7 Tips for Flipping Properties in Today's Market

When it comes to real estate investing, many people are making money right now by flipping properties. Sure, today's market is not the greatest at this point in time, but despite of home prices that are falling and the housing boom that is now over in some areas, this is a prime time for flipping properties. Of course if you plan on getting involved in flipping properties there are many things that you are going to have to take into consideration. While it may sound quite simple, there is quite a bit to learn if you are going to try to be successful at flipping properties, so the following are several tips that will help you with flipping properties in today's market.

Tip #1 - Understanding the Concept of Flipping Vs. Speculating - First of all, if you want to start getting involved in flipping properties, it is important that you understand the difference between flipping and speculating. Speculators are essentially real estate amateurs who are usually not consistently successful. They count on theory that there is always a "bigger fool"; someone who will come along and purchase the property for more than what they paid for it. Flipping involves a totally different approach. People who flip properties are more conservative and they are more likely to be successful, no matter what the market looks like.

Tip #2 - Getting started - Now you need to know how to get started flipping properties. Basically flipping properties involves getting the property for a low price and then within a short period of time, selling the property for a price that is much higher. Property flipping is a great investment; however, it is important that you make careful plans. If you are new to flipping, you will probably want to work with a seasoned real estate agent, who can help you understand more about the current market trends and conditions. Having a good agent on your side can help you locate a great property and they can also help you figure out what it would cost to fix up the home so you can get the best amount of profit whether doing the work yourself or flipping it to another investor who will fix it up for profit. You have to make sure there is enough room in the deal for a profit once the entire repair costs & other holding costs such as mortgage, insurance, and taxes are figured in. Even if you reselling the property to another investor who will then fix it up, the investor will only be interested in buying if there is a margin for profit on their end.

Tip #3 - Advance Planning - Of course advance planning is very important when it comes to flipping properties in today's market. You'll want to make sure that you know what you are actually getting into. Plan ahead as to what types of properties you want to flip, who you want to renovate them, and other important details. Also, before you get the property, make sure that you have it inspected. Not having the property inspected could lead to heavy losses, so be sure that you have an experienced inspector look the property over carefully.

Tip #4 - Finding a Flip - Finding a flip is the hard part. When it comes to flipping properties and there are a variety of key phrases that buyers look for when they are looking for the right properties. Some of the phrases hat they look for include listings that have phrases like "needs work," "must sell," "motivated seller," and "vacant." Many flippers take a close look at properties that are being foreclosed on as well. Usually banks are trying to get what they can for these properties, so flippers can get them for a good deal.

Tip #5 - Getting a Loan - Getting a loan is important as well when you are involved in flipping properties. However, when it comes to getting a loan, there are many mortgage companies that are a bit leery of giving out loans on a flip because of various scams that have been used in the past. When you try to get a loan on a flip, you will need to check into the requirements. Some companies may make you wait 3-6 months before selling the property; however, in some cases you may be able to sell a flip sooner if you can prove that your property has increased in value. There are also private lenders that are willing to give loans on flip properties as well; however, they may charge higher interest rates.

Tip #6 - Fixing up a Flip - Once you have acquired a flip property you are then going to have to work on fixing it up. You will need to take a look at the property and then figure out the level of upgrading that the property you have chose warrants. It is not prudent to put in upgrades that will only be a wasted investment. Be sure to do the best job possible; however, remember that there are some improvements that will not increase the value of your property. Be sure that you make the improvements that are needed to bring the property you have up to the same condition of the other properties in the area so you will have no problems selling it. A good realtor can give you great advise on the type of work to do and the type of work not to do to get the most profit out of each property.

Tip #7 - Selling a Flip - When you are selling a flip it may be tempting to do it on your own; however, in most housing markets it is best to have a professional real estate agent help you sell the property. You will need to know the current market that you are dealing with and you will also need to be sure that your property is priced right. Setting the wrong price in the beginning can really hurt you, even if you lower the price later, so be sure that you get the price right the first time. Also, a real estate agent can give your property the exposure it needs to sell quickly, saving you a bundle on holding costs.

Flipping properties is a great way to make money; however, it takes some work and knowledge. It will take hard work and planning to build up your wealth, but if you are willing to do the work needed, you can definitely be successful in this field of real estate investing.

Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.

By Anthony Seruga and Yolly Bishop

Affordable Florida Home Owner Insurance - Six Smart Ways To Get It

1. Affordable Florida home owner insurance: Ask your agent personally about all the discounts possible with your present insurance carrier. Your agent could, choose to not tell you about some discounts that you qualify for. You'll lower the probability of this happening to you if you take the pains to ask your agent point blank to tell you about every discount that is possible. You might be surprised at discounts you've not taken advantage of.

