Tag: flip

 7 Basic Steps to Quick Cash!

Quick CashThere are two definitions for flipping in the Real Estate investment industry, Retail flipping and Wholesale flipping. Retail flipping can be defined as buying a property wholesale, rehabbing it if necessary, and re-selling it on the retail market for profit.

Wholesale flipping can be defined as acquiring an interest in a wholesale property and then quickly selling that interest for profit (usually to another investor). This article concerns the second definition, wholesale flipping. If you have little cash and little access to credit lines, the quickest way to break into the Real Estate investing industry and produce quick cash is to learn to how to flip houses with no money to other investors. Wholesaling properties for quick cash is something that anyone can do, even the beginning investor. Following is a description of the seven basic steps involved in flipping a houses.

However, if you are not an investor or do not intend to be an investor, it does not mean that you can’t learn from what investors know to acquire properties. Remember, knowledge is power and will give you the power to acquire properties and profit even if it is a one- time purchase. You might get your first property with the intend to just own it and live in it but I will guarantee you that once you know how to do it you will do it again.

  Step 1: Faming & Assessing the Property Before Makin the Offer…

Farming is the term used in the real estate industry to say KNOW YOUR AREA, know the market trend, know where properties are for sale. This is an important process for it allows you to be in the KNOW! Once you know what is for sale and where, you will know how to make an assessment on the property. The farming has to be done by the individual but the assessment could be done buy the team of people you have put in place to make the process simpler. Even if you like to be involved in all steps of the process it is a good idea to work with people that have access to resources you need such as, mortgage bankers, realtors, contractors, etc.

Step 2: Making the Offer and Signing the Contract…

Whether you go after foreclosure properties, FSBO  properties (for sale by owner), or properties listed in the MLS; you will never, I repeat, never be able to flip a property unless you first make an offer on it, and second, lock it up with a contract. When you make your offer, you always need to keep your exit strategy in mind. Since your exit strategy is to flip the property to a rehab investor, your offer should be based on an accurate estimate of the retail value of the property after repairs less the amount of repairs, the holding costs for the rehabber, the rehabber’s closing costs to both buy and sell, a profit margin for the rehabber, and lastly a profit margin for you, the wholesaler. The maximum that most rehabbers will pay for good properties is 70% of Market Value minus the repairs and other expenses named above. A simpler formula is 65% of market value less repairs (as 5% usually covers the other expenses). Your wholesale profit will usually fall between $1,000 and $7,500. Never get too greedy unless you have the ability to close the deal yourself. Once your offer is accepted, you need to meet with the seller to sign the contract. On properties listed in the MLS, your offer will be initially made with a signed contract and agreed changes to that offer will be initialed.

Steps to Quick Cash

Step 3: Start Title Work Once the contract is signed…

Get the contract to the Title Company so that they can immediately start title work on the property. They will order a title search and schedule a closing date. There are a couple of reasons to start the title work ASAP. First, you want to make sure the title work is completed before the closing date as well as wanting enough time to cure any title problems that might arise. Second, you want to be able to close right away should your buyer have the ability to do so.

Step 4: Begin Marketing to Find a Buyer…

There are several avenues for marketing your properties. However, your main method should be to call the people on your “Buyers List.” A “Buyers List” is a list of real buyers that you have compiled by qualifying them as to their ability to close for cash quickly. You should also qualify these buyers as to the specific areas that they buy in, the type of properties that they buy, the price  range of properties that they buy, and what percentage of Market Value that they pay for properties. The better that you become at compiling your “Buyers List,” the easier it becomes to wholesale properties. Therefore, setting up their “Buyers List” becomes the first step for most successful “newbie” flippers. Another avenue is to market your property to investors is by running ads in the investor section of newspapers as well on investor-oriented web sites like AIREO.com, thecreativeinvestor.com, dfwrein.com, etc.

Step 5: Come to an Agreement With a Prospective Buyer…

At some point, someone will show an interest in buying your property. Whether you have one interested buyer or many buyers at the same time will depend on how good deal is. The more buyers that you have, the less flexible you have to be in reaching a final sales price. You must learn to qualify you buyers correctly for two reasons. First, you want to continually add good qualified buyers to your “Buyers List.” Second, you can’t afford to let someone, who cannot close, tie your property up keeping you from selling it to a real buyer prior to the closing date. Remember you are under contract to close with your seller even if your buyer doesn’t close with you. Make sure the prospective buyer has cash or an available line of credit to close with. Make the buyer provide proof of funds if necessary.Quick Cash

Step 6: Sign a Contract and Collect a Deposit…

After verifying your buyer’s source of funds, meet with them and sign a contract. You should require the buyer to put up a $1,000 Earnest Money Deposit with the signed contract. I’ve found that this $1,000 deposit separates the men from the boys. Anyone who does not have the ability to put up a $1,000 Earnest Money Deposit is not a real cash buyer. You can also use a one-page “Assignment of Contract” form to sell you interest in the deal to another investor. This assignment form allows another investor to take your place in completing the transaction. I recommend only using an assignment of contract with investors that you know well. It is much less binding on your buyer to show up for closing and you may get left holding the bag. The assignment does, however, lower the closing costs because there is only one closing instead of two.

