Category Archives: Home Buying

house-flipping-tips

How to be a Flipper in 2017

House flipping is going to be tougher because the Feds have hiked up the interest rate, rising house prices, and a tight inventory. Besides, the popularity of reality TV shows such as Flip This House, Flip or Flop, or Rehab Addict have encouraged more and more people to jump into this business of buying homes, renovating them, and then selling for a profit. So, competition these days are tougher too than it’s ever been.

What should be your strategies for the New Year either you are an experienced investor or a brand new flipper? The time is perfect for drawing out a business plan and strategy if you want to start flipping right after the winter holidays. Check out the following tips that will help you being ended up bankrupt if you are a noob and to do better if you’re already a flipper:

Create a Business Plan

No business can succeed without a solid business plan. Do you consider the flipping just an extra source of income? Well, even a side project is bound to fail without any direction. So, create a business plan about how many houses you want to flip, your strategies to renovate them, and how much money you are expecting as profits. Such a plan will help you determine your purpose and keep you on track.

Know the Market

The real deal about flipping house business is to be aware of the local market and past trends for the last six months. Take your time and do the homework on recent sales, comps, and the average selling time of particular properties. Such information will help you negotiate better prices, figure out good deals, and get a better estimate of your profit margin.

Know Your Buyers

Every flipper should buy and rehab houses with a particular type of consumers in mind. It means you have to figure out who are going to be your potential buyers and rehab the house with their possible demands and requirements in mind. For example, buying a house next to an elementary school means you have to rehab it by keeping young families with kids in mind.

Stick to a Budget

Budget depends on various factors such as the location and size of the house and how much repairs are needed. Determining a budget and sticking to it will keep you from wasting your money.

You must figure out the ARV or After Repair Value of your targeted property. It’s the estimated amount of the selling price after the house has been rehabbed and repaired. Your total investment, i.e. the buying price and the rehabbing costs, must not cross 70% of its ARV. Going over the number is likely to put you at the risk of losing your profit and sometimes the principal.

If everything is set, you should start looking for houses for flipping as soon as possible. Even if you don’t have plans to launch the business in a couple of months, early searching will help you start off on the right foot when you’re ready to roll out.

home buying negotiation

Home Buying: Negotiation Strategies to Win a Real Estate Deal

Successful negotiation is critical to a real estate deal. Buying a home is not as simple as making an offer and waiting for that offer to be accepted. The negotiation process can go for weeks before both the parties find a middle ground. Read More →

tiny house investment

Home Buying: Why Tiny Home Investment Does not Pay off?

The tiny, often-mobile houses equipped with all the necessary means of living just looks like a perfect living space. Besides, small picture-perfect homes just keep popping up everywhere, in home-related reality TV shows, DIY blog projects, and Instagram and Pinterest feed, leading you to give serious thoughts about settling into such a home. Read More →

homebuying millennial homeowners

How the Millennials Rise in Today’s Housing Market

Young people, especially the millennials, have been reluctant to taking the plunge into homeownership. Student debt, the insane cost of living in popular urban areas, and the struggles of living alone in the major cities have played significant roles in their disinclination. However, the picture has been flipped; at least that is what the latest Zillow study on consumer housing trends reveals. Read More →

multifamily-real-estate-investment

5 Reasons Why You Need to Invest In Multi-family Real Estate

Investing in real estate has turned into a real deal these days given the low-interest rates and strong rental market throughout the country. The first choice for many investors is to go for ‘single-family homes,’ which can turn into a great additional source of monthly income in the cities where the rental market is hot. However, a decent investment option that has often been overlooked is multi-family real estate. Read More →

off market home buying

3 Easy Steps to Find an Off-Market Home

Off-market listings, also known as pocket listings, are catalogs of houses that are for sale but aren’t listed on the most available and accessible listing services. Such listings can give the house hunters an edge in a market where the inventory is tight. However, finding such a listing is tough, and sometimes tricky. Read More →

buying-investment-property

6 Things to be Aware of Before Buying an Investment Property

The idea of buying an investment property seems intriguing when all the favorite home reality shows on TV are running rampant with successful quick flip stories – purchase a home, renovate it, and resell at a higher price. However, quick flips are risky, and you can lose big bucks if you step off on the wrong foot. Read More →

real-estate-disclosures

Screening Real Estate Disclosures: Things You Should Notice

Disclosures are a vital part of a real estate transaction and are necessary for both the parties – buyers and sellers. Sellers have to document any known past or present defects of the property and hand it over to the potential buyer. On the contrary, buyers should screen through disclosures to know what they are getting for their money.

If you don’t carefully read the disclosures, you may miss out something important Read More →

fixer-upper

Buying a Fixer-Upper: Is It Profitable?

What’s the reason to buy fixer-upper houses? The most common answer will be – profit! Investors buy run-down houses, renovate and fix them, and finally, sell them for good profits. These buyers are usually bargain hunters who pay considerably less than fair market value if the home were in less-than-perfect condition.

Another good reason is to live in the home. It helps many couples Read More →

real_estate_hotmarket

Dealing in a Hot Market: Things You Must Consider

A hot market is one where most of the listed homes sell faster, usually within two months. There are fewer homes on such a market, resulting in higher demand and faster turnaround in homes for sale, and making the market extremely competitive.

With the constant ups and downs in the real estate market, many will want to test the waters when the market is hot. Read More →