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Getting An Appraisal On Your Home Or Property
Getting an appraisal done on your home or property is one of the first things you want to take care of when you decide to sell. Just because you think you have some idea of what your home or property is worth, the dollar amount that you come up...
Need A House And Pet Sitter While You're Away But Think You Can't Afford It? Think Again - You Can Find A House Sitter Who Works For Free.
While you're out in the big world, your most precious possessions need to be cared for: your property and your animals. All sorts of service providers have sprung up to cater for this growing market, however, the services of agency-registered pet...
Real Estate With No Money Down, Part 2
Here's a way to profit from real estate with no money out of your pocket that's a winner for everyone involved.
Find a vacant residential property that needs work. Instead of tying up your money buying it and dealing with the hassle of contracting...
Should I Buy This Home – Heating Issues
When considering whether you should buy a home, heating issues are something you should take a close look at. This is particularly true with rising energy costs.
Heating Issues
As you inspect potential homes, heating issues should be foremost...
The Logic of Emotion!
Homebuyers are an interesting study. Watching people make their home buying decisions has brought me to the conclusion that every decision that every one of us makes is based in emotion. You heard me, it's all about the emotion. Before you deny...
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Flipping Houses For Gold: Three Tips To Help You Find The Perfect Fixer
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
THREE TIPS TO HELP YOU FIND THE PERFECT FIXER
1. Know Your Market
Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
2. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real
estate investors see them as gold mines.
3. Know When "Ugly" Means "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
About the Author: For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. Free "Design Psychology for Selling Houses" Report http://doghousetodollhouse.com
Source: www.isnare.com
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