2. Staying loyal to one insurer for any considerable length of time will surely get you savings. Staying with the same insurance company for at least 3 years will will attract special discounts from many insurers. The more the years you've been loyal to an insurer the bigger discounts you will get.
Nevertheless in spite of the fact that it is a good way to save, you may realize more savings if you forget about this discount and go over to another insurer..

3. Affordable Florida home owner insurance: If you need a discount, buy your home insurance policy from the same insurer you bought your other policies from. This is called a multi-policy discount.
Nevertheless, the total money you may get as discount may still become insignificant if weighed with savings you'll make by buying your policies from several insurers.

4. Affordable Florida home owner insurance: Insure your house not including the land it's built on. Home insurance is to give coverage over what could be lost or stolen. No matter the peril, the land on which the house is built will still remain intact. Don't forget to use the value of the home minus the land when applying. This is so since doing otherwise will mean you're buying much more than is useful. You'll simply be spending far more than you should.

5. You'll attract lower premiums if your home is well secured. Dead-bolt locks and burglar alarms could get you savings of around five percent. With some insurers, discounts as high as 20% are available for some more advanced security devices.
Just remember that those devices have to be such recommended by your insurance company for you to get such big discounts. If you take into consideration how costly such special security devices are, the markdowns you get for installing them may be much lower than what you spent.

6. Affordable Florida home owner insurance: I advise that you use not less than three quotes sites as that will ensure you do not miss out better quotes not given by the other sites. This provides you a broader basis for doing more thorough comparisons thereby increasing your chances of getting more for less.

Chimezirim Odimba writes on Homeowners insurance.
Article Source: http://EzineArticles.com/?expert=Chimezirim_Chinecherem_Odimba

Real Estate Financing - What You Should Know About Home Mortgages

As the nation's real estate market continues to grow and new technology gains more ground, many widely accepted beliefs that were true just a few years ago may not be true today. Before you go after a home mortgage or home loan or any real estate financing, if you have a lot of bad credit because of consumer debt such as credit card or personal loans, try to eliminate or reduce this debt as soon as possible because it'll affect your ability to qualify for a home mortgage and the estimated monthly payment.

Some tips to know: whether you're financing or refinancing. most people move or refinance within a seven year period. And loan programs for down payments of 20% or less require you to purchase Private Mortgage Insurance (PMI).

If you're going to buy a second home or second property, you'll need to identify the source or sources of your down payment, since you won't be selling your current house and using the proceeds, and you'll need to expect a larger monthly payment for housing and other related expenses too.

If you have a problem getting a home mortgage and the seller still owes money on the home you can check with your lender and see if you can get a wraparound mortgage. Although it's not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference; make sure that a wraparound mortgage will not trigger a due-on-sale clause ask the lender in advance.

Many people are not aware that they may be able to customize the length of their loans. Ask the mortgage broker or lender you're working with. Although lenders usually advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that would work better. This may allow borrowers to build up their equity faster and keep their monthly payments in a range they can afford. Some lenders may impose strict limits on how much of the down payment can come from borrowing from other sources.
Some of the advantages of adjustable rate mortgages that are touted include: lower costs - because they are usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments then if the interest rates go down, you'll have lower payments. However in all the years I was in the real estate business I never advised anyone to get this type of loan. With the changing market trends one can find themselves in a heap of trouble just like that. This would be a last resort loan and one would have to be sure they were not going to be unemployed in the next few years.

If you're working with a local builder within a sub-division or housing development and you're just making carpeting, lighting and appliance selections for a brand new home, you'll likely be able to get a standard mortgage loan. But if you're planning to hire the contractors, electricians, plumbers, and painters, you'll probably need a construction loan, which provides the funds to pay the subcontractors as the work goes along.

You will want to work with your mortgage broker or lender closely to develop an individual home loan or home mortgage program based on your credit worthiness. If you have or think you have a less-than-perfect or 'bad credit' credit report don't worry too much about it. When financing real estate it's important to know that a low FICO credit score doesn't mean you won't qualify for a home loan or home mortgage. There is much ado about the FICO score these days but there are many instances in which it isn't going to interfere with getting a home loan or mortgage. If you do borrow money for a down payment it must be disclosed to the lender or if any of the money for your down payment was a gift, be ready to provide proof of it.
The 20-year fixed-rate mortgages allow you to make a consistent higher monthly payment throughout all of the 20 years you have the mortgage; the shorter term means you pay the loan off quicker and therefore pay less interest and importantly, build equity faster than you would with a 30 year loan. You'll also need to take into consideration what the closing costs will be. Ask about the escrow account for taxes and insurance.

Make sure to ask other homeowners how they're doing and what real estate financing and home mortgage or loan pitfalls to avoid. And whatever you do don't get yourself into a situation where you are unable to make the mortgage payments; make sure to think far ahead. Try not to get too overwhelmed with all the different home loan and mortgage choices available.
Make a list of questions and get the answers from any real estate agents, real estate brokers, mortgage lenders and any other real estate professionals you know or meet. Ask them about real estate financing, home mortgages, home loans, refinancing and current mortgage rates. Go online and get home mortgage quotes. Online quotes can often be cheaper because of the elimination of middlemen for example. And compare the quotes with other quotes you get locally to find the best rates for you.

