Flipping Houses

Flipping Houses & New Ways to Make Money

2008-12-19T10:45:00.000-08:00

Hello,

I haven't posted on this blog in a long time. Since my husband passed on, I lost interest in flipping houses. However, today's market is very similar to the one my family and I started real estate investing in. Today's real estate investors are extremely active buying up forecloses and short sales. For the first time in many years, we have a positive cash flow position in California. Therefore, fluctuating sales price make little difference if you are investing long term.

After all, who wouldn't borrow money if some one else makes the payments?

I will be hosting more teleseminars for investors next year. You can email me and tell me what you want to know about and I will find the expert.

In the meantime, if you would like to make money in new ways, check out the website below:

http://budurl.com/777sh

Joy!

Jeanette Fisher

Follow me on Twitter
http://twitter.com/jeanettejoy

Special Conference Call for Home Sellers

2008-01-22T05:52:00.000-08:00

Join me of Facebook for a great conference call. Facebook has a great call system that lets you participate so that everyone isn't talking over each other.

* You can type your questions in so I can see them.
* You can mute yourself by clicking on a microphone icon.
* You can "raise your hand" to speak.
* You can upload your pictures so I can see your house outside and inside.

How to participate: Join Facebook.

Join this group: Jeanette Fisher's Home Seller's Helpline .

Click on the Groups button on the left under applications.
Search for Jeanette Fisher's Home Seller's Helpline .

Also, join the Free Conference Calls Application

Click on the listing for:
Home Sellers Help from Home Staging Tips to Investor Traps

I know all this seems complicated, but the conference call will be unlike all the other teleseminars we've done. This is a hands on experience where you will get answers to YOUR home selling questions.

Joy in technology!

Jeanette

Flipping Houses Thirty Years Later

2007-12-04T09:29:00.000-08:00

Today's Market Is Just Like the Golden Days of Real Estate Investing

Wealthy real estate investors who started thirty years ago love the
current market because it is so much better for those who know
how to buy low, low, low, and sell higher than purchase. It's
true flipping.

In fact, today in Pomaona California, my mother put an offer on a
house for a thousand more than asking. Someone else bid $10,000 more!

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.

Enjoy Flipping Houses!

Copyright 2007 Jeanette

The Market Died and I Can't Make Any Money Flipping Houses

2007-11-21T15:34:00.000-08:00

I got an email: "The market died and I can't make any money flipping houses."

The funny thing about the real estate market is that it's just like it was when my family made the most money. HUD repos were rampant and there were even VA repos. We always bought fixers and turned them into dollhouses. People still need houses.

Don't get discouraged about the market. It will turn around and when it does, those buying today will be the next real estate millionaires cruising the Greek Isles.

Happy Thanksgiving,

Jeanette

P.S> Read The Truth about Making Money Flipping Houses

Flipping Houses Today with Decorative Paint

2007-11-08T18:35:00.000-08:00

Now, more than ever, investors can pick up bargain fixers. In fact, some sellers are just giving away their homes. I know of several low, low, down homes in Lake Elsinore with owner financing. (951-678-8780) The way that you can make money is to buy low and sell high. The only way to sell high today is to have a product that people really want.

One of our fixers was a HUD repo. (Check government listings free: http://www.hud.gov/homes/homesforsale.cfm ) We used vibrant colors and decorative paint finishes to turn the disaster into a magical retreat.

I just love turning dumpy houses into buyer's dream homes. You can use decorative paint finishes for upscale results without paying a lot of money for the attraction. It's a little like making websites "sticky," you make your home memorable so buyers think about your home and not the others that they look at as possibilities.

You can get inspiration from museums and mansions, take a small detail, and copy it in your home.

Learn more about Design Psychology for Flipping Houses.

Have fun!

Jeanette

Thank you

2007-10-01T10:26:00.000-07:00

Thank you for your kind emails about our show on Flip That House. I wish the producers had time to tell the story about the artists who rescued the house with love or at least told people about the book site to benefit Habitat for Humanity. However, we are so grateful that we did the show.

Flip That House TV show tells the family story and not the artists' story

Artistic Photo Captures Flip Spirit

2007-09-29T09:44:00.000-07:00

This photo by Ed Crisostomo captures the spirit mural artist Kim Schaffer brings to the "House That Love Flipped."

The Press Enterprise featured our flip in today's newspaper.

Video:
http://www.pe.com/video/southwest-index.html?nvid=179302

Podcast and story:
http://www.pe.com/localnews/inland/stories/PE_News_Local_D_mural29.3d55bdb.html#

(I was told the show will be on at 9:30 tonight.- Jeanette)

Fisher Family on Flip That House Saturday

2007-09-28T18:15:00.000-07:00

This is how TLC promotes the show:

Saturday, September, 29, 2007 at 09:30 PM ET on TLC

Flip That House

Brian and Jeanette

The Fisher family and their 22 person crew are flipping a 3 bedroom 1 bath home in Lake Elsinore, California that they purchased for $340,000. They have a budget of $10,000 and a 1 month schedule. Will they be able to finish on time and under budget?

See before, during, and some after pictures of the special benefit Habitat for Humanity at Flip That House.

Flip That House Update

2007-09-25T12:55:00.000-07:00

The Fisher family show on Flip That House premieres Saturday, September 29 in the evening.

The volunteer artists will join the family at a celebration of life and love to watch the show together. They will all sign their pictures in the book by Jeanette Fisher. Two books will be sent to the artists back East to sign. Since the bestselling artist Wyland and bestselling author Mark Victor Hansen are pictured with Jeanette and her mother, artist Jayne St John, Wyland and Mark will be asked to sign the two books to be auctioned for Habitat for Humanity.

Read more about the faux artists and preview their work on the Faux Flip.

Make more money flipping houses with faux "how to" articles:
Crackle Painting: An Easy Popular Faux Finishing Technique

Color Washing

Add Faux for Drama and Dollars

2007-09-24T20:09:00.000-07:00

Faux Painting: A Simple but Effective Home Improvement Project Adds Dollars

Repainting walls has traditionally been the number one home improvement project among home sellers, and that's not likely to change. After all, a new splash of color can make a huge difference in the look and feel of a room--without breaking the bank in the process--and faux painting can add an even greater sense of drama to a room.

However, there are millions of colors out there, so how do you choose which ones are right for your particular remodeling project? That's not an easy question to answer, because it depends upon so many variables, including personal taste. Here are a few ideas to help you get started.

First, remember that the base color--the one you'll apply first--should end up being at least 50% visible when your project is complete. Then, depending upon how many other colors you decide to add, the secondary colors will cover correspondingly smaller percentages of the wall as you go through the process.

Another thing to take into consideration is the effect that light will have on your color choices. Darker colors will tend to absorb the light, which will make your room appear smaller. Darker colors also look even darker in rooms with a northern exposure, since they get less light than rooms at the other end of the house. If you're working on a room with north-facing windows, that's something to take into account when choosing your faux finish color scheme.

The opposite is true for south-facing windows. The sun will stream in those window much of the day, making light colors reflect even more light than they would in other rooms. That means that you may want to use somewhat darker colors to soften the look and feel of the space.

As for choosing the actual colors, you're free to use your imagination, but many experts suggest using colors that are only a few segments removed from each other on a traditional color wheel. Your local paint store professional can help you with that sort of thinking.

However, if you're hoping to make a bold statement in your newly decorated room, you can experiment with colors to your heart's delight. The only suggestion I would make is to do a sample on a practice board before you transfer your ideas into the room itself. You'll be able to get a pretty good feel for how it's going to look--and you won't end up having to repaint an entire wall to cover up a less-than-desirable result.

Faux painting takes time, but it's still one of the least expensive ways to bring a new life to a room--and it's visually and emotionally more interesting than simply covering a wall with a single color. Just take your time and you'll be amazed at the difference it can make!

To see faux painting projects, look at Christina Johnson's website: Faux Finishes
Faux Finish Above: Christina faux painted the bathroom of the Faux Flip for Habitat for Humanity seen on TV's popular show Flip That House.

Copyright © 2007 Jeanette Fisher

Top 5 Mistakes House Flippers Make

2007-09-20T13:30:00.000-07:00

We've been flipping houses for many years, and we've learned some valuable (albeit sometimes painful) lessons along the way about what not to do if you want to succeed at buying and selling homes. Here are five of the biggest mistakes I've seen would-be flippers make--mistakes you must avoid in order to reach your own goals.

1. Paying too Much

First, uninformed investors overpay for the house in the first place. Remember, the biggest profits lie in turning a doghouse into a dollhouse, but that means you're going to need to sink some money (sometimes lots of it) into a house to make it shine--and to allow it to make you significant profits. Many pros will tell you that they need to get a house for at least 30% below true market value in order to make a rehab worthwhile. You must know your market and do your own research.

2. Nothing Down?

The second mistake, and one that you often won't hear about in most "nothing down" seminars, books, and tapes, is going into a transaction with a lack of ready cash. Regardless of what many of the so-called nothing down gurus, you're generally going to need to be able to come up with at least a couple mortgage payments during the process. That means you'll be shelling out that amount on top of your regular bills and any that you incur during the remodeling process. If you do spend thousands to go to the "Nothing Down" seminars, you'll find that they really mean "none of your money down" or using credit cards.

3. Under Estimating Repair Costs

The third mistake is underestimating repairs costs. This one can kill your bottom line and turn what you hoped would be dream profits into your worst nightmare.

4. No Cushion for Surprises

You should always include a cushion when estimating repairs, because you'll nearly always run into something you hadn't planned on as you begin your flipping endeavor. It wouldn't even hurt to double the amount of money you think you'll need when doing your initial estimates. That way, if you're way wrong and the repairs aren't nearly that high, you'll be pleasantly surprised by your increased profits.

5. No Exit Strategy

Finally, although it may seem strange, the most disastrous mistake you can make is not to have a realistic exit strategy in place before you even sign the purchase papers. No businessperson would consider buying a product without knowing how much that product will sell on the retail market, and flipping houses is no different. You have to know how much the property will be worth once the work has been done. If you don't know what your sales price will be, it's impossible to know what your potential profits could be. You also should be prepared with a marketing plan to sell and know your action steps.

Flipping houses can be a profitable business, but it's potentially disastrous, as well, if you don't avoid making costly mistakes. What is your business plan?

Learn how to fix with interior design psychology and faux art so you can sell for top dollar. See the Habitat for Humanity house featured on the Flip That House show: Jeanette Fisher's Flip That House with Faux

Pictures of faux flips: Flip That House Book pictures

Copyright © 2007 Jeanette Fisher

Faux Marble adds value to Flips

2007-09-19T08:54:00.000-07:00

Adrienne van Dooren rented her Faux House out for $500 more per month than neighboring houses before she sold it for $50,000 more than comps last month.

You don't have to go completely "faux" to make your houses more desirable than the competition. If you have a boring, generic fireplace, take a look at faux options.

Select the finish that matches your house architecture or location.

Faux Marble Instructions
Faux Stone Fireplace Information

Fireplaces will be important during the upcoming cooler weather!

Copyright © 2007 Jeanette J. Fisher

Faux Flip Pictures at Flipping Houses Seminar

2007-09-07T06:56:00.001-07:00

At the House Flipping seminar tomorrow, I will share the pictures of the house featured on Flip That House. Join the seminar at the Mt. San Jacinto college. Call before noon today or show up early to register. (951) 487-3711.

Ceiling mural by Arlene Murals

Professional Photographer Alana Lloyd took pictures of the Habitat for Humanity Faux Flip and the faux artists yesterday. You can see some of the pictures on a slide show on FauxFlip.com or on Alana's site Bellissima Photography.

Course details: Saturday September 8 from 9 AM to 1 PM at Mt San Jacinto College in Menifee *Optional: Materials may be purchased in class. # 9220 Room 1013A Fee: 60.00
Registration will be accepted with the use of MasterCard, Visa, or Discover at: (951) 487-3711.

Flip That House with Faux at Mt San Jacinto College: Is Flipping Houses for Profit Still Possible in Southern California?

2007-09-03T15:53:00.000-07:00

No matter what the real estate market seems to be doing in Southern California, people still want to learn how to make money flipping houses. Last time Mt San Jacinto College offered "Flipping Houses for Profit: Still Possible in Southern California?" taught by Jeanette Fisher, the class was moved to the auditorium.

The only seminar to reveal interior design secrets to fixing houses helps first time home buyers and investors buy houses for less and sell for more. See slides of fixers before, during and after transformation, including the Fisher's Faux Flip to be featured on The Learning Channel's hit TV show "Flip That House" September 29, 2007.

Learn how to find, finance, fix and sell houses for profit in any market. See fresh ideas for fixing houses using interior design methods that make houses simply irresistible to buyers.

On Saturday, September 8, the college course at the Menifee Valley Campus explores the shifting real estate market in Riverside County. Fisher shares her interior design and home staging techniques that helped sell an investment house in Riverside. She said, "We received multiple offers within hours of listing and closed within 21 days."

Dr. Pam Wachholz, of Menifee, California recommends Fisher's course because, as she says, "Professional stagers cost over $2,500. You can take this class for almost nothing and make thousands."

Fisher has sold houses in as little as three hours in bidding wars after applying her Design Psychology methods to attract committed buyers. Betty Williams, a real estate investor from Canyon Lake, California says Fisher is "the ideal instructor to learn from. She has actually done what she is teaching and has been successful at it!"

Course details: Saturday September 8 from 9 AM to 1 PM at Mt San Jacinto College in Menifee *Optional: Materials may be purchased in class. # 9220 Room 1013A Fee: 60.00
Registration will be accepted with the use of MasterCard, Visa, or Discover at: (951) 487-3711.

The same seminar is also available by Teleseminar. Class size limited so each participant gets the same advantage as those taking the college course. To register for the teleclass, go to http://doghousetodollhouse.com

Fisher offers a free ebook: Flipping Houses

Fisher, who has sold over 35 houses, attributes her success to using Design Psychology, which appeals to buyers' emotions. Fisher discovered her unique brand of Design Psychology methods when her family renovated a Queen Anne Victorian home in Palatka, Florida. She has researched how people respond to interior design details for over 15 years, enhancing her own successful real estate investment career with research from the University of Florida, Harvard University, and the University of California.

Fisher is the author of university textbooks, Doghouse to Dollhouse for Dollars, Home Staging with Design Psychology, and other real estate investing books including Flip That House with Faux, to be released September29. Besides flipping houses, Jeanette teaches Design Psychology and real estate investing. She is a frequent TV and radio show guest.

Media Contact
Family Trust Publishing
http://familytrustpublishing.com
Ted Blake
(951) 678-3369 “

Imagine flipping luxury houses...

2007-08-13T09:35:00.000-07:00

Imagine if 500 entrepreneurs came together, and started purchasing high-end luxury vacation homes around the world to use as a private group...

And what if you could use the vacation homes as much as you wanted...

And what if it only cost $97/month?

Sound Interesting? Then click here to learn more: EntrepreneursVacationClub.com

E.V.C. launches September 6th. That's when memberships go on sale. So YES -- you are on the *ground floor*.

IMPORTANT: The lower your member ID, the higher your priority when you try to reserve room in the vacation home.

So don't let someone else skip in front of you! Get the full story right now:
EntrepreneursVacationClub.com

NOTE: The $1,000 membership fee is waved LAUNCH DAY ONLY.

(They're doing a NO-OPT-IN launch, which means they're not collecting email addresses.)

Enjoy....

Should You List a Flip of Sell it Yourself?

2007-08-11T19:32:00.000-07:00

I'm constantly asked whether a real estate investor should try to sell a home they've remodeled themselves or list it with an agent. My advice: always use an agent, especially if you've never sold a home before.

My main reason is that selling homes is what agents do. Your efforts should be pointed toward buying a home, remodeling it, flipping it, and then finding another property. You have to do what you do best, and hire an agent to do what they do best, which frees you up to concentrate on the core of your business--flipping houses.

As a former real estate agent myself, I know how hard agents work, but I also know how hard some agents don't work. That means that all agents aren't created equal. Your best bet is to shop around, find an agent you're comfortable with and who has a good track record of selling homes, and then use them as often as possible. The reason: Agents work on commission, so if you promise to keep bringing them business on each end of the process, from purchase to sale, you'll find that they will work harder for you. They'll learn the kinds of homes you want and point you toward them when they find them. They'll also know that your homes are nicely remodeled and reasonably priced when you go to sell them, so they'll be looking for buyers for you throughout the remodeling process, which will translate to quicker sales. You may even be able to negotiate a better commission percentage once you've done several transactions and have proved that you are committed to making money for the agent, too.

