Top Tips for Flipping Homes

01 May 2018

House flipping is buying and selling houses to make a fast profit. If you are just starting to think about going into the home-flipping business, you need to start small with an entry-level house that doesn’t need a great deal of work to make it saleable and then move on from there. If you have taken half an hour to watch any house flipping show on television, it seems like it would be pretty simple to buy a house for a small price, fix it up a little with some fresh paint and a few repairs and sell it to make a fortune or even buy a home that is in great condition, wait a few months and resell it for more than you paid. In real life, however, it just doesn’t go as smoothly as you see on tv.

It’s a good idea to gather a little information before you start buying homes by flipping in mind. While the following tips for flipping homes won’t necessarily make you feel like you won the lottery jackpot overnight, but they can help you buy and sell homes quick while avoiding some of the critical mistakes others have made in the past.

Too Good to Be True :

As the saying goes, “If it looks like it’s too good to be true, it probably is.” When you are new to house flipping, you’re going to run across many deals that seem great only to find out they were a money pit. It’s not a wise decision to go after every deal you see, and lenders catch on quickly to those who will buy anything. If you want to make money on a flip, then you need to take time to research the home, the area it is in and make sure you have it thoroughly checked out to make sure you aren’t going to be sucked into a beautiful home with faulty wiring or poor plumbing that needs replacing. The less you spend on a flip, the more you will profit when you make the sale.

Bring Cash to the Table :

If you want to be able to buy a home quickly and have a short turn-a-round before you sell it, you need to come to the table fully prepared to go against those cash buyers who want the house. If you don’t have the cash upfront, then you need to make sure your credit score is high enough to go to a hard money lender and get the cash you need fast.

Curb Appeal :

Most people take time to think about what the tile in the kitchen looks like or whether the bathroom has the right lighting. Many people tend to forget about the outside of the home when they are trying to sell a house. The first thing a potential buyer sees is the outdoor space of the home, therefore, it needs to look nice! Be sure to have the lawn maintained, trees and shrubs trimmed and make sure the exterior of the house itself looks good. Peeling paint, broken soffit or damaged gutters can deter someone from buying a home even when the interior looks good. Curb appeal is what will get buyers into the home, so make sure your home has what is needs outside to entice people.

Know Your Market :

To flip a house successfully, you must know your market. To get a truly good feel for the market in your area, talk to a real estate agent who has many years of experience and can guide you to the right homes that will need little to no repair and will be priced right for the market. You need to know how to price a home accurately to sell fast and make a profit and if you pay too much for the home when you buy it, you’re not going to make anything when you sell it.

Renovate Wisely :

You must watch your budget when it comes to renovating a home. Considering installing beautiful hardwood throughout the house or remodeling the kitchen? These can be costly renovations and you’re going to have to be careful with the amount of work you put into things. If the house needs a new roof, then, by all means, hire a professional roofer to have a new one put on, but don’t sink $50,000 into renovations when you can get by with spending half that and still have a beautiful home to sell.

Once you have the home and the renovations have been completed, list it. Price the home lower than market value but not too low or you will lose money. The biggest thing is to market the home and do what you need to do to sell it fast. The shorter the time it sits, the more profit you are going to make.

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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How To Learn The Value Of Your House

