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Commercial Real Estate Definitions – From O To Z
Commercial real estate is distinctly different from residential real estate. The terminology is very different and here is a list of new terms from O to Z.
Commercial Terms
Operating Expenses: Just as it sounds, operating expenses are those...
Finding The Best Real Estate Agent
Finding the appropriate time to leave behind the unforgettable moments that you experienced in your home is sometimes stressful, but it's always the time to move forward to get a new investment. Statistics in Las Vegas real estate show that the...
Help! I've been Robbed
Your home is the most important place. It is the place that you go to after a hard day’s work. It is closely associated with the feeling of warmth, and it is surely not a surprise that so many things rely on the special feeling that your home gives...
The Real Estate Industry And The Internet
The Real Estate business is truly unique in the sense that most people will only engage in it once or twice in their entire life.
And since purchasing property is such a complicated matter, Real Estate businesses have laboriously pursued every...
Where Are The Really Good Real Estate Investment Deals?
In writing my last article about the neighborhoods where I find the most profitable rehab real estate investment deals, something occurred to me.
In that article I described investing from what I've found is typical in doing this business. I...
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Flipping Houses for Profit: Start with the Right House
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers; however rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
Three Tips to Help You Find the Perfect Fixer
1. Understand Your Market
Your first task, exploring your market, helps you know a deal when you spot it. Look at houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask the selling real estate agent about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs? Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. But these buyers like the special features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what turns buyers on and you'll make smart makeover choices.
2. Know When "Ugly" Means "Profit"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. We like to buy the ugliest house in a decent neighborhood.
Don't be afraid of stinky houses that show horribly; look for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other investors see them as gold mines.
3. Know When "Ugly"
Means "Pass"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems, but they acquired those skills after years of experience or they have the money to pay a professional.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Look for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average investor make? In Philadelphia, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Learn your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
About the author:
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher�s Doghouse to Dollhouse for Dollars. Learn about decorating to attract buyers. Professor Fisher teaches Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics.
http://www.doghousetodollhousefordollars.com/.
Questions? http://doghousetodollars.blogspot.com/
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