To begin your journey into flipping houses for profit, the first thing you want to decide on is the TYPE of flip you intend to pursue. Purchasing a fixer-upper is not the only option available to you, though it usually represents the greater return on investment.
So-called distressed owner properties offer the least amount of work, and quickest turn around. The reason? The owners of these homes need to divest themselves of the property as quickly as possible. They may be recently divorced, or due to unanticipated circumstances beyond their control, they need to relocate, possibly out of state.
Whatever the reason, the house represents an obstacle to moving forward with their lives. In exchange for an expedited transaction, they will accept a purchase price lower than what they would be likely to receive were they prepared to wait for market price. Your return on a flip of this type may be $5,000 to $10,000 or more. Remember, these houses may well be in prime condition, and your only role here is to facilitate a quick sale for the owner.
First, a tip regarding financing for your flip: check your credit score. This needs to be strong if you are hoping to get started with the minimum up front investment. If you are hoping to get investment property financing for as little as 5 percent down, rather than 10 to 25 percent down, you are going to need a credit score in excess of 720. If you are not there, take the time to work on improving it. It can dramatically improve your long-term return on investment.
Let's look now at the fixer-upper. If you have done your homework, improved your credit score, and borrowed at 5 percent on a distressed fixer that the owner is letting go for $100,000 you will pay $5,000 for the down payment, plus perhaps another $5,000 in payments over the course of the two months you spend making over the house--which costs you another, say, $10,000 in materials. That is $20,000 invested, and if you immediately resell the property at $140,000 you have pulled in a profit of $30,000. In this case you would have more than doubled your investment in a two month period. Not bad!
Of course, this optimal example assumes that you have the expertise to make over the house yourself, which is the quickest way to get the work done, since contractors have no real incentive to get the job done promptly. For best return on investment, this is a do-it-yourself industry.
Unless you are partnering with someone who knows how to pull out a wall without doing structural damage, look for properties that require only cosmetic improvements when you are starting out. That way you restrict yourself to manageable tasks, such as painting, carpet replacement, and maybe minor plumbing work.
Look ahead, and be sure you do not bite off more than you can chew. Any delay that puts off the final date of sale for the property just reduces your profit, as it cuts into the time for your next project.
The bottom line is that if you are prepared to roll up your sleeves and jump in with some manual labor, the profit potential for house flipping is very good. This is the reason why you hear self-made millionaires mention real estate projects more often than any other form of investment scheme. By the time you have flipped your first house for profit you will undoubtedly agree with them.
Wednesday, 23 May 2007
Thursday, 17 May 2007
Once a decision to buy a home has been reached, be sure to research the market before going on the search. Look at information on the internet, figure out what is most important and needed in a home, and get familiar with the area before looking at the houses.
Make sure the budget will be able to handle buying a new home. Decide what is most important and what is not. What kind of house is desired is also important. Don‘t go and buy a house and not be able to afford it, especially if a first time home buyer. Try to avoid the “house-poor“ situation, in other words, a really nice house, but no money.
If being near a school, work public transportation, or anything else like family, doctors, or anything that is important in daily life, denote that.
Preapproval for a mortgage is key. It will help with the lending process and will make the home buying process in itself much easier.
Picking an agent that understands the buyer’s needs is crucial. Getting the advice from friends and and family is a good place to start. Most full time serious agents have web sites these days and it is a good place to begin to get a feel for a real estate agent. Plus, most real estate agents have the feature on their website for you to browse local listings.
When looking to buy a home, take into account that needs will change. For instance, one may be buying as a newlywed couple, but down the road, they may choose to start a family, so finding a home that has space for children would be ideal.
There are other things to consider. Will you be entertaining? Plan to have children? Want to have own private space and how much square footage is really needed? Designate between a closed space that limits noise and an open space one that does not. Want to have a den, office, or library? For me a big garage is important because I like to restore old cars.
For those who already have children, keep in mind that each child doesn’t have to have his or her own bedroom. Be sure to designate a play area for the children so they can have their own space.
