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.

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 You Need to Know After Buying A Historic Home

historicSo you’ve just purchased your new dream home complete with all the features you’ve always wanted, but it’s in a historic district and has come with its share of problems. Making repairs on a historic property will differ because of rules and regulations you will be required to follow. Below Dean Graziosi has included some information that will help you take your first steps toward making those repairs and restoring your new home to its natural beauty.

Most interior changes won’t be affected by the historical status of your home. You may be required, however, to keep it up regularly. All you will probably need are typical building permits to renovate the inside of your home. Exterior changes, however, require planning approvals. You should consult with your local planner early on in the buying process to find out all you’ll need to know for your area. Check back often during the projects you are undertaking to make sure all details are receiving attention.

Adding onto the property if it is considered a local landmark is another project entirely. Here, you will need to get permission from the Historic Preservation Commission. Small changes such as ordinary repairs and maintenance won’t need to go through this commission. Here, the planning staff will probably be able to help you with the details. Also, different areas may have varying requirements, so it is important to familiarize yourself with your particular location.

When buying the property, you’ll know whether or not it will need work and how much. Consider the cost of this work plus that of securing any permits you will need to take care of it. Owning a historic home can be a dream come true, but if you have to then turn around and put a whole lot of money into it, the dream can turn into a nightmare.

Plan your projects well. Get all the information you’ll need before making the plans. That way you won’t be surprised to find out you should have secured something you were unaware of and you’ll stay within the zoning guidelines. If you are on a tight budget, take care of each project separately. That way you can pour a lot of time and energy into them all individually. Budgeting for all your projects will also help you keep up with expenses as you go along. An article posted on sf.curbed.com points out you can actually save money by purchasing a historic home.

Owning and restoring a historical house can be very satisfying. If your dream is to purchase an older home, one in the historic district might be the perfect choice. It may come with more headaches, but will all be worth it in the end. You can learn more about this and other real estate topics by visiting Dean Graziosi’s website.

Making Your Home Renovations Count

renovationsBefore putting your home on the market, you want to make all your home renovations count. Dean Graziosi has provided some tips to help you know which ones will help it sell.

Begin by assessing your home both inside and out. There may be changes you will be required to make. For example, plumbing or electrical issues will need to be repaired before the house is actually for sale, and sometimes it is necessary to replace the roof or flooring. There are some, however, that may not be necessary, but will help sell your home. The key is to choose wisely so you won’t be out any more money than needed.

The kitchen is among the most important rooms in the home. Kitchens are where a lot of activity takes place. People tend to spend a lot of time in this room, so make it count. Update any appliances that are no longer working properly or are not energy efficient. Home buyers of today look for energy efficiency, so place this at or near the top of your list. Replace any cabinetry or hardware that is in need of repair. Even the smallest of changes can make a huge difference. If the cabinets themselves don’t need to be replaced, at least consider painting the doors.

Make sure the flooring and countertops are in good shape. Prospective buyers will look at these types of details.

Keep in mind maintenance costs are different from renovations. As an article posted on usnews.com points out, sellers look at things like the replacement of a roof as routine maintenance rather than an actual renovation. Maintenance costs are necessary while renovations may be optional.

Renovate the bathrooms. Replace hardware and flooring is needed. Paint or put on new wallpaper. There’s nothing like a little color to brighten up a room. If your bathrooms are small, go with a color that will make the space feel and appear larger.

Consider finishing the basement. While unfinished basements have a variety of uses, many home buyers of today look for bonus rooms and spaces they can turn into game or media rooms. A finished basement with an additional bedroom and bathroom may also be a selling point because it would work well as in-law quarters.

Consider opening up smaller spaces. Open floor plans are popular these days, so knocking out a wall or two can help sell a home.

As stated above, don’t take on any renovation projects you can’t afford. Take care of the maintenance items first, then move onto the renovations. Tackle the least expensive ones first, then assess how much money you have left over for the others. You can learn more about this and other real estate topics by visiting Dean Graziosi’s website.