I will help you from start to finish with your real estate investment.Join with me for a profitable future in House flipping- call me at 760-902-9521-"Lets start Flippin"
Attention Investors-Vacation Rentals
The Dumpier the Better!
I am a no nonsense- Good Guy - Creative Builder with great design sense-I am excited about what I do and I can work magic with budgets -schedules- team that with Impeccable Quality
Guess what that equals - $$$$
Sense of pride about what we create together
The skies the limit-call me- love to meet-
talk and start flippin
90 days -start to finish
in escrow within 30 days after completion
Beautifully updated and remodeled home designed in the early 1960s, by
famed Palm Springs architect, Donald Wexler. A resort style pool and
spa highlights the home, complete with tanning decks, pool benches and
fountains....the centerpiece of the Palm Springs desired lifestyle. The
home was restored top to bottom, new kitchen and baths, flooring, and
systems. Concrete style custom tile floors throughout, new stainless
appliances, Caesar-stone style counter tops, all add to the home's sleek
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The first piece of advice that most flipping experts give: Make a budget. While finding the perfect place and knowing your skill set (or having friends with skill sets) is important, budgeting is where new flippers most often fail. So where to start? First, get financing.
This step was fairly easy when
sub-prime mortgages were hot. These mortgages allowed buyers to pay
little or no down payment. In exchange, they were socked with higher
interest rates -- but when you're planning on owning the house for only a
few months, that's a minor issue. When the market is flat, however,
obtaining a mortgage for an investment property is more difficult, and
sky-high interest rates empty investors' wallets when a property sits on
result, cash plays a much bigger role in getting that flip started. The
bigger the down payment you can afford, the lower the interest rate.
And, of course, it helps to have cash around for fixing up the flip.
We'll look at how to budget next.
Budgets can balloon quickly on fixer-uppers. If you decide to invest in one, you need a high tolerance for risk -- and an exit strategy. The consensus from most home remodeling experts is this:
- You can make more
money on a really cheap house that you turn into a nice house than a nice house that you turn into a premium house. All those expensive upgrades don't offer nearly as much return on your investment as fixing a cracked foundation does. For most people, this means hiring workers, or having a lot of help.
- The more people you get involved, the more coordination is required. You'll have to keep very close tabs on plumbers, electricians and handymen -- or hire a general contractor (which means a big increase in your budget).
- Think local. If you're remodeling a house in Massachusetts use clapboard, not adobe bricks. The closer to home you stick for materials, the more experts you'll be able to find to help you install them.
- Don't overestimate your work. Sure, that paint job looks nice, but is it really worth a $20,000 markup on the property? Overpricing your property could just leave you with a house that people are wary of because it's been on the market too long.
- Don't get ahead of yourself. First-time flippers may see dollar signs when they think about buying multiple properties, but problems can quickly turn into
bankruptcy if you're using one house's equity to pay for another's repairs. Plus, each home requires attention, and unless you're quitting your day job -- which the experts also don't recommend for newbies -- you will probably have plenty to do for one house without thinking about your next flip.
- However long you think the renovation will take and whatever you estimate it will cost, just understand that it will probably be much costlier and more time-consuming.
- Nearly every upgrade you skimp on will haunt you, re modelers warn. From cheap carpet to cheap electricians, quality of workmanship is something that flippers cannot fake in a softening market.
Depending on your goals and the extent of the renovations, fixer-uppers can take a few months (or less, if you're really lucky) or years to turn around. If you want to live in your investment as you're working on it, remember that there may be a lot of sawdust in your future. And while up-and-coming neighborhoods can explode overnight, there will also be fluctuations in crime rates, local business booms and school improvements, all of which can affect your property's value. Patience is key when waiting for a neighborhood to take off.
Top 10 tips for flipping houses
Buying, renovating and selling a house for profit, known as house flipping, is the latest buzzword in real estate. There is no magical formula to ensure success at flipping houses. However, there are essential tips to help investors earn more money.
1. Do not get emotional about house flipping. It is after all a business. If the numbers do not work, proceed to the next property. Some investors commit the mistake of being too attached to the flip that they sell at a high price and end up holding the flip longer thus reducing profit.
2. First impressions count. Pay attention not just to the inside of the house but the outside as well. You cannot show off all the upgrades done inside the house if potential buyers are turned off by the outside appearance of the house and its surroundings.
3. Personal tastes are a no-no in a flipped property. Your flip needs to be attractive to buyers, not you. You should define who your target buyer is and what is his/her preferences. Color is a vital part of flipping houses. Stick to neutral colors especially when it comes to painting and laying the carpet.
4. Spruce up the kitchens and the bathrooms. They will noticeably increase the price of a house. But be sure that fixtures and appliances match the target price range. If the kitchen and bathrooms look clean, sleek and updated, the house will sell faster and for a higher profit.
