Michigan Real Estate

Flipping houses has had a negative connotation since the real estate bubble a few years ago. Some experts blamed rehabbing houses for the bubble and unclear media reports also did not help. While many were reporting about mortgage fraud, a lot of viewers saw it as if flipping houses was illegal.

Years later and now that the country is in a recession, real estate investing is again picking up. Some still doubt whether rehabbing houses – which by the way is completely legal – is indeed legit. Authority web sites such as RehabList.com say there’s nothing wrong with rehabbing houses. Yet will doubt RehabList and other sources, saying this form of investing brings only negative effects.

Among their arguments is that it is leading to an increase in the number of homes fixed by inexperienced rehabbers. The rise in the number of renovated houses is also likely result in an increase in the value of property and eventually in the cost of living in that area, they say.

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From another perspective though, flipping houses can actually result in a chain reaction of positive effects for the community.

First of all, it is true that an increase in the number of remodeled or renovated houses will raise the value of real estate property in a neighborhood. It could also lead to a higher cost of living. But that increase in expenses will be compensated by more funds for the local government and subsequently more projects for residents. How is this possible? Simple. Flipped or rehabbed houses will be get higher tax assessments and this will lead to more revenue for the local government from property taxes.

Based on what the police call the “broken window theory,” the more houses flipped by rehabbers, the lower the crime rate will be in that area. Under the theory, a piece of broken widow in an abandoned property entices vandals to break more windows. Before residents know it, vandals have already broken into the house and started using it for illicit activities like selling prohibited drugs or prostitution. If that house with a “broken window” is rehabbed, then it is saved from being a crime den.

Flipping houses can also spur economic activity in a neighborhood where many houses are rehabbed. Since crime is lessened, businessmen will be encouraged to open shops in a community. The pleasant appearance of houses – and the neighborhood in general – will make the area appear conducive to business opportunities.

In fact, the mere act of flipping houses already helps in an area’s livelihood problems. When you rehab a fixer upper, you seek the services of a painter, repairman, plumber, and other workers – giving locals additional sources of income.

Rehabbing houses will always be negative for non-believers. But for those who know the positive effects of this business – not only on their pockets but to the community as well – it will always be business as usual. If you still need more convincing, visit RehabList.com. The web site has informative pieces on flipping houses and real estate investing in general. It serves as the meeting place for everyone involved in real estate investing. From buyers of fixer uppers, to sellers, to rehabbers, to wholesalers, to money lenders, you’ll find get something from RehabList. To avail of the free services RehabList offers, simply create a log-in account.

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House flipping is still a fairly popular investment strategy in the U.S. Thanks to the lack of regulation and oversight on financial institutions and banking transactions, those who are savvy can make a tidy sum on house flipping deals – which is nothing more than buying foreclosed homes at a low price, then turning around and selling them for a quick profit.

Like any investment, foreclosure flipping entails a certain amount of risk – so it pays to know what you’re doing before you jump in.

Number One: Know the Territory

If you are to be successful at house flipping, your first step is to research the market thoroughly. Just because you hear about “national trends” in real estate, the fact is that every local real estate has unique characteristics and challenges. Here is a partial list of things that you should know before you start flipping houses in a particular market:

•    locations of promising properties

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•    quality of these neighborhoods
•    physical conditions of the properties under consideration
•    market values of similar homes nearby
•    sources of capital
•    local regulations and codes.

Pay careful attention to this last point – and consult with an attorney if necessary. Foreclosure flipping has led to inflated property values in many areas, and in response, certain municipalities enacted laws that make flipping houses more difficult. Usually, these laws require that

(A) the home is the buyer’s primary place of residence

(B) the buyer remains in the home for a minimum of six months to a year.

If you are buying foreclosed homes in need of extensive rehabilitation, this is usually not an issue – since you’ll probably be spending at least that much time making repairs. It does mean however that your house flipping deal won’t be a quick one.