Also, keep in mind that safety particularly with children should be a big issue when buying a house. According to the U.S. Consumer Products Safety Commission, accidents in the home account for 2.5 million injuries or death to children a year. Take into consideration even if you do not have children what risks the new house may pose to a child. Does the house have a lot of stairs or is there bad lighting around areas that children could fall? Does the garage door have a motion detector and is the driveway flat? This is important during increment weather. Is the yard fenced?
Keeping these considerations in mind can help anyone on their hunt for their first home, second home, or dream home.
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Encinitas Homes for Sale
For More Info Visit:
http://hot-us-real-estate.blogspot.com/
http://hot-uk-real-estate.blogspot.com/
http://eu-realestate.blogspot.com/
Make sure the budget will be able to handle buying a new home. Decide what is most important and what is not. What kind of house is desired is also important. Don‘t go and buy a house and not be able to afford it, especially if a first time home buyer. Try to avoid the “house-poor“ situation, in other words, a really nice house, but no money.
If being near a school, work public transportation, or anything else like family, doctors, or anything that is important in daily life, denote that.
Preapproval for a mortgage is key. It will help with the lending process and will make the home buying process in itself much easier.
Picking an agent that understands the buyer’s needs is crucial. Getting the advice from friends and and family is a good place to start. Most full time serious agents have web sites these days and it is a good place to begin to get a feel for a real estate agent. Plus, most real estate agents have the feature on their website for you to browse local listings.
When looking to buy a home, take into account that needs will change. For instance, one may be buying as a newlywed couple, but down the road, they may choose to start a family, so finding a home that has space for children would be ideal.
There are other things to consider. Will you be entertaining? Plan to have children? Want to have own private space and how much square footage is really needed? Designate between a closed space that limits noise and an open space one that does not. Want to have a den, office, or library? For me a big garage is important because I like to restore old cars.
For those who already have children, keep in mind that each child doesn’t have to have his or her own bedroom. Be sure to designate a play area for the children so they can have their own space.
Also, keep in mind that safety particularly with children should be a big issue when buying a house. According to the U.S. Consumer Products Safety Commission, accidents in the home account for 2.5 million injuries or death to children a year. Take into consideration even if you do not have children what risks the new house may pose to a child. Does the house have a lot of stairs or is there bad lighting around areas that children could fall? Does the garage door have a motion detector and is the driveway flat? This is important during increment weather. Is the yard fenced?
Keeping these considerations in mind can help anyone on their hunt for their first home, second home, or dream home.
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Encinitas Homes for Sale
For More Info Visit:
http://hot-us-real-estate.blogspot.com/
http://hot-uk-real-estate.blogspot.com/
http://eu-realestate.blogspot.com/
Wednesday, 16 May 2007
Should I Buy A Foreclosure In Florida?
Now is a very exciting time for real estate investors looking for a foreclosure in Florida. Home owners have stretched themselves very thin over the past 5-10 years when lenders were making credit readily available for individuals. One only needs to look at the fact there are now 35 year mortgages, and interest only mortgages being the latest craze. This helps individuals get into that house they really can not afford. But, there does come a time, when the cash gets tight, and the house gets foreclosed upon. And if you are looking to move, or invest in Florida, then buying a foreclosure in Florida should be a good deal for you.
The numbers in Florida are pretty staggering. In counties such as Sarasota, Manatee, and Charlotte, the number of foreclosures have doubled over the past year. This year so far there are about 2,220 homes being foreclosed on right now. Last year at this time, there were only 1,106. It is numbers like this, which are making investors excited about foreclosures in Florida.
Florida currently has an average of 1 out of every 382 homes are foreclosed. This dose not compare very well at all to the national average of 1 out of 884 homes. Most of this is due to many people getting over their heads in 2004 and 2005, and now can’t make the ends meet. The markets have scaled back so much, they owners can not sell, and must let the lenders foreclose on them. This is not to say the overall market is bad.
If you are looking for the good investments, now is probably the best time. With the foreclosures at an all time high, there might not be a better time. Investors can get in now at a very low cost, and set themselves up for either reselling properties or renting them out.
The experts still predict the Florida population to grow, so investing now will get your foothold in the market. If you are looking for a good deal, a new house, or some residual income, you might want to take a look at a foreclosure in Florida.