Agents have access to other agents, to lenders and mortgage brokers, to the MLS book, to advertising sources, and they can easily do many things that would take you extra time and energy to do on your own. Again, your time is valuable and should be spent on pursuing your core business--fixing up and flipping homes. Just having an agent's brokerage sign in the yard can mean the difference between a quick sale and having your home sit on the market for a long time.

You could even list the home before the work is done so people can see the work as it progresses. That way, you might even have the home already sold before you've finished the work, which will take a lot of the worry out of the process!

Check out our Faux Flip to be featured on Flip That House September 29.

Copyright © 2007 Jeanette Fisher

Las Vegas Real Estate Market

2007-08-02T00:38:00.000-07:00

Tom after finishing a flip.

If you're interested in the Las Vegas real estate market, drop by our new site and join our newsletter. We're looking for investors to participate in a new reality documentary for Save This House.

Joy,

Jeanette

Abandoned Houses

2007-07-12T21:17:00.000-07:00

Even when the real estate market is down, there are still properties that are perfect for flipping. Here's one great way to do it: buy abandoned houses. In fact, you might be noticing more abandoned houses as more house go into foreclosure.

Start by driving around your area, looking for houses surrounded by an overgrown lawn and a general feeling that no one has lived there for a long time. The more abandoned a home feels, the better prospect it is for making money--whether the market is up or down.

When you locate a prospective house, peek inside. If the inside looks just as abandoned as the outside, it's a prime candidate.

Next, talk to the neighbors on both sides. They can offer lots of information about the home, and they're often willing to help. After all, they live next door to a neighborhood eyesore, and they'd love to see you restore it.

You can peek in the mailbox for clues about previous occupants, but don't remove anything--that's illegal. You can often get a name from newspapers or junk mail on the front porch or in the yard.

You're looking for the name of a previous tenant and not the owner of the home in most cases. They're great resources for finding out what's wrong with the house, since they used to live there. You can try locating them through the phone book or on the Internet, and they're generally happy to say if the plumbing worked or the floors were saggy. Former tenants can help you locate the owner, too, since they'll often have that person's name and address.

Once you've learned as much as possible about the property, call the owner. Say that you're an investor who buys and rehabilitates properties in the area and that you might be interested in purchasing their home, assuming the price is fair and the repairs won't be too expensive.

Be friendly and listen carefully to what the owner says. If they sound open, and especially if they ask to hear what you have in mind, make your first offer and see what they say. They may jump on it. If they don't, you can always say that you've talked to a former tenant and heard about the various repairs that will be necessary. That may just close the deal.

Whether the market is up or down, there's money to be made flipping houses--if you're careful and take the time to do it right.

Free ebook, "The Truth about Making Money Flipping Houses"

Copyright © 2007 Jeanette J. Fisher
Also, read the new Flipping Houses Blog

Small Bathroom Remodeling

2007-06-27T11:14:00.000-07:00

Big Problem for Flips?

"Six Ways to Create a More Spacious Look and Feel in Bathrooms, Without Bringing in the Sledge Hammers"

Read Small Bathroom Remodeling

Auction Preview Today for Historic Home

2007-05-19T06:10:00.000-07:00

Check out this fabulous fifties Palm Desert Retreat built by William Boyd, affectionately known as "Hopalong Cassidy."

http://www.hoppyhouse.com

Learn how to make money flipping houses.
See the progress being made at Flip That House with FAUX
The Flipping Houses Blog (Hosted on its own domain because Google keeps taking down blogs.)

2007-05-17T22:00:00.000-07:00

Flip That House
Habitat for Humanity project in Lake Elsinore, CA

Volunteers Chris Jackson, Alexandria Virginia, Robert Esch, and Tim from Illinois helped to design and plant the landscape.

Do You REALLY Want to Be a Real Estate Flipper?

2007-05-06T07:47:00.000-07:00

by Jeanette Fisher

Real estate investment and flipping houses has become a hot topic on television and in the media these days, but before you get caught up in the investment fervor, you need to provide honest answers to some serious questions.

First, are you willing to start spending large portions of your life involved in the acquisition, repair, and then flipping of the properties you buy? Real estate, much more than passive investments like stocks and bonds, is a hands-on experience. You've got to look at potential properties, sometimes many of them, before you find the one you're looking for. Then you have to repair it, which will involve doing much of it yourself if you want to make the maximum amount of profit. Then you have to flip it, which involves showing the property and dealing with potential buyers.

Next, do you really enjoy the real estate game? That's important, because instead of just buying paper investments from Wall Street, you're going to be embarking on what’s essentially a second job when you start buying real estate. If you don't enjoy it, it will eventually be like working a job you hate, but you won't be able to just quit and walk away. Once you've begun the process, you have to complete it or face some potentially disastrous outcomes.

If you're married, are you absolutely certain that your spouse has bought into your real estate investment dreams? This is a crucial question, because if they haven't, flipping homes can be very hard on a relationship. Make sure your communication channels are strong, because there's going to be a lot to talk about during the flipping process--and no matter how well you think the two of you communicate, I can promise that disagreements are going to occur. You can avoid many of those problems by having a serious discussion about the strategy you're about to undertake--BEFORE you begin!

If you answered all of these difficult-but-essential questions with an honest yes, you can safely begin the process of becoming a home flipper. You'll have ups and downs, but there's also great satisfaction in making a profit from a project you had a personal hand in completing. It's certainly not for everyone, but flipping homes can be profitable, and one that's actually enjoyable--if you approach the process in the right spirit.

Pictures of house flipping projects
Flip That House

Four Things to Examine When Considering a Flipper Although each house will be different, the four main things to consider can be costly to replace or repair, and all of them require permits to fix.

Copyright © 2007 Jeanette J. Fisher
Lake Elsinore Real Estate

There’s Still Profit in Flipping Houses - Even in a Buyer’s Market

2007-05-03T06:42:00.000-07:00

Even though the real estate market has entered a "correction cycle," there's no need to sit on the sidelines, waiting for the market to rebound. There's still money in flipping houses, even during an economic downturn. Here are a few suggestions: Flip That House

What does the current market mean for house flippers?

2007-04-05T18:57:00.000-07:00

Even thought it has slowed, the U.S. 2007 housing market hasn't gone into the swoon predicted by many economists, which is good news for most Americans. The market is still flat and overall home sales haven't been this slow since back in 1991, but there are signs that lower financing costs and falling prices are beginning to lure buyers back.

Read more:
http://flipthathousewithfaux.com/flipping_market.html

Gold Real Estate Keys Teleseminar

2007-02-25T11:10:00.000-08:00

Besides topics like Flipping Houses, what else do you want to know about real estate investing?

We're setting up a new teleseminar for investors and would appreciate your feedback.

If you would like to participate, please contact Jeanette Fisher or Elise.

For more information about the upcoming teleseminar, please visit Gold Real Estate Keys.

Press Release - Flipping Houses Seminar

2007-01-25T10:05:00.000-08:00

Flipping Houses for Profit: Still Possible in Riverside County?

** Temecula, CA (PRWeb) January 27, 2007 - Jeanette Fisher, author of Doghouse to Dollhouse for Dollars and Home Staging with Design Psychology, will teach a low-cost real estate seminar Saturday, January 27, at Mt San Jacinto College, Menifee Valley Campus.

The only real estate investing seminar to reveal interior design secrets to fixing houses helps first-time home buyers and investors fix houses for less and sell for more.

Learn how to find, finance, fix and sell houses for profit in any market. Explore fresh ideas for fixing houses using interior design methods that make houses simply irresistible to buyers.

See slides of fixers before, during and after transformation, including the Fisher's home featured on this season's TLC's TV show Flip That House.

The author gives away a free ebook The Truth about Making Money Flipping Houses.

The Flipping Houses seminar time is from 9 AM to 1 PM in Fine Arts Room 600. Fee: $60.00. Parking: $1.00 Optional: Materials may be purchased in class. Call MSJC to register: (951) 487-3711 Class section #9348. Limited enrollment.

More information about Flipping Houses Seminar

###

Media Room: http://www.jeanettefisher.com

Tax Consequences of Flipping Houses

2006-11-16T20:25:00.001-08:00

As prices soared and interest rates hovered near record lows, flipping houses became one of the hottest investments for many Americans. People from all walks of life began buying homes for the sole purpose of reselling them at a profit, and many of them did significantly better than if they'd put an equal amount of money in the stock market.

However, many investors also were in for a shock when they began telling the Internal Revenue Service about their house-flipping profits. Much of the confusion comes from a misconception that stems from the laws regarding the sale of a personal residence.

Read the full article: House Flipping and Tax

Tax Consequences of Flipping Houses

2006-11-16T20:25:00.000-08:00

Flipping Houses Tips

2006-11-11T20:34:00.000-08:00

Perhaps you've heard some horror stories about flipping houses. In most cases, these investors rushed into a deal without fully understanding what it takes to make money fixing and flipping. Here are a few tips for beginning house flippers: Flipping Houses for Profit

Flipping Houses: TV Shows and Reality
Judging by the number of television shows and books devoted to flipping houses, it would appear that transforming houses from ugly stepsisters to the belle of the ball has become the latest equivalent to the old-fashioned American Dream. However, it's not as easy as they make it appear on TV reality shows, but you CAN make money doing it. After decades of experience, If you're thinking about taking the plunge into house flipping, the first thing you need to know is that most of the time the project will take considerably... Flipping House Business

How to Get Started Flipping Houses with No Money, No Job, and No Credit

2006-11-06T14:49:00.000-08:00

I get emails all the time like this: I want to make money flipping houses. I have no down payment, bad credit, and only make $10,000 a year. What would you say to a person like me who's only 20, makes 10k a year part time, and goes to school full time?

Sounds impossible, doesn't it?

How to Get Started Flipping Houses with No Money, No Job, and No Credit

Is Flipping in Trouble?

2006-11-04T09:10:00.000-08:00

Six Reasons Why Flipping Houses Still Makes Money

1. Housing Prices

Median home price across the country dropped only 1.7 percent in 2006. That statistic certainly doesn't signify a bust in the real estate market. They way property values have been increasing over the past decade, that figure is more of a bump in the road than a major disaster. Most homeowners are still far ahead, even with the slight decline in home prices they experienced this year.

2. America's Supply and Demand

The number of new households being formed and an increasing population keeps pressure on building new homes.

3. Mortgage Interest Rates

Long-term mortgage rates are only about a percentage point above historic lows. The Fed has stopped raising interest rates, as well, which indicates that they are comfortable with the situation.

4. Gasoline Prices

The recent decline in gas prices encourages home shoppers to look for affordable housing in commuting distance.

5. Employment

The country's unemployment rate indicates that Americans are better positioned to make their house payments and will continue to qualify for new mortgages.

6. Consumer Shopping Trends

Last Halloween's consumer spending outdid previous years. Home improvement spending is also at an all time high. America's economy seems secure.

What does this mean for the house flipper? If you get in and out in the same market, you can still make money flipping houses. When you buy right, at a bargain price and calculate repair expenses correctly, your investment should be safe.

Free No Money Down Real Estate Investing MP3

Jeanette Fisher, author of real estate investing and interior design books, offers free ebook on Flipping Houses and before and after pictures of fixer at http://www.doghousetodollhousefordollars.com

Copyright © 2006 Jeanette J. Fisher

Flipping Ugly Houses Radio Show

2006-11-03T08:57:00.000-08:00

Join us this Sunday November 5 for a fun radio show. I will be interviewed by the "Ugly House" experts of "We Buy Ugly Houses."

The HomeVestors Real Estate Radio Hour is a show targeted at novice and seasoned real estate investors.

The host this week is John Clemens, and Mike Blatney, a long-time real estate investor (and a huge advocate of home staging) will be the co-host.

The show can be heard on WBAP AM 820 a.m. in Dallas/Ft. Worth, and the show can be heard through their website at www.homevestors.com by clicking on the radio icon.

Free Flipping Houses ebook.

Jeanette Fisher
America's "Dream Home" Maker
Homes for glorious living and top-dollar sales
Lake Elsinore Real Estate

Media Twists Scare Away Flippers?

2006-10-31T10:08:00.000-08:00

Are you afraid to flip a house because of all the media attention to the real estate bubble, falling prices, and too many houses on the market? I don't blame you. It's scary to invest your money and hard work. However, does the media twist facts for attention-grabbing headlines?

Flipping Houses and Media Headlines

Flipping Houses Author and Family to Be Featured on Tlc's Flip That House

2006-10-25T10:44:00.000-07:00

Los Angeles, CA October 25, 2006 - Jeanette Fisher, author of best-seller real estate investing books Doghouse to Dollhouse for Dollars and Home Staging with Design Psychology, and her large family of expert house rehabbers will be featured on TLC's Flip That House. Filming begins on October 29, 2006 at their fixer in Lake Elsinore, California.

Read the press release Flip That House

See pictures of the fixer at real estate investing fixers

Flipping Houses, Rehabbing, and Landlording: Which Real Estate Investing System Makes the Most Money?

2006-10-21T09:56:00.000-07:00

There are many ways to make money in real estate. Two popular and proven ways are flipping houses and landlording. Often, both of these methods sometimes involve fixing the property for higher profits.

Both flipping and landlording make money when you buy low, rent smart, and sell for top dollar.

Flippers, Rehabbers, and Landlords: Who Makes the Most Money?

Read the article: flippers rehabbers landlords

Why Would YOU Want to Be the Flipper on Flip That House?

2006-10-19T20:48:00.000-07:00

When Lori with Flip That House called me to see if we have any working houses coming up to feature on TLC's reality show, as an investor, I thought "What's in it for us?" The network doesn't pay the investors who let the producers film the before, during, and after.

The problem for me is that I had to get permission from my family because ours is a family business. We all participate in the work and share the profits. My family is camera shy, but they finally agreed.

If you don't get paid, why would you want to put yourself in front of the camera for a Flip That House show?

Answer: FREE building materials. According to the show promoters, manufactures and companies like to get their products on the show. However, it's up to the investor to negotiate for all the freebies.

I'll let you know how this works. We start with the first walk-through and then the demolition next week.

You can see before pictures at Real Estate Investing Fixers.

Joy in real estate investing,

Jeanette Fisher

America's "Dream Home" Maker
Joy to the Home, Design Psychology
Homes for glorious living and top-dollar sales
Lake Elsinore Real Estate

Free ebook on Flipping Houses
###

Is there a difference between "flipping" and "fixing" houses for profit?

2006-10-15T15:39:00.000-07:00

Flipping Houses for Profit

Some investors flip houses without fixing the property or doing any clean up at all. In fact, some investors don't even see the actual property. These investors just tie up the property with a contract to purchase and sell the contract to another investor or a new home buyer without taking title themselves. Many house flippers turn over several properties each month and make between $1,000 to $10,000 or more on each transaction.

Fixing Houses for Profit

On the other hand, some investors make a profit by fixing a house up, refinancing it, and then renting it to a tenant. These investors often purchase the property with rehab financing. This means they finance the purchase and the repairs. For instance, if you buy a starter home in the Midwest at a bargain price for $70,000 and the property will be worth $100,000 when its repaired, a rehab loan of $80,000 could cover the purchase costs and basic repairs. Because the rehab loan interest rates are high, you would refinance with a normal investment house mortgage. The rents should cover your mortgage and possibly give you a little cash flow. Some investors who practice this strategy end up with 100 houses paying them each month. Besides the cash flow, they end up with appreciation on houses that other people pay for.

Fixing and Flipping Houses for Profit

Another investment strategy is fixing and flipping. In this type of transaction, you buy a fixer and remodel it for a fast sale to a new home buyer. If you turn the house over quickly, you don't have to worry about the real estate market taking a downward spiral. The idea is to get in and out with a quick profit. This method makes different amounts (even losses) depending on the investor's expertise. You must know what you're doing to avoid disaster. However, this is the method that many investors use to make $20,000 to $100,000 or more on each transaction.

Read more about Flipping Houses at www.doghousetodollhousefordollars.com

See the pictures of before and after: Real Estate Investing with Fixers

Copyright © 2006 Jeanette J. Fisher

Flipping Houses: Bargains, Distressed Houses, and Fixer-Uppers

2006-10-04T18:37:00.000-07:00

by Jeanette Joy Fisher

Real estate investors make money when they find a bargain property which they can purchase for less than market value and resell or rent for profit. The key may be a "distressed seller" who needs out right away because of overwhelming problems like financial difficulties, such as divorce, death, addictions, pending foreclosure, lack of money, job loss, or transfer. Sometimes a seller wants to use the money to purchase another property or start a different business and is willing to offer a bargain price to move on. Many investors who purchased at a deep discount can make a nice profit and turn the property to another investor for fast cash.

To buy a bargain property, uncover the seller's motivation and find a solution to their problem. Most often, the seller wants a fast escrow or closing. However, some home sellers want fast cash to solve money problems and want to stay in the house.