Strategies For Foreclosure Flipping

Buying foreclosed homes can still be lucrative if you go about it correctly. Good candidates for a foreclosure flipping transaction can be found at your local banks and lending institutions, where listings of “distressed properties” are usually maintained. An alternative to buying foreclosed homes is to locate homes for sale by owner. These are usually “motivated buyers” who are facing foreclosure and will be willing to make a deal.

Keep in Mind…

House flipping isn’t rocket science – and it can make you a great deal of money in a short time, provided you are smart about it and move carefully and methodically.  Take your time, know the territory, align yourself with people you can trust – and you should be quite successful at flipping houses.

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As an investment strategy, flipping properties can be tremendously lucrative – but like any investment, there is a certain amount of risk involved. It pays to educate yourself and learn some smart house flipping tips and familiarize yourself with the lay of the land and the nature of the market before you start flipping properties. If you are a skilled handyman, you may actually find the rehabbing houses in need of repair can be a very good way to make money in real estate, since damaged properties can be had at a large discount – and since the largest expense is labor, anything you can repair yourself represent “sweat equity” that can be turned into extra cash at the end of the day.

How To Flip a House 101

At its most basic, flipping houses is the concept of “buy low, sell high.” In this case, you are looking for a property that can be had for a low price, the turn around and sell this to a second party for a substantial markup. The best of all house flipping tips is to find a “distressed property” with a “motivated seller” who will give you the home for a bargain price , then turn around and sell it for a tidy profit.

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Once you have done it a few times and really know how to flip a house, you’ll never have. to worry about finances again. It still requires some homework, however. Whether you’re into rehabbing houses in need of repair or are flipping properties that have been foreclosed upon, your first stop should be at a local bank our mortgage company. These institutions generally maintain listings of “distressed” and foreclosed properties and are usually anxious to get rid of them.

More House Flipping Tips

If you see signs that say “For Sale By Owner,” that’s a good indication that you are looking at a motivated buyer. S/he may be facing foreclosure or divorce, or tax problems. In any event, chances are that you can negotiate an excellent price with such a buyer that will leave you with a sizable profit margin.

If you would know more about how to flip a house and rehabbing houses, your best course of action is to get to know some local real estate agents – particularly those whose specialize in foreclosed properties. It’s always a good idea to learn from the experts – and the greatest experts are those who have been there and done that.

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There’s nothing more satisfying or rewarding than making more money than you can ever possibly spend – particularly when you can take it from others. That’s called “winning” in the new American economy, and flipping houses is one good way to make sure that you’re among the “winners” and not the “losers.” However, you should be aware that house flipping  can be a bit more complicated than simply rehabbing properties in need of repair then turning around and selling them for a quick profit.

All About Flipping Properties

There are two primary methods when it comes to flipping properties; one is to buy “distressed” or foreclosed properties. You can get some good deals, but they’re likely to cost more – which means less profit for you at the end of the day.

Rehabbing properties that are run down and in need of repair is usually a more profitable option, particularly if you have good construction skills and can do most of the work yourself. With such “sweat equity” and a source of discount building supplies and materials, you should be able to realize a substantial profit by rehabbing houses in need of repair as a house flipping strategy.

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Another Thing To Keep In Mind

Of course, there have always been whiners in every society who are not as savvy as people like you. Such people have been unable to adapt to new economic realities and in some cases have gone to their city governments and convinced legislators to pass laws to prevent smart investors from taking advantage of current conditions. These ordinances require a home buyer to live in a house for a certain amount of time, generally six months to a year, before re-selling it. The purpose of course is to discourage the practice of flipping properties, since this has had a tendency to inflate housing prices. However, chances are good that if you are into rehabbing properties, it will take you take you at least that long to get the home ready for the marketplace – so unless you are trying to do quick foreclosure flips, this should not be an issue for you.

Getting Financing

Very few people who get started flipping houses have the financial wherewithal to pay for such investments up front in the beginning. Whether foreclosure flipping or rehabbing houses, you’ll probably wind up getting a very short-term mortgage. Be prepared to put down 5-10% if you want the most favorable terms, which are likely to be less favorable than a 15 or 30-year loan. When rehabbing houses, you’ll have to figure these payments into your investment costs along with construction and renovation costs.

