Becoming a Real Estate Rehabber by Alexis McGee

I’ve been talking a lot lately about the “Investors Flip Feast” going on right now. With an Investor’s Flip Feast you contract a great deal with a homeowner and then assign your contract to another investor for a quick finder’s fee. It’s a great way to get started in foreclosure investing without needing any of your own cash or credit.

Once you’ve mastered “assigning deals” to investors for quick paydays, you are ready to make some serious money in real estate by buying a property at a discount, fixing it up, and selling it on the retail market. This is also known as “rehabbing” or “retailing.” This is a great way to see the results of your work immediately and build wealth quickly. It works in any market, any time. And it is working especially well right now with all the great fixer foreclosure opportunities everywhere around us.

Our many foreclosures.com successful rehabber clients focus on fixing up “entry level” family properties and make $30,000-$60,000 or more on every deal. Doing two or three houses like this a year can provide great extra income for college and retirement expenses, while doing six or more deals a year can provide you with a great living and be your ticket to firing your boss.

Cosmetic vs. Structural Repairs

When looking for a great property to rehab, keep your eyes open for fixes that will make a big difference, but not necessarily cost a lot. Less really is better in the retailing business. Look for houses that need cosmetic changes such as:

· New paint

· New carpet

· New fixtures

· New landscaping

· Minor clear termite repairs

Until you become an expert at rehabbing, avoid properties with structural problems such as foundation issues or severe dry rot. Major rehabs can be extremely profitable, but you must refine your job-costing skills first or you can get stuck in a money pit.

Buy It Right and Everything Else Falls in Place

It’s often said that real estate investors make their money when they buy, not when they sell. This simply means that when you get in for the right price, you are guaranteed to profit when you get out.

So what is a good deal? You want to have at least a 30% margin PLUS repairs to ensure that you make enough profit. For example, if a house in perfect condition will be worth $200,000 fixed up, you must get it for $140,000 LESS the cost of repairs. If repairs are minimal and only $20,000 then you need to buy it for $120,000. In this scenario, when including repairs, you are actually buying the house at 40% off.

Out of that 30% margin, 15% goes to buying, holding, and selling expenses and 15% goes to your profit. In the same example, your 15% profit on a $200,000 retailed house will net you $30,000. The higher the resale, the more money you make. If the house is smaller than $200,000, I pencil in a minimum of $30,000 flat (rather than 15% percent) to make sure I get my minimum payday for my time, effort, and risk.

Also remember that the bigger the repairs, the bigger the discount (I’ve been known to buy at more than 50% discount on bigger projects). Remember, you’re dealing with motivated sellers–typically fixer uppers–which means the houses you buy will NEVER be in perfect condition.

Make Sure You Get it Right

To make every deal as profitable as possible, you must prepare in advance and estimate all your costs properly. The biggest risks in rehabbing property are:

While you can make a great deal of money in rehabbing, it can be frustrating and time-consuming if you don’t do it right. On the other hand, you don’t have to deal with tenants, you can see the progress being made every day, and you’re updating housing and improving a neighborhood. It’s rewarding to drive by houses you’ve bought, rehabbed, and sold. And your new neighbors love you.

If rehabbing houses interests you, try doing one or two while maintaining your current job. If you enjoy it, and it makes you enough money, perhaps you might try going full time as an investor. Fixing up houses for new buyers is one of the most satisfying things you can do in real estate, and the most profitable.

John Assaraf the Spiritual Entrepreneur

Learn to Wholesale

* Search Foreclosures in Your Neighborhood, FREE 7-Day Foreclosure Lists Trial

* Enroll in our Interactive Hands-On Investor Tutoring by Alexis and her Proteges.

* Hire your own Foreclosure Investor Personal Coach

Copyright © 2011 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.

Subscribe in a reader

Republished by Blog Post Promoter

Real Estate Business

Real estate is one of the best investments there is today.Land is a depleting resource that appreciates in value over time.Highly urbanized areas like Washington DC real estate have the best values and are a good place to invest.

Freedomsoft Software , Real Estate Property locating software.

