Monthly Archives: January 2012

Jan 23

Has Television Changed the Face of Real Estate Investing?

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If you take a look through the television stations on almost any given day there is a television show somewhere that features home improvement, real estate investing, or some sort of combination of the two. From shows that teach people how to sell homes that have lack luster reviews to shows that teach viewers that it is possible to purchase, repair, and re-sell a home in a matter of weeks for astronomical profits, there are shows that appeal to the entrepreneurial wannabes in audiences around the globe.

These shows have made and lost fortunes a few times over by convincing viewers that they too can do the wondrous things seen on television. The truth is that many viewers are capable of doing these things but television never really shows how hard the work actually may be. The television cameras do not always show the blood, sweat, and tears that go into making these projects successful and rarely mention the countless complete and total failures that occur along the way.

The cameras are also not to keen for showing up at 4 am and rolling well after midnight when the work for the day is finished. It doesn’t catch the heart attacks and nightmares as credit cards are going dangerously close to being completely maxxed out while dreams of quick riches fade right in front of investor’s eyes.

This does not mean that every project is doomed to failure only that things are not always as rosey as they may appear to be on the television shows. Flipping houses may seem to be a bit glamorous and a lot hands on. The problem with that is that too few people really realize how much work goes into the hands on part of the program. This is not easy money no matter how much the television cameras would like to convince you otherwise.

It is very possible to turn a substantial profit in a relatively short amount of time if you keep your cool, use your head, and buy and sell in the right conditions. The problem is that so many people do not consider the big picture and find themselves in over their heads and out of money before the project is anywhere near completion.

One thing that television has definitely done for this line of work is make competition for the flappable houses a little fiercer. The early bird in this business gets the worm and while the cheapest house isn’t always the best candidate the less competition you have driving the prices up, the better in this situation. The goal is to buy low and sell high. Most people do not have a terrible amount of competition, as of yet, on the selling high portion of the program. The real trouble at this point in time lies in the buying low portion as there are many more would be real estate investors that are interested in buying the inexpensive properties than there are that will actually see the projects through from beginning to end.

So yes, television has greatly changed the way people invest in real estate. Whether this is truly good or bad for the overall real estate market remains to be seen. In light of the recent down turns in real estate it is to be expected that some of the popularity may diminish. The sad thing is that this is still one of, if not the best ways to make a large sum of money fairly quickly that is legal in the world today. Fortunes can be made and lost in real estate; the trick is always in placing your bets on the right property at the right time. For those who are willing to take the risks associated with this type of investment in today’s market and those that are willing to wait for a slight upturn in the market the profit potential is phenomenal.

Jan 22

Flipping Houses for Fun and Profit

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For those of you who watch on the edges of your seats week after week as people on cable television seek to successfully turn a lump of coal of a house into a diamond that is suitable for kings and queens of the middle class to call home it is quite possible that you have considered ‘flipping’ a home of your own. This is a great way to make a nice tidy profit in real estate rather quickly if proper planning and attention to detail is made in the process.

Believe it or not, when done correctly and within reasonable time and budget constraints, projects such as this can be a great challenge that is also a ton of fun. First of all, the average citizen isn’t allowed to play with power tools on a regular basis and Tim Allen has taught us exactly how fun power tools can be. Keep in mind that he has also taught us just how dangerous they can be as well. The point is that it is often fun to learn new things and for many of us, working with power tools is a new thing. For those experienced with power tools, there are still likely to be some fun new things on the horizon when doing a real estate flip.

Even if power tools aren’t exactly your cup of tea, perhaps you have always wanted to try your hand at creating a color scheme or a trial run at renovating a kitchen or bathroom. Beyond a great way to have fun while turning a profit, a house flip can be a great practice session for changes you’d like to make within your own home. Most of us learn best by making mistakes. Isn’t it best to make mistakes with Formica or Corian (r) rather than the granite countertops we’d prefer in our own kitchens and baths?

This also gives you the opportunity to see how things you are considering for your home look in other homes before incorporating them into your home. If you are considering a certain type of laminate flooring, try it in a house that you are flipping. This is the ultimate opportunity to use trial and error when making design and décor plans for your own home. Even better is the fact that you can be working towards a profit as you do just that and I personally do not know of anyone that does not appreciate a nice hefty bit of profit every now and then.