As you can see, rehabbing properties is a bit more involved than just picking up an old house and turning it around for a quick profit. Nonetheless, done methodically and with a serious plan in place, rehabbing properties can be an ideal way to build financial security and wealth for yourself.

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Have you seen the show flip this house? What they do is buy and property for pennies on the dollar, fix the property up and then resell the house and make 20 thousand or more. This is a great strategy if you have the money and don’t mind waiting around 3 months to get your property sold. I want to talk to you today about a strategy where you can make five thousand or more in less than 30 days and more importantly with less than 8 hours of work.

So what is the magical strategy? If you guessed wholesaling real estate than you are correct. Wholesaling houses is the best house flipping method around and the quickest method to produce cash in real estate investing. The best part is that you can do this with little or no money of your own.
So how do you wholesale or flip houses for quick cash?

1) Find a cheap house
With the current state of the economy and real estate market this is no shortage of motivated sellers out there. A seller can be motivated because of financial troubles, foreclosure, bad tenants, inherited an unwanted property, divorce and so on.

What I do is send all of these people a letter telling them how I can possibly help them. You can also find endless leads online with a nice fully optimized web site.

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2) Negotiate and sign a contract
Because motivated sellers just want to sell fast and put their problems behind then, you really have lots of room to negotiate if there is equity in a deal.

Once you have negotiated a price, ran some numbers to make sure the property is a good deal you can put the property under contract. Contracts are very simple to fill out but can be confusing at first. Ask a local realtor to show you how to fill one out.

3) Find you Investor Buyer
When dealing with investors you want to work with cash buyers. Cash buyers are investors who can close on a wholesale deal with cash, and not have to go to the bank and get a loan. Closing on real estate with all cash makes the process run a lot smoother and goes quickly.

Where do you find cash buyers? Check your local real estate investors association, foreclosure auctions and networking events.

Believe me there and more cash buyers out there than you think, you just need to find them.

4) Assign you Contract
Once you have found a cash buyer you will want to assign your contract to this buyer. All you need to do is have an assignment form, fill out the form, put in your wholesale fee, and then sign it.

An assignment of contract simply assigns your right to buy the property to someone else and then you are not liable for the property.

5) Start your title work
Some people say that you should start the title work right when you put the house under contract but I like to have a buyer first, that way to can take the contract, assignment and everything to the title company together. And because you will not always find a buyer for every deal you will sometimes have to cancel your contract. If you have started title work you may have to pay for what they have done.

The title company will do everything that needs to be done from this point on, they will set up the closing and make sure the funds are in place.

6) Collect your Check
All you do now is sit back and wait for your check. Wholesaling real estate is not as hard as you thought. Sometimes you will want to check in with your buyer and seller to make sure everyone is happy.

What else should you know about flipping houses?

Flipping houses is not as hard as you would think; all it takes is a little bit of time to educate yourself and to market your business. Right now wholesaling real estate is the best house flipping strategy to use.

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When it comes to making cash within the business of flipping houses as well as other real estate investments you’ll come across all kinds of do’s and don’ts along the way. The truth of the matter is that these are extremely helpful regardless of whether this is your very first house flip or you’ve been flipping houses for years. Actually you may well just come across that you may discover something new on occasion by reading lists including this even if you have been flipping houses for years and have a lot of effective flips under your belt.

1) Do not forget to take a look at the neighborhood before you get. You’ll wish to be certain that the property you are considering is a good fit for the neighborhood. It is best to also take the time to create positive that the plan you’ve in mind for the property will match well with the other neighborhood residents so that you can guarantee a quicker sale.

2) Do not blow your budget without just cause. Your spending budget is what you utilized to establish regardless of whether or not the house could be a profitable venture. If you blow your budget and can not recover the extra cash you have spent inside the selling price on the house you’ll have seriously cut into your profits if not eliminated them all together. The objective in property flipping is to get in and out swiftly and invest as little dollars as possible so that you can make as significantly cash as achievable.

