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Flipping Houses 101 | Get Educated Correctly

Real Estate books and tapes making investing sound easy and TV shows like “Flip That House” only further fuel that fire. My biggest pet peeve is with “Flip That House,” because they tend show an inaccurate profit made on every deal, and they purposely don’t include closing costs, carry costs, or cost of sales (which can easily add up to 15% of the finished product) in the profit calculation. I can prove that several of the featured deals they illustrated as profitable actually LOST money.

Flipping Houses 101 | Networking

One of the best ways to become a successful investor and ‘flipper’ is through networking and partnering. If you are serious about investing, find some smart, experienced, hard-working people with resources that have been investing for a while and work with them. At least half of the many projects I’m funding these days, came to me from another investor looking for an experienced partner.

Flipping Houses 101 | Final Note

Before you run out and buy a hammer and a ladder and plunge into your first flipping project, you will want to do your due diligence and understand the house-flipping process from beginning to end. Only then can you decide if flipping houses is the best kind of real estate investment project for you. That’s it for Flipping Houses 101 if flipping houses is your strategy then start taking action now!

http://www.articlesbase.com/real-estate-articles/flipping-houses-101-4133157.html

The process of the flipping business involves some touches on the house, it enables the flipper to sell the house at a higher price. House flipping is a good business; it is a pleasurable business that gives money.

Many house owners and dealers are rich due to house flipping business, its appearance in the television show,”Flip This House and Property Ladder” has shown the outreach of the business. This helps to disseminate its impact, in house owing industry.

People with flipping experience flip houses with minor deprecaition; or neighborhood that is low graded. Primarily due to the fact that they can easily deal with problems of such, to increase the grade of the house without spending much. Going for houses that will take too much money in renovation, may leave the flipper with no or less profit at the end. The county and the house, should also be considered.

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The kind of money people can make from flipping houses, is a function of some constraints, such as the price of the house and the place it is located, the cost of running the flipping exercise and how the flippers were able to manage their time along with budgeting. People should apply their experience and intellectual property in house flipping; it remains indispensible to house flipping.

With regards to house business and ownership, a financial component that has been very beneficial to home owners is”Mortgage Refinancing”.

Refinancing can be said to be the act of paying up a debt, with the help of another loan. In both cases, the same collateral is used, which normally has a different interest rate. Considering Mortgage refinancing, on the other hand; it is the paying off of an existing mortgage with a new one. The same house is used as the collateral, in both cases. A lot of people think that mortgage refinancing does not make sense; but there are a lot of reasons by which people embark on it.

The major reason that drive people into mortgage refinancing, is the need to have a mortgage with low interest rate.

Running away from mortgages with fixed interest rate is another reason for mortgage refinance; this is why they look for those where interest does not increase or decrease indefinitely.

Mortgage refinance is a good measure to changing the terms of a given mortgage; decreasing the terms will definitely lead to higher monthly payments. But people that find it hard to keep with the payment of the principal and interests of a mortgage, might refinance to increase the terms.

http://www.articlesbase.com/finance-articles/owning-a-home-flipping-a-house-and-refinancing-3909242.html

Flipping Property or House flipping solely depends on the real-estate market, which is very dynamic and recurring. During the rise period, flippers have the advantage of selling the house or property with high price. But during the down period, flippers can not sell the houses or properties immediately and may need to hold it for several months.

Once you fix the location of the house or property, the next thing to decide is what kind of house or property you want to buy. If you select the fixer-upper, you need to renovate the home, which takes some time and money to spend on that house. If the property is purchased from an auction or from a bank, then there are the chances of bargaining.

Flipping Property requires very strong knowledge of Flipping Real Estate, lots of patience, lots of hard work, financial skills and of course luck factor. Thus, there are a number of risks and doubts, getting in the way to achieve the goal. It is a very well known that the Flipping Real Estate industry has moved a change, as the fluctuations in establishment of the global economy. Thus, for every investment move it is necessary to keep in the mind the possibilities of failure and conquer in any risk. Some analysis should be done purposely in Flipping Property like the location of the property, the damages at present, the desired repairs and the tentative duration of time for it to be sold.

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Also there are some factors that lead to fail the Flipping Real Estate business.