Another fun thing about flipping real estate is that you often get the opportunity to work with the people you love. This is a great opportunity to get friends and family involved in the process of creating a masterpiece right by your side. The price for their time and labor is often some good music, a tasty pizza, and a couple of cold sodas (or beers provided the work is done for the day and everyone is walking home of course).

Even children can be of some help in these projects though you want to be very careful that they aren’t too much help with power tools and paintbrushes. Typically have older children help with landscaping projects and find someone to care for younger children (the tools, fumes, and temptations for small children simply may prove too risky to be practical).

Jan 21

Home Loans

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Home loans make the process of buying a new home more affordable than ever. As you may already know, these types of loans give you many opportunities that wouldn’t be possible without them. When you buy a home, you should understand as much as you can about the process, as well as the questions you will be answering. This way, you’ll be familiar with how things work and you’ll find the entire process to go much smoother.

When you look towards a home purchase loan, you’ll need to fully understand the interest rates. They are never the same and will vary among the different financial institutions, as well as from time to time. In many cases, home loans can change on a frequent basis, with little to no notice. When you buy a home, it is very important that you keep up with the economy. Any change in interest rates for a home loan can either increase or decrease the amount you pay back.

When getting a home loan, you’ll also need to understand the terms and the length of the loan. Almost all financial institutions and lenders have a variety of different plans or periods for you to choose from. If you choose a longer period, in most cases your interest rate will drop. You can find this out yourself by using a mortgage calculator. This way, you’ll know how much your mortgage payment will be before you decide to further pursue the loan.

As you probably already know, your ability to pay the loan back is very important. Some lenders require that you keep your loan full term, while others may provide you with the option to pay it off any time you wish. Home loans that give you the option to pay it off early will normally save you quite a bit of money in the end. If you are able to pay your loan off several years early, you’ll save a lot of money in the long run.

Even though the early payoff option is great to have, it can also come back to haunt you if you end up defaulting on the home loan. Or, if you decide to sell your home in the future, the early payoff can haunt you as well. For those very reasons you should always consult with a specialist before you commit to any type of home loan.

For the potential home buyer, home loans offer several different opportunities. Before you rush out and get a home loan, you should always know what you are agreeing to. You should also look into the company you are thinking of getting the loan from as well, so that you can better prepare yourself when you go through their process of getting your loan.

Jan 20

Flipping A House For Cash

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A lot of people these days are preaching about the buying and holding method of gaining wealth with real estate. There indeed may come a time in your life or business when you’ll want to hang onto a piece of property, although you’ll only be interested in keeping certain types of property. If you’re just starting out, flipping a house may be an ideal way to get started.

Basically, there are three ways that you can flip a house, although each one has its own terms, motivation, and type of property. The first method is known as retailing. What this means, is that you buy a house in bad shape, do the repairs to fix it up, then turn around and sell it. There are a variety of houses in need of repairs out there, and several ways that you can quickly flip a house to net profit. All you need to know are the techniques that will get you the most money in the least amount of time.

The second way you can flip a house is though wholesaling. Wholesaling involves finding a home for sale then flipping it to an investor for a fast, yet small profit. To do this, you’ll need to know the real estate investors in your area, the types of homes that flip the best, and how to fund your property so you can flip it to them. If you live in a big area or a city, you’ll find that using the wholesaling method of flipping houses is actually easier to accomplish.

The third way to flip a house is by assigning the purchase. Using this method, you’ll commit to buy the house. Instead of closing the deal yourself, you’ll assign it to a real estate investor – of course for a small fee. The investor will take the contract over and close the purchase themselves – flipping the house. This can be very profitable, especially if you invest in the right home. You don’t need to have your contract worded any special way to be legal, although you will need to determine the assignment fee.