A "distressed property" is one that needs help to bring it up to saleable condition--a fixer-upper. Owners of fixers are not always distressed sellers. They might not be in foreclosure or facing financial problems. They may just lack motivation or know-how to fix up the property and haven't sold it because most home buyers want a house in good condition.

You can make money buying both bargains and fixers. It depends on whether you want to work with houses in good condition or fixer-uppers. Some investors only buy houses in prime condition from sellers who are willing to discount for a fast sale. In today's market, you must know how you're going to make a profit before you purchase a house. If you know the market is still active in your area and you have a strong change of reselling in a couple months for full price with the right marketing strategy, you can make an offer that gives you plenty of margin.

If you want to turn a fixer into a new owner's dream home or rental, you must know how much the house will cost to fix. Many investors buy fixers with rehab funding and don't risk their own money. After fixing the house, they refinance and rent, take some profit out, and have the tenants make the payments. House flippers fix and sell right away for fast cash.

Of course, if you want to fix houses, you want to find a fixer that is also a bargain house for the highest return on your money and time.

Learn how to fix and flip houses with the interior design edge for higher profits.

Free ebook on Flipping Houses

Copyright © 2006 Jeanette J. Fisher

Interested in Flipping Apartments?

2006-10-02T12:17:00.000-07:00

Free Apartments and How to Find a Hot Market Teleseminar

Tuesday night, Oct. 3.

9:00 PM EST / 6:00 PST

There's so much competition these days among real estate investors. The good news is that great bargains still exist in most markets, because they're passed over by the vast majority of investors. Many of those bargains are in apartments.

Most investors think they must unclog toilets and deal with tenants in order to make apartment-sized profits. That suits our friend, Dave Lindahl, just fine. He buys apartments from burned-out landlords at great prices. Best of all, Dave's figured out ways to deal with no tenants.

Dave's going to tell us how to buy apartments with no down; how to manage them without ever dealing with tenants, and how to make it work in YOUR real estate market.

Dave's also an expert at market cycles. He'll talk to us about his secrets for finding the next hot markets, and how to quickly and easily "read" where a market is in the up/down cycle.

If you can make this call, and while there are a few telephone lines left, be sure to register!

Join Apartment and Market Teleseminar:
http://www.money4investors.com/newtele

Dave built his fortune from scratch, in tough neighborhoods. He's entertaining, knows his stuff, and you'll greatly benefit from this call.

Jeanette Fisher
Fix and Flip Houses with the interior design edge

Cash Flow and Business Credit Teleseminar Tonight

2006-09-11T12:31:00.000-07:00

Monday September 11th
9:00pm EST/ 8:00 PM CST/ 7:00 Pm MST/ 6:00PM PST

How you can create cash flow out of thin air?

Money4Investors.com

Interested in Foreclosure Auctions?

2006-09-08T14:22:00.000-07:00

Beginner's Guide to Foreclosure Auctions
Buying properties at foreclosure auctions can sometimes yield great buys, but you have to approach every auction with caution, because they can be disastrous if you don't do your homework well. Here are some tips for minimizing your chances of making a big mistake when looking at a property that's about to be auctioned off. Read the article: Foreclosure Auctions

Are House Flippers Guilty?

2006-08-31T16:28:00.000-07:00

Flipping Laws: HUD Fights Inflated Housing Costs | Are investors guilty?

Flipping a house, or reselling a property quickly after purchasing, isn't illegal.

Because so many house flippers committed mortgage fraud or used predatory lending practices, HUD, the U.S. Department of Housing and Urban Development, is trying to protect home buyers. HUD also seeks to halt appraisals at inflated prices. The agency believes that house flippers artificially inflated prices.

I don't think real estate investors are to blame for the "pending housing crash."

Read about HUDs rules, what you can do to still make money flipping houses, and who might be guilty of "artificially inflating house prices."

House Flipping Laws

Copyright © 2006 Jeanette J. Fisher

Home Ownership Trends Can be a Windfall to Savvy Investors

2006-08-29T14:52:00.000-07:00

With the housing market beginning to cool and interest rates on the rise, this may be an excellent time for investors to buy rental properties. The combination of those two market factors, along with an increase in the number of folks looking for new housing, could spell big profits for savvy real estate investors.

In the second quarter of 2006, home ownership actually rose somewhat, to 68.7 percent (although it was up less than a half percentage point), but that figure is down more than a percentage point from the high point, which occurred in the second quarter of 2004 (69.2 percent). Although that rise may be good for real estate sellers, recent interest rates, coupled with a large increase in property values during the housing boom many areas of the country experienced over the last several years, have made it much more difficult for buyers to get into homes of their own.

What does that mean to investors? It means that even at during the peak of home ownership in 2004, more than 3 out of every 10 Americans still rented the houses in which they lived, and it appears as if that figure may increase. In the last week of July 2006, the Mortgage Bankers Association reported that applications for home loans had reached a four-year low. As an investor, those figures should spark your interest, because they indicate that more people are being forced to rent, whether they want to or not, until market factors adjust to make home ownership more feasible.

That fact was borne out in a recent survey by the National Multi Housing Council, which discovered that some 75 percent of apartment executives reported lower vacancy rates, higher rents, or both. In fact, the survey found that the "Market Tightness Index," which is used to measure rental market conditions, increased to 85 in the second quarter of 2006, which was the highest number on record. Any number above 50 on that scale indicates improving market conditions for landlords, and it's been above 50 for 12 consecutive quarters. (The last time it was below 50 was July 2003.)

All of these factors offer a clear indication that owning rental properties makes more sense than it has in a long time, and that trend appears set to continue for some time to come. That conclusion was verified when a study by Harvard University identified a number of demographic forces that are combining to strengthen the rental housing market, especially echo boomers and second-generation Americans. The fact that investors are having to pay higher interest rates to buy rental properties has also translated into increased rents over the past few years.

With home buyers having more difficulty financing their dream homes, it appears as if the rental market will continue to strengthen for some time, at least until a market correction brings down home prices, which have been spiraling significantly over the past few years. As more and more people begin to look at renting as an option while they wait for that correction, savvy investors may be able to experience increased profits by adding more rentals to their inventory.

Copyright © 2006 Jeanette J. Fisher

Real Estate Investing Business Plan and free ebook, "The Truth about Making Money Flipping Houses"

Real Estate Teleseminar

2006-08-22T19:31:00.000-07:00

Join our no cost home selling teleseminar August 23 at 6 PM Pacific. See the list of questions readers sent in at Home Staging Tips Blog.

Our next real estate investing teleseminar will be next week.

http://doghousetodollhouse.com/free_real_estate_teleseminars.htm

Joy,

Jeanette Fisher

My Favorite Strategies for Making Money in Real Estate Investing

2006-07-31T11:50:00.000-07:00

by Jeanette Fisher

If you're like most real estate investment wannabes, you've taken seminars, read books, watched infomercials and DVDs, and have spent considerable amounts of money to learn about the ins and outs of the field. Well, if you're still struggling with how to get started, here are some of my favorite ways to make money in real estate, taken from personal experience.

The first has become popular with the advent of several television programs. It's popularly known as flipping, which just means buying, fixing up, and reselling a property for a profit. It sounds simple enough. Find a dog of a house, spend what can be a considerable amount of time and money to upgrade and repair it, and then recoup that investment, along with a sizable profit, when you resell the property.

However, I like to buy homes that are in need of the repairs and upgrades you see so often portrayed on television and sell them WITHOUT doing the repairs myself. It's not as crazy as it sounds. All it involves is buying a property by contract, structuring that contract so that you have the right to sell the underlying to a building contractor or other investor who will have the means to be able to subcontract out the work.

The process is sometimes called bird dogging, but I prefer to call it wholesaling. I don't make as much per transaction, but the turnaround time is much faster, and I don't have to deal with the 101 things that can and do go wrong, as you well know if you're a fan of the various television shows that follow the ups and downs of investors as they try to flip their homes.

Real estate investors have always looked for houses that have the potential to be fixed up and upgraded and then resold at a profit. That's partly because, depending upon how hot your local real estate may be, the potential profits can be in the five-digit range for each transaction.

There are dangers, of course, since I've never run across a single project that didn't have at least one hidden problem that threw a giant monkey wrench into the process, reducing our profit and lengthening the time we expected to finish. Therefore, it's important for you to know your market and how much things will cost to repair before you start working this popular process.

Lease options can also be a profitable way to get into a rundown house, bring it up to standard, and then either resell or rent it, depending upon your taste. This allows you to generally get into a house without the real estate agent's fees, which can be considerable. Once you've got the property up to standard, you can then sell the home on a lease option to someone else, which is generally good, because they'll have more incentive to keep it nice.

There are many other ways to make money in real estate, of course, but these are some of my very favorites. The main thing is to pick a strategy you're comfortable with and stick to it until you're an expert at it!

Free ebook: The Truth about Making Money Flipping Houses at Fixing and Flipping Houses.

Copyright © 2006 Jeanette J. Fisher

P.S. Join us in our "Sell this House Race."

A House to Flip Offered by Frantic Seller who Needs to Say "YES"

2006-07-14T09:25:00.000-07:00

Investors, a bargain fixer for sale fast! Seller needs to say "YES!"

Ready to make some money?

Please help this frantic home seller.
(I can't believe you can actually buy a home in the US for only $35,000!)

Michigan home offered by desperate seller. Needs money by July 24.

Homes in the neighborhood sell for $40,000-$65,000.

Partially rehabbed and comes with new parts.

Next to beautiful Kearsly Park
(about 100 feet away from park)
1.5 miles to University of Michigan
.5 miles to Mott Community College

Family Neighborhood with many close schools.
2 miles to downtown Flint

Single Family Home
1.5 Story
2 bedrooms
1 bath
Hardwood floors
800 sq ft finished space
800 sq ft unfinished basement
500 sq ft unfinished half floor (upstairs)
1 car garage
New 2006 Plumbing
New 2006 Tankless Water Heater
New 2006 Gas Furnace (not installed)
2001 Washer & Dryer (electric)
New 2006 Windows (double pane, energy savers)
Updated Electric

Built 1920
Corner Lot (corner of Olive Ave and Illinois)
Aluminum Siding put up in the 1950s (wood siding underneath from 1920s is still in good shape if someone were to restore it; it would be beautiful!)

2 miles to downtown Flint (motor city, founding home of GM and many other motor companies)
.5 miles to I-475
2.5 miles to I-69
7.6 miles to I-75
7.6 miles to I-23

Seller purchased home in December 2005, with intent to fix up and flip, completed many updates; started working on walls and floors. Walls need to be sanded and painted.

Beautiful hardwood floors need sanding and finishing.

Coved ceilings.

New windows in Feb 2006,

New gas furnace for buyer to install.

New plumbing, faucets, and tankless water heater in 2006.

Kitchen needs some drawers replaced, and needs new flooring.

Quite street--lined with beautiful huge old trees, which provide shade in the summer and homes for many birds and squirrels that make drinking morning coffee on the closed in porch a pleasure.

1/2 story up stairs is unfinished, but would make 2 more bedrooms for kids if finished. Full unfinished basement would be great for a tool room, recreation room, or even to finish and add space.

Great home, with wonderful, friendly neighbors.

Sellers are sad to have to sell, but need money quick.

Great investment for someone who doesn't mind finishing up a little work to make money.

Hurry and contact the owner. Make an offer. Seller must say "YES!"

Call Phil
248 634 0693 home

List Your Property with the Right Agent

2006-07-10T14:38:00.000-07:00

By Jeanette Joy Fisher

With more properties on the market and fewer buyers, it's more important than ever to make sure you select the right selling agent to help you sell your property. Here are a few tips for hiring the right person to help sell your property.

First, do some basic research. You want to know which companies specialize in your area, and among those companies, which agents make it a point to concentrate their efforts on selling properties in your part of town. Those agents will be the most knowledgeable, because your property falls within their "farm" or inventory area.

Visit company websites to see how user-friendly, attractive, and informative they are. More and more people turn to the Internet for their property searches every day, so an effective website can be a powerful sales tool. Some things to ask yourself as you view websites:

Do the listings include virtual tours of properties? This can be a great sales tool, allowing potential buyers a chance to get a feel for your home or business before spending time and gas money on a property tour. At the very least, there should be a number of good quality interior and exterior photos of the homes and buildings they have listed.

Next, check your local area for free publications. You'll find free real estate publications in supermarkets or gas stations around town. Pick up as many as you see and look at them. Which companies are prominently displayed, and which ones have the most effective ads?

Ask your friends, relatives, and neighbors about agents they have worked with. Which ones would they recommend and why? Which ones did they have a negative experience with? This can be a great tool, because the people you'll be speaking with have had actual dealings with the agents and companies, so they can give firsthand accounts of their experiences, good or bad.

Once you have a few agencies and agents in mind, schedule appointments to interview them. You can generally get a free market analysis at the same time. This will give you a chance to get a range of suggested selling prices, and it can also help you weed out those agents who are too far out of line one way or the other.

Ask each candidate to outline their proposed sales strategy, including advertising and presentation on the Internet. Make certain they're members of your local Multiple Listing Service (MLS), because it remains one of the most powerful sales tools available. It's important that as many agents know about your property as possible.

Ask about commission schedules and listing periods. You want to pay a fair price, but you don't want to tie your property up with an ineffective agent or company for an undue amount of time. Find out the average selling time for your property type in your area, and then ask about their particular company's average time. The two figures should be similar. Ask about open houses, lockboxes, and how showings will be handled, as well.

Keep an open mind when choosing your agent and company, and you will be setting yourself up for a quick and enjoyable sale of your home.

Copyright © 2006 Jeanette J. Fisher

P.S. If you are an agent, this article can be customised for your website. Please see the letter to agents on Free Content Real Estate Articles.

Jeanette Fisher helps home sellers with five ways to make more money.
Free Home Staging Information
For expert home selling advice please visit Sell Home Fast

Look Who Says America's Housing Market Won't Crash

2006-07-06T14:22:00.000-07:00

Pressures on the national housing market like rising interest rates and speculative building may not have a severe backlash on the real estate market. In fact, according to Harvard University, house prices will keep climbing.

A recent study by Harvard University's Joint Center for Housing Studies titled "State of the Nation's Housing," said that although the prices of homes won't increase at the giddy levels of the past few years, they shouldn't experience sharp declines. The main reason for that, according to the study, is that most cities have curbed excessive building and haven't seen severe job losses.

Approximately a million people bought homes last year, using a combination of low down payment loans and flexible financing options, in spite of higher home prices and rising interest rates. The majority of those buyers will have a fixed rate on their loans, even if they're adjustable loans, for the first three to five years. If their loans were interest-only, the principle will begin becoming due after a similar amount of time.

The good news for homeowners is that even though rates are going up, the study found that only 10 percent of homeowners with adjustable mortgages will be looking at higher house payments in 2006. The not-so-good news, especially if you happen to be someone who was counting on a continuation of the runaway housing trend, is that home prices will be slowing.

Part of the reason for the slow-down is that wages aren't keeping pace with housing prices. The study found that from 2001-2004, the number of American households that spent more than half their income on housing rose to 15.8 million, which represented a 14 percent increase.

The Harvard study suggests that if state and local governments don't find ways to encourage more affordable housing, U.S. homebuyers may be in for a difficult time in the future. With so much of a middle-income family's income being spent on housing, important things as IRAs and savings will begin to fall by the wayside just to keep a roof over their heads, which will put even more strain on the government as people seek financial help.

Interestingly, the study also found that each succeeding American generation has achieved a higher percentage of home ownership, in spite of price increases that haven't been paralleled by increased wages and the fact that each generation has a higher number foreign-born and minority heads of household with a lower average income than their native-born white counterparts. In that light, the study suggests a need for more low and moderate priced housing.

Perhaps most telling, the study showed that 20 percent of all mortgages in 2005 were interest-only for at least part of the term, another indication of how out-of-sync prices have become compared to incomes. In fact, the study compared the 149 largest cities in America and discovered that the number of cities where the median home price was at least four times the median income nearly quadrupled from 2001-2005 (from 13 to 49).

All in all, the Harvard study would seem to suggest that although the U.S. housing market may be slowing down, there doesn't appear to be a real estate crash on the horizon.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher helps beginning real estate investors with free teleseminars, ebooks, and Free Real Estate Investing Information. For beginner's real estate books

Go Buy a House this Weekend!

2006-07-01T15:05:00.000-07:00

While driving to the home improvement store Saturday before the 4th of July, we noticed that the usual "Open House" signs were missing. The real estate offices were closed. No real estate agent wants to work on the 4th of July holiday week. In fact, earlier in the week, I called two real estate agents about listing a property and another agent about a home we wanted to see. They all put me off until July 5th!

