When Is a Good Time to Begin Flipping Real Estate

real estateFlipping real estate can be very lucrative. Flippers like it because of the tangible aspect of actually having a product to watch grow along with the money made from it. So when should you begin flipping real estate? Dean Graziosi explains below.

Property has always been considered a great investment. Even undeveloped property can make money for the seller. Imagine then being able to buy a home at a lower price, fix it up, then sell at a higher one. This is exactly what real estate flippers do. So how can you tell when to and not to go for the deal?

Property is real. It stands in all its glory and deteriorates when left unattended. House flippers are able to look at this very real product and see it in a whole new light. Instead of simply viewing a home for what it is and nothing more, a flipper will see the finished product of what it can become. Being able to make that happen is what appeals to investors who decide to flip.

When to flip a property is an interesting issue. The key is to flip as quickly as possible, but this doesn’t always work out as planned. Before buying a home you will turn around and flip, make sure you have the capital to sink into it. Whether you do the actual repairs and renovations yourself or hire someone to do the work for you, it will all cost money. Not having that money up front will mean the home sits for a period of time without any progress being made. The longer it sits, the more work it will need over time.

If the real estate in a particular area isn’t selling, but you have either purchased a property you wish to flip or see potential for the entire area and are seeking to really invest in the entire neighborhood, you probably won’t be as pressured to flip and sell right away. This affords you the luxury of renovating as money allows. Still, you don’t want to wait too long. Your property should increase in value, not decrease in appeal.

If you live or plan to buy in an area where the  prices of property have fallen, now would not be a good time to invest and flip. An article posted on bankrate.com notes that  it can still be a worthwhile investment option. The key is to be aware of its pitfalls and try not to fall into them

Flipping houses can also be a lot of fun. This may be especially true if you do all the work yourself. Now you have another tangible aspect to consider because you are able to look at the progress as it is occurring.

Watch the market. This is what will help you know when to flip. Pay close attention to what it is doing and make your decisions based on its current state at any given time. Read more about real estate by visiting Dean Graziosi’s site.

How to Deal with Bad Inspection Results

inspectionA home inspection is routine. Before buying or selling a home, it should be inspected to detect any possible problems that may be present. These problems should be taken care of before the sale is made, so think of it as protecting both the buyer’s and seller’s. While many inspections go smoothly, the reality is some don’t. So what do you do when you get a bad inspection? Dean Graziosi has provided the following information to help you through the process.

If you are selling a home, take the inspection results in stride. Make a list of all the changes that need to be made and figure out what it will take to make them. It may require you to put off selling for a while, but you’ll wind up ahead in the end.

As a buyer, a home with a lot of significant problems may not be the best choice for you. If you suspect other problems will arise once the sale is made, consider backing out and finding another property  to purchase.

As a home seller, if you will be required to make repairs, get bids from several contractors. According to an article posted on frontdoor.com, at least three should suffice. You want the work to be completed by a reputable company, but you don’t want to break the bank getting it done. You’ll save money by skipping the middle man and going directly to the contractors themselves.

As a buyer, find out what work will be completed before you actually buy the house. Make sure you understand both your responsibility and that of the seller.

If you are the seller, talk to your realtor about asking the buyer to pay a closing cost credit. This will help free up some of your own cash for post-closing repairs. It will also enable you to complete some necessary repairs. If that isn’t successful, you may want to consider reducing the price of the home and requiring the buyer to take care of some of the repairs instead.

If you are the buyer, you’ll want to assess whether or not you are satisfied with the condition of what may be your new property. Consider the final purchase terms including: credits, repairs, or the agreed to price reduction if this is the case.

Take all aspects of the deal into consideration before deciding whether or not you will move forward. Selling or buying a home is a very big decision and should not be entered into lightly.

A bad inspection does not signify the end of the deal. It just means some work will be necessary before you can move ahead with it. Try to relax and keep open communication with your realtor who will be there to help you through it. Read more about real estate by visiting Dean Graziosi’s blog.

How to Buy Real Estate Remotely

real estateBuying a home is stressful enough, but when you are making such an important purchase in a remote location, the stress can increase. Here are Dean Graziosi’s tips for buying real estate from afar.

Whether you are moving from one location to another and can’t be there to actually search for real estate, or you are investing in real estate remotely, buying a home from across the state or country can be a very risky endeavor. The key is to hire the right agent and utilize the technology available so you don’t get scammed.

Begin by researching the area. It is important to know where your new home will be and what you can expect once you arrive.

The agent you choose is extremely important. You want someone who has a strong online presence and really knows the market. When you are buying a home that is located out of state, technology will play a very important role. Your real estate agent should be very familiar with the latest technology and the part it plays in the market.