Although getting into the real estate arena may seem like a very interesting thought,but it would require some effort before you succeed.Here are some of the things you have to do when starting your real estate business:

1.       Think of the kind of real estate you want to focus on.You have the choice of starting up your own business or simply doing a franchise.Also try to think what kind of property you will be focusing on be it commercial, residential, etc.In doing so, you would have to consider your financial capacity as startup capital.It will be very difficult for you to risk putting in more than what you can afford as you are not yet sure of the outcome.

2.       Look for your place.When you’re just starting up, it is best to focus your efforts on a specific area first.In doing so you can already start to think of the status of real estate in that place.Like if you want to do Washington DC Realty, you should do a market research of the place.

3.       Make a business plan. In any business endeavor, having a business plan is really very important as it would be your pillars.It will serve as your bible to guide you every step of the way.This is where you need to analyze strengths and weaknesses and formulate strategies.

4.       Then you have to start realizing these plans.The first step is for you to secure a license.Your license needs to be secured from the place where your business will be.If you want to go for Washington DC real estate then you should get your license there.

Subscribe in a reader

Since there is quite the negotiation process, finding prospective home buyers to buy your luxury homes in east cobb can be tough. When selling your property for sale, it’s essential to have a negotiation skill. If you don’t know how to negotiate with prospective investors, it won’t make a sense even if you have an appealing property. Making a great transaction between you and the home buyer can only happen if you follow some of these tips.

The Real Estate Matchmaker software

Your Motivation In Selling Your HouseDo You Have The Motivation To Sell Your House?

It’s important to know the reasons why you should sell your home. Before making any actions such as putting a “For Sale” sign or make an offer to anyone, be sure that you think a lot of times if it’s really the right time. For whatever the reason is, make sure to weigh the situation before making another step because you can’t have a good transaction with your prospective buyer if you’re not really willing to sell it.

Negotiation Process

Negotiation is really a crucial part of the selling process because there are some buyers who would demand to lower the price. Before you get trapped by their idea, ask yourself if you can still gain profit if you lessen the price. On the other side, as a seller, you can also demand to higher the price only if it’s reasonable. Know the reasons why you should hire the price. If you go overpricing, you will end up having a difficult task of selling your home and the worst could be, your investor won’t negotiate to you anymore. Keep in mind that it’s still important that your luxury homes in east cobb ga has a fair market value.

The Caution 

There is certainly a signing contract before closing the deal. You and the investor must understand and agree of whatever stated in the agreement contract. So, make sure to read all the agreements thoroughly  to prevent yourselves from any hassles. Hiring a lawyer or someone who is responsible for the legalization process is very helpful. 

The Option

In some cases, both parties may encounter issues such as the terms and agreements and pricing expectation. You can find another potential investor in case you’re having a difficult time dealing with the person. Some prospects out there might also want to own your east cobb ga luxury homes and you certainly don’t want to waste your time to someone who doesn’t meet your expectation. However, in your part, there can be also a problem. So, you must determine if you have some problems with your negotiating process for you to be able to find another strategy that will effectively sell your property.Subscribe in a reader

House Flipping

Sooooo … this may sound a little far fetched, but a buddy of mine has just invented what he refers to as a “House Flipping Robot”.

It basically buys and sells houses FOR you.

He’s making a hundred of them available to the public.

You’ll just have to see for yourself. Check it out …

The Real Estate Matchmaker software

This is the future.

Welcome.

Hans Anderson

p.s. if the site is down when you get there, it means he’s sold out already. I’d check now if I were you …

The Real Estate Matchmaker software

Subscribe in a reader

Real Estate Matchmaker

Hey, my friend Preston Ely has a job for you as a real estate matchmaker.

It can be full-time or very part-time.

All it entails is finding foreclosed houses and referring them to a list of landlords.

You’ll make anywhere from $2,250 to $10,500 for each one.

As you know, 1 in 8 people are in foreclosure right now. So this is a bit of a no-brainer. Walk outside, throw a
rock, and you’ll probably smash the window of a foreclosed house.

The good news? You’re already qualified.

The bad news? So are 100 other people in your city.

And he only wants a few of you …

Watch This Free Virtual-Orientation

Real Estate Matchmaker

If you are broke, unemployed, living week to week, hating your job, or just wanting a better life for yourself …
you need to watch this video now.

Hans Anderson

p.s. Preston can help you, and you can help him. But he’s only looking for a few people in each city, so
watch the video now …

Real Estate Matchmaker

Subscribe in a reader