With the abundance of available foreclosed properties on the market, many people are considering the benefits of purchasing a foreclosed property with the intention of remodeling it and then flipping it. If you have the time and money that is required, this may be a beneficial move for you. But if you are not prepared for all of the expenses that go along with this type of project, you may want to do a bit more research before you close the deal.

Remodeling foreclosed properties in order to flip them is not as easy as it looks on TV. There are many factors to consider before attempting to flip a property. If your property does not sell right away, are you prepared to make the payments until it sells. Flipping properties requires a lot of money, if you have the extra disposable income, then flipping may right for you. But if you are not prepared to make payments until the property sells, or pay for any unexpected fixes that the property needs maybe you need to wait before taking on a project like this.

Before you begin the flipping process, it is important that you find a house that is in your price range. The next step is to come up with a budget that includes all repairs and enhancements that you plan to make to the property. When designing this budget it is important that you plan for the unexpected, after all, you never know what you will find when start knocking down walls.

If the repairs are minor and you feel that you can handle them on your own, then you should be alright; but keep in mind that unexpected problems may always come up. If you feel that you need a professional to handle all of the repairs that are needed, you will want to hire a contractor who can be trusted and gives you an estimate that you can live with. There are certain areas that will require a professional due to codes that must be met, if your electrical wiring in the house needs to be repaired then you will need to hire an electrician who is familiar with the different codes.

Once you have remodeled the house and it is ready to be listed, be prepared to wait. With the realty market in the state it currently is in there is no guarantee that your property will sell fast. If this is the case you may be required to make any mortgage payments that are due and pay any taxes come due until your property sells. If you are not living in the property it is important that you visit or have someone visit it regularly to make sure that it is being maintained and continues to appeal to prospective buyers.

How to Cancel a Contract

Entering into a purchase contract, listing agreement or a buyer’s broker contract is a big step for any prospective home buyer. A contract is any document that binds you to a particular agreement, and if you are unsure about what you’re signing or are having second thoughts about a contract that you have already signed you may be wondering if there is any way to cancel the contract once it has been signed. Before signing any contract when dealing with real estate transactions, it is important that you find out before you sign if it can be cancelled if you change your mind. But if you have already signed and have had a change of heart, there may be clauses included in the contract that may give you a way out.

If you are interested in cancelling listing agreements the following information may help. Before signing a listing agreement you should ask your agent if the agreement can be cancelled for any reason once it has been signed. If their answer is no, then you may want to find another agent to list with. You should choose a listing company that will put your mind at ease not cause you more reason to worry about your agreement. If your agent is refusing to cancel the listing agreement, your next step would be to contact the broker and as them for a cancellation. The broker may be able to do what the agent refuses and allow you to cancel the contract.

Once you have spoken to the broker and if they decline to cancel the agreement you can always ask them to assign a new agent to your listing. Maybe a new agent will make you feel better about listing with company. If you’re still unhappy dealing with the agency your next step would be to consult a real estate attorney. Your agent can provide you with a form called Termination of Buyer Agency. Once this form is properly acknowledged and executed, it will cancel an oral or written agreement that you had with the agency.

If you need to cancel a purchase agreement you should thoroughly read your agreement and look for any cancellation clauses that may be included. Depending on which state you live in, if an inspection is completed upfront and a purchase offer has been signed the offer is binding. In other states if an inspection takes place after the offer has been signed you may be able to get your deposit back if you cancel the agreement once the inspection has taken place. Federal law also allows buyers ten days to inspect the home for lead paint. If, during this time you wish to cancel the agreement you can ask your real estate agent which form you need to sign. Buyers do not lose the right to cancel simply because the contract cancellation period has expired. You have the right to ask for a cancellation until the seller objects.

If you are still unsure where you stand legally when trying to cancel a contract, you should consult a real estate lawyer who will be able to explain all of your options regarding cancelling a real estate contract.

Steps to Take Before You Flip a Property

Flipping real estate can be a fun and exciting venture. You get to take a house that is nearly unsellable and quickly change it into a hot property. If you do it right, you can sell it for much more than you have invested in buying and fixing it up. There are several steps to take before you ever begin the process.

1. Find a potential buyer.

Believe it or not, it is a great idea to find possible buyers before you flip a property. Seeking people who may be interested in a certain type of home does not commit you in any way. You can still sell to the highest bidder. If you can create a list of people and the types of homes they are interested in, you will have a valuable database. From that, you can search for homes to flip that will suit their needs and tastes.

2. Be familiar with the local real estate market.

It does no good to know that sales are up in the state if you are not aware of the state of the market where you want to buy. Each town, and each neighborhood in every large city, has its own place in the real estate market. You cannot judge the possible value of the property you might buy unless you know how other real estate in that local area is doing currently. Investigate local sales figures and find out what is selling, how often and for how much.

3. Be ready if you plan to purchase at an auction.

Do not go to an auction unprepared. You should be able to get a listing of the homes that will be sold at the auction. Within that list will be descriptions of the properties that will help you determine whether it is a type of home that is in demand. If you get a chance, look at the property before the auction.

4. Decide who will do the work.

You may be handy. You may want to do the work yourself to flip the house. It is certainly the least expensive way to go and the most profitable if you are good at doing renovations. Even so, there is a time factor, and you will want to get the house ready as quickly as possible. If you need the work done better or more quickly than you can do it yourself, get familiar with the contractors in the area. Find out who is reputable and whose prices are the most reasonable.

5. Get pre-approved financing.

The best way to search out houses to flip is to get preapproval from a lender before you go. This is especially true when you go to auctions. If you are preapproved, you will be ready to make the deal as soon as you make your decision. Then, you can get on with the business of flipping the house.

Deal of the Month #2 – Dean Graziosi Cashes in on 21 Acres

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How Dean Graziosi Cashed in on “21″ With None of His Own Money

No, I’m not talking cards, I’m talking acres. In this month’s “deal of the month” you’ll learn how I structured a great deal on 21 acres I wanted to subdivide, by thinking a little differently. It wasn’t a bargain piece of property, I paid the seller full price for it. I also had some challenges because I didn’t have the money to buy the property and there were upset neighbors who didn’t want me to do what I had planned.

Watch and learn how I bought the property using none of my own money, and how a complaint from one of the upset neighbors, gave me an idea that made everyone happy AND skyrocketed my own profits on the deal. You’ll walk away from this month’s deal with a lot of new knowledge and new capabilities to do similar deals yourself.