Know how to use the Internet correctly when searching for your new home. Since the bulk of your home evaluations will be completed online, you’ll want to choose your websites wisely. You need to get a good sense of the neighborhood where the homes are located. Clear images of each home are also very important as are accurate descriptions with important details.

Learn the tax and real estate law in the state where you plan to purchase. These laws vary from one state to another so it is crucial to know this information. As noted in an article posted on Fox Business, an accountant should be able to answer all your questions concerning this topic.

Hire an inspector before doing any bidding. A home inspection is necessary no matter what, but since you aren’t actually there to check out the home yourself, retaining one on the outset is even more important. You want to make sure there aren’t any major problems with the home before putting down any money.

If possible, go view the home yourself. This is something you will want to do at least once. If you aren’t able to do this, ask someone you trust to do it for you. Since cellular phones are so commonplace these days, you could be an active part of the home viewing process by having the person call you while viewing the home. Think of it as a virtual walk-through of sorts.

Many people buy real estate remotely for various reasons. While it may present more risks, following the tips above can make the experience go as smoothly as possible with the fewest number of mishaps. Read more about real estate by visiting Dean Graziosi’s blog.

Should You Buy A Home Listed “As-Is”

homeAfter the recent housing crisis, buyers were seeing more and more homes listed “as-is”.  This is a strategy that was being used to benefit sellers, but what was not always clear was whether or not this was a good deal for buyers or something that would pose problems later, states Dean Graziosi.

In legal terms, “as-is” is typically used to cover more than the reluctance on the seller’s part to make the necessary repairs that the home may need.  It is also used to release the seller from any liability or responsibility for the current condition of the home.  This means that the buyer purchases the home without a guarantee that it does not have any major problems.

In the majority of cases, there is a reason why a seller chooses to sell their home in “as-is” condition.  This makes it even more important for potential buyers to have a professional inspection performed on the property.  You should choose an inspector who is experienced, and will know what to look for during the inspection process.  An inspection is a valuable source of information for buyers; it can provide them with information relating to problems with the property and may even show them areas that may become an issue in the near future.  If you’re interested in a home listed “as-is” you should always have an inspection performed.

When purchasing a home listed “as-is”, it is important that the buyer understand that repairs on the home will likely not be made.  If the home is an REO, which is a home that is owned by a bank, it may be possible to negotiate some type repairs being performed.  This is especially true if the repairs will be taking care of any safety issues in the home.  Repairs may also be made if there are government mandates that must be followed in order for the home to be sold.

If you’re a buyer who has the ability and funds necessary to make some of the repairs needed, then you may not have a problem purchasing an “as-is” home.  However, if you do not have the necessary knowledge or skills, the purchase of an “as-is” home may become rather expensive.  Once you finalize the sale of the home, it is your responsibility to maintain and repair, which means that you should only make the decision to purchase after you have thoroughly thought over everything that is involved in the process, states Dean Graziosi.  Purchasing an “as-is” home is not a decision that should be rushed into, it should only be done after you have decided it is something that you can financially live with.

How to Check Local Crime Rates

crimeMoving to a new city can be one of the most stressful events in anyone’s life.  Not only do you need to pack up all of your belongings, you also need to find and purchase a new home.  One of the most questionable aspects of the process can be the type of neighborhood you’re moving to.  Dean Graziosi recommends that anyone who is planning on moving to an area they are not familiar with, conduct some research into the crime statistics in the area.

Reviewing crime statistics for the new city you plan on moving to is a great way to get an idea of the residents and community in that city.  These statistics can also help you choose an area that will better suit you and your family.  If you are planning on opening a new business once you relocate, these statistics can also help you choose an area that will be best suited to the type of business you plan on opening.  If you notice that an area you are interested in buying in has a higher than average crime rate, you may want to entertain other options.

Viewing local crime rates can also help you discover how property values may be affected by higher levels of crime.  By accessing different online websites, you will be able to form an opinion on any neighborhood you may be interested in relocating to.  You will also be able to investigate how many, if any, registered sex offenders may be in the immediate area.  This is an especially important statistic for homebuyers who have young children.  Checking local crime rates is something that every potential homebuyer should do when relocating to a new city, states Dean Graziosi.

Prospective homebuyers who are relocating to a new city can easily access detailed crime maps online that will provide them the number and types of crimes that occurred during any given time.  You can also find out how often these types of crimes occur and which areas are more prone to experiencing certain types of crime.  When you access any of the crime maps available online, you will notice that each map will contain a color key that corresponds to each of the different crimes listed on the map.  This will explain the type and frequency of the crimes committed in that particular city.  This is by far, one of the most easily accessible and important tools that prospective buyers should access before they make a decision on any particular city.

Relocating to a new city can be extremely stressful, especially if you are not familiar with the area.  With the use of these helpful online crime statistic tools, you will be able to make an educated and informed decision on the area you are planning on moving to.