However, these are the conditions that mean real estate investors can pick up a deal. Home shoppers put off looking for a home because of holiday decorating, shopping, and parties. Plus, the hot weather makes home buyers prefer to stay home. Investors can take advantage with little competition from other buyers.

Other reasons why now is the time to buy real estate:

Motivated Sellers
Home sellers who didn't sell during the recent buying frenzy are worried that their home will not sell. Any seller offering their home for sale during the holiday season is motivated.

Affordability
Interest rates continue to creep up. Who knows what the rates will rise to next month?

Qualifying
Lenders threaten to tighten up qualifications. Last summer, loan officers were able to get through almost any loan. Today may be your best shot to buy real estate and get a decent rate with the easiest qualifications.

Easy Escrow or Closing
Title insurance agents, closing agents and appraisers are not as busy. Appraisers need work. Too many people became real estate appraisers when there was too much work. It used to take a week or more to schedule an appraisal. We just ordered an appraisal and the appraiser wanted to come out the same afternoon! Also, appraisal fees cost less today than last month.

Clear some time from your busy holiday schedule and go find a bargain house. Make many offers. You won't get this break until Labor Day Weekend.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher teaches five ways to make money investing in real estate. Beginner's Real Estate Investing Guide

Real Estate Teleseminar

2006-06-26T07:11:00.000-07:00

"The Millionaire Real Estate Investor" with Annette Bau*

June 29, 4 PM Pacific / 7 PM Eastern
You might be surprised at how easy it is to buy multiple houses and at the same time become a millionaire!

* Hear secrets of wealthy real estate investors
* Learn how to buy right
* Find out what type of property to buy
* Find out how to buy with little or no money down

What are two of the key reasons people do not become Millionaires or achieve their goal?
How can beliefs affect a person becoming a Millionaire?

*Annette M Bau is a Certified Financial Planner(TM) and has owned a financial planning practice of almost 20 years. She is the founder of MillionaireSeries.com and the author of the 7 Principles of Becoming a Millionaire for Life.

To join us, visit
http://doghousetodollhouse.com/free_real_estate_teleseminars.htm

Real Estate Investing Guide

2006-06-13T10:03:00.000-07:00

How to Buy Fixers - Look for Triple Ds

It's been said many times before, but only because it's always been true: If you want to be a successful real estate investor, the best way to begin is by finding a "fixer-upper" house being offered for sale by a seller who really wants to get rid of the property.

Why would a seller sell a property at a low price or with great terms?

The reasons are as numerous as the number of sellers, but the most common situation has to do with money problems. Whether it's due to divorce, illness, or loss of employment, some sellers find themselves in need of a quick sale, especially if they're facing potential foreclosure on the property.

What IS a Triple D?

As a beginning investor, the most desirable type of investment house to look for is a "Triple D," which is a doghouse owned by a seller involved in a divorce who is close to defaulting on the loan.

The term doghouse describes a rundown home that's tired but not in need of much structural repair to bring it back to life and to make it sparkle. A great doghouse also has the potential to fit nicely into a neighborhood of well-maintained homes once again after the repairs have been done.

One advantage to investing in fixers is that your competition will be less than for homes in better condition. Ugly houses scare away home buyers who don't have the money to finance the repairs or upgrades necessary to turn a doghouse into a dollhouse. As you scan the classified ads, look for terms such as "handyman special" or "fixer-upper." They're clues that there's work to be done to bring a house back to an acceptable condition.

Once you've located a doghouse that can be converted to a dollhouse without a great deal of time or money, the next step is to find out what seller's problem is and then to offer a solution. Most sellers who've let their homes run down will be in need of a quick injection of cash, so if you're in a position to offer a speedy cash out, you'll be in a strong bargaining position. Establish a relationship with a lender and get pre-approved for a loan before you've found your property. You want to be able to show a seller that you can quickly alleviate their money problems.

Your object is to get into the home quickly, fix it up, and then sell it, so you can move on to the next property. Look for entry-level homes that are merely ugly and in need of mostly cosmetic upgrades such as paint or new carpet. Those are types the houses you can flip quickly and make the most money on, because there's always a strong demand for entry-level houses. I know it's true because my husband and I sold a little fixer in a great neighborhood within three hours!

Find a Triple D house in your area and you can be on your way to becoming a successful real estate investor, too.

Jeanette Fisher invites you to stop by DoghousetoDollhouse.com for
Free Real Estate Investing Information (free teleseminars and ebooks)

Copyright © 2006 Jeanette J. Fisher

Can You Still Make Money Investing in Real Estate by Fixing Houses?

2006-06-08T15:35:00.000-07:00

Real estate investors have made money by buying unloved houses, fixing them up, and then selling them for years. It's not a new real estate investing method. But what if you live in an area where homes sit on the market and sell at less than full price? Can you still make money investing in real estate by fixing houses under such market conditions? The simple answer is yes, if you do your research, find the right seller, and follow proven strategies.

Research Your Local Market

It's been a sellers' market in America for a number of years, with more buyers than houses, which meant that sellers weren't as motivated as they were back in the 80s, when interest rates were sky high, inflation was running rampant, and mortgage lenders were more cautious. Today's market is shifting towards a buyer's market and real estate investors find home sellers more willing to bargain, because like in every age, people get into trouble for various reasons.

You must know what houses sell for, under what terms the property sells, the conditions of houses sold, and how long the average home sits on the market. Once you know your market, you will know how much to offer a motivated seller.

Find the Right Home Seller

You might think you're looking for a bargain house, but what you're really looking for is a motivated seller. Look for sellers that have found themselves in financial distress, for whatever reason, and who need to sell quickly. Sellers with difficult situations have motivation, and will be willing to work with you to overcome the difficulties they face. Those are the houses that will make you money, regardless of the overall market in that area.

If you look at houses on MLS, tell your agent to request that the seller be present. This way, you have the opportunity to talk to the home seller and see what problems prompted the home sale. You can also run ads that say "We Buy Houses."

Fix the House Right

To give yourself the edge when you go to sell your home, don't just paint everything white and have boring beige carpeting installed. Today's home buyers look for a home that makes them feel "at home." Learn how to profile your home buyer and make decorating choices to target that buyer. You don't need to spend extra money fixing up the house; just make wise design choices.

Sell Your House

Since most home buyers look for houses with real estate agents, don't waste your valuable time trying to sell on your own unless you have sold many houses and know exactly how to manage all the disclosures and paperwork. Find an agent who is willing to show the house, not just place a lock box and forget it. Every time the house is shown, it needs to be staged with lights on.

You can still make money investing in real estate in today's market. Do your homework, learn as much as you can and follow proven strategies.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher teaches interior design secrets for fixing houses. For more Real Estate Investing Information for beginners, visit DoghousetoDollhouse.com -- the Internet's largest library of real estate investing tips and articles for beginners.
Free ebook and teleseminars: http://doghousetodollhouse.com/real_estate.htm

Thinking about Building Houses?

2006-05-24T20:11:00.000-07:00

a note from Jeanette Joy Fisher

I'm getting ready to speak to a builder's group on interior design trends and thought you might be interested in some of my research findings.

If you're thinking about building new houses, check out the new section to our real estate investor's information website:

Home Builders: Know Your Target Market - First-Timers
The key to successful home building is to know your target market. Every market niche has specific lifestyle needs that must be met if you hope to succeed. Once you set your sights on a specific market segment, you must satisfy their needs and desires, because your clientele can make or break you. In this article, we'll focus on how to push the buttons of first-time home buyers.
Build Houses for First-Time Home Buyers

Home Builders: Know Your Target Market - Senior Baby Boomers
Although they're loathe to admit it, Baby Boomers are rapidly becoming senior citizens. However, just has been the case throughout their lives, the fact that Boomers are entering their golden years has made the senior market the fastest segment of the real estate market today. If you're a builder, this can mean more sales for you, but you'll have to do some target marketing to attract Boomers to your homes. Build Houses for Senior Baby Boomer Market

Home Builders: Amenities Baby Boomers Demand
Boomers are now entering what people used to call the Golden Years, and they're beginning to look for homes that offer amenities geared toward older people. If you can offer homes that fit their tastes and specific demands, Baby Boomers will seek you out--and they generally have the money to spend on the things they want. Amenities for Baby Boomers

Let me know if you give up fixers and build.

Enjoy!

Jeanette Joy Fisher

Vacation and Investment Property Sales

2006-05-16T20:00:00.000-07:00

People are buying more getaway properties than ever before, according to a recent study by the National Association of Realtors (NAR). In 2005, in fact, four out of every ten home sales were bought either as vacation homes or investment properties. That represents a 16 percent jump from 2004, and amounted to 3.34 million homes.

Read about vacation and investment property sales: http://money4investors.com/newblog/

We love our vacation house. Is it time for you to visit yours?

Joy,

Jeanette Fisher
Real Estate Investing Information

Question: What is the difference between flipping houses and flipping houses?

2006-05-08T13:25:00.000-07:00

Lingo Demystified

By Jeanette Joy Fisher

I received many questions about the term "Flipping Houses."

Read the answer:

Flipping Houses Lingo

How to buy houses with no money down MP3 - Free

2006-05-01T13:59:00.000-07:00

Listen to Jeanette Fisher interview Joe Luckino, "How to buy houses with no money down." Find out how Joe got started real estate investing. He graduated from college in 2002, worked for a year a half, and now invests in real estate full time.

No Money Down Real Estate Podcast

While at the Money4Investors website, enter the password: fisher
for a free week to explore the 1.2 million listings of foreclousures, FSBOs, and hard-money lenders.

Real Estate Trends

2006-04-28T18:00:00.000-07:00

Home Selling Advertising Trends
Among homebuyers surveyed, the number one source of information about the home they eventually bought was still their real estate agent. The annual report by the National Association of Realtors profiling home buyers and sellers reveals some interesting information about how and where to spend money when it comes to marketing homes. The study’s findings should be of interest to real estate agents and home sellers alike. Advertising Trends

Vacation Homes as Investments
Across the country, many people are buying second homes in America today. Although a sizable number of vacation home buyers plan to retire in those homes someday, another segment hopes their second home will do double duty--as a vacation getaway and an investment property. If you fit into the latter category, here are five things to think about. Investment Vacation Homes

Joy!

Jeanette Fisher

Is it too Late to Make Money Investing in Real Estate?

2006-04-26T20:51:00.000-07:00

Worry-Free Credit Clinic with Terry Draine & Jeanette Fisher

Are You Serious about Buying Real Estate--

* Your first home?
* Your first investment house?
* Multiple investment properties?

Get expert advice from two real estate professionals with different viewpoints.

April 27, 6 PM Pacific Get the call information:

http://worryfreecredit.com/teleseminar.htm

You will have the opportunity to ask your questions.

Is America's Housing Boom Over?

2006-04-24T16:43:00.000-07:00

It's still too early to tell for certain, but America's housing boom may be showing signs of slowing down significantly. One indication is that U.S. consumers have been acquiring less debt in recent years and seem to be more nervous about acquiring more debt in the near future, judging by the results of a recent Experian-Gallup Poll.

That debt doesn't include first mortgage debt, which is unavoidable and has continued to increase significantly over the last few years due to rising prices. Some of those price rises have been dramatic, and even startling, such as a doubling of the median price of homes in Los Angeles County in the four-year period between 2002 and 2006. For the first time in history, the median price in LA County rose above the half million dollar mark, hitting $506,000. Although the rises in most areas of the United States have been far less spectacular, the fact remains that most home buyers are paying significantly more for their mortgages than they would have just a few years ago.

The poll, called Experian-Gallup Personal Credit Index survey, indicated that more than 70% of American consumers surveyed thought the country’s housing bubble is due to burst within the next year. In an interesting twist, however, more than two-thirds of those same consumers (68%) didn't think the bubble would burst in their own area during that time. Those conflicting survey results are an indication that most Americans are also conflicted about what the future may hold for the country’s economy over the next twelve months.

Another sign that American consumers are nervous about an impending housing price collapse could be found in the fact that only 2% of respondents told the Experian-Gallup poll that they planned to tap into the increased value of their homes through home equity loans or lines of credit during the next six months. Another very small percentage (only 2%) said they were planning to refinance their homes during that same time period.

Those figures would seem to indicate that a large number of American homeowners don't believe that now is the time to take on any more debt. But does that mean the overall economy is slowing down and that the home price boom are over? Not necessarily, but it would seem to indicate that American consumer confidence has waned significantly. Either way, it's a safe bet that economists will be keeping a close eye on the market for trends.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, and sell houses for top dollar. Find out how to make more money using interior design AND marketing psychology strategies. Real Estate Investing Information

How to Buy a HUD Repo

2006-04-21T14:17:00.000-07:00

The ins and outs of how to make a HUD bid and other articles for investors:

Real Estate Investing Articles

Free Real Estate Investing Teleseminar Tonight

2006-04-18T09:35:00.000-07:00

Join our FREE real estate investing teleseminar.

April 18 at 6 PM Pacific (8pm Central/9pm Eastern)

"Are You Serious About Wanting to Make Money Investing in Real Estate?"

I will interview Joe Luckino and grill him about his five flips he's doing--this month!

Find out how to finance with no money down!

Topics:
How to flip two houses a month
How to start out--buying and selling
How to obtain financing for fix & flips and rentals
How to find the "Good Deals"
What to do to these houses to move them quickly
How to advertise houses
How to do commercial deals and how to finance them without 25% down
How to quickly find good, reliable contractors who will not nickel & dime you to bankruptcy

Register:
http://doghousetodollhouse.com/free_real_estate_teleseminars.htm

Joy,

Jeanette Fisher

Joy to the Home, Design Psychology
Homes for glorious living and top-dollar sales
http://doghousetodollhouse.com

1031 Tax-Free Exchange to Defer Capital Gains - How to Convert to a Primary Residence

2006-03-26T17:23:00.000-08:00

This can be a great way to avoid taxes on a significant amount of profit from investment houses, but you'll want to follow the tax code meticulously.
1031 Tax-Free Exchange

How do you find a bargain house to flip?

2006-03-22T17:37:00.000-08:00

Our readers keep asking this burning question. We recommend these proven strategies:

How to Find Bargain Houses - Real Estate Investing Newsletter

Are you afraid of real estate investing?

2006-03-21T17:50:00.000-08:00

Why don't more people invest in real estate? Because they're afraid. Understand the facts about real estate investing, you won't be scared to start building your wealth.
Real Estate Investing Facts

Fixing Questions

2006-03-18T20:51:00.000-08:00

I receive many questions on fixing houses for flipping.

My husband Brian agreed to help me answer technical questions. The first article on how to refinish wood floors is posted in a new section of the real estate investor's information website, http://doghousetodollhouse.com.

Fixing Houses: Refinishing Hardwood Floors

Send me an email with your fixing questions.

Joy,

Jeanette Fisher

Flipping Houses: First Question to Ask Yourself

2006-03-17T21:19:00.000-08:00

Don't be tempted to buy any house. Select from the many fixers waiting for your magic touch. Select the one you know contains a hidden pot of gold. So what's the first question? Read Flipping Houses: First Question to Ask Yourself

Southern California Real Estate Market Slows, but Prices Continue to Climb

2006-03-16T12:03:00.000-08:00

Even though home sales have fallen to their lowest levels in five years in February, the average price of a home in Southern California rose to the highest level in history. For example, sales of homes in Los Angeles were 9.2 percent in February, while the median home price jumped some 15.6 percent to $490,000.

In February, the median price paid for a home in Los Angeles, Riverside, San Diego, Ventura, San Bernardino, and Orange counties was $480,000, which represents a 2.3 percent increase from January and a 12.9 percent from the same period last year. It's also the highest median price in Southern California history, even though far fewer homes actually changed hands.

The numbers suggest that perhaps the real estate market in Southern California is finally slowing down. However, February is traditionally a slow month for real estate sales, so it may be a bit premature to predict that the bubble has finally burst. In fact, a decline in sales from January to February is typical, so most experts will be waiting until March figures are in before they make any predictions. However, last month's sales figures were the lowest for any February since 2001, when 18,040 homes were sold.

The highest number of February sales in Southern California history was tallied in 2004 (23,004), while the lowest came in 1991 (10,025). Nearly 20,000 homes (19,905) homes were sold in Southern California in February 2006, down slightly less than one percent from the 20,085 sales in January, and 7 percent fewer than the 21,394 sales in February 2005.

With home prices reaching record highs, the average mortgage payment being seen by the typical Southern California homebuyer rose to $2,251 in February, up almost $100 from January, and up from $1,905 in February 2004. When the figures are adjusted for inflation, current payments are approximately 2.7 percent above typical mortgage payments from the spring of 1989, which was the peak season of the area’s most recent real estate cycle.