No Home Inspection
Not Enough Skills
Bad negotiation
Not Enough Time
Bad contractors
Not Enough Money
Not reading contracts
Not Enough Patience
Not Enough Time

Thus, for all growing investors who are planning a career in Flipping Real Estate, it could be highlighted enough that they must have a full knowledge of the ups and bounds of the real estate industry. Thus there is emerging necessity to present a solution where anybody can find the answers for all relevant information about Flipping Property. This should be like that people will get the answers of all the possible questions about this particular Flipping Real Estate business. There should be all the basic information about the beginner house flipper. All the necessary information should be in a very simple way. It should include the information about types of flippers, flipping, the advantages, and the disadvantages of the house flipping.

http://www.articlesbase.com/real-estate-articles/trading-business-in-flipping-property-4802679.html

Armando Montelongo’s story is definitely one for the movies.  In 2001, unemployed and heavy with debt but not discouraged, he decided to go back to his hometown of San Antonio, Texas.  Back then, he and his wife Veronica and their baby boy were staying in his in-law’s garage in Southern California.  They had no choice because their house was foreclosed.  He didn’t work to take care of his wife and their baby who were then suffering from major health problems.  Savings were completely depleted to pay off huge medical bills.  Faced with such a dilemma, Armando Montelongo did not lose hope. Instead, he decided to start life anew with his small family in his native San Antonio.

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With just 00 in his pocket courtesy of his in-laws, Armando and his family set out to San Antonio.  Lucky enough, he was able to negotiate for two months free rent. They literally struggled to make both ends meet even to the point of selling their furniture to buy food.  During those times, he observed that there is money in the real estate business.  He discovered that buying a rundown house, renovating it a little and then selling it at a higher price makes savvy business sense.  This has come to be known as house flipping. And the rest is history.

With the overnight success of his flipping business comes the offer to host his own TV show about flipping – Flip This House.  Together with his wife, his brother David and sister-in-law Melina, they feature various projects that are flipped, their transformations, the many challenges that are involved and other important aspects of flipping houses.

The show has become a very good training ground for those interested in flipping.  It has attracted millions of televiewers making the reality show a top-rater.  In the process, flipping has catapulted San Antonio, Texas as one of the fastest growing real estate markets in the United States and Armando Montelongo a famous celebrity.  He has been featured in radio talk shows and in national publications.

To reach online viewers, Armando Montelongo created and hosts a website where he teaches and shares the many strategies and techniques of house flipping.  He has even developed educational CDs as part of his desire to share his vast knowledge to those interested in flipping.  His book “Flip and Grow Rich” further proves there is money in flipping.

As he always tells people, back then he had no mentor to guide him through the ins and outs of the real estate business.  But the beauty of it is he discovered flipping and learn to make a fortune out of it. 

Today, Armando Montelongo’s real estate firm flips about 200 houses a year – a far cry from when he moved back to San Antonio in August of 2001 with ,000 in debt.

http://www.articlesbase.com/real-estate-articles/who-is-armando-montelongo-of-flip-this-house-602833.html

The rest is history!

So how can you get involved in flipping houses and how can you make the sort of money that others are making in the property business? In this article we’re going to discuss some easy to follow, basic strategies on what is needed to profit as a real estate investor.

Making money in real estate investing all balls down to one thing, and that’s's working with galvanized sellers! If you don’t know how to target galvanized sellers, then you may never make money in this business. I’m just being honest! But what is a galvanized seller?

, in order to get a great deal when flipping homes you have got to find someone that falls within this class.

You can find these sellers for flip for profits using various forms of advertising. Some forms of advertising can be bandit signs, paper adverts, cold calling, billboards, for example. Everywhere they look they should see your advertising. Assertive advertising breeds assertive results. When the calls are beginning to flood in from the different advertising methods the next thing you have got to do is get accurate information from the seller. You can do this by asking the vendor for information on their property.

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You want to see what type of condition the house is in as well as the asking price of the property, but the most important query you need to know is why the seller is determined to shed their property. When you have all the information that you need from the inspired seller, the next thing you want to do is run analogous sales to see if the deal will be a good house flip.

You may also use sites like Investorcomps.com, or consult with a realtor.

After you get the comps for the house the next thing you need to do in order to flip a home is work the numbers. You can do this buy understanding the MAO formula. The MAO formula is like this : You take the ARV ( After repair worth ) and you times it by 70% and that leaves you with the amount that you are willing to pay for the house. Then you take away the rehab cost, closing cost and overhead and that leaves you with the MAO or ( Maximum acceptable Offer ) that you can make on the house. When you have the Maximum acceptable Offer the next thing you do is make the offer. Your offer should be less than what your maximum acceptable offer is so you can do a flip for profits.

The best thing to do in this case is to take away and further ten percent off of the MAO and start you’re bidding with the galvanized seller from there. Negotiations could make or break your deal when it comes to flipping houses so make sure that you are sincere and very clear with the vendor from the very beginning. After it’s all set and done, you want to find a buyer in order to flip this house.

You can do this by running paper adverts, building a buyer’s list, auctioning the property, selling below market valuation for a fast sale, rehabbing the property and then selling it, and lots of other ways . The best method to use if you ask me would be to sell the property less than the market valuation without rehabbing it. This is named wholesaling the property.