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3) Don’t forget to set daily goals and hold yourself accountable to those objectives. If you do not reach your objectives for the day it can set the entire project back by as a lot as a month depending on the objectives and what has to be rearranged as a result. Stick to your timeline and your daily schedule so that you can stay away from potentially pricey delays in time and money.

4) Do not neglect the exterior. Curb appeal is what brings buyers into the property. Should you invest all your money, time, and effort making improvements to the exterior of the residence you’ll have small left to create the outside appealing to potential buyers. A homebuyer is within the market for the entire package. A residence that looks run down on the outside leaves the impression of being neglected on the inside and lots of potential buyers will never walk inside if the outside looks forlorn.

5) Do not spend money you don’t have to spend. Although it could be great to put in granite countertops and gourmet kitchens into every single residence it isn’t often practical and this is generally cash which will not be recovered, especially in homes which are in marginal neighborhoods. In the event you wish to get probably the most for your dollars keep away from expensive expenses that are not exactly needed for the productive completion of the flip. Resurface bathroom fixtures as opposed to replacing them if possible and use new cabinet doors or hardware as opposed to adding new cabinets all together to cut down on expenses. In other words, salvage what you are able to, fix what needs to be fixed, and add a couple of cosmetic touches prior to moving on.

The marketplace for real estate is really an incredibly fickle marketplace. Keep away from risking too a lot time and funds on a property that is not going to recover those added touches and expenses. Instead hold onto those ideas for higher end flips once you have a couple of productive flips under your belt.

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Like many of you, I am always looking for a new way to make a buck. Also like many of you, I have looked into a number of opportunities in several fields. For example, I have owned several pieces of real estate. I am currently a landlord and have been for 15 years. I see no reason to believe that I will not be for the next 15. I have bought and held onto a property for years and sold when I thought the market was right or wanted to avoid having to put K into it for the next tenant.

I always struggled with making a decent return on the House Flip. Buy and hold has done right by me. I find that no matter how dilapidated a house is, the owner is never so stupid to sell to me at 50 cents on the dollar. When I have been able to buy under-market, the cost of upgrades ate into my profits.

The foreclosure route was not much better. Those foreclosure auctions seem to attract enough of a crowd these days to drive up the price to near market.

Even though I have a preference for buy and hold, everyone who hears that I have invested in real estate wants to here about my experience as it relates to flipping houses.

“How many have you bought and sold this year?”

“uh.., none but I did last year and I wish I held onto it.”

“No you did the right thing. Where are you looking now? Can I get in?”

People love the flip. Everyone want to flip a house. I can even watch some cable TV shows about flipping houses. If you are a house flipper – power to you. I dislike the pressure of having to move it quickly. I like knowing I will hold onto a property for a and get a better return.

I you want to flip something, I have a better suggestion – sports and concert tickets. Half of you said to yourselves “Ticket scalping?” and the other have asked “Is that legal?”. Yes and yes are the quick answers but let’s take a closer look at the concept and the ability to make money.

Ticket scalping gets a bad rap. Somewhere it got embedded in our minds that we have an inherent right to purchase tickets for our local team or concert directly from the source. Anything that impedes that is an attack on our basic human rights. Hogwash. As an entrepreneur, you have the right to seek out markets where there is a limited supply of a product and the demand exceeds that supply. Tickets fit the bill.

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Still not sold? I figured a few of you needed more. I brought up the house flipping scenario for a reason. People love the house flip. Buy under market value, slap a coat of paint on and sell over market value. The value the house flipper brings to the table is upgrading the “curb appeal”. I haven’t met a house flipper yet who wanted to upgrade the heating system. Now what do which is closer to meeting a basic need – shelter or a baseball ticket? Not even close.

Please do not read this the wrong way. I am not attacking house flippers. I love house flippers. I have done it and will do it again. But the general population loves the house flipper and loathes the ticket flipper. One serves a want and one serves a need.

Now hopefully most of you have made the mental switch that it is OK to flip tickets. Lets get down to business and talk about how some people are making money at it and why this is a good thing to look into.