Step 7: Submit Documents to Title Co. & Schedule the Closing…

Take the executed sale documents to the Title Company and Schedule a closing date. Now here’s the best part. Go to closing and collect your check! Flipping properties is a great way to make money from Real Estate. It is also the easiest way for a “newbie” to make money while learning the Real Estate business. However, it is true that you can’t steal in slow motion. The very best deals go very fast. The quicker an investor learns the basics of evaluating properties and correctly estimating repairs, the better his chance of finding, as well as recognizing, the very best deals. Money is made in Real Estate when you buy it. Therefore, it behooves the new investor to do  whatever it takes to master these tasks as quickly as possible. The very success of his Real Estate investing career is dependent upon it.

Visit Here for getting more information related to How to Profit from Rehabbing Houses.

Related Article :- Cash Flow Calculator, What Do You Need To Buy A House, Avoid Foreclosure Options,  Cash Flow AnalysisHow To Flip Houses With No Money, What Do You Need To Buy A HouseHomes For Sale InHomes Rent To OwnReal Estate Valuation SoftwareRent To Own By OwnerRent to own homes free listingsSteps To Selling A HouseReal Estate Analysis

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How to Improve Efficiency with Team Work and Real Estate Flipping Software

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If you need to organize your house flip expenses, simplify the scheduling process, have at your finger tips estimates of project profitability and compare estimated project expenses, then you will need real estate flipping software that provides report and picture documentation for current and future use.  There is a lot more to flipping property than buying a house, applying a fresh coat of paint, trimming some bushes, and reselling the home for profit. Flipping is not that easy, and even more so when it comes to managing all of the above without the help of real estate flipping software.

The more skills you have, the better equipped you will be to enter into real estate transactions and investing.  Now, if you thought you could do this alone, let me stop you right there. It takes team work to make this work. So the first thing you’ll want to do is to form your own team comprising of real estate agent, attorney, contractor, accountant, home inspector and an insurance agent. Flippers typically work against the clock, so to renovate a home on budget and then turn it around and sell before overheads gobble up your profit, you’ll not only require a good team, you will also need real estate flipping software to ensure that the work is completed in a timely and efficient manner.

Some people say that until you can do things like change a sink, install a countertop, do basic electrical and  plumbing work or fix a roof, you’ll be unable to turn substantial profit in house flipping. Well, arguably, house flippers that make the most money tend to be handy people, but you’re going to be surprised to find out that having the ability to step in and lend a helping hand when time or money constraints kick in isn’t the be all and end all. I’m not a handyman myself, and yet I’ve built and renovated property with attention to detail and perfection by employing a team of experts on the field, needless to say, my savvy and good taste do come in really handy. With time, even you will develop that instinct that distinguishes you from the average house flipper if you take interest in your work and put your mind and heart in it.

I wonder if you’ve realized how critically important it is for the buyer to know about the area in which they are buying property. It helps to know the acreage, number of rooms, and the type of homes that are the most desirable in the area in which you’re looking to buy. And just as important, you’ll want to know what houses in the general vicinity have recently sold for; and if there are any future development plans in the pipeline… such as new schools, condominiums and shopping malls, as this could affect supply and demand.

If you’re the kind of person that wants to improve efficiency with real estate flipping, then team work is of paramount importance because it helps you streamline your workflow into more manageable segments under supervision by experts in their field. That said… you’ll also benefit tremendously with real estate flipping software because it will enable you to log AND to manage your projects by providing important financial and project viability data on prospective projects. Needless to say, it can become an invaluable member of your real estate flipping team.

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How to Flip a House for Quick Profit

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If you have ever desired to flip a house to turn a quick profit, then you will discover in this article the simplest technique to flipping properties, not to mention the other potential income generators in real estate investing. Based on buying undervalued properties, property flippers generally don’t put any money into a house for improvements. Their main concern is the intrinsic value of the property and the potential to turn a quick profit without having to make alterations and upgrades to the property. In essence, with the pure flipper, it’s all about the money. This type of investor doesn’t keep enough cash to pay a mortgage on a house long-term, so they’ll want to offload properties as fast as possible to avoid making losses. Because the more you hold on to unsold property, the more money you’ll stand to lose. So, learning how to flip a house will give you insider information—privy only to those deeply involved in the business of flipping—and it will also show you the ropes as it were, to help you get started with investing in property for quick profit.