If you’re looking to break into the real estate market and make big bucks, you’ll need to learn all about flipping houses. Flipping houses is very profitable, especially once you have learned the basics. The first and third methods are the best, although they will both take quite a bit of work on your part. Restoring homes isn’t easy, and you’ll need to have a team qualified to handle any repairs. Assigning the purchase may be difficult when you first start out, although it will get easier with time. If you stay at it and do your best to make a profit – you’ll be an expert at flipping homes in no time at all.

Jan 19

Finding the Right Realtor for Your Real Estate Needs

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Whether you are looking for a home of your very own or are interested in creating a long term working relationship with a realtor for the purposes of property investment it is very important that you find a realtor who will listen to your needs and wishes and act accordingly. The right realtor for your needs can mean all the difference in the world between a successful and profitable transaction now as well as many more in the future (if you plan on investing in multiple properties). Below are some important things to notice when selecting a realtor that will meet your needs.

1) Does the realtor you are considering listen to your needs? This is important as it will save you both a lot of time and money in the process of finding the perfect home for your family or for an investment property. If the realtor is constantly presenting properties that do not meet your budget or price requirements it might be a good idea to either lay down the law or find a realtor that is willing to expect your wishes and needs.
2) Does he or she ask questions and provide appropriate feedback? This indicates a direct interest in your needs, which is important-particularly when planning for a long-term investment relationship though some find it even more important when purchasing a home for their family home as this is a personal matter rather than a business matter. We all have a tendency to be more selective when placing the welfare of our family in the hands of another.
3) Do you feel comfortable dealing with the realtor you are considering? As I mentioned above we tend to be a little choosier when selecting professionals to help our families. Why on earth would be any less so when it comes to the realtor that will help our families find a home? Rapport is a good word to describe the sort of relationship you need to develop with your realtor. Do you have a good rapport with a potential realtor? If not, then move along. There are many realtors in most cities and there is absolutely no reason that you should deal with a realtor that doesn’t make you feel comfortable and secure.
4) How well does the realtor in question know the area in which you are seeking a home? There are many things that make a home a ‘good buy’ for residential and investment purposes. You want a realtor that has his or her finger on the pulse of the city and the various areas of interest, growth, and decline within the city. School districts matter more now than at any other time in our history in most cases, he or she should know about the schools, new business developments, and the value of property in the area (as well as the tendencies of property values to rise or fall over the last several years).
5) Does the realtor in question have specific experience dealing with your specific real estate needs? Whether you are planning a residential transaction or if you are seeking investment property you will need a dedicated and experienced professional that can help you meet your goals.

Realtors are a dime for a dozen in most cities and competition is fierce. There is no reason whatsoever that anyone should suffer with an agent that you do not feel is working for you or have your best interests at heart. If you invest a little bit of time and energy shopping around for the right realtor to meet your needs, you will find that your real estate transactions will take much less time and effort for this small sacrifice. It is much better to make the decision based on a few careful interviews in the beginning than after looking at fifty or more homes that do not meet your needs or price range. Then you have wasted a great deal of time and effort and you must still either risk wasting more time and effort or take the time to select another realtor for your real estate needs.

I also highly recommend selecting a real estate agent with a significant online presence. This means that he or she is making use of the available technology in order to offer more options to you as the consumer. Buying a house can be a mind-boggling process for the average person. Having a good realtor can make the process work so much more smoothly.

Jan 18

Finding A Real Estate Agent

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Whenever you buy or sell real estate, you may be like millions of other people out there, in thinking that you don’t need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.

What most people aren’t aware of, is the fact that real estate agents are normally paid by the seller, not by the buyer. As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well.

A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down. This way, you can count on your agent to be there when you need him the most – especially if you don’t have a down payment.

If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams.

You can also make a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.

When you interview a real estate agent, make sure that you have the agent explain his fees. This way, you’ll know exactly how much he will be getting from the purchase. You should also find out how much experience he has in the field, and how long he has been working with real estate. You can also ask about sample contracts as well. If you are buying a home, you should make sure that the agent works with buyers. If you happen to be selling your home, then you’ll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best to choose, as they will have more experience than agents who work with both buyers and sellers.

Find a real estate agent is an easy task – providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind – and isn’t just after the money.

Jan 17

Does Staging Sell Real Estate?