Foreclosure activity of existing mortgages has been edging up slightly, but still remains relatively low in Southern California. The number of homes financed with adjustable-rate mortgages has dropped significantly over the last three months. Meanwhile, down payment figures have remained stable, as have flipping rates and non-owner-occupied buying figures.

All in all, it’s too early to tell if these figures represent any lasting trend, but experts will be monitoring next month’s statistics carefully for any further signs.

Copyright 2006 Jeanette J. Fisher

Jeanette Fisher helps real estate investors make money in any market. Fixing and Flipping Houses free ebook, "The Truth about Making Money Flipping Houses."

Free Teleseminar: How to Get Started Investing in Real Estate

2006-01-31T01:02:00.000-08:00

"Everything needed to know to purchase your first investment property -- in 70 minutes or less!"

Tuesday, January 31, 6 P M Pacific

Topics

Four Proven Steps to Making Money Investing in Real Estate

Make Money in Real Estate – 5 Strategies including "Flipping Houses"

Four Steps to Financial Freedom

Create Your own Investment Plan

To register, visit http://doghousetodollhouse.com

###

Real Estate Investors Teleconference

2006-01-05T18:35:00.000-08:00

Real Estate Investors Get New Interior Design Psychology Ideas for Redesign and Home Staging

Design Psychology expert Jeanette Fisher will share her unique home redesign and home staging strategies for real estate investors in a Free Teleconference, "Interior Design Secrets for Optimum Selling in Any Market," Wednesday, January 11, 2006.

Real Estate Success Link, a network and training resource for investors, will sponsor the Special Teleconference. Guest speaker Jeanette Fisher, interior design college instructor, is the author of Sell Your Home for Top Dollar- FAST! Design Psychology for Redesign and Home Staging and other books.

Stefanie Blackburn said the mission of Real Estate Success Link is to help investors' expand their investing knowledge and build strong networks with other investors. Blackburn jumped into the world of real estate investing just over two years ago. She quickly learned multiple ways to achieve success with real estate investing and many different ways to get a deal done. Over the last two years, Stefanie has completed several creative real estate transactions that include, lease options, subject-to’s, wholesaling, short sales, and loves referring deals to other investors.

Jeanette Fisher has been fixing houses for resale for over twenty years. She has researched the effects of environment on emotions for over 15 years. Her other books include Home Staging for Top-Dollar Sales, Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits, Joy to the Home: Design Psychology for Happiness and Well-Being and university textbooks. Jeanette also teaches real estate investing for the Learning Annex.

Stefanie enjoys sharing information and wants to see others become successful Real Estate Investors. In order to share information that she has and bring other experts to the Real Estate Investment community Real Estate Success Link was created. In order to be kept informed of offerings from Real Estate Success Link please go to www.resuccesslink.com and sign up for the mailing list.

Stefanie's niche is in the foreclosure market where she is able to buy properties at substantial discounts by putting together a short sale package that gets accepted by the bank. On one of her top deals she was able to purchase a $643,000 house for $454,000 and have the bank pay a $10,000 back property tax lien as well as an HOA and water lien from the $454,000 amount.

Register for Real Estate Success Link
Free ebook: Design Psychology for Selling Houses
Free Real Estate Investing Teleseminars
###

Flipping Fixers

2005-12-30T11:00:00.000-08:00

Start Real Estate Investing: Using Junkers to Build Your Fortune
By Jeanette Joy Fisher

It may not be a well-kept secret, but many fulltime real estate investors make their best profits by buying and fixing junker homes. My husband and I have been buying and reselling homes for many years, and although we now are shopping for properties in the quarter million dollar range, we started out like most successful investors--by buying junkers.

In some ways, buying junker homes in economically depressed neighborhoods is counterintuitive, especially in light of what you'll read in almost every real estate investment book or hear in any investment seminar. Those people tell you to avoid those run-down neighborhoods, and to concentrate on the pretty ones, where the homes will appreciate more.

There is some truth to that, and once you've been at it awhile, like my husband and I, you'll also be able to buy and sell in the more desirable neighborhoods. But if you're just starting out, you may need to do some serious homework and find a junker home in a reasonably attractive neighborhood and start there. Just about every successful investor started just that way, so you'll be in good company.

Don't get me wrong. I am NOT suggesting that you buy homes in ghettos or slums. Sure, they'll be available for a song, but when you've fixed them up, no one will want to live there, if they can possibly afford to live somewhere else. You also don't want to have the BEST home in a terrible neighborhood. Quite the opposite, in fact. You'll be looking for the worst house in the best neighborhood you can afford. That's where the money is to be made.

Remember, you're not buying properties just to impress your friends. You're buying properties that will ultimately make you MONEY, pure and simple. You'll probably also have to get your hands dirty, because these types of house will often be downright filthy and ugly. Cleaning up is the one thing almost ANYONE can do without having to pay a subcontractor to do it for you.

So if you're looking to build a real estate fortune of your own, one great place to start is with junkers. Thousands of people have done it successfully over the past decades, and so can you!

Copyright © 2006 Jeanette J. Fisher

FREE Real Estate Investing Teleseminar. Get expert advice on how to set up your real estate investing business plan from college instructor Jeanette Fisher. More real estate investing information and FREE Ebook "The Truth about Making Money Flipping Houses" Doghouse to Dollhouse for Dollars

Doghouse to Dollhouse for Dollars on sale at Amazon

You CAN Make Money Flipping Real Estate

2005-12-26T11:07:00.000-08:00

Flipping real estate can make you money, sometimes quite a sum of money, whether you're a first-timer or an old hand at real estate investing. Regardless of your experience level there are a number of ways you can begin flipping properties, and putting money in the bank.

A great way to flip properties and make money is to take title to a bargain piece of property, fix it up, and then resell it at the full market rate. This investment strategy will take a certain amount of time, expense, and energy, but the repairs can often be made in a relatively short time, so your profit potential can be substantial. I know, because my husband and I have done it many times! You'll find more details on how the entire process works at http://doghousetodollhouse.com, which is a site devoted to making profits by buying rundown houses and turning them into desirable homes for resale.

Never think that flipping real estate is in any way dishonest or unethical. If you follow all the rules, you can make some real money by flipping houses, although there are a few things you'll want to have in place before you begin. The first is your own finances. You'll need to be able to obtain credit fast, so that you can move quickly when you find bargain-priced properties. You'll also want to establish a relationship with a good closing agent, who knows your goals and is willing to help you reach them. It also will be helpful to let at least one aggressive real agent know what you've looking for, and then ask them to call you whenever they see properties that might meet your investment needs.

After you have your finances and your closing team together, you'll want to pick a target area for your investing and then learn all you can about it, so you'll be able to recognize buys with significant profit potential when you see them. You'll also need to develop the ability to deal fairly, calmly, and honestly with sellers who are under a considerable amount of stress. They'll be angry and afraid, and you'll need to learn how to let them know you're going to try to help them, even though you're hoping to make a profit on the property.

If you set your mind to it, put together a winning team of professionals, have your own financial house in order, know great bargains when you see them, and can negotiate with sellers under severe duress, you have the potential to do well by flipping real estate.

Copyright © Jeanette J. Fisher

Join our FREE Teleseminar "How to Get Started Investing in Real Estate". Get expert advice for beginning real estate investors from Jeanette Fisher. More real estate investing tips and Free ebook, The Truth about Making Money Flipping Houses at http://doghousetodollhousefordollars.com/

The Number One Skill Needed for Real Estate Investors in a Changing Market

2005-12-25T08:29:00.000-08:00

No matter what happens to the real estate market, investors who buy property right always come out ahead.

Due to the high demand for housing and easy financing over the past eight years, investors made a killing buying and selling, or flipping for quick cash. Even those investors who paid market value made money with rapid appreciation. But the investors who held onto properties saw home values double and triple.

What does the changing market mean for investors? The ability to spot a bargain-priced home that also rents for positive cash flow will make the next generation of real estate investor multimillionaires.

If interest rates climb, more people will be forced back into the rental market. Home sellers will offer lower prices and owner financing to capture the buyers able to purchase a home.

Because many home owners refinanced with adjustable interest rates, many home owners may find it difficult to pay the higher payment. For investors, this opens the pre-foreclosure market, which has been dried up over the past few years.

If you want to become one of the real estate investor multimillionaires over the next few years, here are three action steps:

1) Get your financing in shape so you don't pay high interest and mortgage costs. Every dollar becomes more important in a soft real estate market.

2) Get to know your market. Choose one area to focus and watch home sales. Keep records of sales, days on market, and sales terms (owner concessions such as financing, paying closing costs, etc.). Also, watch the rental market, rates, vacancy, and demand. You may need to choose an area away from your home base to find a location where rental income matches mortgage payments.

3) Negotiate. Once you find a bargain property with a motivated seller, ask for seller concessions. With fewer competing offers, you can get a real bargain.

Investors who buy right in any market make money. If you can hold onto a property that pays for itself, you will make more money for your future.

Copyright © Jeanette J. Fisher

Set up your real estate investment business plan, join our FREE Teleseminar "How to Get Started Investing in Real Estate". Get expert advice for beginning real estate investors from Jeanette Fisher. More real estate investing tips http://doghousetodollhouse.com/

Real Estate Investing: Don't Invest Without a Cash Reserve

2005-12-23T14:00:00.000-08:00

The number one rule in investing or business is obtain positive cash flow. Everyone knows that, don't they? But many beginning investors forget a rule that may rank ABOVE that one, especially if you're planning to invest in real estate over the long haul, and that is the importance of maintaining a CASH RESERVE.

Even some of America's largest businesses have forgotten about the importance of having a healthy cash reserve. And most of those businesses are either longer with us or have emerged from bankruptcy after having learned a painful lesson. (The most recent example of the latter took place when the once-venerable retail Goliath K-Mart almost disappeared.)

It goes without saying that no business or individual investor can go on indefinitely with a negative cash flow. But there are times when a particular piece of property only needs some time before the market will catch up to it, and when that happens, an investor will need to feed that property until the circumstances are right for changing that red ink to black - and that means calling on cash reserves.

Not having enough cash reserves also means that an investor can't make the repairs that will be necessary to improve the overall value of the property, both now and in the future. The axiom is simple: if you have the cash reserves to weather the hard times at the beginning, you'll eventually profit from your investment, and if you don't, you won't.

There are times when a property will need to be held for months (or even years, if you buy the wrong property!) before it will finally recoup its initial investment, and if you don't have the cash reserves to ensure that you'll be able to hang on to the piece of property, you'll end up having to sell, or worse yet, having the property foreclosed upon. In either case, all the time, money, effort, and stress you've invested in that property will go up in smoke - all because you didn't begin the venture with enough cash reserves to guarantee your success.

If it’s a rental property, having a strong cash reserve can allow you to make the property appealing to a better class of clientele. You can hold out for better qualified tenants, and you can withstand periods of vacancy without having to panic. You also won't have to be held hostage by poor tenants who threaten to vacate, for fear that the property will sit vacant for some time. All those situations can be avoided by maintaining a strong cash reserve.

You ultimately need to make money on your investment, of course, but there will be a variety of situations that will arise from time to time that will make you glad you also followed the other top rule of real estate investment, which is to maintain a CASH RESERVE.

Copyright © Jeanette J. Fisher

Join our FREE Teleseminar
"How to Get Started Investing in Real Estate".
Get expert advice for beginning real estate investors from Jeanette Fisher.
More real estate investing tips

Why You Should Buy Real Estate in December

2005-12-19T15:14:00.000-08:00

December and New Year's Day give you the perfect occasion to buy real estate. Not only can you pick up a bargain property from a motivated seller, you can save on your purchase expenses.

1. Home shoppers put off looking for a home because of holiday decorating, shopping, and parties. Plus, the cold weather makes home buyers prefer to stay home; they wait for warm weather to buy real estate. Get the edge with little competition from other buyers.

2. Home sellers who didn't sell during the recent buying frenzy are worried that their home will not sell. Any seller offering their home for sale during the holiday season is motivated.

3. Real estate agents need to keep their momentum going and can't afford to take too much time off. When the agents aren't as busy, you get better service. Plus, they're more likely to take low offers seriously. Agents love investors ready to buy real estate during December.

4. Interest rates continue to creep up. Who knows what the rates will rise to next year?

5. Lenders threaten to tighten up qualifications next year. Last summer, loan officers were able to get through almost any loan. Today is your best shot to buy real estate and get a great rate with the easiest qualifications.

6. Appraisers need work. Too many individuals became real estate appraisers when there was too much work. It used to take a week or more to schedule an appraisal. We just ordered an appraisal and the appraiser wanted to come out the same afternoon! Also, appraisal fees cost less today than last month.

Clear some time from your busy holiday schedule and go find a bargain house. Make many offers. You won't get this break for another year.

Copyright © Jeanette J. Fisher.

Jeanette Fisher teaches beginning real estate investors the five steps to buy real estate and turn fixers into dollhouses. Free ebook "The Truth about Making Money Flipping Houses." Make Money Investing In Real Estate Next Year

The Real Estate Bubble Fallacy

2005-12-17T11:53:00.000-08:00

By Michael Setz

There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"?

They are saying that the market just can't sustain this level of growth and appreciation much longer, and I heat them say that it is inevitable that it must come crashing down soon. People are worried. They don't think it can last; That whatever goes up, must come down.

These folks have been conditioned to believe what they believe most likely from the experience of the stock market bubble of 2000, and maybe the 1990's when the real estate market was hit hard in many large metropolitan areas across the country.

Its human nature to feel this way. We all know the saying (or the 80's tune for you big hair folks), "Once Bitten, Twice Shy". Or what about, "All good things must come to an end."? Its how we react to almost everything that affects our well being and general safety. Its a subconscious reaction at the gut level.

Just like in the stock market, there are bulls and bears. Bulls are typically more optimistic about the market and expect it go up, and bears are generally more pessimistic and expect the market to go down. They will always be there to provide free advice and "expert consulting". Remember though, who you decide to listen to will certainly have an effect on your decision making, and ultimately your success.

Well, I'm here to say that there is no real estate bubble! There never was a real estate bubble. Its a complete and utter fallacy.

"How can I say that?" you ask. I can say that because the real estate market is in reality, a Wave. Its a cycle, and we just happen to be riding the big swells, or the crest of this long, consistent, and fairly predictable pattern.

There is no doubt that real estate has been a rock solid investment for decades, and will continue to be for the foreseeable future and for many reasons that I would like to demonstrate here and now. Because you, as a real estate investor, must be able to move forward with confidence when deciding which projects and properties you want to buy and sell. That is the purpose of my website, www.realestateinvestment.net, to provide you timely information, strategies and techniques to help you succeed.

But first, what is a bubble? In terms of economics and markets, the best definition is probably something along the lines of "an isolated or ephemeral situation or condition with little support or substantiation from external conditions".

The best example, and the one foremost in the minds of us all, is the stock market tech bubble of 1999 and 2000. We all rushed into the tech stocks and the stock market in general as we saw the .com millionaires being made.

Y2K was a big factor in the tech bubble. People were buying new systems at a unprecedented rate in order to prepare for doomsday. People were also buying consumable goods to stock up for the dreadful event that never came.

So what was holding up, or supporting the "irrational exuberance" as Alan Greenspan characterized it? Well, we learned soon afterward, not much. It was an isolated, temporary incident that had little support from the other conditions. It was indeed like a bubble that burst.

And it has had little support since then. Historically speaking, after the stock market crash of 1929 and 1987, it took decades for the market to recover, although it did eventually recover. Just look at the Dow average and the S&P average for the last hundred years and see the pattern of recovery. You can be sure that a slow steady rise for stocks is in progress.

Now back to real estate. Let me explain why this is not a bubble.

Real Estate is Cyclic

Real estate has had its ups and downs over the years, but it is generally stable, with no drastic swings per se. If you were to look at the cycles on a chart you would see a clear pattern of gently rolling swells. This pattern is consistent across cities and regions all across the United states, although slightly varied in degree.

In addition, the cycles tend to favor the ups rather than the downs. It is not uncommon to see large cycles of appreciation and much smaller downward cycles. In other words, the current double-digit growth we've all come to know and love in recent years will likely be followed by downturns of single digit declines. Its like taking two steps forward and one step back.

In the big picture you will still be further ahead than when you started. You may see slower growth, but it will still be growth.

Real Estate is a Basic Necessity

People need to live somewhere. They need a roof over their head and their children's heads. Like food and clothing we must have a home. People don't need stocks or bonds. Therefore, you can be sure that whether the market is high or low in growth, whether interest rates are up or down, people will be buying, renting, leasing, and selling homes. It is as perennial as the years.