For More Info Visit:http://seized-real-estate-propertyinvetment.blogspot.com/
Tuesday, 15 May 2007
Making Dallas Foreclosures Work For You
In November of 2006, according to the RealtyTrac™ U.S. Metropolitan Foreclosure Market Report, RealtyTrac™ U.S. Metropolitan Foreclosure Market Report the number Dallas foreclosures rose 67%, and the eight counties surrounding Dallas saw a new foreclosure for every two hundred and eighty-six households. That’s almost three and one-half times the US average.
Dallas foreclosures are now happening at rates not seen since the 1980s. Real estate experts are pointing their fingers at such culprits as steadily climbing interest rates wreaking havoc on adjustable rates mortgages, higher home energy and gasoline costs, burgeoning credit card debt, and questionable lending practices.
So Dallas became the number one city in the US in terms of its foreclosure rate. There are, in other words, plenty of Dallas foreclosures available for those in a position to take advantage of them.
But, because e very state follows rules for foreclosure properties a little differently, if you’re searching Dallas foreclosures to you need to know Texas law. Some states have judicial foreclosures, which go solely through the court system, while others have provisions for handling foreclosures out of state.
Texas laws, however, provide for both judicial and non-judicial foreclosures. Understanding the differences between the two kinds of Dallas foreclosures might save you some money.
Dallas ForeclosuresIf a mortgage on a Dallas property contains a power of sale clause, the lender is entitled to sell that property should the borrower go into default on his or her payments. The property in default, in most cases, will be auctioned off at a place of the lender’s choosing. If you are interested in purchasing Dallas foreclosures, this process will save you time, as the sale is usually completed in less thirty days.
Foreclosures in the CourtsEven though a great many Dallas foreclosures still pass through the judicial system, the Texas judicial foreclosure process is a swift one. You’ll find the properties being offered at auction published for the three weeks in the Dallas newspaper.
What few delays there are associated with Dallas foreclosures processes; in fact, occur because of the necessity of letting the people inhabiting the property to have a chance to cure their default.
The Dallas Foreclosures AuctionAll Dallas foreclosures auctions are held on the first Tuesday of the month, notwithstanding holidays, at the Dallas County Court House. Those brave enough to bid without investigating the properties in advance will be competing with other real estate investors, and in some cases, against the mortgage holders who want to ensure a minimum bid for the property.
One tremendous advantage to purchasing Dallas foreclosures over buying foreclosed properties in other states is that in Dallas you only buy the senior lien, which usually means the original mortgage, on the foreclosed realty. Some states require you to assume all the liens on a property.
Dallas foreclosures, for the most part, are otherwise similar to foreclosures around the US, and offer to those willing to do solid research and make a trip to the Court House on the first Tuesday of the month a chance to land some valuable real estate.
You can also find more information at Foreclosures Homes and Home Foreclosures. Foreclosureshomeguide.com is a comprehensive resource to get help about property Foreclosures.
For More Info Visit:
http://seized-real-estate-propertyinvetment.blogspot.com/
http://hot-uk-real-estate.blogspot.com/
http://eu-realestate.blogspot.com/
Dallas foreclosures are now happening at rates not seen since the 1980s. Real estate experts are pointing their fingers at such culprits as steadily climbing interest rates wreaking havoc on adjustable rates mortgages, higher home energy and gasoline costs, burgeoning credit card debt, and questionable lending practices.
So Dallas became the number one city in the US in terms of its foreclosure rate. There are, in other words, plenty of Dallas foreclosures available for those in a position to take advantage of them.
But, because e very state follows rules for foreclosure properties a little differently, if you’re searching Dallas foreclosures to you need to know Texas law. Some states have judicial foreclosures, which go solely through the court system, while others have provisions for handling foreclosures out of state.
Texas laws, however, provide for both judicial and non-judicial foreclosures. Understanding the differences between the two kinds of Dallas foreclosures might save you some money.
Dallas ForeclosuresIf a mortgage on a Dallas property contains a power of sale clause, the lender is entitled to sell that property should the borrower go into default on his or her payments. The property in default, in most cases, will be auctioned off at a place of the lender’s choosing. If you are interested in purchasing Dallas foreclosures, this process will save you time, as the sale is usually completed in less thirty days.
