does this affect the beginning real estate investor who was promised they could find many houses for drastic price reductions? These investors soon get discouraged because the promised method is so difficult to do. Not only does the investor have a hard time finding a home for way under market value, the investor with no money to put down has two obstacles to overcome. No money down and finding a bargain house. These aspiring investors, some who charged hundreds of dollars for bogus investing courses, just give up.

If you’re thinking about getting into real estate investing as a way to secure your financial future, be wary of investing systems that worked last century. Learn about real estate customs in today’s fast-paced market.

The real way to make money on fast flips is to get yourself ready to cash out a desperate seller fast. You can begin with your first investment home realistically two ways:

1. Buy a home to live in so you can purchase with no money down.

2. Refinance your own home and use the money for a big down payment to encourage a desperate seller to sell fast.

This method works because sellers who need to settle their affairs quickly will sell at a big discount to a buyer who doesn’t ask them to be the bank.

You can still build wealth by flipping houses. But, you need to have your finances in order when you go bargain shopping.

Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, and sell houses to build wealth. The difference in Jeanette’s system, fixing houses with Design Psychology, helps investors make more money on each house. Free “Design Psychology for Selling Houses” ebook http://www.doghousetodollhousefordollars.com/

Tags: build wealth, flipping houses, real estate investing

The Most Important Aspect of Flipping Houses – Curb Appeal

admin — Mon, 29 Dec 2008 15:08:42 +0000

Of course, you’ve already considered location, so the first step you need to contemplate in purchasing a house for flipping is curb appeal. What does it look like from the street? If people aren’t anxious to buy after driving buy, what chance do you have of making a sale? Curb appeal is everything.

Actually, it’s curb appeal times two. You need to consider what it looks like to you for buying and you need to envision what it’s going to look like to a prospective home-buyer when you sell.

If the outside of the home doesn’t captivate you, then no matter what you do to the inside, you face an uphill battle. I’ve had great houses with great prices . . . and potential buyers barely slowed down as they drove by. You need to believe that with a little work and a little money, you can transform a home from a liability to alluring.

Curb appeal consideration for you:

Roof lines even? – You don’t want to see a sagging roof, even if it’s structurally sound. That look could cost you thousands in resale value.

Additions un-cobbled? – Many times people add on dormers or little additions. If there are additions: do they fit the basic “look” of the house? Does the roofing material match? You don’t want to be changing those. You want the home to look picture perfect.

Garage converted to a family room or bedroom? – Many times ramblers have original built-in garages converted to extra bedrooms and/or family rooms. The driveway comes up to the house and you can easily see where new siding was added to “hide” the conversion. This rarely works. The best I’ve seen used French Doors into a family or garden room.

House settling? – If you can see from the street that the house has settled, there is little you can do outside of major foundation work.

Concrete work settled? Cracked? – Front steps off kilter? Actually, you can build new steps around them. Often you construct a small deck that both hides the old concrete and enhances the new look. This hides unsightly cracks as well (make sure they are repaired first, however (don’t just cover them up).

Crappy neighbors with crappy homes, crappy landscape and crappy attitudes? – If you can buy their homes for a good price, consider it. If not, pass it by otherwise you’ll be trying to show your home while the police stop by next door for an on-location shooting of “Cops.”

If you purchase the house, you will start working on the curb appeal as well as general remodeling. You need to capture the hearts of your potential buyers.

Curb appeal for your new buyers:

Put up large street address numbers so people can easily locate your home for sale.

Nicely painted – Fresh paint adds value and says the home is well-cared for.

Landscaping – Big bushes and trees add instant value. Tie the landscaping together with edging and you have a complete look. If you don’t know what time of year you will be selling, choose mostly evergreens and then add flowering plants just before you put up your sign.

Charming – Nothing sells like charm. Don’t settle for bland. Add color that highlights the home. Got room for an arbor? Is there a small private area that can still be seen from the street? Room for a bench? Does the house have shutters. They don’t even have to work. They can even have to work. Shutters or “faux” shutters can be used to accent the windows and make them appear larger.

Dramatic lighting – Make sure your address is well lighted. Use dramatic spot lights to show off the landscaping and the private areas. If your house is vacant, choose a nice table by a beautiful window to add an attractive lamp. You want a shade that sends light up and down. You’re want people to have the feeling that they’ve come home after being away, and someone left the light on for them.

People view houses when it is convenient to them, this often means after work, at night. Be sure to check out your curb appeal for different times of day and night.

Imagine the house you’re selling as the perfect home. How would it look, if it were painted as a romantic scene by Thomas Kincade? You would see drama. You would see color. The lighting would pull you into the painting. Create that picture for your curb appeal.

What you want is an image that stays in the mind of potential buyers. They drive by. They call. They look it over. They make their offer. They can’t wait to move in. They pursue financing. You get your asking price . . . or better. Their dream never waivers. This is their home. All of this is done with curb appeal.

Don Doman is a published author, video producer, and corporate trainer. He owns the business training site Ideas and Training (http://www.ideasandtraining.com), which he says is the home of the no-hassle “free preview” for business training videos. Don and his wife Peg at one time owned 33 single family homes, which they purchased, remodeled, and used as income properties before selling them for profit. You can gain from their experiences at Simple Home Repair (http://www.simplehomerepair.com).

Tags: buying houses, flipping houses, real estate, real estate investment, selling a home, selling houses

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

admin — Fri, 15 Aug 2008 07:08:26 +0000

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? http://doghousetodollars.blogspot.com

Tags: fixers, fixing houses, flipping houses, real estate investors, rehabbers, ugly houses

7 Simple Tips For Flipping Real Estate

admin — Mon, 12 May 2008 11:13:08 +0000

Unless you’ve been living under a rock for the past few years, you’ve probably either dabbled in real estate yourself, or at the very least, know someone who has. So, how does someone that’s brand new to real estate start flipping homes? (And let’s clear the air right now IT IS NOT TOO LATE to start investing in real estate).

Follow these 7 tips to start investing in real estate today:

1. Look In Your Own Backyard
The grass is always greener in the other neighborhood, and it’s easy to keep looking for the “right” area. The bottom line is that any area is the “right” area. In order to be effective in the steps 2 through 7, you’ve got to get over the idea that real estate deals only exist in other areas. It sounds clich

Tags: flipping houses, flipping real estate, investing, real estate, real estate investing