This Real Estate Wave Has Been Around Awhile

I don't know when you first realized we were in an up market in real estate, but it has been on a solid upward trend for at least the last 3-4 years. It didn't just happen yesterday. Of course like anything else, awareness of the general public is a bit latent, and dependant upon the media. It has only been lately that the media has really focused on it and thrust it onto the front page.

The old adage "Success breeds success" is also true. The momentum will grow as other more traditional investors continue to jump on the band wagon and pour their money and resources into real estate investment. It tends to create a perpetual, self-feeding market that is ideal for more seasoned investors.

Real Estate is Local and Regional

It is true that even in today's real estate boom, there are areas in the United States that are not enjoying the high rates of return that others are experiencing. California is a fantastic place to invest, so is Arizona and a host of other places.But the Rust Belt states are not as fortunate. Watch what happens to Florida home values after this horrendous hurricane season. This is because real estate is driven by the primary capitalistic force of Supply and Demand.

Generally speaking, property values increase in areas where the job market is strong, and where there are more people moving into than away from. Of course there are other factors to consider; including interest rates, availability of funding, climate, and governmental policies. These are all important and you must be cognizant of their impacts to your strategy.

However, it is true no that matter what the rates are or how nice the climate is, people will continue to migrate where there are abundant job markets and affordable housing. If you can stay just slightly ahead of that migration, you will profit immensely.

Real Estate Investing is Diverse

You can invest in so many different ways, from foreclosures and fix and flips, to buy and hold and everything in between. Right now the commercial space is relatively soft. It will recover no doubt, but people investing in single family homes are probably doing slightly better in returns. Vacancies are up and rents are down for commercial properties, but fortunately, the forecast is for this sector to improve over the next few years.

The key to successful real estate investing is to understand the forces, trends, and conditions that are driving the market. BE AWARE of your surroundings; Read articles and stay on top of industry news; Look in your own area at the job market and forecasts. Check my website www.realestateinvestment.net for all the news and information you need to help you succeed in your real estate investing career.

There is no real estate bubble, but there is a real estate wave. Like any dedicated surfer, when the surf's up, get in the water and catch a wave! But watch for danger, be flexible, and be smart. Invest wisely and you can prosper in any real estate market.

Copyright 2004 realestateinvestment.net

Michael Setz is an author and the founder of The network for successful real estate investors.

How to Make a Wise Property Purchase and Avoid the Top 14 Buyer's Mistakes

2005-12-10T20:33:00.000-08:00

Many real estate buyers rush into a home purchase without getting enough information. Don't let impulsiveness or ignorance ruin your enjoyable property search and purchase.

Here are 14 common real estate buyer's mistakes to avoid:

1. Don't wait to talk to a mortgage lender and check your credit. Take care of any credit issues and prepare your finances to meet all the mortgage requirements. Make sure you satisfy all six credit requirements, not just a good credit score.

2. Don't wait too long to buy. Many renters pay more for an apartment than they would pay for a mortgage payment. Many investors take too long investigating instead of investing.

3. Don't buy more house than you can afford. Keep your payments within reason and have a backup plan for emergencies. Even though you qualify for a certain mortgage amount, you must feel comfortable with the payment.

4. Don't fall in love with the home for all the wrong reasons. Even though I mostly tell home sellers to use home staging strategies to sell for top dollar, my advice to home buyers is to look past all the staged glamour. Look at the bones of fixer houses to see if you can turn an ugly house into a dollhouse.

5. Don't work with the listing agent or the wrong buyer's agent. Get your own agent who represents your interest-- one who listens to your needs. However, if you're an experienced investor who knows how to buy houses, sometimes you can save money working with the listing agent by asking for a discounted selling commission.

6. Don't buy in a neighborhood you don't know. Check at night to see what activities take place. Ask the neighbors and the local law enforcement about crime statistics.

7. Don't buy a home with an incurable defect, such as: irreparable structural damage, traffic noise, near electrical or sewage pump stations, near a mini-market with people hanging around, insufficient parking, or poor floor plan.

8. Don't buy too far away. Drive the route during rush hour to test how you will feel, how much time it takes, and how much gas you buy. Your happiness outweighs the home's amenities. Calculate gas expenditure savings for a closer home and add this amount to your possible mortgage payment.

9. Don't forget to check zoning and county planning plans. Know what the current zoning allows you to do and what the planed zoning around the property will bring. You need to know if an airport, freeway, or apartment buildings will be built nearby.

10. Don't pay more than you need to buy a house. Research the sales prices yourself of recent sales. Let an agent guide you, not sell you. Many buyers offer more than they need to because they fall in love with a particular home.

11. Don't pay too much for financing. Get your credit in good shape before you start looking for a home. Find out what price range you qualify for and arrange financing so you can make offers. Before you sign any mortgage papers, shop for the best terms. Many home buyers, grateful that they qualify, overpay mortgage costs and interest.

12. Don't forget to get a home inspection from an impartial third-party. Don't just rely on your agent's referral. One agent we worked with was married to the home inspector she recommended.

13. Don't misunderstand what comes with the property. In some states, leaving the refrigerator is customary. However, in many other locations, the stove and refrigerator must be included in the sale contact as personal property that stays in the home.

14. Don't put up a "Non-Refundable" earnest money deposit. Don't let a hot seller's market or your agent's pressures convince you to put up a non-refundable deposit.

Always leave yourself a way out of any purchase contract until you get your home inspection and have time to fully investigate the property, neighborhood, and financing. Inform yourself with good home purchase information.

Copyright © Jeanette J. Fisher.

Jeanette Fisher teaches home buyers how to satisfy the six credit requirements to buy their dream home or multiple investment properties. For free Credit Tips for Home Financing ebook and more home purchase information see Worry Free Credit Help.

The Real Way to Make Money Flipping Houses

2005-11-27T10:54:00.000-08:00

Would You Like to Make Money Flipping Real Estate?

Many beginning real estate investors get started by flipping real estate to make quick cash. If you would like to make more money by investing in real estate, you need to know a few essentials.

What is the definition of real estate flipping?

Simple definition: Buying property and reselling quickly, hopefully for a great profit. Usually, people think of flipping houses, or the buying and selling of a home fast, as the only way to make money flipping real estate. However, some investors specialize in other types of real estate such as land or strip centers.

Some confusion arises over the process of making money flipping property. People who specialize in finding bargain real estate, obtain a purchase contract, and then sell the contract before taking title to the property are known as "Bird Dogs." These beginning real estate investors get started with no money down by:

* Finding a seller under stress with a bargain property
* Securing a sales contract
* Selling their contract for roughly $500 to $5,000 to a seasoned real estate investor

Isn't real estate flipping illegal?

Flipping real estate isn't illegal. However, many unscrupulous investors committed mortgage fraud to make fast money. Some of these investors, working with mortgage brokers and appraisers, resold houses to unqualified buyers inflating the property value and home buyer’s qualifications. Often these home purchases had no money or little money down. When these new home owners defaulted on the mortgage payment, the mortgage lenders lost money because the house wasn't worth the inflated purchase price.

To avoid legal problems in real estate flipping, don't commit mortgage fraud.

To make money real estate flipping:

1. Prepare your financing so you can close on a deal quickly.

2. Learn your market so you know what makes a good deal.

3. Find a bargain property owned by a seller under stress to sell.

4. Secure a purchase contract in your favor.

5. During escrow, plan your selling actions.

6. Close on the property on time.

7. Immediately set your selling plan into action. If the property needs fixing, be prepared to get this done right away.

8. Market your property to your target market. Don't just list the property and hope for the best.

9. Find a qualified buyer. Have a loan officer check to make sure your buyer meets all the mortgage requirements.

10. Stay legal. Don't use an inflated appraisal. Don't gift your buyer the down payment. Don't help your buyer create false W2s, write phony credit letters, or prepare any false documents. You can pay many of your buyer’s closing costs to make the purchase easier.

You can make money flipping real estate. Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits!

Copyright © Jeanette J. Fisher

Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, and sell houses for top dollar. To find out how to make more money using interior design psychology strategies and get a free ebook on Flipping Houses, see Real Estate Investing: The Real Way to Make Money Flipping Houses

How to Finance Multiple Investment Properties Free Teleseminar

2005-11-22T18:04:00.000-08:00

Is money holding you back from creating your real estate portfolio?

Learn how to improve your credit so you can make money using other people's money.

Join our FREE Credit Help! Teleseminar to find out what it takes to improve your credit so you can finance multiple investment properties. Learn what it takes to get investment property loans to build wealth.

"Don't Shop 'til You Drop on the Saturday After Thanksgiving!"
Saturday, Nov. 26 10:00 AM Pacific Time
Watch as I Guide You Through the Entire Process...

If you can talk on the phone at the same time you go online, you will be able to watch my PowerPoint presentation used in my college seminars.

This class doesn't give you the same information as "credit repair clinics" who can damage your credit. Because so many of my students needed credit improvement to finance property, I researched the best way to strengthen credit specifically for mortgage loans.

Read more about it:
Free Credit Help Teleseminar

Happy Thanksgiving!

Jeanette Fisher
Worry Free Credit Help Info

Investing in Real Estate, Flipping Houses, and Income Taxes

2005-11-16T09:04:00.000-08:00

Problems arise when real estate investors don't follow federal and state tax laws. This is why you need professional advice. Although I am not a tax advisor, here are some common mistakes beginning real estate investors make by not understanding tax liabilities:

Flipping Houses

The reason flipping houses is a mistake for some beginners is that they don’t know the income tax consequences. One problem with flipping houses, or selling too many properties too quickly, the IRS could say that your real estate business is your trade, subject to ordinary income and self-employment taxes.

Self-employment tax, a social security and Medicare tax primarily for individuals who work for themselves, is similar to the social security and Medicare taxes withheld from the paycheck of most employees. The self-employment tax rate costs you 15.3% of your profits. (However, this may provide retirement benefits.)

Rehabbing Houses

Another common mistake that beginning investors make is selling a property after holding it for almost a year. Some rehabbers work part time on a fixer and take six months to get the house ready. Add on two months to sell with a 60 day closing, and they’re up to ten months. To take advantage of the low 15% capital-gains tax rate, you must keep the investment property for at least a year before selling. If you sell before a year, your tax rate, the usual capital gains rate of 35%, could eat up a significant amount of your profits.

If you're rehabbing houses, be patient. You could save thousands in taxes by holding your property just a few more weeks.

1031 Exchange

However, the Internal Revenue Code provides real estate investors away to defer capital gains taxes indefinitely. Section 1031 of the Internal Revenue Code provides a tax-free exchange. Also known as a "like-kind" exchange, this code allows you to sell a business or investment property and defer capital-gains taxes by immediately reinvesting the gains into a similar piece of property. The key, replacing a business or investment with similar property, means that no gain gets paid to the investor. Any profit taken out of escrow gets taxed. This means that beginning investors might take out a portion of the profit after they carefully explore their tax liabilities. In other words, talk to an accountant and find out what your tax would be according to your current usual income. Many business owners take advantage of this because they have many business deductions.

The big mistake beginning real estate investors make doing a 1031 tax-free exchange, taking possession of the profits, voids the tax deferment. You must declare the sale of your property to be a part of a 1031 exchange before you sell the property. Then you have the money placed in a trust account held by an intermediary until you purchase the new investment property. You have 45 days to identify a replacement property and 180 days to close on the new investment. You can't purchase a primary residence or a vacation home with funds from an investment property and defer taxes in a 1031 exchange.

The best advice for beginning real estate investors: Talk to an accountant.

Would you be better off making extra money, even if you must pay taxes?

© 2005 Jeanette J. Fisher.

Jeanette Fisher teaches beginning real estate investors her system to make more money fixing houses with Design Psychology. For a free ebook "Design Psychology for Selling Houses," see http://doghousetodollhousefordollars.com/

Flipping Houses

2005-11-09T17:14:00.000-08:00

Some real estate investing "teachers" advise beginning investors to find many houses and to flip the houses quickly for outrageous profits. Perhaps you've seen the claims of real estate gurus telling you how you can make $30,000 to $50,000 per month, without any physical work, and for little or no money out of your pocket. In fact, these promoters tell you that you can get money back when you close.

Let's take a closer look at these fast flips.

How do you find a bargain for $30,000 or more under market, for no-money down, and flip it right away? First, you would need to find a seller so desperate that they sign over their home to you. I'm not saying that this can't be done. It's just nearly impossible in today's real estate market. Today's sellers know they can sell their home fast and still get a fair price by only discounting the property by $10,000, without the seller carrying the financing. This is because there are so many home buyers looking to purchase a home to live in.

How does this affect the beginning real estate investor who was promised they could find many houses for drastic price reductions? These investors soon get discouraged because the promised method is so difficult to do. Not only does the investor have a hard time finding a home for way under market value, the investor with no money to put down has two obstacles to overcome. No money down and finding a bargain house. These aspiring investors, some who charged hundreds of dollars for bogus investing courses, just give up.

If you're thinking about getting into real estate investing as a way to secure your financial future, be wary of investing systems that worked last century. Learn about real estate customs in today's fast-paced market.

The real way to make money on fast flips is to get yourself ready to cash out a desperate seller fast. You can begin with your first investment home realistically two ways:

1. Buy a home to live in so you can purchase with no money down.
2. Refinance your own home and use the money for a big down payment to encourage a desperate seller to sell fast.

This method works because sellers who need to settle their affairs quickly will sell at a big discount to a buyer who doesn't ask them to be the bank.

You can still build wealth by flipping houses. But, you need to have your finances in order when you go bargain shopping.

© 2005 Jeanette J. Fisher

Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, and sell houses to build wealth. The difference in Jeanette's system, fixing houses with Design Psychology, helps investors make more money on each house. Free "Design Psychology for Selling Houses" ebook
Flipping Houses/

Do you have a hot bargain property for sale?

2005-11-04T16:08:00.000-08:00

Real estate agents and for sale by owners:

We're nuts! We're posting other investor's houses for sale. If you have a great property for sale, send us your property details and pictures. We're getting ready to add to this new page:

Hot Bargain Properties for Sale

Flipping Houses Question from Lisa: Why do investors always paint all the walls white?

2005-10-25T14:11:00.000-07:00

Answer from Jeanette:

Real Estaste investors follow a "blow 'n go" quick-money formula. It's faster to spray paint everything with cheap white flat paint. The houses look clean and bright.

However, you can also buy paint (for less than the flat five gallen white paint) at Habitat for Humanity's thrift store. We buy oops paint and mix colors ourselves that attract our target buyers.

I hate white walls! Most people don't look great with white backgrounds. White looks clean and bright, but it doesn't make you feel happy, warm, or rich. In fact, most artwork looks better on color.

When preparing a home for sale, boring white doesn't make the home stand out in the buyer's mind. Buyers want more than clean and bright. Buyers want to impress their friends with spectacular! Use color and sell for top dollar.

Jeanette Fisher
Design Psychology
Joy to the Home
Homes for glorious living and top-dollar sales
Free eBooks: "Design Psychology for Selling Houses" and "What Is Design Psychology?"

5 Reasons to Build a Real Estate Property Portfolio

2005-10-17T11:16:00.000-07:00

By Rhiannon Williamson

I think you’ll agree with me that real estate investment deserves a closer look when I tell you that according to many sources 90% of the world’s richest people made their fortunes from property!

So here are just five quick reasons why I think you should consider building yourself a real estate portfolio.

1) Freedom – By working to create a profitable business from your underlying property assets you can free yourself from the shackles of 9 – 5 employment where your creativity is zapped and your potential overlooked!

In this day and age those who can say that they love their job are the much envied few. For the rest of us the daily grind is simply necessary to keep a roof over our heads, feed and clothe our children and hopefully be able to afford to retire some day.

Does that sound like freedom to you?

I don’t think so!

The creation of a profitable property portfolio will allow you the freedom to make your own business decisions, to work when you wish and to manage your family’s finances more effectively.

2) Leverage – if you place a twenty thousand dollar lump sum into a bank you will earn interest on that figure alone – the interest rate will likely be poor and taxation and inflation will eat away at any gains you make.

Alternatively, by placing twenty thousand dollars into a property worth one hundred thousand dollars and using a bank’s money in the form of a mortgage to leverage up, you make will make the average annual increase on the full value of the property not just on your twenty thousand dollar investment!

3) Profit Twice – with property you can profit once in the form of regular rental income earned and you can profit twice and big time from the average price gains your property will enjoy each year.

Even during a real estate market down turn when prices stagnate or readjust your property will hold at least the majority of its value before once again attracting positive capital growth when the property market cycle begins to turn to profit again.

4) Consistent Growth – over the last fifty years real estate has doubled in value every seven years. If you average that out that means that property has grown consistently by just over ten percent a year.

