Archive for the ‘Recommended Articles’ Category

5 House Flipping “Do’s”

Saturday, August 8th, 2009

While many people have very specific dreams of enjoying the bountiful profits that can be made from flipping houses very few people put too terribly much thought into the process or any formulas that might be pertinent to success when it comes to flipping houses as a real estate investment venture or for the sake of building a nice comfortable lifestyle or retirement. You will hear a lot about the things not to do when it comes to flipping houses but very few people take the time to mention the things you absolutely must do in order to successfully flip a house and thus begin your ride on the road to real estate investment riches.


1) Do put everything to pen and paper and plan it out carefully before you begin.

If you are going to enter into this to make money you need to treat it like a business. This means you need to have a plan of action and make every effort to work towards carrying out that plan.

2) Do establish a budget for the entire project.

You need to have a plan for how much money you are willing to invest in the property itself, how much for renovations, and how much money you need to make in order to be a worthy investment for your time and labor. A house flip is a lot of work in order to pull it off successfully. You want to have a good idea of how much homes in the neighborhood are worth, the value of your property as is and the estimated value of the property once improvements are made. In addition you should also have a pretty firm grasp of the costs involved in making the repairs in order to create a realistic budget for the entire project.

3) Do have an inspection.

This is the single most important detail that can save you a great deal of time, money, and heartache when everything is said and done. Be prepared to walk away if the inspection determines that there is more work needing to be done than simple cosmetic repairs. You want to make changes that people can see because those are generally the changes that drive up the cost of the house. You want to avoid needing to make changes and improvements that aren’t visible but are very necessary. If you need to invest a lot of money and labor into the house you need to seriously consider the realistic profit potential the property offers. If it isn’t significant then you need to walk away before the property becomes a real estate investment money pit.

4) Do know the neighborhood and plan your flip.

Make sure you knwo the neighborhood according to the needs of the area rather than your personal tastes and needs in a home. This is another thing that many first time flippers forget. This is not a personal project it is a business project and you need to treat it as such. Keep costs down and feelings out.

5) Do remember that you are in the market to make money not waste money.

Keep this in mind when it comes to establishing an asking price for the property. You’ve poured blood, sweat, and probably more than a few tears into your flip but you cannot set the value of the property by the effort you’ve placed into it. Have realistic expectations of how much you stand to earn from your efforts and how much you are willing to go down on the price in order to walk away with some profit in your pocket.


You should also take a moment to reflect upon the fact that many first time flippers actually lose money on their first flip. If you turn a profit at all, even a small profit you have learned many valuable lessons that you can carry with you into future flips and make more money. More importantly the lessons you learn from your first flip are lessons that money really cannot buy so it is worth a lower profit or even taking a slight hit if your experience makes you even more money in the future as you continue along your real estate investment path.

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How To Start Your Home Construction Project

Wednesday, July 22nd, 2009

If you are going to take on a home construction project you need to know exactly what you are doing. By making sure that you know the details before you start, you will be ensure of ending up with a result that makes you smile.


The first thing to consider before you start a home construction project is how much work is going to go into it. This is an important step because if you underestimate the amount of work that is involved, you may end up getting yourself in too deep. You can estimate the amount of work by simply breaking the project up into sections. Determine the amount of time and labor that each separate job will take; this will give you a great idea as to how difficult your home construction is.


After you have all of your details figured out, you will then want to determine the budget for your home construction job. One of the best reasons to take on a home construction job without a professional is so that you can save money. Make sure that you can buy all of your supplies, and cover your time with the amount of money that you have allotted to the project.


When you are finally done with the planning stages, you will be ready to start building. The first thing that you will need to do is head to the appropriate store in order to buy the supplies that you will need. Remember, shopping for supplies for a home construction project is just like anything else; if you search around long enough you will be able to find a price that you can afford as well as the materials that you are in search of.


After you have purchased all of your supplies you can start the actual labor process. Make sure that you have a timeline set out so that you know the appropriate steps to take as you are progressing through your home construction job. By knowing where you are going, you will be able to gauge your progress while also staying on course so that you can meet your target completion date.


A home construction project does not have to be full of stress and hassle. In fact, if you set out all of your details and follow a timeline, you should be able to have a fun time during the entire project.

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How To Turn Any Home Into A Dream Home

Friday, June 5th, 2009

There are a variety of ways that the average home owner can revamp their home to create a custom space that is not only perfectly suited to their lifestyle, but is a conversation point for the home.


Creating an overall theme for a home is an interesting experience and can be extremely rewarding if successful and heartbreaking if it isn’t. Many people spend considerable time discussing matters with a designer and others simply have the knack for detailing their spaces already. Either way, the first thing you are going to have to arrange is the financing for your project. If it is on a small scale you may simply be able to pay for it up front. Other then that there are a few equity financing options such as the second mortgage or the home owners line of credit. Both of these options are perfect for renovations as they come with low interest rates with the loan secured by your home equity.


In terms of where to start with your renovations, think about which rooms in the home you use the most. Typically this will be the kitchen, main bathroom, and living room. One of the best ways to change the feel of the first two is to replace all the appliances and fixtures. The living room will be a bit of a different story. This space will be best served by some new furniture, art and maybe new floors.


The exterior of any home can be given new life by some landscaping and TLC for the yard. The yard will be anyone’s first impression of your home so make sure you give it the necessary attention. Tending to the gardens, lawn and driveway will add a nice scenic element to the front yard and add value to the home. Creating your perfect are is not difficult, express your creativity and increase your home’s value at the same time!

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Increase You Home Value With Bathroom Improvements

Sunday, May 17th, 2009

Today’s bathrooms are wonderful. Showers that “rain” on you, warm air hydrotherapy bathtubs, sinks that look like water worn boulders. You can pamper yourself now and smile on your way to the bank when you sell because homes with good kitchens and bathrooms are in demand. The only caveat is don’t make it so grand that it’s above your neighborhood’s standards. It’s hard to get your money out when yours is the most expensive house in the neighborhood.


