The biggest real estate questions are “How do I get started?” and “Is it really possible to make money?”
The best way to get started is to [tag-tec]flip[/tag-tec]. Flipping is simply buying a property with a little something wrong with it; preferably around 25 percent under market value. Make a few improvements and sell for a profit in less than a year.
I know some [tag-ice]flippers[/tag-ice] have gotten some bad publicity over the last few years, and I think that’s a shame, because generally most [tag-cat]flippers[/tag-cat] are sincere real estate investors working very hard to add value to neighborhoods. By and large, that’s the way many get their “big break” in the business.
Here’s what you need to keep in mind. “A little something wrong” means just that. Stay away from [tag-cat]properties[/tag-cat] that have more than a little something wrong with them. You certainly don’t want surprises and you don’t want to deal with major issues like structural damages.
But this is what amazed me when we rehabbed what has become my pride and joy property. The day of the closing we walked in on a junk farm. I’ll never forget that sinking feeling. “This place is a dump” kind of stress. Can it ever look good?
You know what? It wasn’t that bad. Paint really does make a tremendous difference. We painted, we spruced, we got it back in shape. And I kept it.
Here’s today’s thought. Mostly the rule is for every $1,000 you spend on painting the outside of a house, you can increase the market value by $10,000. (That works different ways for different people and your results may vary, but that’s the general rule). Exterior painting can bring spectacular results in many cases.
We’ll cover more on flipping in future posts. Meanwhile keep a look-out for the worst and ugliest houses in good neighborhoods. There could be a lot of potential just waiting for a little smooth fresh paint.
Popularity: 29% [?]
Related Websites -
The Number One Mistake that Would-be Real Estate Investors Make I met with my friend's wife this weekend to learn more about her thriving real estate business. She helped to confirm what I suspected to be the number one mistake that new investors make: they expect to make good returns by paying "retail" prices for real estate. By "retail" prices,...... -
The Mortgage Crisis and Investments in Real Estate According to regional and state real estate analysts, the factors which previously fueled the housing boom of the last few years are easy to explain. The factors that fueled this boom in the real instate industry ranged significantly, including: - Interest rates that were historically low. - Flight-Risk Safety Investments...... - Rental Demand Rising: Balance Returning to Real Estate? One of my most important metrics for jumping back into the real estate investing game is on the rise: apartment demand is finally showing signs of life. With millions of families switching from being homeowners to renters, apartment-building values have soared. That isn’t good for renters, who enjoyed falling rents,......
-
Investing with YOUR Self-Directed Individual Retirement Account (IRA) Part 2 If you're just starting your IRA now, and say you have $5,000 - $25,000 in your IRA, that might not be enough to bother with trying to get into a commercial real estate investment with. For a high-quality commercial property, you're going to have to put 20% down in...... -
Real Estate Investments - Good Idea or Bad Idea? Right now, if there was a market that had bad news written all over it, it would be real estate. The housing crisis has made investors jumpy, the economy appears to be tanking and home values are plummeting across the country. Would you believe that this is actually a good......