5) Passive Income – As your property portfolio grows so the amount of income you generate will increase. You will not be able to stop this growth once it starts because each year your properties will go up in value and regularly you’ll be able to push up rental income!

While you retain ownership of your properties so you will retain ownership of all the income and all of the growth in underlying value – this is a passive income that you can take into retirement and hand on to your children and grandchildren when you’re gone.

A Final Word – Making an investment into real estate is just like making any other form of investment. There are associated risks and past performance is not an indicator of future potential. Furthermore this article does not constitute personal direct advice.

Rhiannon Williamson is a freelance writer whose many articles about international property investing have appeared in publications around the world. Visit her site AmberLamb to read her latest articles.
Article Source: http://EzineArticles.com/

Flipping Houses: Home Staging

2005-09-09T21:31:00.000-07:00

Nothing says "sit, stay awhile, and relax" like rocking chairs. These types of rockers are available at Cracker Barrel for about $100 each. They even have a tempting double rocker.

If you're in the business of flipping houses, home staging can increase your profits.

Home Staging Tips Blog

Home Staging Articles

Habitat for Humanity's Hurricane Recovery Effort

2005-09-06T13:05:00.000-07:00

Now would be a great time to give away your extra building supplies. Check to see if you have Habitat for Humanity's ReStore near you.

You could also give Habitat money. They like that!

Go to http://www.habitat.org

"Flipping Houses" blog updates

2005-09-06T13:01:00.000-07:00

You can now receive new posts in your email. Just enter your email in the box at the top right.

I don't collect these email addresses and I don't post too often.

Make money and help others when you fix and flip!

Jeanette

Flipping Houses for Dollars: How to Find a Flip

2005-09-06T12:54:00.000-07:00

By Jeanette Joy Fisher

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 FLIP

Know Your Market Area

Your first task, exploring your market area, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents 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. However, these buyers like the distinctive 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 attracts buyers and you'll make smart redesign choices.

Know When "Ugly" Means "Dollars" to You

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. Make offers on the ugliest houses in decent neighborhoods.

Don't be afraid of stinky houses that show horribly. Search 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 real estate investors see them as gold mines.

Know When "Ugly" Means "No Way!"

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. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.

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. Check 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 rehabbers make? In Ohio, 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. Know your market. Know when "ugly" means dollars in your bank account, and when to keep looking for the house with the hidden treasure.

Copyright © 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 website. Learn about decorating to attract buyers. Professor Fisher teaches interior 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. Free "Design Psychology for Selling Houses" Report Questions? Doghouse to Dollhouse for Dollars Blog

Help Build New Homes

2005-09-03T23:26:00.000-07:00

Habitat for Humanity has a great program to help the hurricane homeless.

http://www.habitat.org

It's really hard for me to write about making money with one of my favorite cities devastated. When we lived in Florida, we visted New Oleans. Our daughter Sara loved the street musicians, especially the Zydeco players. I loved the old houses. My husband loved the food.

Please go to http://www.habitat.org and be generous.

Buying Rental Property - Avoid Seller's Tricks

2005-08-26T20:02:00.000-07:00

By Steven Gillman

Be careful when buying rental property. We stayed at a motel for a week one winter. The bill showed twice what it should have, but since I already paid the correct amount in cash, I thought nothing of it. When we noticed that the lobby and swimming pool were unheated, we thought it was frugality. Only a year later, when I read a news story about a new owner struggling to make the motel work, did I realize what was going on.

The owner had been planning to sell. To prepare, she was using the two most basic ways to inflate the appraised value: decrease expenses and increase reported income. By stopping repairs and quietly adding $100 in income every day, she may have shown $45,000 more net income for the year. At a .08 capitalization rate, that means the appraisal would come in $562,000 higher than it should have. Oops! The poor guy who overpaid!

Do you want to avoid a mistake like that when buying rental property? You need to watch for tricks like these. You also have to understand the basics of appraising income property.

It starts with the capitalization rate, or "cap rate." If investors in an area expect a return of 8% on assets, the cap rate is .08. Net income before debt service is divided by this to arrive at the value of a property. I explain this further in another article, but the primary point here is to remember that every dollar of extra income shown will increase the appraised value by $12.50 with a cap rate of .08, or by $10, if the cap rate is .10.

Sellers Dirty Tricks

If sellers of rental properties increase the net by honest means, then the property should sell for more. Unfortunately, there are many dishonest ways, both legal and fraudulent, that are sometimes used. Unlike sellers of houses, who may cover foundation cracks with plaster, the tricks used by sellers of income properties aren't about appearance. They are about income and expenses.

Income can be inflated by showing you the "pro forma," or projected income, instead of the actual rents collected. Ask for the actual figures, and check to see that none of the apartments listed as occupied are actually vacant. Also, be sure that none of the income is from one time events, like the sale of something.

Income from vending machines is a gray area. Smart investors subtract this from the net income before applying the cap rate, then add back the value of the machines themselves. If laundry machines make $6,000, for example, that would add $75,000 to the appraised value (.08 cap rate), if included. Since they are easily replaceable, adding the $10,000 replacement cost instead makes more sense.

Hiding expenses is the most common of seller's tricks. Paying for repairs off the books, or just avoiding necessary repairs for a year, can dramatically increase the net income. Demand an accounting of all expenditures. If a number in an expense category is suspicious, replace it with your own best guess.

Analyse each of the following, verifying the figures as much as possible, and substituting your own guesses if they are too suspect: vacancy rates, advertising, cleaning, maintenance, repairs, management fees, supplies, taxes, insurance, utilities, commissions, legal fees and any other expenses. This is how you make buying rental property safe.

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Article Source: http://EzineArticles.com/

Besides Flipping: A Simple Step by Step Aproach to Fail Your Way to a Million Dollars

2005-08-17T09:49:00.000-07:00

By Mike Makler

If You want to be Financially Successful you need to Learn to Fail

At a Robert Allen Seminar he said the difference between successful people and unsuccessful people (Financially Successful) is that Successful know how to fail. He went own to say that in order to be successful you need to learn to fail, Unsuccessful people fail to get that 9-5 Job that pays $25,000 to maybe $90,000 a year and when they finally succeed what do they have a 9-5 Job. Successful People fail to buy that Property with a positive cash flow but when they succeed they have bought another property with a positive cash flow.

When you look around at Some of the World's Wealthiest People. Donald Trump, Lakers Owner Dr Jerry Buss, Clippers Owner Donald Sterling, Robert Allen and the List goes on they all have one thing in common they made their Fortune in Real Estate.

Let's contrast these Financially Successful Americans with the American Dream. The American Dream is to buy a House with a 3.4 Bedrooms and 2.7 Baths with 2.4 Cars in the Garage. Most people are very happy to Buy their "Dream Home". Once they buy that dream home they want to pay off the Mortgage so they can now own their Dream Home Free and Clear.

Perhaps you remember that TV Show All in the Family, from the 70s they still play it late night on cable. They had an episode where Archie and Edith had a Mortgage Burning party after they finally paid off the mortgage. There was another Episode where Archie took a loan against the House to Buy a Bar and was Edith ever angry at him.

Many people look at American Dream as Sacred. People are so blinded with the notion you buy a that dream house and pay it off that they fail to see the Big Picture. They Fail to See the possibilities that would open up to them if they would just unlock the potential in their homes. Many People are sitting on $50,000 to $500,000 in equity and are just letting it go to waste.

Let me ask you a Question. If you own a $400,000 house Free and Clear and it appreciates 10% a Year how much will it be worth a Year from now? If you have a $300,000 Mortgage on that $400,000 home how much will it be worth a year from Now? In both cases the answer is the same $440,000. The value or appreciation of your house doesn't change based on the size of the loan you have against it. The only thing that does change is the amount of Equity you have.

A Typical Homeowner has a $150,00 Mortgage on a property that is worth $300,000. Many lenders will give you a loan for up to 90% of your homes Value. If you were to borrow $270,000 you would be able to put 120,000 cash in your pocket. In St Louis MO you could Buy a 3 Bedroom Home in a nice neighborhood for between $70,000 and $90,000.

Now take that $120,000 cash and Buy 6 Rental Properties for $480,000 ($80,000 each). You take the $120,000 and use it as a down payment and borrow the other $360,000. Now rent Each of these Properties for $700 a Month and you have a monthly income of $4200. Your total loans are $730,000 and at a 2% interest rate your monthly payment would be about $2700 a Month. You would have a Net Profit of about $1500 even after the rental income pays mortgage the on your dream Homee.

Before

$ Value of Real Estate Controlled $300,000
$ Value of Equity in Real Estate $150,000
Positive Cash Flow after Paying Mortgage $0
1 Year Gain at 5% = 15,000
5 Year Gain in Equity at 5% = $83,000
10 Year Gain in Equity at 5% = $189,000
20 Year Gain in Equity at 5% = $396,000

After

$ Value of Real Estate Controlled $780,000
$ Value of Equity in Real Estate $150,000
Positive Cash Flow after Paying Mortgage $1500 (Monthly)
1 Year Gain in Equity at 5% = 39,000
5 Year Gain in Equity at 5% = $215,000
10 Year Gain in Equity at 5% = $490,000
20 Year Gain in Equity at 5% = $1,289,000

Looking at the Before and After in the Above Chart Some Numbers Stand out. You still have the Same $150,000 Equity but now you control $480,000 more Property. Instead of paying your Mortgage monthly on your Dream house your tenets are making your mortgage payments on all 7 properties and you have a $1500 monthly positive Cash flow. Using a conservative appreciation of only 5% a Year you would earn an extra $24,000 the first year alone in Equity appreciation. After 20 Years your Gain in Equity is almost $900,000 More.

If you do nothing more for 30 the next Years but collect your rents and pay off your 7 Mortgages at a 5% appreciation rate your 7 Properties would be worth over 3.3 Million Dollars even at an Ultra Conservative 3% your Net worth would be over 1.8 Million Dollars. Wow You just Failed your way to over 1 Million Dollars (This does not count the $1500 a month in positive cash flow or any Rent Increases.)

You can get a Loan with fixed payments fixed for 5 years based on a 1.95% interest rate Their are loans available with interests rates as low as 1.25%, through national lenders many of whom will approve you online

What would you do with an extra $1500 a month? A couple of car payments, a Dream home, that boat at the lake? What would you do with an extra $24,000 a year in appreciation?

About the Author

Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuites. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page: http://ewguru.com/finance

Get Mike's Newsletter Here http://ewguru.com/fin-news

Copyright © 2005-2006 Mike Makler

Article Source: http://EzineArticles.com/

How to Find a House to Flip

2005-08-15T21:47:00.000-07:00

How to Find and Buy a Bargain House with Little or No-Money Down
By Jeanette Joy Fisher

Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.

Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.

A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.

A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.

How to Find a Distressed Seller

Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.

Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.

How to Buy a Distressed House

You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.

If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.

Copyright (c) 2005 Jeanette J. Fisher-All Rights Reserved.

Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com

For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com

Flipping and Fixing Houses

2005-08-09T16:33:00.000-07:00

Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun
By Jeanette Joy Fisher

Real estate investors specializing in fixers make higher profits when they have a detailed work plan and know how to get around the future resale appraisal issues.

Before you begin your fixer makeover, taking a few extra steps helps you make more money, avoid future appraisal pitfalls, and have more fun.

1) Planning for Profits

Visualize your final home presentation for sale. Write out a description of the future home you imagine for your sales flyer. Name your home something other than just the street name; calling your fixer "Edna Street" doesn't inspire like "Sugar Plum Cabin." Your overall design plan helps you when shopping for building materials with choosing design details that go together for a harmonious whole house theme.

2) Take Photographs for Your Future Appraiser

You may have taken photographs during the escrow process, showing the seller’s possessions in the home. If your property was occupied during escrow, it will be worthwhile to take "before" photographs again, both for your own satisfaction and to show appraisers when they ask why you expect to sell the house for so much more than your original purchase price.

Detailed photographs substantiate the original condition of the property, compared to the final result. Avoid possible complications by showing the appraiser all the improvements that you made to the property, in order to get the full amount you deserve in your upgraded appraisal. This is a crucial step, because the appraiser must give you credit for your work and expenses, and not use your purchase price as the basis for the updated home’s true market value.

3) Hold a Doghouse Open House Party

We like to invite friends and family for a preview open house before we begin major work on the house. We ask them to bring any unwanted household fixtures or supplies and to offer any fix-up ideas, wild or practical, that may occur to them during their visit. We jot those ideas into a "transformation journal," and refer to them when we need fresh inspiration.

Here's an example of our invitation:

Your presence is requested at Jeanette and Brian’s Doghouse Open House. Come view our latest project and understand why we'll be busy for the next month.

Please bring cuttings from your garden and any unwanted paint. Any household or building material hand-me-downs will also be greatly appreciated!

Sunday afternoon, noon to four.

Another reason for a preview party is that the amount of work a doghouse may need sometimes seems overwhelming, and a fun event like an open house helps to overshadow the crushing weight of the work we have waiting for us.

Taking these first three steps helps you ultimately make more money, avoid appraisal problems, and have fun fixing houses for profit.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits" and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, and newsletters see http://www.doghousetodollhousefordollars.com/

Flipping Houses without Fixing

2005-08-09T16:17:00.000-07:00

How to Make Money in Real Estate Without Doing the Scrunch Work
By Jeanette Joy Fisher

If you don't have the time to invest working on fixers or if your tired of working on fixers to make money investing in real estate, try this method.

Many real estate investors make thousands of dollars on brand new homes with little work. To test this money-making system in your area, call new development home sales offices that have most homes sold. Ask about their price for a 3 bedroom, 2 bath. Ask how much this model has gone up since they were first available. If this increase is a substantial amount, then this real estate investing system most likely works in your area.

How to do the "new home" investing system:

1. Look for a new development with only a sales office trailer and pre-construction site.

2. Pick out the model you like and the lot you want. Get a corner lot inside the tract away from noisy streets. Avoid lots that could back up to a major street someday.

3. Secure the purchase of the home with a deposit.

4. After completion of home and purchase, the home should have appreciated.

5. Landscape using Design Psychology. Use colorful flowers that attract buyers eye to the front door. Provide a separate walkway to the front door so buyers don't have to walk around parked cars.

6. Sell with Marketing Psychology. Stage the home with a few props like lamps, plants, and mirrors. Turn on all lights.

7. Go to the bank and celebrate!

My friend made $50,000 on a $300,000 home with only $2,000 out of pocket. My son's co-worker made $100,000 on an Orange County house, with $20,000 invested for only three months.

Have fun, and make money, without the scrunch work!

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits." (The only book to reveal interior design secrets to making top dollar in real estate.) For more design tips and newsletter on buying, fixing, and selling, visit http://www.doghousetodollhousefordollars.com/

Flipping Houses the UK Way: How To Build A Million Pound Property Portfolio

2005-08-09T16:11:00.000-07:00

By Don Suter

Looking to quickly build a million pound property portfolio? You could try a high risk and speculative technique that has been used over recent years by investors hoping to make big profits from property.

The technique relies on re-mortgaging and negotiating good discounts on off-plan property to take a £50,000 deposit and turn it into a million pound property portfolio within a couple of years or less.

How does it work?

The technique only works in areas where house prices are rising fast and opportunities exist to purchase off-plan properties, where discounts of up to 15% are not uncommon.

Investors begin by purchasing one or two off-plan properties. These are properties that are not yet fully developed or have only just received planning permission. Developers tend to offer larger discounts to people who are prepared to buy properties at this stage of the build.

On completion, the investor will refinance the properties. A combination of rising house prices and the discounts gained at purchase, ensure that the property is refinanced at a higher figure than the original purchase price. The extra money gained through refinancing is then be used as a deposit for another two properties.

This cycle will be repeated a number of times by the investor until they have built up a strong portfolio of investment properties, with a combined value of more than a million pounds.

High-risk strategy

Sounds easy, so why doesn't everyone do it? Although many investors have made a lot of money using this technique over recent years, it does contain a very high element of risk and relies on a number of market conditions being right.

Potential obstacles include:

-- Falling house prices

-- Inability to obtain genuine off-plan discounts

-- Poor quality or undesirable developments

-- Difficulty in finding tenants to maintain rental income that in turn pays the mortgage costs

-- Potential capital gains tax problems if the properties are sold

Further advice

Before deciding to use this property investment technique, it is essential to get further advice on the legal, tax and financial issues.

A number of property investment companies exist to help advise their members on these very speculative investments, but be wary of the less scrupulous companies that charge their members £1,000s to attend seminars or build portfolios on their behalf.