And there is another type of property flipping that is likely to catch your attention. So let’s take a quick look at the second class property flipper. Who exactly are they? Well, believe it or not, they’re investors that make their money by buying property at reasonable prices and adding value by renovating them. Depending on the extent of the improvements, this can be a longer-term investment. The drawback is that it is very time intensive and oftentimes only allows investment in one property at a time. You’re going to be amazed, however, to discover just how effective this method can be for you. Some people say that until you’ve mastered the ins and outs on how to flip a house, fast cash in the property market is likely to elude you.

I wonder if you’ve noticed how people are also making money with real estate investment trust (REIT)—a corporation that uses investors’ money to purchase and operate income generating properties. Bought and sold on the major stock exchanges, just like any other stock, REIT’s may well be your ticket to making money in real estate.  And if you’re the kind of person that wants to avoid paying corporate income tax, then this will be exactly what you’re looking for because, a corporation must pay out 90% of its taxable profits in the form of dividends, to keep its status as a real estate investment trust.

In Summary:  We have looked at a couple of exciting real estate investment options. However, let me assure you, we’ve only scratched the surface. Needless to say, there are countless variations of how to flip a house and how to invest in real estate in general. Evidently, as with any real estate investment out there, gains are not assured. Make your choices carefully and try to weigh out the costs and benefits of your actions, before you dive in.

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How to Profit from Rehabbing Houses Using Other People’s Money

Rehabbing HousesIf you have only experienced getting a mortgage to buy property and you’ve experienced difficulties from time to time, then you will be delighted to learn that there’s always the hard money lender to turn to. What is a hard money lender? Hard money lenders are people or companies in some cases (in a lot of cases), that have a lot of money lying around. It’s a situation where, specifically, they target people who are involved in rehabbing houses. They will loan you the money to buy a house, and they will also loan you the money to rehab the house. Better yet, they will loan you a 100% of the money to buy and to rehab the house. Maybe you’re thinking, ‘hey my credit is terrible there’s no way they’re going to do this for me.’ Or ‘I’m just too deep in debt and I can’t do this.’ Or ‘I have no money so I can’t do this.’ But the reality is this: hard money lenders are more concerned with the structure of the deal than they are with your credit or your particular situation. Don’t get me wrong, hard money lenders are looking for you to have some character, and they’re also looking for you to be able to start something and to finish it. Because the last thing they want to do is wind up with your house. But the way they structure a deal, that’s the important thing. That’s what they are most concerned with.

The more you know about how to profit from rehabbing houses, the more you’ll want to get started. So let me give you some round numbers here. Let’s say you find a house and you find it at a fairly cheap price. Let’s say you could buy it for $30,000. You have determined through research and perhaps talking to some realtors, and doing what we call comparative analysis—that this house is worth $100,000 when it’s finished. The hard money lender is going to want to be in the house at around $65,000 with the purchase price and with all the rehab. Put yourself in his position. Here’s the way this works. Since he is limiting this investment to be 65%, he feels like you do—that the house is worth $100,000 when it’s finished—he’s in it pretty good. He’s in a situation where if he needed to get out of it he could. So therefore he is not so concerned with your credit.

Profit from Rehabbing Houses

Now let’s go through this again and you’re going to be amazed to discover just how powerful this method is for you. You’ve found a house that’s worth $100,000 finished. You can buy it now for $30,000—and you know that. Now the question becomes, can you do all the rehab for an additional $30-35,000 so you’re in it at $65,000. If you can do that and if you can put that down on paper and you can show a basic budget for the rehab and if it comes out to be within the 65% range total—purchase AND rehab—your hard money lender is probably going to be in.

And now you’re saying, well, where can I find these guys? Well, I don’t know if your local area has real estate investment clubs, most major cities have them. If your city doesn’t have one, perhaps you can drive to the next city and join that. You can bet for sure that the hard money lenders will be there. If they’re not there, their cards will be there or they’ll have a representative there. You can also find them online. My recommendation to you is that when you’re going to deal with a hard money lender, you deal with someone who is local and one who is familiar with your market. Dealing with someone out of the market sometimes means they don’t have a complete understanding of your market. So ideally, you’ll want to deal with some who is familiar with your market.