There are many reasons to want to value a house. A new addition to the family may need additional rooms, a work promotion in another location, or even just time for a change may require the home to be sold. Another reason to value a property is to identify a person’s current financial position. This may be necessary for those starting a business or needing additional finance. How do people learn the value of their houses? Here are three ways. Top 4 Ways Of Learning The Value Of Your House 1. Online Valuation Tools One of the easiest ways to get a valuation is to use one of the many online valuation tools available. They use public data to price your home. These tools use the automated valuation model (AVM). The valuations are based on data retrieved from public records like deeds of ownership, property transfers, and tax assessments. A mathematical formula is also applied, taking data from recent sales in the area. The challenge with relying on AVMs is that they’ll value every property, regardless of the available data, possibly giving an inaccurate value. To effectively use an AVM, do it from a real estate site that also includes a ‘confidence score.’ This value means a professional has checked the result from the AVM and given a score based on how close it is to market value. Any AVM plus a confidence score over 90% can be considered. 2. Comps One of the most common ways to get a current value for a house is to check out recent sales in the same area. Take a look around the neighborhood at comparable homes. These are known in the industry as ‘comps.’ When made public, the results of these sales can be an easy predictor of the values in the area. An ‘apple for apples’ approach needs to be applied here. If the house next door is a little more run-down but has an additional bedroom, that value isn’t a good comparison. If one down the road, with an equal number of rooms, was renovated around the same time, that’s a closer valuation. The way to get the best valuation for your home is to find four comps — two at the higher price range and two at the lower. Go for something that’s somewhere in the middle. Remember that values change quickly; any sale over three months ago may not match the current market. 3. Professionally Appraised The most expensive but arguably the most accurate way to value a home is to get it professionally appraised. These people have seen hundreds to thousands of comparable properties and can give you a correct value. A 2018 survey revealed that ¼ of US homeowners valued their properties this way. Lenders will require an appraisal before approving a mortgage; however, they’ll want it done by their own appraisers. Appraisers may even suggest changes that can be made to increase the property value. A professionally presented pre-purchase appraisal by a reputable appraiser makes it easier for the potential buyer to decide. This is one task that they don’t have to do. Appraisers are independent contractors. They get paid per appraisal; they don’t earn commission and therefore offer unbiased opinions. 4. House Valuation Made Easy Using an AVM is the most convenient way for a person to value their home; however, it’s possibly the least accurate. Spending the time to compare recent sales on comparable properties in the area is a closer way to get a more accurate price. Choosing a value mid-range of these is the best way. Unbiased professional appraisers will provide the most accurate value, but at a cost. Whether using an AVM, checking out local comps, or hiring a professional, there is one surefire way to know the value of a house. The value is whatever someone else is willing to pay for it! Additional: 5 Ways A Home Maintenance Plan Can Prevent Disaster How You Can Increase the Value of Your Home with Stone Veneers 6 Easy Ways To Make Your Home More Appealing To Buyers What Qualifications Do I Need to Have to Get a Home Mortgage?

Apartment Home Hunting Like a Pro

A house is not a home, and neither is an apartment home is where the heart is. If your heart is everywhere, then the very outdoors could be your home—but that’s not the case for most people. The point is, even if you’re just going to rent a place for a little bit, you want somewhere you can rest your heart comfortably. Now what makes you comfortable at your core is necessarily going to differ from that which makes someone else comfortable. Everyone has their own deal makers and their own deal-breakers. Following, we’ll examine a few features of apartment home-hunting that, for the most part, are generally agreed to be relevant. Before we get into them, keep in mind: to get a good idea of what’s available, it’s fundamentally essential that you examine multiple units. Try to look at five, minimum, before deciding. If you can see twenty units and closely examine them all, that’s ideal; but for most, five will be a good minimum spread. That said, consider the following tactics. Techniques To Follow For Apartment Home Hunting Set A Price Range, Consider Travel, Know Leases How much are you willing to spend? This number can’t be static, it’s got to have a range. You can get a better apartment home for less if you’re willing to rent from landlords on the outskirts of the city where you work. However, what you pay in wear-and-tear for your vehicle and gasoline may actually end up being more expensive over the long term. If you found an apartment right on top of where you work in Dallas, Texas, and one on the outskirts of town for half the price, it could be that the centrally-located unit saves you money. The commute in and out of the city center will be an hour, minimum; meaning two hours a day. If you work five hours a week, that’s 520 lost hours a year (assuming you work 52 weeks). If your time is worth $10, that’s $5,200 you’re losing. If your time is worth $100 an hour, then that’s $52,000 you lose in time alone. There’s an opportunity cost to a commute, depending on how productive you are when you aren’t working. That doesn’t take into account gas or wear-and-tear, either. At .58 cents a mile, and 40 miles’ round-trip commute five days a week, that’s $6,032. A long commute can collaterally cost you as much as $11,232 a year. That’s $936 a month. If you’ve got an apartment home right on top of where you work, and you can walk, that’s preferable to the commute even considering the increased cost. The difficulty is how long you’re locked into a lease, and how long you’ll be working where you are. Top-Tier Units Have Collateral Advantages It might be worthwhile to check out some of these good looking apartments in Galleria, Dallas. Sites such as that in the link provide you a broad spread of communities that have varying advantages and benefits. You want the broadest spread of potential units to choose from in order to make the best choice. Additionally, those units should be relatively qualitative. While “home is what you make it” may have some validity, it’s a lot easier to get comfortable in new apartment home where all the appliances work and you can trust your neighbors. Certainly, you can make a home of rent-controlled units or low-income housing options, but that’s going to get iffy real quick; especially when your recovering addict neighbor knocks on your door at two in the morning to borrow rice or toilet paper or something. General Quality Of Units Apartments are generally rentals, so you may not need to find something that has any resale value down the line. You’re looking for a right-now solution. Renting doesn’t build equity. Buying does. If you’re buying a condo or an apartment, that’s a different story. The quality of the unit you inhabit will depend on your overall purpose in purchasing it. Making The Best Choice Know your price range, what kind of travel you’ll have to deal with, how much money you’ll be making every month, how long you plan on staying in the apartment, and what sort of quality you can handle. Once you know these things, look at a minimum of five units which fit such qualifications, and do some. Read Also: Buying A House Vs Renting An Apartment: Which Is More Affordable? Brunswick Apartments For Sale: 4 Inspection Tips For Buyers Preparing To Stay In A Luxury Apartment On A Vacation

