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.

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.

What to Know When Buying Your First Investment Property

propertyPurchasing investment property can be exciting, but there are several factors you should consider before making this decision. Dean Graziosi has provided you with some valuable information that will give you a realistic view of what all it entails.

Before buying your first investment property, you will want to figure out what you will do with it. There are a variety of ways to make money with your investment property. You can rent it to tenants, flip it and resell, or if the building is large enough and lends itself to this type of project, renovate and create several apartments. No matter which you choose, it is important to note there are a number of costs that will be associated with your new property.

If you are planning to rent it to a tenant, some remodeling may still be necessary. You will be responsible for the upkeep on your property and will need to make repairs and replacements as needed.

If you plan to flip and resell, you will first need to figure out whether you will do the work or hire someone else to take care of it. Either will cost money, but hiring someone to complete the renovation job will of course come at a higher price.

Turning a large house into an apartment building will take a considerable amount of renovating not to mention money. You’ll need to decide on a size for each apartment and work out all the logistics. There will also be the cost of upkeep once you are renting to tenants.

So what will purchasing your first investment property mean exactly? You need to keep in mind there will be a monthly mortgage payment to take care of on a regular basis. You may also need to make some renovations or complete a few remodeling projects before renting your home out to tenants.

Before you make the decision to purchase an investmentproperty, learn what you are up against. Do the math and talk to others in the real estate business who can explain all the ins and outs. Investing in real estate can be a very lucrative business, but it can also carry with it some problems. Take the time to explore those possible problems and think about how you will handle them should they occur. As an article posted on nasdaq.com points out, investing in real estate can either turn out to be a windfall or a money pit.

Before buying an investment property, decide on a budget. Figure out how much money you’ll have to spend on any renovations or remodeling projects you may be required to undertake. Factor in the costs of monthly mortgage payments and upkeep. You can learn more about this and other real estate topics by visiting Dean Graziosi’s website.

What to Consider Before Buying a Pet

petIf you are a homeowner or are thinking of becoming one soon, there are several factors to consider before buying a pet. Pets are part of the family and are very important to their owners, but they can definitely leave their mark on a home. When it comes time to sell, the prospective or future buyers may not relish the thought of purchasing a property that shows signs of pet ownership. Dean Graziosi understands the importance of pet ownership and has provided some tips below that may help when making the decision to add a furry friend to your family.

Even the smallest of pets can do some real damage. A dog, for example, who is a chewer can destroy various parts of the home. Some dogs chew carpet and flooring and may even destroy trim over time.

Pets also scratch. If you plan to have hardwood flooring in your home, you’ll want to be mindful of this. Floors and walls that are scratched will not appeal to home buyers when your home is placed on the market.

Pets often leave behind odor. Try as you might, it can be very difficult to get rid of that distinctive smell that plagues the homes of many pet owners. This is especially true if you have owned a pet or pets for many years. Some odors will permeate carpet and other areas of the home and can be very difficult to get rid of when selling.

The good news is there are ways to get rid of the odors and marks left behind by pets. As an article posted on MSN Real Estate denotes, there are steps you can take to de-pet your home.

Clean your home frequently. This is a great way to get rid of odors. Also taking care to bathe and brush your dogs on a regular basis will help them take on a friendlier smell. If you have a pet who does not have good potty habits, you may need to find a way to address this problem. The last thing you want is evidence of business frequently being left behind in one or more rooms of your home.

Attend to scratches and other damage caused by pets. Fix up flooring and walls as well as other parts of the home. This is very important because you may wind up being required to make such repairs before selling. Tackling it ahead of time will only help the process go more quickly and smoothly.

If your pet or pets will reside inside the home, know they will leave their mark behind. Even the smallest of creatures can make a very big impact on a home. If you truly want to make the home theirs as well, you’ll need to let them roam and be a part of everyday family life. This will, of course mean you will be responsible for cleaning up after them. Stay on it and you will have less to do when it comes time to sell. You can learn more about this and other real estate topics by visiting Dean Graziosi’s blog.