There you will discover how to use this property housing crisis and make boat tons of money in property investing. Jamel started purchasing real estate when he moved to Pa and he currently has a successful real estate investment business through flip for profits. He also coaches others who are interest in making large profits in real estate. If you want more quality information on house flipping simply click here.

http://www.articlesbase.com/real-estate-articles/flip-for-profits-secrets-the-quick-and-easy-flipping-formula-you-can-use-today-1040948.html

While flipping homes may be a wise investment choice it is not as easy as purchasing a cheap home, splashing new paint to its walls and send it back to the selling block. In the house flipping sector the mantra is buy low then sell high but this can only be true if you approach the whole affair with some good research and an equally good amount of caution.

Major Considerations for House Flipping

The first thing to carefully consider is the market where you would like to flip homes. Check out which types or properties are hot. Some neighborhoods are partial to family homes with sprawling grounds, while other neighborhoods have lines and lines of townhouses, apartments or condominium buildings. If you plan to serve a certain market have to find out what it wants first.

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Establish a budget based on the total amount of funds you can pour into this project. If you plan to borrow money, consider the rate and the terms of payment. Segregate funds for the actual purchase and the money you will need to spend on carrying costs such as repairs, title searches, taxes, association dues, insurance and overall home maintenance. Establish a contingency fund for unexpected expenses. Project the net profit you will receive as a percentage of your investment. If your budget indicates that you stand to gain substantially from your investment then you can go ahead and jump in.

Concentrate on the home or homes you are planning to purchase and flip. Build business relationships with contractors, real estate agents or brokers, professional home inspectors, foreclosure lawyers and learn as much as you can about the property with their help before making an offer.

Create a time table plotting the phases of your project. You need to be able to project how long the project will take before you reap your profits. A way to measure your success is to be able to develop a working schedule and adhere to it strictly. Be sure to set a time frame from the point of selecting properties to the time you relist the property.

The most important thing to learn about flipping homes is to walk away if the numbers do not add up. An investment is more of a business decision rather than an emotional one. If the time and circumstances are not right, then wait it out and try again another time.

http://www.articlesbase.com/real-estate-articles/the-art-of-flipping-homes-3760432.html

First, you must focus on the house that you want to purchase. Consider the location of the house and its value within the real estate market. Locate available properties and find ugly houses in good neighborhoods. When selecting locations, evaluate surrounding areas, schools, parks, crime statistics, etc. Understand average home prices and make sure that you can spot a good deal.

Second, focus on homes that need cosmetic repairs and ones that don’t have serious issues. For instance, look for houses that have old, faded paint or a yard that needs mowing or basic landscaping. These repairs will be easy to fix and won’t cost a lot of money. Don’t be discouraged when buying a house that has holes in the wall or stinky and stained carpet however, you should be very alarmed if the house has foundation issues or code violations. After all, structural problem can be very expensive to fix and major renovations require large budgets that will significantly lessen your expected gain profit.

When you get involved in house flipping for the first time, it may take some time to get the hang of things. But, once you have experience in the field and learn the do’s and don’ts of house  flipping, it will  be well worth your time as you enjoy your huge profits and the satisfaction of knowing that you made a difference.

http://www.articlesbase.com/real-estate-articles/house-flipper-secrets-3079862.html

Wholesaling houses is the choice of people who do not want to spend too much time selling house. It is very ideal because you do not have to go through all the trouble of rehabbing houses and still get money. There are even cases that with as much as 10 bucks, you can do the whole house wholesaling and earn a thouand times of what you originally spent.

Another thing that makes house wholesaling appealing is the facts that there are a lot of houses to wholesale available. This method of buying houses for profit answers the prayers of those people who intend to sell their house fast for reasons ranging from immediate relocation to divorce. No matter what their reasons are, they are motivated to sell, thus they are called motivated sellers, and you are there to relieve them of their miseries.

So, you buy their house, but not with the original value of the property. Rather, you buy it at a much lesser cost. There are some homeowners who, even if they are in a hurry to sell, would still question why their thousands of dollars expenses on a renovated hall would only cost so much. You try to explain to the that renovations will be assessed according to how long it has been when it was done and how necessary it is to prospect buyers. Most renovations might only appeal to the owners of the house but would not, in so far, budge the interest of some buyers.

Then, the crucial thing comes in, and that is doing your best to sell the house fast before other expenses set it. This is where a buyer\’s list comes in handy. In fact, a buyer\’s list is very crucial in the house wholesaling business because it will help you convert what you have bought to something profitablefast. With a range of buyers at hand, it is possible to earn thousands of dollars right after you make the sell. Imagine, if you buy today and also sell the house the same day, you will be able to immediately earn the money you intend to get without having to be bothered by the danger of the other expenses getting to you.