Let’s start with the reasons this is a good market to jump into

Low barriers to entry – You can pick a hot concert touring the country buy some tickets for a few hundred dollars and resell them on line. It is not unheard of to get a 20 – 50% return on a deal like this if the show is popular. While you might not retire on a few hundred dollars profit, there is always someone touring that you can score some tickets to. Not a lot of industries offer an ability to get in and out so quickly without much cost.

Quick Inventory turnover – If you are buying and selling concert tickets, you might be holding your inventory for about three months on the long end. Like Sports? If you are working with sports tickets you might hold them for six months. Regardless, when you are making 20 – 50% returns in a two to six month period, the annual return is that much higher.

Many places to sell – there are several places to sell your tickets online. Each has some pros and cons. eBay of course seems to have the most volume, but you have to deal with your own shipping, listing fees and the expected eBay buyer who decides not to buy after all. Stubhub seems to be the leader of the pack in the non-eBay crowd. They have completed over 12 million transactions. The have higher fees than eBay but they include the shipping, only charge a fee when something sells and take care of all those nasty people who change their mind about buying your product. RazorGator is another place that follows the StubHub model. They just do not get as much traffic.

TicketNetwork and EventInventory each have high volume but these places cater to the full-time ticket broker instead of the person doing this on the side or a newbie. Lastly, if you want to scrape the bottom of the barrel and make extra work for yourself, you can always post your inventory on CraigsList.

Is it Legal? – While there are some restrictions in some states – every where else it is fair game. For example, If I live in New York and the venue seats more than 6,000 people, I can only mark the ticket up by 45%. If I do not live in New York, I can sell the ticket for any amount I choose.

The laws regarding this are old and are written to keep people away from selling tickets outside a stadium. In an online world they are just antiquated. There is a trend in state legislatures to ease up on these laws. With a market size billion dollars, go figure that eBay and StubHub have hired some lobbyists to help ease up on the laws.

Flipping tickets is a good place for an entrepreneur to look into making some cash. At least compare to flipping houses, it has lower startup cost, higher returns and quicker turnover. Everything you want in a business.

Whether you want to dive off the deep end solo or get some help from people who have been there. That help is relatively inexpensive and provides a high value regardless of where you get it from. It is definitely cheaper than a real estate attorney.

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Some people think that house flipping is just an easy 1-2-3 cha-cha-cha dance. Well, for those who have been in the business long enough to have sent two kids to college and longer, they would surely beg to differ. Flipping houses is difficult and no amount of sugar coating can make it much easier than it is, so if you intend to do it, you would be needing all the help that you could get, and know which of these helps work and which ones do not.

Tips on flipping houses could range from the most general to the most specific. House flipping tips are very helpful because they usually come from people who really know what is going on in the flipping houses world. Just like any other business ventures, house flipping starts with the most basic understanding, like a core mantra that you keep on chanting and chanting until it becomes very natural for you. For most people out there who intend to make it big in the flipping houses business or for those people who just want to sell a house (may it be theirs or some people close to them), here are some house flipping general tips that you should not forget.

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Tip # 1 – Know the trends – which sells which does not:

You do not sell something just because you want to sell it. You should know what people are buying and those should be the only things that you sell. What’s the use of selling something that people do not want? Though your taste can be a good gauge, you should not really on it solely. I f you really want to make a sell, then go for what people are buying.

Tip # 2 – Focus on the which sells list :

Examine the kinds of houses that have recently been sold. Know the specs of these houses – how much, the design, the other perks included. Study what you learn and make sure that the house that you sell should be packaged in the same way the saleable houses were.

Tip # 3 – Checklist if you are about to BINGO on the reasons why houses do not sell:

Go over the list of common reasons why houses do not sell. They might be the very reason why until know you are not selling houses. Then, examine the house that you intend to sell and check all of the things that you think would cause your potential buyers to be discouraged from buying that house. The last thing that you need after all the effort that you put to get potential buyers is for them to back away because of the house that you are selling.

Tip # 4 – Do something with the reasons why your house do not sell:

Fix what you need to fix and change what you need to change. If you are on a tight budget and you do not intend to spend much just to make a sell, then you just concentrate on the most common parts of the house that buyers are very particular of – electrical and plumbing, roof, landscaping, heating and cooling systems, kitchens, bathrooms, unfinished renovations and maybe a bit of repainting if the paint of the house is not anymore as pleasing as it should look like.

