Michigan Real Estate

Just a few years ago, flipping houses was one of the most well-liked investment options. Today, it is practically extinct, but some investors are continuing to generate profits in this specialized niche. It merely calls for a little resourcefulness.

Two methods for flipping houses still exist. The most prevalent entails purchasing real estate under current market value and selling quickly to generate profit. Investors usually look for distressed realty such as bank owned foreclosures and short sale properties. These kinds of houses generally need light renovations and repairs. Investors can choose to spend money for improvements or sell the realty in as-is condition.

The primary objective of house flipping is to quickly sell properties for profit. When repairs are needed, investors need to decide if they will hire contractors or make repairs on their own. Labor costs and required supplies need to be computed to figure out an adequate selling price.

Acquiring distressed real estate with the purpose of flipping for profit demands investors become educated about the process. Otherwise, investors will be stuck holding properties for a longer time and probably lose expected profits.

It is essential to buy properties in places where individuals want to reside. Investing in cheap homes located in crime-riddled neighborhoods will not provide opportunity for financial growth. Nor will this practice be as profitable as investing in properties located in safe communities with a high level of anticipated expansion. 

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Novice investors frequently make the error of buying bank owned homes that need major repairs. Unless investors can make repairs on their own the expense of supplies and labor can drastically decrease profit margins.

While cheap real estate is appealing, these properties won’t necessarily provide the best return on investment. Most of the time they become money pits that cost investors more than the purchase price. This is not to say that discounted properties are not a bargain. Instead, it serves as warning that investors need to engage in due diligence and compute restoration costs prior to submitting an offer.

A less recognized, but more lucrative method of producing income via house flipping is to invest in wholesale real estate. This kind of realty is sold through wholesalers. Investors who are skilled in this niche market purchase houses in volume. Most often, they buy bank portfolios containing multiple bank owned homes.

Wholesale properties are generally sold around 30 to 40 percent below current market value. These types of houses can be rehabilitated or sold in as-is condition to people interested in buying fixer-upper houses.

Wholesale investors rarely engage in restoration or repairs. Instead, they marginally raise the price and sell to individuals or investors. While profits aren’t as significant as selling real estate in exceptional condition, investors don’t have to spend their own money to restore the property.

Flipping houses can become a profitable and rewarding enterprise for investors willing to learn the ropes. Considering the majority of distressed properties require maintenance it is sensible for investors to become educated about property repairs and refurbishments or build a community of contractors willing to carry out services at reduced rates.

Investors who do not desire the hands-on method should spend time investigating wholesaling techniques. It is not uncommon for wholesalers to sell off 20 or more houses each month. Even if they only produce 5 percent profit margins from every property they can still generate a hefty return on investment.

No matter the types of techniques used, flipping houses is a specialized niche that demands specific know-how. Investors that take time to understand the process can steer clear of pitfalls, minimize expenses, and develop a diverse investment portfolio.

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When you became interested with real estate – about flipping and wholesaling houses – you thought that you could make it big. You thought that you had to start somewhere and it\’s going to be tough but eventually you will be able to pull it through anyway. However, even with the fervor of optimism, you got stuck and confused how to move on with your real estate prospects. Yes, you know the general idea of how to wholesale and flip houses. Unfortunately, you really do not have any idea about the things that you should know to get your house flipping and house wholesaling career rolling.

Here are the must-know list in wholesaling and flipping houses that you should put in mind:

? The playing field

? Determine whether you are in a bust or lean period. Buying a house in the bust period when the prices are high is not a good move because this means you will be paying way too much for a house. On the other hand, buying in a lean period, though your financial status may also be lean, would equate to higher profits because houses at these times would be much cheaper. So be sensitive with how the real estate market is fairing and hit the right button at the right time.

? Also, you should know how houses are priced in your area. Of course, your house does not have a replica somewhere being sold. However, looking for houses that are similar with yours would give you a fair idea of how much your kind of houses are priced. This will also give you an idea about the competition, so you will be able to know how you are fairing with others, thus you will be able to adjust with what you are missing and exploit your advantages.

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? What you need to spend on

? You should be able to estimate all the money that you will spending – from taxes to secondary costs – monthly fees, repairs, notary, escrow fee, title insurance. Remember, in real estate the spending does not end after you bought the house. In fact, you are just getting started. So make sure that all the expenses that you will be having should be included in the plan. Failure to do so would most likely result to a losing deal.

? Know different types of mortgages

? Knowing the different types of mortgages (which, by the way, could come in different forms and sizes) would help you determine how you are going to plan your flipping or wholesaling. Just make sure that with whatever mortgage you are having it will compliment the selling strategy you intent to use.