Article Source: http://EzineArticles.com/?expert=Helen_Hecker

Qualifying for a Mortgage Loan Workout Program

One common method that homeowners in foreclosure may have available to save their homes is to put together an agreement with the mortgage company to repay the amount they are behind over a period of time. This is called a forbearance agreement. Another similar option is working with the lender to alter the terms of the loan through a mortgage modification, which may result in the missed payments being put on the back of the loan, or the interest rate being lowered for a period of time. Both of these plans can give homeowners an important opportunity to get back on track with the mortgage, but lenders have strict guidelines that must be met to qualify for this type of program. Homeowners will have to fill out various forms and submit their personal financial documents in order for the bank to consider offering them one of these solutions. The importance of having these documents completed and accurate can not be overstated, as banks may just let the file sit until the package is complete.

Possibly the most important document the homeowners will need to submit is a hardship letter, explaining how they fell behind and what they have done to recover from the hardship. They should also state how the problem has been solved so that it does not recur in the future. This gives the homeowners an opportunity to describe the crisis as beyond their control, such as sudden medical problems, a death in the family, divorce, or job loss, among other possibilities. Often, the hardship letter can contain various solutions that the foreclosure victims are proposing the bank consider, as well as statements that they will be able to pay the mortgage on time from now on. The hardship letter is the tool homeowners use to make their case to the mortgage company of why they should not be foreclosed on, but given another chance.

Another important piece of the financial puzzle for the bank is recent paystubs, showing how much the homeowners earn. The mortgage company will want to evaluate whether or not there is a strong possibility of the loan being repaid in the future. A current stable income is one of the best ways they can decide how much the homeowners can reasonably afford, and how long the payment plan term should last. Obviously, since the foreclosure victims are attempting to pay their normal payment as well as a portion of the arrears every month, the lender will have to make sure this does not take up too much of the homeowners' income. If the repayment plan is too expensive, the loan will go back into default and foreclosure. The paystubs should show income over at least a period of one month, and they should be recent and consecutive.

Submitting one from August and another from November does not show a stable income.
Bank statements are also important, for two reasons. The first is to show the lender that there is an emergency fund or extra cash in the bank that the homeowners can use if they fall behind again. The second reason is to show the bank what kind of spending habits the foreclosure victims have engaged in since falling behind. If they have been saving money or using their lowered income to keep on top of other bills, then the bank will look more favorably on offering a payment plan or loan modification. However, if the bank statements show that the homeowners have been spending money on unnecessary items, such as frequent shopping trips or online purchases, when they could have been saving money to pay the mortgage, this indicates to the lender that the homeowners are irresponsible with their money and will have trouble in the future paying the mortgage. Bank statements should also be recent and consecutive in order to give the bank a more general overview of the homeowners' spending habits.

The final documents that homeowners will need to present to the bank are tax returns for the previous two years. Tax returns show the lender that the homeowners have generally stable income, but suffered from a temporary hardship causing them to fall behind. This is important, because it serves as evidence backing up the claims made in the hardship letter that the crisis was involuntary, unavoidable, and uncommon, although it has not been rectified. Simply filing tax returns also shows that the homeowners are not trying to get out of paying their federal income taxes and shows that they were not just trying to get out of paying their mortgage for a few months. But the actual financial data will be most important, as a stable or increasing income will prove to the lender that the homeowners are generally financially stable over the longer term.

Besides these documents, lenders will often have their own forms and financial status reports that must be filled out. But homeowners who are working with their lenders, or working with a loss mitigation company to deal with the lender for them, need to be aware of the importance of having these documents. Without all of them, the mortgage company can not make the most informed decision possible about the current state of the foreclosure victims' finances, and they will turn down the proposal for a repayment plan or loan modification. It would be a tragic occurrence if the homeowners lost their homes to foreclosure simply because they did not have this information readily available to be submitted to the lender. Thankfully, loss mitigation companies and the banks provide checklists to the homeowners to make sure they have submitted everything necessary, but a failure to read and comply with these documents will typically result in a failure to save the home.

The ForeclosureFish.com website provides homeowners with free foreclosure information and assistance they can use to put together a plan to save their homes on their own. The site contains hundreds of pages of blog entries, articles, and reference materials designed to educate foreclosure victims. Visit the site today to download a free e-book and begin learning how the foreclosure process works and how it may be stopped: http://www.foreclosurefish.com/
Article Source: http://EzineArticles.com/?expert=Nick_Adama

Choosing the Right Real Estate Agent

Not all real estate agents, Realtors and brokers are alike. It's wise to shop around and find the real estate team that's right for you. First stop to think about the qualities that you need in a real estate agent to effectively sell your home. Your list may read like this:

Listens to my needs. You want a real estate professional who listens more than talks. Your agent needs to hear what's important to you, and keep your priorities above his or her own at all times.