Foreclosures in the CourtsEven though a great many Dallas foreclosures still pass through the judicial system, the Texas judicial foreclosure process is a swift one. You’ll find the properties being offered at auction published for the three weeks in the Dallas newspaper.
What few delays there are associated with Dallas foreclosures processes; in fact, occur because of the necessity of letting the people inhabiting the property to have a chance to cure their default.
The Dallas Foreclosures AuctionAll Dallas foreclosures auctions are held on the first Tuesday of the month, notwithstanding holidays, at the Dallas County Court House. Those brave enough to bid without investigating the properties in advance will be competing with other real estate investors, and in some cases, against the mortgage holders who want to ensure a minimum bid for the property.
One tremendous advantage to purchasing Dallas foreclosures over buying foreclosed properties in other states is that in Dallas you only buy the senior lien, which usually means the original mortgage, on the foreclosed realty. Some states require you to assume all the liens on a property.
Dallas foreclosures, for the most part, are otherwise similar to foreclosures around the US, and offer to those willing to do solid research and make a trip to the Court House on the first Tuesday of the month a chance to land some valuable real estate.
You can also find more information at Foreclosures Homes and Home Foreclosures. Foreclosureshomeguide.com is a comprehensive resource to get help about property Foreclosures.
For More Info Visit:
http://seized-real-estate-propertyinvetment.blogspot.com/
http://hot-uk-real-estate.blogspot.com/
http://eu-realestate.blogspot.com/
Monday, 14 May 2007
For A New Real Estate Investor The Idea Of Investing In Foreclosures Can Look Temptingly Attractive
You might be looking for "How to make a zillion dollars in 3 months", well, you won't find that here but if you want some practical tips, you came to the right place. Read on ...
To the newbie real estate investor, foreclosures can look temptingly attractive. Who wouldn't want to make a quick profit of 50% or more? But whether a foreclosure deal is really sugar or merely sweet-tasting arsenic depends on a list of complex factors.
Foreclosure is an officially permitted process in which a mortgage holder repossess a property due to failure to pay on a loan. Some states in the U.S. allow 'strict' foreclosure — the borrower has a definite time in which to bring the debt up to date, after this, the title reverts back to the lending institution.
To the newbie real estate investor, foreclosures can look temptingly attractive. Who wouldn't want to make a quick profit of 50% or more? But whether a foreclosure deal is really sugar or merely sweet-tasting arsenic depends on a list of complex factors.
Foreclosure is an officially permitted process in which a mortgage holder repossess a property due to failure to pay on a loan. Some states in the U.S. allow 'strict' foreclosure — the borrower has a definite time in which to bring the debt up to date, after this, the title reverts back to the lending institution.
You want to stay out of any legal processes going on concerning a property. Don’t get tempted to jump in and help the current owner in hopes of partial or whole ownership, this is suicidal. Pick another great deal. Never fall in love with a property. You have to maintain a business-like demeanor in all your dealings.
Be sure you understand that in many foreclosure proceedings, a borrower might have the 'right of redemption'. This legal claim will let them have a particular amount of time in which to 'cure the loan'. That is, they are allowed to make back payments, shore up credit, etc., and then they are allowed to reclaim property title to, and the possession of, the property. Beware!
As soon as the foreclosure procedure is complete, or at minimum unavoidable, you may initiate an action plan to obtain the real estate. Watch for transactions in which, at least, a Notice of Default has been given out.
Public sales on foreclosed possessions are common but can be complicated. Always do your homework before actually making a bid on a property. There's no alternative for gaining first hand familiarity of the physical state and legal standing of a property.
Be sure to take into account that foreclosures are sold 'as is ', or, in its present condition. Contrasting other property sales, no warranties are made available and no title insurance approved.
At least, you'll be required to have a professional inspection carried out, even if you are a well-informed investor. Some investors are, of course, qualified inspectors themselves — besides wearing various other hats.
The property does not need to be free of every little fault, but you'll want to be aware of the roof - does it or does it not need to be replaced, that the plumbing is ok, there are no severe foundation cracks, or possibility for flooding, etc. If any of those are there, they can be satisfactory if you're searching for a 'fixer-upper' and are prepared to invest the time and funds to make repairs. Mark down your offer for that reason.