5. In house flipping, time is money. After making a detailed list of renovations to be done, come up with a timeline. A timeline is an important way to let contractors know when the next group of workers needs to be in a specific part of the house. One rule of thumb is to work from top to bottom and tackle the big work projects first.
6. Hire a good contractor. You cannot be at the job site all the time. This is where the contractor comes in handy. He can keep a close watch on your time line and also the part of the budget that is his responsibility. He can keep track of problems and readily find solutions. The easiest way to find a good contractor is through referrals.
7. Be ready for paperwork. There are loads of paperwork that accompany house flipping. The most important paperwork you will have to attend to are permits. It takes time to obtain permits so you need to apply for them before work begins. Not having the necessary permits can cause work stoppage and this cost money. Contracts and receipts are doubly important. Be sure to keep them. You also need to obtain insurance coverage not only on the property but the workers as well.
8. Keep track of your progress. Throughout the entire house flipping process, you have to constantly monitor your progress. That way, you will know at any given time where you stand on the project. This will help you keep focused. Time is of the essence in house flipping.
9. Start small or simply, and then work your way up. Your first house flipping project should only entail cosmetic work. You may not get a huge return on your investment but you will surely learn valuable lessons and develop experience.
10. As with any business venture, expect the unexpected. You will certainly encounter something that you simply did not expect. It may be a problem that appears hours before the transfer of ownership. You will almost always run at least a little over budget or hold the flip a little longer than expected.
Flipping a House
The most important tips for flipping a house are not about what to fix or change in the house. They are the tips about time and money. More specifically, they are about how time can cost money, and about how to determine how much to pay in the first place. Read numbers one and two carefully, then, to make sure that you make a profit on that fixer-upper.
1. Know the Numbers
What will the house sell for when it is done? Having a clear idea of the ARV (after repair value) is the only way to safely make an offer on a house. You can't guess that you'll sell a home for $20,000 more than what you put into it. The market determines the price, not your desire. Get advice if necessary, and then subtract from the ARV all possible costs you will have, including price, buying costs, repair costs, holding costs, and selling costs. Then from this, subtract the profit you want. Now you have the highest price you should pay. Make the first offer lower than this.
2. Make a Realistic Schedule
More than one house-flipping project has gone wrong due to delays. You think you can get the plumber in the house in the first week, but it takes a month. As a result, you can't close the walls up, and everything else gets behind schedule. Meanwhile, as you wait, you spend $2,000 per month on holding costs like loan payments, utilities, insurance and property taxes. That starts to eat up you profits. The Cure? Check before you finalize the offer, to see how long things like windows, plumbing and dry walling will take.
3. Do Important Things First
I was watching one of those "flip a house" programs on television the other night, and a young couple was running $10,000 over budget on their first fixer-upper investment. In the end, they ran out of money, and put the house on the market with a crappy-looking yard and stains visible on the front of the house. These were two things that buyers would see first, and the impression they make matters. To avoid this, start with those changes that are most important. That way, if you run out of money or time, you have already done the things that will make the home sell.
4. Consider the ROI of Improvements
The return-on-investment (ROI) for each possible improvement should determine what you do when you flip a house. You have to guess a bit here, but the principle is that you do only those things which increase the value of the home substantially more than what they cost. High-ROI improvements will vary by area and type of home, but typically include painting, carpeting, and landscaping. On a small home, you can have some new flowers and bushes, new paint, and all new carpeting for less than $7,000, and possibly raise the value of the home by $15,000.
Note: Sometimes a good cleaning can make a carpet look new. For tips on removing carpet stains, and the best ways to clean carpet, see the site http://www.HowToRemoveCarpetStains.com.
5. Know Your Market
If the home is a single level ranch in a neighborhood full of retired couples, don't try to sell it to young professionals. You should know what kinds of buyers are likely to want the home (and neighborhood) before you start, and then - after improving it with those buyers in mind - you should market it accordingly. Make sure you or your agent identifies and advertises the benefits that matter to your buyers, whether this includes "close to stores" or "country views."
6. Price Below Market
Selling fast makes sense, because you not only have those holding costs, but you may have other projects waiting for that money. To sell it more quickly, always price it slightly below market value - and let buyers know that it is a deal. Remember, if you sell for $3,000 under market, you aren't losing $3,000. You are possibly saving a couple thousand in the holding costs you will pay if it takes an extra six weeks to sell at a higher price. Flipping a house fast also means getting the money into the next project more quickly. If you buy right, and use the other tips here, there should be plenty of profit left in any case.
will help you from start to finish with your real estate investment.Team with us for a profitable future in House flipping-
call me at 760-902-9521-"Lets start Flippin"