Works hard and is not lazy. It sounds basic, but there people out there who are not willing to work as hard for you for whatever reason. You need someone at the top of their game, someone at the peak of their career who is ready to get out there and do whatever it takes to get your home sold in a timely manner and for the right price.

Answers my calls. When you're selling your home, nothing is worse than getting voicemail even 50% of the time. You need a real estate professional who is available for you when you need him or her. You need someone you can reach immediately when necessary.

Positive Attitude. Want to sell your home quickly, for more than you expected? Find a Realtor with a good attitude. A negative, moody or depressed agent frankly will not have the confidence necessary to sell your home effectively in any market conditions.

Knowledgeable. Your Realtor needs to be knowledgeable about the legalities of real estate, the marketplace and about your area.

Successful. The best real estate agents are successful agents. You should be able to tell they are successful when you meet with them. They should have an excellent track record and sound references to prove it. An unsuccessful agent is that way for a reason, don't find out why.

Confident & Assertive. When it comes to selling your home, you need someone who is confident and assertive. Confident, because they need to know exactly what they are doing, and assertive because they have to take an assertive stance in the negotiation process. You want someone on your side who knows how to take a stand.

Ethical. You want an ethical real estate agent who you can trust. Not only will he or she show up where expected, but will show up on time. Your Realtor must have an outstanding reputation and perform his or her job with high moral clarity.

Markets your home by many different means. Sometimes all that's needed is a sign in the front yard and you've got offers on your home from here to the Brazos River. Other times, depending on market conditions and other factors, selling your home may require extra techniques and tools such as virtual tours, internet marketing, open houses, direct mail, etc... Make sure your agent is ready to do whatever it takes to get your and your home moving.

Lee Gaban is a writer for Fort Worth Realtor, Sharon Mays, specializing in a Fort Worth Homes

Article Source: http://EzineArticles.com/?expert=Lee_Gaban
http://EzineArticles.com/?Choosing-the-Right-Real-Estate-Agent&id=686611

Buying vs. Renting? What should I do now?

Many people come to me now with the question, should I buy now or rent for a while? That's a great question and there are many things to consider, regardless of where the real estate market is going.

What is your personal situation, where are you going to be in 2 years, 5 years, or more? Are you looking for a house to live in for the rest of your life or are you planning to move again in the next few years? Are you financially ready to put a 10-20% down payment when you buy a home or do you need 100% financing? So many things to consider so let's look at them one at a time.

Let's look at how long you plan on living in this house, this is very important factor right now. Over the last few years we have seen real estate prices increase at a record pace, this is not normal and now some areas are feeling the pain of having the market decline in price. The prices have come down some in many areas and there are some good opportunities to buy property out there, remember you never buy exactly at the bottom and sell at the top, getting close is what is important. Read more here

Peter DeJoseph
Lic. Real Estate Broker
Lic. Mortgage Broker
http://www.yourreguy.com/

Selling Your Home? 5 Home Staging Tips

So you’ve decided to sell your home, you have a realtor, the sign is in the yard, the house is clean and ready to go and you want to know what else can you do? The goal of course is to sell your house at the best price possible and our goal is your goal. When a buyer is looking for a home they judge everything from the minute they drive by or pull in your driveway until they leave, the landscaping, color of the outside, color of the inside, light and bright or dark and cold everything matters to them.

Decorating and home staging professionals work with Realtors and their valued clients to prepare their homes for potential buyers. As professionals we asses then recommend any changes or adjustments that will appeal to all types of potential buyers. These small changes or adjustments can make your house more desirable to a larger number of buyers that look at your home simply because it looks ready for them and their family.

Here are two stories of clients selling their homes.

Our first client's home exterior was white with a bright purple front door. The interior of the home had bright yellow and red walls. The color purple was used on all the trim throughout the house. The furniture and window treatments were attractive in style but also in the same...

Read the rest and get the tips here

Pam Rogers
Interiors by Decorating Den
1-800-DEC-DENS
http://www.decoratingden.com/

Short Sales in the news

As the foreclosure rate climbs across the country and people scramble to save their homes and credit rating, alternatives to giving up are in the news. Here is a video from CBS News about short sales and how they can help everyone involved.

Watch Video

Stop the foreclosure and sell your house.

With all the news and reports about the housing market I want everyone who is in trouble to know there is a way out. If you have been affected by a job loss or a declining real estate market and can not sell your house, there are options for you to avoid a foreclosure.

In different parts of the country and for different reasons people are facing foreclosure in alarming numbers. Read more