Soon you will hear about a 'short sale' deal. That is, this comes about when a lender is prepared to allow lower cash settlement for a property than is outstanding on the loan now.
And yet another kind of foreclosure situation is the REO — real estate owned (by the lender). Usually these are properties that were auctioned but no one bought them. You can, potentially, get an extremely good deal, but you will need to exercise extreme caution and keep your eyes wide open.
Ok, so bear in mind to follow a line of investigation. Have a systematic inspection done and complete a satisfactory title search. Any key defects or impediments in the form of tax or other liens have to factor big in your strategy.
Real estate, like other endeavors in life, requires diligence and a grasp of the fundamentals to be successful. Learn to tell the difference between a good deal and one to walk away from without losing your shirt in the process.
All things considered, real estate investing is still the best game in town. So go out and make your fortune and say 'Hi' to Donald Trump for me!
Find out how to make money investing in foreclosures and flipping real estate properties by visiting http://www.successful-real-estate-investing-tips.info/ , a popular real estate investing website that offers advice, tips and free real estate investing advice
Sunday, 13 May 2007
Thursday, 10 May 2007
Government Seized Property Auctions
When people commit crimes, the government seizes their property associated with the commission of the crimes. This means the government seized property becomes auction goods for the general public to bid on. At a government seized property auction, property can include the following:
VEHICLES:
The most common government seized property auction is easily vehicles. Luxury cars, SUVs, pickup trucks – even boats, RVs, ATVs, snowmobiles and motorcycles are government seized auction property available in your area. Since vehicles have a documented value you can check against the Kelley Blue Book, it is easy to calculate your savings when bidding on this type of government seized auction property. Be sure to check out government seized auction vehicles in your area.
REAL ESTATE:
Drug dealers and tax cheats have to live somewhere too, right? Some of the most expensive government seized auction property available for sale is real estate. Vacant land, cabin getaways, suburban houses and mansions are some of the private use real estate available at government seized auctions. Commercial property can include car dealerships and customization shops, restaurants, ranches, retail space, and anything else you can imagine. Government seized auction property often sell far below fair market value. For more information about government seized auction property inside with DEAauctions.com.
HOUSEHOLD HOODS AND FURNITURE:
All those criminals have things they no longer need when they go to jail. You can buy their government seized auction property for pennies on the dollar. Area rugs, appliances, bedroom and living room sets are all government seized auction property you can bid on. Big-screen TVs, video games and pool tables are some of the recreation property available at government auctions. Make crime pay for you! Click here for your helpful hints to bidding at government seized property auctions near you.
ANTIQUES AND FINE ART:
If you like antiques and fine art, but your budget doesn’t allow you to indulge this pastime, government seized property auctions were madefor you! Oriental rugs, listed painters, sculptures, Chippendale furniture, Stickley and Tiffany glass could be yours for Martha Stewart Living prices! Government seized auction property includes art and antiques you may not be able to otherwise afford. Be sure to find bargain priced art and antiques at a government auction near you.
DESIGNER CLOTHES AND JEWELRY:
The fabulous designer duds once donned by people now wearing orange jumpsuits everyday can be had for unbelievably low prices. Government seized auction property includes some of the best name brands on the market today. Versace. Prada. Burberry. Vera Wang. Ralph Lauren. Nautica. Jewelry by Tiffany, Harry Winston, Bulgari, and Cartier can all be yours at government seized property auctions. Don’t hesitate – click here for more information about government seized property auctions near you.
DIRECT ACCESS TO THE MOST COMPLETE INFORMATION
Some of the more common auction items include:
used autos • marine vehicles • jet skis • aircrafts • homes • real estate • commercial property • farm equipment • industrial • business • electronics • computers • antiques • art • coins • stamps • appliances • guns • travel • collectibles • clothing • crafts • boats • bikes • motorcycles • mobile homes • jewelry • toys • cars • trucks • mopeds • bicycles • cameras • televisions • clocks • furniture • unclaimed property • abandoned property • personal property • office furniture • condominiums • town homes • commercial property • vacant land • single family homes • machinery • tools • hardware • building supplies and much, much more...
http://deaauctions.com/ is an unchallenged leader in the Auction information Industry and will transform the way you search & locate the Billions of dollars in property that is auctioned off throughout the country every year.
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