? House repairs

? Houses that need more repairs would naturally cost lower. So, if you are willing to spend on repairs, then you buy a house that falls under this category. However, what you need to put into mind is that all you repair expenses should convert to profit. Meaning, whatever add-ons you include in the house or whatever fixing you do, it should add to the profit that you expect to get.

? Dealing directly

? Especially if you already know what you are doing and you have marketing confidence, doing the deal yourself would save you from spending on commissions for people who did the deal for you. If you are still starting, you can ask an agent to do the dealing for you. However, make sure that you learn how the agents does it so that in the future you can do the dealing yourself and not spend on front men anymore.

? Negotiate price

? When you buy a house, do not hesitate to ask for discounts. Always start your offer at the lowest reasonable price that you could give. Do not make your offer to low because if will offend your seller nor too high because your deal will be a failure even before it started. Research, again, plays a big role in making an offer and closing a deal when buying houses. So make sure you do your homework before you start price dropping.

http://www.articlesbase.com/file-types-articles/what-newbies-need-to-know-when-wholesaling-and-flipping-houses-917751.html

There has been a lot of talk lately of people trying to convince the public that flipping houses is illegal and extremely dangerous.

You know what I say?

No freaking way!!

Buying a home, rehabbing it and then selling, is as legit as it can get. There will always be risks involved, that’s why you continually educate yourself and make sure that you’re going about flipping a house the RIGHT way and not doing it with only the knowledge you’ve gathered from reality TV.

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While it’s fun to watch reality shows, like “Flip This House”. it won’t give you the necessary skills or resources needed to flip a house. But there’s certainly a huge market for flipping houses.

You’re actually doing a disservice if you DON’T flip that house! Some houses are so bad that nobody will want to spend that much time and effort to fix it up, especially if they’re looking for a house for their family. The general public is looking for homes that are ready to be moved into NOW. Not only that, but a broken down home makes the neighborhood look awful. I have had people in the neighborhood, after rehabbing an awful looking house, come up to me and thank me for fixing it up, since now it’s not an eye sore to the rest of the neighborhood.

People are trying to scare you from achieving your dreams! Flipping houses is hard work, but it’s definitely not illegal! If you follow the proper steps and guidelines, you’ll be a house flipping machine!

http://www.articlesbase.com/business-opportunities-articles/flipping-houses-illegal-2766736.html

Like all investment strategies, flipping properties entails a certain amount of risk. However, by planning carefully and following a few intelligent house flipping tips, it is possible to make a decent return on such an investment. Although most commonly associated with rehabbing houses in need of repair, there are also ways of flipping properties that do not require a large investment in renovation (though you should not discount this, particularly if you have construction and remodeling skills).

Definition of “Flipping”

“Flipping” is nothing more than the age-old practice of buying low and selling high. In this case, the product is a home or other property. These may be “distressed” properties that have been foreclosed upon, or fix and flip real estate that is in need of repairs. In either case, you are looking for properties that you can get for a low price and that you can unload quickly at a higher price.

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More House Flipping Tips

Whether you are looking into rehabbing houses  that are in need of renovations or simply want to do a quick turnaround on a property that has been foreclosed upon, your first source should be local banking institutions. These banks usually maintain listings of foreclosures; some of these may include homes and properties in need of rehabbing. Houses like these can make for excellent fix and flip real estate investments for those with the requisite skills, equipment and resources.

Another source of properties that are suitable for fix and flip real estate transactions is the real estate auctions. You can find many of these online, but be aware that so can everyone else on the Internet. Those with the skills and resources for rehabbing houses in need of repairs can find some great deals at real estate auctions, but keep in mind that the bidding can be highly competitive.

Financing Options

Most people starting out do not have the resources to finance a fix and flip real estate transaction on their own. The best option in this case is to obtain a short-term mortgage that you will pay off immediately when you sell the property. Another issue to be aware of however is local ordinances that may require a buyer to remain in a home for a certain amount of time after purchasing. If you are rehabbing houses that need repairs however, this is not likely to be a problem since  such renovations usually take several months in any event.

Remember

Flipping properties requires advance planning and smart strategy. When flipping properties as an investment, be sure to educate yourself about the market and be sure to have a buyer lined up well ahead of time whenever possible.

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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.

http://www.articlesbase.com/home-improvement-articles/flipping-properties-and-foreclosure-investing-1812708.html

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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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.

http://www.articlesbase.com/home-and-family-articles/five-things-not-to-do-when-flipping-your-house-4234041.html

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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