Rehabbing HousesAnd so that’s the hard money lender. The second way you might want to get started is to partner up with someone. Yes, you could find someone that will do a joint venture (JV). And maybe you’ll find someone that has the money but doesn’t have any time. Their money is not making any money. Some people say that if you give 1% at the bank you can lose all your money in the stock market. I wonder if you’ve realized by now that JV partners are interested in real estate because real estate is here to stay. It’s a sure thing. Worst case scenario you make a mistake on your budget but it’s still worth something. And they’re probably in the same situation with the same thinking that as long as we’re in it finished at a reasonable amount of money, how can we possibly go wrong? Of course the idea is way to make money. So you might want to partner up with someone. Now when you partner up with someone, obviously you’re going to have to split some profit. But the key here is to get started. Figure out a way to get started because once you get started, things start to fall together. There’s an old saying: the harder I work the luckier I get. Well the reality is, you’re out there things start to come to you. Things start to get better and better. And when you sell your first house and make $30-40,000 and put that in your pocket, you’re going to know what I’m talking about. It’s the best thing I’ve ever done. And I think it’ll be the best thing you’ve ever done. But you do need to get started. If you’re the kind of person that wants to get involved in rehabbing houses to make a tidy profit, then this will be exactly what you’re looking for.

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Related Article :-  Cash Flow AnalysisHow To Flip Houses With No Money, What Do You Need To Buy A HouseHomes For Sale InHomes Rent To OwnReal Estate Valuation SoftwareRent To Own By OwnerRent to own homes free listingsSteps To Selling A House

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Driving for Dollars? Consider Real Estate Investment Software Apps for Smart Phones

If you are in the habit of driving for dollars around neighborhoods and are yet to experience the easiest way ever to dig up information on houses you like, then you will love the infinite advantages of Smart Phone apps to make your work a heck of lot easier. Real estate investment software helps you pull up detailed data on property with a simple snap shot. That is quite honestly how easy it is. This article will expound on the simplicity of gathering all of the information you need on properties you drive by and wish to invest in, using your Smart Phone.

Real Estate Investment Software

The more you spend time driving around neighborhoods in search of vacant houses that may be suitable to invest in, the more you’ll want to find a way to gather important information on properties more efficiently. The world has moved on. There’s absolutely no need to hang on to archaic methods when there is something on the market that simplifies an otherwise long and meandering process. So let’s take a closer look at how a real estate software download free app for Smart Phone actually works.

Real Estate Investment Software

If you’re going around neighborhoods and you find a vacant house, what an Smart Phone app for real estate investors will do is pretty neat and simple—to say the least. Quintessentially, it’s got a camera button on there that allows you to hold up your phone and take a picture of a house. It’ll then save the photo on your phone and then it’s going to go and look up the information from a database to show you the address, and more information about the property, such as: number of bedrooms, square footage, the last sale date and so forth. The important thing is it will save all of this information on your phone so that once you’ve done all your driving around in search of properties, when you get home you can quickly retrieve information on all the properties you took pictures of.

Real Estate Investment SoftwareYour next step would be to look up on the public records to find the owner of the properties you’re interested in (and you’re going to be amazed at how simple and effective this really is for you), and send them a letter in the post or via some other kind of communication to make an appointment to view the properties. Some people say that the easier it is to find information on-the-go, the more fun real estate valuation software adds to the experience. I wonder if by now you’ve realized just how quick and simple it is to find information on properties you want to buying a house with cash. If you’re the kind of person that needs to minimize the workload in searching for property, then I’m sure you will appreciate that real estate investment evaluation software is exactly what you’re looking for. It certainly doesn’t get better than this for the real estate investor. In the shortest time possible, best real estate investment software will make a world of difference in helping you find the ideal house to invest in.

Visit Here for getting more information related to 7 Basic Steps to Quick Cash!

Related Article :- Cash Flow Calculator, What Do You Need To Buy A House, Avoid Foreclosure Options,  Cash Flow AnalysisHow To Flip Houses With No Money, What Do You Need To Buy A House

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How to Earn Up to $25,000 in Real Estate Flipping

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If you have ever wanted to turn a quick profit of $2,000 to $25,000 in real estate flipping, then get ready to discover the amazing world of wholesale deals where you buy real estate under contract, find a wholesale buyer, and then flip the contract. Unlike the glorious property investment reality shows portrayed on TV… this kind is a lot less glorious but has loads of money to be made with very low risk factor involved (one of the reasons why this strategy is so attractive to the newbie real estate flipper). Or maybe you’ll want to consider getting into the fix and flip side of the business where you buy real estate, rehab the property, and sell it on to a retail buyer. This article will investigate the pros and cons in both real estate flipping methods to help you make an informed decision as to the direction into the real estate flipping business you’d like to take.