For more information and advice, search our property investment pages<
For more information and advice, search our property investment pages

Article Source: http://EzineArticles.com/

Flipping Houses by Curb Appeal

2005-07-31T08:41:00.000-07:00

Selling Houses with Curb Appeal and Design Psychology
By Jeanette Joy Fisher

Curb appeal is the most important challenge you'll face when flipping a house. You must make home shoppers feel like getting out of their car to see what's behind the front door. Imagine prospective buyers driving up and examining your property for the first time. Your goal is to have them exclaim, "What a darling home!" Or, "What a splendid house."

Curb appeal has grown up, and using innovative Design Psychology techniques for marketing homes puts curb allure to work, enticing buyers to come inside your home. One way to make your home outshine the others on the market, upgrading your exterior, doesn't have to cost you a lot of money.

Restore, the outlet store for Habitat for Humanity, resells donated home building materials. They sell light fixtures, window hardware, paint, house numbers, and even white picket fencing. Restore also lets you bargain on merchandise, which means that the tagged price isn't always the final price. You can even sign up for Restore's mailing list and receive notices of half-price sales. We found a great exterior light fixture at Restore for one of our fixers for only $25. The same fixture, available at our local home building supply outlet, sells for $99.

Return on Investment

To sell your home for the highest profit, you need to spend less for improvements to make more; yet spending a little extra can yield significantly more return on your money. Adding exquisite details can add dollars to your bank account. For instance, if you don't find what you're looking for at a bargain price, visit an upscale retailer and look for similar items on sale.

If you use ugly, cheap, or tacky fixtures, you'll actually make it harder to sell your home by lowering your home's curb appeal. Think of it this way: spending $100 more for a quality light fixture will save you at least one, and possibly more, mortgage payment. That means that your $100 fixture was really an investment, rather than an expense.

Curb Appeal

An alluring home setting begins with the access to your home. A problem with many newer homes is that developers don't provide a separate walkway to the front door. You don't want to make buyers walk around cars and trip over driveway edges to navigate to your front door. If you have no dedicated walkway to the front door, add a simple pathway. A wandering pathway to the front door psychologically feels more inviting than a straight-shot walkway.

If you have a plain, straight concrete walkway, create undulating flower beds on either side to encourage a relaxed, friendly feeling. Adding a water feature near your entry walk also enhances the ambiance because moving water relaxes the body and mind and refreshes the spirit. You want to create a feeling of balance and harmony, like that found in nature.

Welcome Buyers with Friendly Accessories:

Wind chimes add pleasure to your buyers' sense of hearing.
Potted plants, such as flowers or soft ferns, are friendly, but avoid spiked plants with thorns near the doorway.
Floral baskets with bright yellow and white flowers show up best day and night.
A pair of rocking chairs, a double glider, or a porch swing conveys a friendly neighborhood and invite potential buyers to sit and chat.
A welcome mat also adds a homey touch.

Avoid Unwelcoming Attributes

Repair cracks in the driveway with cement epoxy.
Clean spider webs off eaves, windows and porch.
Repair or replace broken doorbells.
Clean or replace dirty or burnt out exterior lights.

Buyers forgive little inadequacies in your home if they love it from the first time they see it. So go a few extra steps beyond curb appeal and lure your prospective buyers inside with Design Psychology methods. Take a little extra time and spend just a bit more money, to sell your investment houses fast, and for more money.

Copyright © 2005 Jeanette J. Fisher - All Rights Reserved Worldwide.

Jeanette Fisher helps home owners create homes for glorious living and top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including Sell Your Home for Top Dollar--Fast! and Doghouse to Dollhouse for Dollars.

For more information on Design Psychology,
Free Design Psychology for Selling Houses report

Flipping Houses in a Bubble

2005-07-18T21:16:00.000-07:00

With much talk today about the pending real estate bubble, some of my students have expressed fears about buying houses in California.

Rising prices may have slowed down before summer hit, but our low-end houses have all but disappeared on the MLS. You can still buy a 500 square foot one bedroom home, a condo, or manufactured home for about $250k. But a nice three bedroom will cost you more than $300k. It seems to me that the prices have risen about $10k per month since May. We have been watching the local market closely because we're getting a fixer ready to sell.

So, what about the bubble? If the economy changes and people start losing their jobs, they may be forced to sell. Other homeowners will just hold onto their homes and wait to sell. Prices may dip on more expensive homes where there isn't a strong market. Because people always need housing, the lower-priced homes will always be in demand.

Think about this: when a home owner sells a $500k house because of financial difficulties, where will he go? To a less expensive home. If you're flipping houses and are concerned about the possible real estate bubble bursting, stick to modest houses so you won't pop.

Copyright (C) 2005 Jeanette J. Fisher
Doghouse to Dollhouse for Dollars

Real Estate Bubble: Fact or Fiction?

2005-07-18T21:14:00.000-07:00

By Dennis Maier

The real estate market buzz across the country these days revolves around the anticipated and much feared “bubble”. The implication is that once burst, prices will spiral downward taking with them the major assets of those foolish enough to buy at a time when disaster looms large. It could happen.

However, it would take a major cataclysm in the underlying financial underpinnings of the global economy. Granted, any significant blow to world confidence in the fundamentals of the U.S. economy could easily check the flow of overseas investment into the long-term securities markets. The result would likely be a sudden spike in mortgage interest rates. This most likely would spell the end of the present bull market in real estate.

The profits of doom, meanwhile predict just such a meltdown, citing the trade deficit, the national debt and the debt future generations will owe to Entitlement, to name a few. This too could happen. No one knows for sure. We are in uncharted economic waters, where past experience or interpolations from other countries’ issues do not necessarily apply. (see Greenspan’s Conundrum: http://www.mises.org/story/1859)

But what if it happens? In the worst case scenario, assets such as real estate would be the last resource to vanish—not the first--largely because of widespread laws to prevent foreclosure except in extreme cases. Most likely, we would simply have reached another top in the normal real estate cycle, not unlike any of the 21 cycles that have occurred since 1978.

Busts do not usually follow booms. In only 17% of the cycles noted above did a real estate downturn follow on the heals of a boom—and these typically in areas that had experience significant distresses to the local economy. (see FDIC http://www.fdic.gov/bank/analytical/fyi/2005/050205fyi.html)

Safe Prediction: In the years since I was first licensed as a Realtor® I have experienced all 21 of the full cycles noted above. When I was a new license I too anticipated “The Big One” where the bottom would drop out of the market permanently. Now I know that view is mere paranoia. People are not going to forego living in houses; real property will always have solid value, and the pendulum swings both ways.

“Lies, Damn Lies, and Statistics”, as Mark Twain said. Nowhere is this more evident than the real estate market. Statistics that are used to show loss of value mostly show reductions in the number of sales.

Let me explain: while the mean average or the medium sales price of all home sold in a given period fairly accurately represent rises in home prices in an seller’s market they do not, paradoxically, reflect the apparent drop in prices experienced in buyers market.

The unassailable law of Supply and Demand states that as prices rise fewer and fewer people can afford to buy. This creates a market glut.

When a glut occurs sellers must contend with greater competition from other sellers. Those that lower their price sell. Those that do not or cannot must stay.

(This has yet to happen. see David Lereah of National Association of Realtors: http://www.realtor.org/Research.nsf/Pages/housingoverview?OpenDocument)

The result on market statistics, however, is that the dollar amount of those homes that do sell by lowering their price effect a statistical drop in the apparent overall market prices.

The news that prices appear to be falling further exasperates the situation as buyers feel the need to protect themselves from the perceived downward trend by only investing in properties that are seen as solid bargains. Again, only those that choose to sell or must sell make up the ever downwards statistical spiral.

What is not figured in the averages are the majority of homes that do not sell because their owners are not desperate enough to take what they can get. Their value remains intact.

What falls is not value but volume. Especially in today’s market where 100% or greater loans are common, few homeowners will choose to bring money to the closing to table to make up the shortfall between what they owe and what they can sell for at that point in the cycle—in essence paying someone to take their home. And though this scenario may cause hardship, it also has the effect of limiting the number of homes on the market, which acts as a downward buffer to the bottom actually falling out, though statistics may even indicate a continued downward trend.

If it doesn’t stop raining it will be the first time. I tell my buyers to only buy if they feel confident that they can remain in the home at least seven years to ride out (in comfort) the coming down cycle. If, during this time, they are forced to sell (usually because of an employment or domestic issue) they could get hurt.

I tell my sellers not to try to predict the exact market top and to watch the rate of foreign investment for signs of weakness that may signal a lack of confidence in the U.S. economy and the rise in home mortgage interest rates that will likely turn the market. No one knows when and if this will occur. But the market will eventually turn. At least it always has.

What to do now: Those that buy wisely, and who can choose the point in the natural cycle to sell, are far more likely to make money than in most other forms of investment. All this while enjoying the fruits of homeownership.

In addition, they will benefit from major tax advantages and the eventual equity value of their home, which will not always rise astronomically but will always rise in the long run.

Dennis Maier

Principal Realtor Broker

Real Estate New York

http://RENY.net

Article Source: http://EzineArticles.com/

Appraisal vs. Market Value: Flipping Houses Warning

2005-07-13T00:55:00.000-07:00

By Jeanette Joy Fisher

When you sell your investment property, appraisers use comps (comparable market sales) of local properties sold within the last six months to value your property. With today's rapidly rising seller's market, six-month-old information is ancient history.

Appraised value does not always equal the true market value, or what the home will sell for on the open market.

Realtors will give you a comparative market analysis (CMA), an informal estimate of market value based on comparable sales. However, mortgage lenders use the appraised value to determine a new mortgage amount. Some lenders require that the stated property value covers the mortgage amount plus their selling costs in case of foreclosure. For this reason, a sale may fall through if a home sells on the open market for more than the appraised value, which often happens in bidding wars over hot property.

We learned the importance of securing a sufficiently high appraisal when we sold a flipper. We listed the house for $234,700 on a Friday. By Monday morning, we had three offers: $245,000, $255,000, and $260,000. We accepted the one for $255,000 because the buyers had $80,000 down, reassuring us that they had sufficient funds.

As usual, the buyer's loan officer sent an appraiser to elvauate the property. This busy appraiser didn't take the time to view all the upgrades we put into the custom-built home. Even worse, he used only comps from the local one-mile radius. Because this home is close to a shopping district, there were not many homes sold in this limited area during the six-month period.

The appraiser used comps six months old; during this time housing costs in Southern California appreciated around thirty percent. Sales from six months previous should have gone up in value by $30,000 on a $200,000 home. This means that our home should have been worth $250,000 to $260,000, especially since buyers are willing to pay this price on the open market. To increase the value of this home, at the time there was not another three bedroom home listed in the area for under $250,000 (excluding manufactured homes). However, the appraiser valued our home for only $230,000 -- and we would have lost the sale if the offer did not include a sufficient down payment.

Because a low appraisal can kill your sale, finding a buyer with a large down payment provides you with a safety net. You may also choose a buyer with strong credit who doesn't have to put a large percentage down. If you think that your home’s appraisal could become a problem, make sure you don't include a clause in your sale’s contract which states "subject to appraisal."

How to Avoid Low Appraisals

Hire your own appraiser before the sale. Then ask your buyer's or lender's appraiser to review your appraisal.

Retain the option to approve your buyer’s mortgage lender. Make sure that the buyer doesn't use a lender with a history of deliberately underestimating property values. A good real estate agent should know which lenders routinely under value homes.

Keep records of repairs and upgrades, including costs. Take "before" and "after" photographs. Create an organized journal with a listing of expenses and include pictures to show to the appraiser during the appraisal appointment. Stage your home for the appraiser like you do for buyers.

Secure your own property comparables to make sure the appraiser uses complete information. Call real estate agents with homes in escrow and get the sales prices. Make a list of these properties with the agent's phone numbers and give it to the appraiser.

What to Do When Your Selling Appraisal Comes in Too Low:

Ask for another appraisal.

Protest the appraisal with documentation of your upgraded expenses.

Have the buyers make a larger down payment.

When you sell or buy real estate, remember that the certified appraisal is just one person's opinion of the value of your home. The opinion that counts for you is the buyer's: you want to be sure the buyer values your home above all others.

Copyright (c) 2005 Jeanette Fisher, All rights reserved.

Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST, Staging Houses for Top-Dollar Sales, Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits, and other real estate and interior design books, teaches Design Psychology and real estate investing seminars. For information on Design Psychology, visit: http://designpsych.com/. For help selling houses, articles, and home staging tips, see http://www.sellfast.info/.

HOUSE FLIPPING IN FLIP THAT HOUSE

2005-07-12T22:08:00.000-07:00

DISCOVERY HOME CHANNEL EXPLORES THE ANXIETY, TRIUMPHS AND TRIBULATIONS OF HOUSE FLIPPING IN FLIP THAT HOUSE

World Premiere Series from Emmy-winning Producer R.J. Cutler Launches Thursday, July 14, at 9:30 PM (ET/PT)

With the world premiere of Flip That House, created by Emmy-winning producer R.J. Cutler (American High, 30 Days), Discovery Home Channel showcases a real estate gamble that a growing number of home owners are playing. Premiering on Thursday, July 14, at 9:30 PM (ET/PT), Flip That House tells the real stories of people gutsy enough to buy a fixer-upper, gambling that they can “flip” that home from wannabe to where-to-be…and turn a profit.

Each 30-minute episode features a different “flip” project with unique and unpredictable challenges. Some flip projects require minimal work, perhaps as little as a coat of paint, while others prove to be more challenging, especially if a flipper purchases a historic home in need of restoration. Flippers run the gamut as well. Viewers are introduced to a few first-time flippers, including a pair of new parents who go over budget and over schedule to turn a profit, and a professional singer who delves into flipping as a daytime career. Viewers will also meet an interior designer who uses her connections to find discounted supplies for her kitchen remodel, as well as a professional flipper with more than100 flips under her belt, who uses the helpful hands of her family to ensure quality work while keeping to her budget.

Each episode of Flip That House features interviews not only with the homeowners, who express their visions and tactics for success, but with the contractors working each flip, as they lend their expertise and advice on what improvements are absolutely necessary for profit. Viewers see the transformation of each house through extensive footage of the repairs and renovation work. Viewers are privy to each house flipper’s strategy and execution, as they deliberate how best to spend their proposed budget. A final walkthrough and evaluation with a professional realtor reveals just how successful each flip has been. In episode two, although homeowner Kelly goes over budget with a hip North Hollywood home she purchased for $370,000, she ultimately lists her investment at $549,000, netting her a $124,000 profit.

Discovery Networks, U.S., a unit of Discovery Communications, Inc., operates and manages the Discovery Channel, TLC, Animal Planet, the Travel Channel, Discovery Health Channel, Discovery HD Theater, Discovery Kids Channel, Discovery Times Channel, The Science Channel, Military Channel, Discovery Home Channel, Discovery en Español and FitTV. The unit also distributes BBC AMERICA.

###

A Beginner's Guide to Flipping Houses

2005-07-12T20:38:00.000-07:00

By Jeanette Joy Fisher

If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to "flip" houses.

A friend of mine, we'll call her Tai, made a fortune in real estate, beginning at the age of twenty, with no help from anyone else. Here's how she did it:

Tai began by buying a HUD repo, which allowed her to get into the house for no money down. Then she fixed it up and sold it herself. At closing, she had made enough profit to by a second fixer-upper, but this time, she paid all cash. Tai went right to work fixing her second house, and when she sold that one, she collected profit of $44,000, which allowed her to pay cash for her third house!

By now, Tai was comfortable with her formula, and within a short time, she had flipped her third house, realizing enough profit to pay cash for yet another house, as well as being able to buy the custom pickup of her dreams. And all of this had happened in the span of just nine months!

Tai's formula was simple. She located houses that needed only cosmetic work, avoiding those that required structural repairs. She did all the painting herself, inside and out, and updated the home's lighting, plumbing fixtures, and carpeting. Once renovations had been completed, all three houses sold quickly, and at a significant profit.

It's the most tried-and-true way to make a fortune in real estate, so don't listen to anyone who tries to tell you that it can't be done or that you need to have a great deal of start-up money. That's not true. You can buy houses with no money down through various loan programs, and sellers will often help you with the closing costs.

I know what I'm talking about! My husband and I bought our 27th house earlier this year, for no money down, and we expect to make a profit of at least $100,000 for just one month of hard work!

But we take the process a step further, making our houses outshine the competition by also using Design Psychology, although our buyers never know that. All they know is that they feel good when they're in our homes, which makes them want to buy them, even if they're more expensive than the house next door.

There's no other business that can make you as much money, with as little start-up cost, in as short a time, as investing in real estate. In fact, more millionaires made their fortunes in real estate than in any other business. And you can do it, too. You just have to stop dreaming and get started.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/