The longer you stay in the business and the more houses that you sell or do not sell, the more experience you get and the more techniques you learn. Cliché as it may sound but the best teacher, they say, is experience, so do not get disappointed when you house doesn’t sell the first time. Instead, make use of that experience to improve your house flipping.

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Fix and flip real estate has been very popular in the United States and elsewhere for some time.  House flipping refers to purchasing a home at a greatly reduced price, and then turning around and selling it quickly at profit.  People have made a great deal of money in fix and flip real estate, but many have also lost money at this pursuit, so it pays to understand how to do it to improve your chances of success with fix and flip real estate.

One of the first steps you will want to take is to do some research into potential homes that you can use for house flipping.  Foreclosed homes offer an opportunity for you to purchase a home at a reduced rate.  Many times, these homes are still in good shape, and will need little rehabilitation to get them back up to a point where you can sell them quickly.  Rehabbing properties is the process of making the repairs needed to improve the property value of the house, and making it more attractive to potential buyers.  Another route that many take is to purchase a home that is in need of repair, repair the home and then resell it.  Rehabbing properties in this manner can help to reduce crime in a neighborhood, because vandalism more often occurs to neglected houses, as well as improve property values for not only your property but neighboring ones.  

The goal in flipping houses is to purchase the house at a low cost and then turn around quickly and sell it at a profit.  If you will be looking for financing through a bank, you will want to check on their policy as well as local and state laws concerning the purchase and sale of homes.  Many stipulate that if you purchase a home, you will need to live in it for a certain amount of time before it can be resold, so you will want to look into this before you find yourself in a house flipping situation where you cannot sell the property in a time frame that works best for you.  In fix and flip real estate matters such as these, it is always best to consult with an attorney for legal advice concerning your specific situation.

In order to earn a greater profit at flipping houses, you will want to find inexpensive ways to refurbish the house you have purchased.  There are groups that offer discounted prices for building supplies for those who are flipping houses, and you can find them online.  

It makes sense to learn as much as possible about house flipping before you get started, to prevent a loss of your investment and an increase in profits.

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In today’s tough economy more and more people lay awake at night thinking of ways to make money. Some are able to make this dream come true through real estate.  One such way to strike it rich in real estate is through fix and flip real estate. House flipping is the process buying a house below the market price, doing work to it and then turning around and selling it for a considerable profit.  

Flipping houses for a living can become a real life scenario if you’re willing to put the necessary hard work in. However, you must understand there is more to rehabbing properties than buying a property, making some minor improvements then reselling it. For those successful at fix and flip real estate, there are a few steps to follow for this to work for you.

Finding leads – Sometimes, I hear people confusing leads with deals.  In finding house flipping leads, there is no down time in promoting your business. This is where flipping houses all starts for real estate investors. Finding good, reputable leads involves constantly being on the lookout for potential rehabbing properties. If you’re not out there promoting and marketing your business, then you’re going to never hear about any new foreclosures, open houses, or hot properties.

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Converting leads – Once get the hang of generating reputable and solid leads, you now must convert those leads into actual deals. First, pre-qualify your seller and see how motivated they really are. Listen to the seller’s needs when trying to judge an appropriate offer which makes financial sense to you, but also one that is beneficial for the homeowner. This is a key point in fix and flip real estate often overlooked. Collect as much information as you can about everything. This saves time when dealing with people who aren’t motivated sellers.

Master an exit strategy – After everything is said and done with the house flipping, you can now sell the fix and flip real estate and hopefully turn a profit. While this may be the final step in flipping houses, it is still important to have a plan in place before even making an offer to the seller.

Your success in flipping houses depends mainly on how quick you can move the property. Knowing this, it is crucial to build solid relationships with real estate buyers since they tend to be buyers of your properties.

Your job in house flipping is to negotiate a good enough deal so that there is some money leftover for the investor buying it from you.

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