5 Tips for Buying a Second Household

Do you already own a house and are you thinking of buying another one? The purchase of a second home is usually decided in order to enjoy a rest or family vacation. Having a second home is a dream that many families want to make, and during the summer it can be an ideal time to choose that desired home. A second house offers the possibility of unique moments, especially in summer. These are the benefits of buying a house for a vacation or another household. But before making a decision, do the following: Think about your goals: You may want a holiday home that you can visit during the holidays. Alternatively, maybe after your retirement, you might want to lay back and enjoy your retirement years. This can also be a vacation home, which you can leave for your children after you pass away. If you are looking for tax deductions as an incentive for buying your second house, you are doing it right. However, a lot of it boils down to how you are going to use the second home. There are differences in terms of insurance coverages as well when it comes to a second home. A vacation home cannot be brought like an investment that will generate income. The difference can run into thousands of dollars. So, before you actually purchase a second house, you need to settle this debate. Thoroughly go through the actual figures and numbers: To begin with, you need to consider the mortgage factor. You really need to decide whether you want to invest your life’s savings as a down payment. You also need to plan on where the second mortgage might come from. If you are sorted on the above two fronts, you need to start looking at some other avenues of additional expenditure that you might incur for your second home. These might include issues like- Taxes on Property, Insurance of the house, House Maintenance Annual Charges, Redesign and repairs, furniture and fees for property management What will your tax depend on what kind of a property you are planning to buy? Before you do anything, it would be wise to seek expert opinion from a tax professional. He will be able to give you the complete picture on what are some financial expenditures you might be looking at in the future. You might also be interested in knowing whether you will get tax breaks or interest deductions on your new home. Establish a Budget: Establish a budget for the purchase of a second home is important because it will be key when calculating the mortgage fee. The budget should include the initial expenses of buying a house. Choose several areas to track to find your second home. It is important to be clear about what use is going to be given to the property and depending on it, choose the area. Do not focus only on one geographical location, consider several options and make sure you have the necessary services for the purpose of buying the house. The distance will be important since you can always be in the availability to make use of your second home whenever you feel like it. Know your mortgage options: A bigger chunk of the payment is made at the down payment stage ensures lesser monthly installments. This, in turn, will make your borrowing from the bank of a lesser denomination. However, there is a huge difference in the interest rates of loans that are households for primary residences, and households that are deemed to be vacation homes. One of the experts that you should definitely see is a Loan Officer. This professional is the best person to aid and advise you on your requirements. He will also be the best person to tell you about the qualifications that are required for the loan processing stage. The typical procedure involves the loan officer apprising you of your current economic status and suggesting which loan packages will suit you the best. He will also take a look at your proposed dream home before making the suggestion. If you apply for a loan at banks where you are already a customer, you might get some additional benefits. The process itself might get easier, as the bank would already know of your economic and financial holdings and advise you accordingly. Beware of fashionable places: Every so often a city becomes fashionable as a holiday destination. Be careful with the places that are fashionable among the majority of the population because prices are usually much more expensive and, in addition, travel to them is complicated. Traffic jams to go and to return, queues in the supermarkets, shops, and other businesses, 100% occupation ... There are some problems arising from going to summer to the best destination. Final Thought: If you are planning to purchase a second house, please be rest assured that it will be a huge life-changing decision for you and your family. However, if you play your cards right, you might just be able to have the most comfortable retirement holiday home. This is where experts can help you make an informed and well-calculated decision. Read Also: 4 Tips For A Successful Home Renovation Things To Know Before Buying A New House A Quick Guide To The Legal Steps Of Buying A House Reasons To Stay In A Vacation Home Rather Than A Hotel Buying A House Vs Renting An Apartment: Which Is More Affordable?

Top Tips for Flipping Homes

Too Good to Be True :

Bring Cash to the Table :

Curb Appeal :

Know Your Market :

Renovate Wisely :

Ideas to Help Find Your Dream House On a Budget

Benefits of Working with a Realtor When Selling a Property

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Related

How To Learn The Value Of Your House

Apartment Home Hunting Like a Pro

5 Tips for Buying a Second Household

Top Tips for Flipping Homes

Too Good to Be True :

Bring Cash to the Table :

Curb Appeal :

Know Your Market :

Renovate Wisely :

Share this Article

Ideas to Help Find Your Dream House On a Budget

Benefits of Working with a Realtor When Selling a Property

Tags

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Follow Us

Recent

Related