The flip and fix method isn’t quite for the newbie. However, this is what you see on TV all the time (which is quite misleading, to say the least). To do this, you’ll need to have a really good understanding of the cost of rehabbing property you want to flip. You’ll also need to have access to investment lenders like private lenders or banks. (I’d prefer borrowing from a private lender). And just in case you’re unable to sell the property quickly, you’ll need to be able to float the carrying costs. Be warned, not calculating your costs correctly would increase your risk factor.

I wonder if you knew that middle income properties are what most flippers flip. That said, the market is on a downturn and therefore there are less retail buyers for middle income properties at present. Some people say that many people are making a very good living in real estate flipping, but that unless you started several years ago and have many flips under your belt, the going is likely to get pretty tough when you’re just starting out. If you want to pursue the fix and flip property investor route, consider this: the seasoned fix and flip flipper will already have a network in place; is able to market quickly; and has relatively easy access to funding.

If you’re the kind of person that wants to explore the real estate fix and flip method, however, then you will be fascinated to discover just how powerful getting started in real estate with little or no risk; and with no financial outlay on your part can be. However, before you take the plunge into investing a huge amount of money, this little detour will have you learn the ropes in the fix and flip business while you earn selling wholesale (because you’ll get to know the people you’re selling to and how they work). Like the sound of that? Well, the more you realize how easy and profitable this route really is, the more you you’ll want to learn to analyze the cost of repairs needed, create an offer and flip your property to a rehabber for a very handsome fee, leaving the rehabber with the job of repairing and selling the property while you move on to the next property to flip.

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KEYWORD: Rehab Analyzer, Real Estate Investment, real estate flipping

Kaleidoscope into the Day of a Real Estate Investor Involved in Rehabbing and Flipping

If you have ever wondered what the day of a real estate investor involved in rehabbing and flipping property was like, then this article will walk you through the life of a real property investor and shed light on how they check out property they’re interested in; and why they use rehab analyzer software to speed up their assessment of the viability of potential properties to buy. You’re going to be fascinated to discover just how effectively rehab analyzer software can work for you when you learn from an insider. So let’s go take a closer look!

Let’s call our real estate investor Bill. Bill wants to buy a property in a neighborhood—let’s call this neighborhood Flipping Street. Now, before touching the property he decides to drive around Flipping Street to look at other properties. His mission is to find out what property was selling for in the neighborhood. He then finds out from the Multiple Listing Service (MLS) that other homes in the area were selling for between $60,000 and $75,000. A quick mental calculation tells our Bill that he might have to invest $20,000 on renovations and after all is done there could be a substantial profit to be made. With this in mind, he figures that this deal warrants a visit to the home that’s up for sale.

A drive around Flipping Street suggests that the neighborhood is in far better condition than he’d expected. There weren’t many “For Sale” signs in the area; the lawns were well manicured; there were no junky cars or boats around; by and large it was a neighborhood of homeowners who were proud of their properties and took good care of them. An inspection of the house in question indicates the usual upgrades and renovations are needed. Bill notes the house needs a good lick of paint both inside and out. It also needs a new roof, kitchen, flooring, lighting and several other minor bits and pieces. After inspecting the house and its neighborhood, Bill uses a rehab analyzer to quickly and easily analyze rehab opportunities to make profit projections. The analyzer indicates that the profit he stands to make from this property is between $20,000 and $28,000 which he feels is a good return on investment for a small deal such as this. He quickly makes an offer a little above the asking price of $22,000 just in case other investors are also bidding on the property, and sure enough, he is notified the following day that his offer had been accepted and that they would close the deal in 30 days.

The more you dither after identifying a lucrative property to flip, the more likely you are to lose a golden opportunity to another bidder. I wonder if you’ve realized how smart our Bill was as he went about purchasing this piece of real estate for flipping. He did his research by checking out the neighborhood and the going rates for property in that neighborhood. He then took a look at the property in question to see what it looked liked and what needed fixing, AND what it was going to cost to rehab. He ran his findings through rehab analyzer software to get an estimate on repairs and whatnot. And voila, he made an offer the minute he found out that there was money to be made. Bill is testament to the fact that until you’ve input the information to hand into the rehab analyzer software, you’ll have no idea within a reasonable degree of accuracy whether or not the property you’re interested in buying is a sensible purchase based on your investment criteria. If you’re the kind of person that wants to turn a quick profit in real estate flipping, then Bill’s simple but sound strategy would be just what you’re looking for.

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