Lastly, you must be sure that you have all the necessary documents at hand. What is the use of a stupendous wholesale and a handsome profit if you get to have legal problems the next day? So you better have all the necessary papers checked, make sure you followed protocol and you had everything legally. Again, the next thing that you need are lawyers, or worse the police, banging on your door. It could spell the end of your real estate career even before you get started becoming used to it.

Wholesaling houses appeals so much to many because it promises a lot of money without having to go through all the trouble that house flipping requires so long as you know how to play your cards well with effective wholesaling houses strategies.

http://www.articlesbase.com/entrepreneurship-articles/understanding-wholesaling-houses-942303.html

Before you start on flipping a house, you need to take a good look at your financial situation.  You will want to be clear on how much you can afford to invest or alternatively, where you can get the cash to flip your property – by way of a loan.  Keep in mind that when you borrow funds, interest is a tax deduction for you – so this is a positive side to borrowing money to flip. 

Lately however, lenders have tightened their belts and their requirements to qualify for a loan.  Have all the necessary documentation you need ready – when going for a loan.  Be aware of setting up your bank accounts to positively display your debt repayments – making you a more attractive lending prospect to banks.   The more information you give lenders, the more likely it will be that you will be approved for a loan. 

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Maintaining your credit profile is mportant when trying to obtain a loan.  It is a planning process and will require regular maintenance; however this will be the best thing you can do in order to show your worthiness to a lender. When we say maintaining your credit we mean clearing up any past debts. Also making sure that you keep up with your bills.  Even once you apply it is important to keep up with your bills and don’t add any new debt. You never know when the lender will take a second look at your credit. This plus having a savings account filled with $ $ $ .

There are various lenders around.  They include traditional banks, credit unions, government sources as well as hard money lenders.  Hard money lenders usually do not require down payments, they have a quick loan turn around – this is important if you are trying to “jump on a deal” right away.  They do however have other tight restrictions on your lend – which include priority rights to your flip as well as high interest rates.

Preparing yourself financially is very important when flipping a house. It is also important to research where you will get a loan from if needed and what type of loan you will get.

For more information visit: flipandgrowrichin2011.com

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1. Know Your Numbers

How much will the house sell for when it is ready? A clear idea of the ARV (after repair value) is necessary to safely make an offer on a property. Don’t just guess that you’ll sell the home for ,000 more than what you put into it. You don’t decide what a home is worth – the market does, so get advice if necessary. Then subtract from the ARV all possible costs you will have, including price, buying costs, repair costs, holding costs, and the costs of selling. Now subtract the profit you want, and you have the highest price you should pay. Start with an offer lower than this, of course.

2. Schedule Properly

More than a few house-flipping projects have gone wrong due to falling behind schedule. For example, you think you can get the plumber in and out of the house in the first week, but it takes a month, so you can’t close the walls up, and everything else gets behind schedule. Meanwhile your spending ,000 per month on holding costs like loan payments, utilities, property taxes and insurance. So check before you finalize the offer, to see how long things like windows, plumbing and dry-walling will take. Also, make completion dates a part of any contracts you sign with contractors.

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3. First Things First

On one of those “flip a house” programs on television the other night, a young couple was running ,000 over budget on their first fixer-upper investment (and six weeks behind schedule). They ran out of money and put the house on the market with a crappy-looking yard and stains visible on the front wall. Of course buyers would see these things first, making a bad impression. Avoid this by starting with changes that are most important. Then if you run out of money or time, you’ve already done the things that will make the home sell.

4. Figure The ROI Of Improvements

The ROI or return-on-investment for each possible improvement should determine what you do to the home. You’ll be guessing at times, but the principle is that you do only those things which increase the value of the home substantially more than what they cost. Such high-ROI improvements vary by area and by type of home, but they typically include painting, carpeting, landscaping, and finishing unfinished space. With a small house, you might get new flowers and bushes, fresh paint, and all new carpeting for less than ,000, and possibly raise the market value of the home by ,000.

5. Know Your Buyers

A single level ranch in a neighborhood full of retired couples, won’t sell well to young “yuppies.” Know what kinds of buyers are likely to want the home (and neighborhood) before you start. Then, after improving it with those buyers in mind, market it appropriately. You or your agent should identify and advertise the benefits that matter to your buyers, whether this includes “close to stores” or “country living.”

6. Price It Right

Selling fast means you save those holding costs. You may also have other projects waiting for that money. To sell fast, price it slightly below market value – and let buyers know it’s a deal. It may seem that if you sell for ,000 under market, you’re losing ,000, but you are possibly saving a couple thousand in the holding costs you’ll pay if it takes an extra six weeks to sell at a higher price. Also, if you are a serious investor, flipping a house fast means getting the money into the next project fast. Buy right, and use the other tips here, and there should be plenty of profit left in any case.

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