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There is something to be said about a neat and tidy house when you are sorting through house after house looking for the perfect home for you and your family. This is something that should be kept in mind when selling either a personal home or an investment property. There are a few other things you should keep in mind when it comes to selling real estate. One of those things is that staging sells homes.

Seriously, there is something cold about an empty house. It could be painted impeccably and meet every possible standard a family has and yet feel cold and anything but homey when walking through the home for a real estate tour or inspection. This can be easily overcome by contacting a local furniture rental store and picking out furniture that will match at least the primary rooms of the home in order to make the home appear leaved in and homelike.

The primary rooms that you will want to appear ‘lived in’ are the living room, dining room, master bedroom, and all bathrooms. These are the rooms that essentially sell homes and it is important to make them appear neat, orderly, and well cared for. If you have the funds for every room in the home then by all means do so. It is a huge selling point, particularly for those who are trying to sell homes quickly. If the home doesn’t sell after the first two weeks or month (you decide the time limit) then you may want to remove the ‘staging’ furniture in order to eliminate the expense. I would strongly encourage you to keep this furniture as long as the home is being shown fairly regularly though.

You will want to do so much more than simply putting furniture in the property you are trying to sell. You want to create an atmosphere or warmth and comfort. This means you want to have prints on the walls, mirrors, plants, and pillows. You do not have to purchase items particularly for this process. You can use things from your own home in order to establish this atmosphere of homelike comfort. Be sure not to use sentimental favorites or very valuable pieces, as not all people who will view the property being sold are honest. It’s a sad reality but something to consider all the same.

Other things that may help an empty home sell are scents. There is nothing quite like the smell of cookies in the oven or flowers in bloom to make a home feel ‘homey’. These scents can be easily accomplished with well placed scented candles, potpourri warmers, dry potpourri, fresh-cut flowers, and electric room air fresheners. There are few things that will turn off potential buyers more quickly than an overpowering fragrance however so keep this in mind when selecting the method of fragrance. Having some fragrance in the home also eliminates the problem of an empty house taking on the ‘empty house’ scent that so many do over time. In other words, this is yet another part of the staging process that works for many trying to sell homes.

The short answer to the question of whether or not staging sells real estate is “yes”. Staging a home can absolutely lead to a higher offer and a quicker sell, even in today’s sluggish market.

Jan 16

Determine The Listing Price

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When it comes to buying a home, most potential buyers will use the listing price to as the number one factor to determine the homes that they look at. Even though you and a realtor may determine the asking price, the buyer will determine the selling price. If the price is too high, most buyers won’t give it a second thought – which is why you want to determine the listing price carefully.

If you set the correct price, you’ll notice a much faster sale. Setting the right listing price will also attract more potential buyers to your property as well. You’ll also notice an increase in response from realtors, and receive more calls about the property. The listing price is very important – and it can ultimately determine whether or not you sale your property.

A home can be overpriced due to several reasons. Overpricing is something you want to avoid, as buyers tend to steer clear of homes that have been overpriced. Normally, this happens when a buyer asks a lot more than the home is worth or valued at. Some buyers ask a lot more than the value of the home due to location. Although the location is very important, most potential buyers won’t give the home a second look if they think the price is too high – and more importantly out of their price range.

When you put your home up for sale, most activity will happen within the first couple of weeks. If you put the right price on your home, you’ll notice immediate interest. There are always buyers looking for homes in their price range, waiting for new homes to be listed or homes to be reduced in price. Buyers who are waiting to purchase may miss seeing your home completely if the price is too high.

To determine the listing price of your home, you should always have it appraised before you put it on the market. This way, you’ll know the full value of your home. You can sell it for market value or go a little under, although you should never attempt to go way over the value. In doing so, you’ll miss out on a lot of potential buyers. The home market is very competitive these days, which is why you want your home to draw as much interest as possible.

Keep in mind that realtors really have no control at all over the real estate market, only the plan behind marketing. Realtors don’t determine the asking price – the seller does. You can ask a realtor for advice, although you are the decider of your listing price. If you do things right and take each thing step by step, you’ll set the listing price in the right area and have no problems selling your property.