Explore and Plan


The scope and style of your bath update needs to fit the style and price range of your home and your family, and you’ll face space constraints. One way to approach the project is to canvass various places that sell bathroom fixtures, see what you like, comparison shop, and then see if there’s an outlet for your price range with a good design staff to help you on a “freebie” basis if you buy from them.


Lowe’s and Home Depot are useful if you are very price conscious. They carry brands we’re all familiar with. It can be fun to explore some of the avant-garde fixtures in some of the high end outlets, and then see if something similar can be achieved for less. And if the budget (and the neighborhood) can take it, go for a truly luxurious spa of a bath.


Simplicity is prized today. I think it may be because life tends to be so rushed and complicated. Simplicity does not mean boring. Far from it. The simple can pamper and provide great visual appeal.


Put together a plan within your budget and you are on your way. Improved bathrooms can actually add tens of thousands of dollars in equity to your home.

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Interior Upgrades – Added Selling Value

Tuesday, April 14th, 2009

These days it is simply not enough to just throw your home onto the local real estate market and hope for the best. Agreed, sometimes this does work, but if you want to get top dollar for your home you are going to have to ensure that it is set apart from the majority of listed homes. So how can the average home owner set their home apart from the others? Simple, make a few upgrades. But be sure to do it right.


There are several things that an average buyer takes into account when looking at a home. You probably already know what they are, after all you bought the home you are now selling right? A great area to start is in the kitchen. Are the appliances a touch out of date? Replacing them is well worth the expense as new stove, fridge and the like are extremely popular additions and something that prospective buyers notice right off the bat. Another thing that people rarely thing of is the condition of the floors. Floors become such an unnoticed part of our lives that they can be easy to overlook. Carpeted floors should always be steam or professionally cleaned before prospective buyers come anywhere near your home. If you have wood or laminate make sure to clean them with the proper cleaner for the surface. Be careful of which cleaner you use as some cleaners can damage wood or laminate.


Now, take a look at your walls. Notice anything that could be improved? How about the color? Neutrality is gospel here. Outrageous colors may be exactly what defines your style but in keeping those when selling you can easily alienate a large group of buyers. Sticking with neutral colors will help you home to appeal to a greater number of people and give it a better chance of selling. Many buyers will be able to see through crazy colors, but not too many of them will want to have to repaint.


Take some time and make sure to clean the house from top to bottom, removing clutter and personal items. These are things you will have to pack sooner or later anyway, best to get a head start on it. Removing personal items will also help buyers to place themselves in the home without seeing pictures of someone else’s family everywhere. If you ever have any doubts or concerns, talk to your realtor and they should be able to help you get your home in tip-top shape for selling.

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Sell Your Investment Flip Faster with Interior Staging

Tuesday, March 31st, 2009

No two rooms have the same features, its quite possible to find something to highlight in every room in your home. Is there a real “conversation piece” or element of the rooms that stands out to you? If so, roll with it and you should be able to come up with something very special.


Good things to do when preparing to stage your home are really the basics, cleaning out any clutter, ensuring that the house is sparkling clean and that there is a feeling of comfort, but not one that is too personal. This is why it’s a good idea to remove overly personal knickknacks and items. The idea is that people feel as comfortable in your home as possible and at the same time be able to picture their belongings in the space.


A properly staged home will invite viewers in, and the properly highlighted aspects of the home will keep them interested and wanting to explore more of what your home has to offer. Pleasing smells are a big factor for many people. Comforting aromas such as cinnamon or the champion “fresh baked chocolate chip cookies” are great things to catch people’s attention. Just remember, if you have cookie smell, buyers will want cookies to go with it!

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Beginners Guide to Flipping Houses

Friday, February 20th, 2009

Flipping houses is becoming big business in the world of real estate investment. Unfortunately it takes all kinds of ‘flippers’ to make the world go around and some of them aren’t nearly as conscientious as others. If you are going to get into the business of flipping houses and want to make a living, and build a good reputation, for producing quality results you need to see to a few details throughout the process.

1) Do what needs to be done

Don’t cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase. You do not accomplish this by taking shortcuts and using shoddy workmanship.

2) Avoid spending money that doesn’t need to be spent (but be smart)

By this I mean don’t spend money creating more work. Many people do this by deciding to tackle additions, rip out walls, or changing floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house. Otherwise spend the bulk of your money in kitchens and baths where they are best known for bringing in bigger profits.

3) If it ain’t broke don’t fix it

  There is a lot of wisdom in this age-old saying. There is no reason to go in and fix something that doesn’t need to be fixed unless doing so will improve the value of the house to its buyers.

4) Always work within a budget

Most people set a budget when planning to flip houses but very few manage to work within that budget. This is the difference in making the profits you anticipated and putting the entire project at risk.

5) Create a home that the buyer will want to live in not the home that you will want to live in

You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it. Second, it sets you up for hurt feelings if a potential buyer rejects any small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it often leads to unnecessary expenses, which defeats the purpose of a quick flip type of project.

6) Time is money

Remember this in all things. The more time it takes to do the flip the more money it’s going to cost and the less money you are going to make. Plan small changes that have a big impact and can be done quickly to get the most out of your flip.

7) Never attempt a champagne flip unless you have a champagne budget to back it up

Just as flipping above the market is an unwise move it is equally unwise to flip a property beneath your target market as well. Do not attempt to flip a house in an upscale neighborhood if you can’t manage the upscale building supplies and appliances that will be needed in order to make it a success.


While these aren’t guarantees for success they are solid advice that will minimize the risks you face when flipping properties.

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