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4 Simple Tests To Find Good Real Estate Investment Properties
You're driving along the road when you spot it. There in the middle of a shaggy lawn sits a disheveled property. It may need a good coat of paint, or a shutter straightened out, but it's easy to see that with a little work it could be a little gem...
Concrete Cutting: Shedding Light On Your Basement Remodel
Basements or cellars (depending on which part of the country you are from) are primarily seen as dark and dingy parts of a home. In most cases they are considered a useless area or are used as a “catch all” for family discards that haven’t quite...
Higher Home Appraisal Values
To most, owning a home is a necessity, but sometimes it is a matter of pride or a business investment. Home appraisal values become relevant if one wishes to sell his house. Home appraisal values is a technical term which means the value of a...
Part VI: Home Buyer Terms and Definitions
Recording Fee - A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers...
The Basics of Solar Power For Your Home
Solar power is an alternative energy source with tremendous
economic and environmental benefits. If you're considering it
for your home, here are the basics.
Sunning Your Home
Put simply, solar power works by converting free sunlight...
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A Secret To Real Estate Profits ? Follow The Builder
As the real estate market cools, the profit potential of home ownership has cooled as well. Here?s a strategy called ?follow the builder.?
It is relatively easy to make a profit when you sell your home if the market is rising sharply like it has been in most of the country for the last three years. It becomes more difficult when a hot market slows down. It?s very difficult to make a profit on the sale of your home when prices are falling.
Is there a way to be relatively sure you?ll make a profit when you sell your home? There is under all but the most negative market conditions. In fact, I?ve seen young, energetic couples use this maneuver multiple times when they don?t even need to move.
Follow That Builder
In many areas of the country, there are builders who build hundreds of houses each year within a fifty mile radius of each other. They build entire communities or are one of three to five builders who build entire communities around big employment centers. This present you with an important opportunity.
New Community
Builders will typically sell first phases of communities for significantly less than later phases. On one hand, they need to get the cash flow moving. On the other, it is harder to sell at high prices because the community typically consists of dirt lots and construction equipment. Put the hands together and you have a great profit opportunity.
The idea is to get in on the first phase of the build out. You will purchase the home at a discount, which gives
you built in equity. As the community is built up, you sell the home for a profit at a higher price. While you?re doing this, you keep tabs on the builders projects and find another location where you can do the same thing.
You?ll end up living in each house for a year or more and picking up nice profits along the way. The only real downside is you have to move repeatedly.
Tax Consequences
I?ve seen this work well for a number of people who have done it more than once. However, you need to be aware that generating profit this way can have tax consequences. You need to discuss your plans (including projected timing and profit potential) with your tax professional so that you are prepared to deal with any tax consequences.
About the Author: Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home?" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.
Source: www.isnare.com
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