How to flip homes and make millions.. maybe thousands.. or maybe hundreds

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.

Flipping houses is 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.

Copyright © 2004 Jeanette J. Fisher. All rights reserved.

Get started today making money flipping houses amd real estate investing--without worries about the "pending real estate crash." Free real estate investing business plan

Sell your home without an agent..... hmmm.. think twice before you lose

Considering the rapid rise in home prices over the past several years, home sellers are taking a hard look at the commission they have to pay to a real estate brokerage to market and sell their home. Real estate commissions vary across the country; they average in the four to seven percent range.

According to the 2004 National Association of Realtors® (NAR) Profile of Home Buyers and Sellers fourteen percent of homes were sold by-owner. The NAR study listed the two most difficult tasks for for-sale-by-owner (FSBO) were preparing and fixing up the home for sale and getting the pricing right.

Invite three full-time mid to high producing agents to your home to give you an opinion of price. Understand that if the three price opinions are not what you think the property is worth, you should understand the danger of an over-priced property. Homes that are over-priced have been studied by large national real estate brokerages and over-priced homes take longer to sell and sell at a lower price as a percentage of the original list price.

Ask the agents to give you constructive feed back on what you should do to make your home visually appeal to the majority of buyers. Below are some staging tips to prepare your home for market.

1) Research how to “stage” your home to maximize its appeal to homebuyers by creating a spacious and pleasant home environment for buyers.
·Start by removing the first thing that gets in your way.

·Take one or more major pieces of furniture out of every room to make it more spacious.

·Keep matching furniture pieces together to build uniformity in a room.

·Create seating areas where two or more people can talk.

2) Keep the eye moving when staging a room.

·Use furniture placement to direct the buyer’s eye toward a room’s features.

·Move large pieces of furniture away from windows.

·Place large furniture at entry end of room to lighten visual load at opposite end of room.

·Use area rugs to anchor seating arrangements.

·Have your dining table closed to its smallest size.

3) Use furniture placed on angles in a room to give it a quick update.

·Angle a bed in a corner of a bedroom to focus attention.

·Angle furniture in a V shape in living and family rooms.

·Angled furniture can help fill a room short on furniture and lend a designer look.

4) Create vignettes in rooms to set mood.

·Breakfast tray with coffee cups, newspaper, flower vase on bed.

·Set the dining room table with linen tablecloth, china, silverware,and stemware.

·Set up game table for chess, bridge, or backgammon.

5) Effective model homes focus on creating the right environment.

·De-clutter so buyers can overlay their furnishings and lifestyle.

·Clean, fresh, and new smell.

·Attention to detail. Clean rooms and landscaping trimmed.

·Subtle background music, classical, light jazz, or rock.

·Interior décor and wall colors accent home’s architectural features.

·Live plants or fresh flowers add finishing touches.

6) Understand decorating basics that can guide you to repositioning a room.

·Color. A little goes a long way.

·Scale. Do furniture sizes complement or overwhelm a room?

·Pattern. Easy does it to avoid distracting from room itself.

·Lighting. Use it to define dark corners. Helps to fill out a room.

·Focal point. Fireplaces, views, art, find one in every room.

·Texture. Adds visual interest, warms cold spaces and finishes.

Understanding and completing the paperwork in a real estate transaction was number three of the most difficult tasks according to the NAR study. Once your home is priced right and ready for market you should retain a real estate attorney to help you review contracts, disclosure forms and to help you qualify potential buyers of your home. An experienced real estate attorney can help you avoid the common pitfalls in real estate negotiations and will facilitate a smooth transaction.

Here are some cliff-notes on real estate contracts.

·Use an approved real estate contract by your state real estate attorney association or local Board of Realtors®.

·Real estate contract. A binding agreement between buyer and seller. It consists of an offer and an acceptance as well as consideration (i.e. money).

·Acceptance. Agreement by the parties of the terms of a contract.

·Contract length. Research customary contract lengths, the standard is 45 days from contract to closing.

·Have sold comparables properties on hand for prospective buyers.

·Comparable. Closed prices for similar homes in age, condition, location and size.

·Price. Study average sold prices as a percentage of lists in the last six months.

·Low-ball offers. Buyers should offer over 87% of list if they are serious, otherwise you will should not responding at all to low-ball offers.

·Counteroffer(s). The response to an offer or a bid by the seller or buyer after the original offer or bid. Request all counteroffers to be in writing.

·Require all buyers to present the highest level of mortgage commitment with their contract.

·Mortgage Commitment. A document by a mortgage lender that commits the lender to providing a loan at agreed terms and conditions.

·Mortgage term, rate and amount. Look for strong down-payments of thwenty-percent or more. Interest-only loans signal that the buyers could be stretching to qualify for a loan.

·Cash offers in lieu of mortgage financing should be confirmed with a letter from your financial institution stating funds are on deposit to close the contract.

·Federal law requires Lead-Based Paint Hazard disclosures.

·Lead-Based Hazard. A disclosure of reports or knowledge of Lead-Based Hazards. Buildings built after 1978 do not present Lead-Based Hazards.

·Read Protect Your Family From Lead in Your Home by the US EPA.

·Real property disclosures required by the federal or your state Written statements by the seller(s) of a property disclosing any known defects.

·Local disclosures. Local requirements of disclosure that the seller provides and the buyer acknowledges, such as certificates of occupancy.

·W-9 form. An IRS form requesting taxpayer identification and certification numbers of buyers to receive interest on earnest money from delivery to closing.

·Subject to appraisal. Most contracts as part of the mortgage contingency require the subject property to appraise at a minimum of contract price.

·Appraisal. An objective third parties opinion of value by a licensed or certified appraiser.

·Earnest money deposit. Money given to the seller at the time the offer is made as a sign of the buyer’s good faith.

·Research customary earnest money deposits as they vary. The larger the deposit, the increased motivation you buyers show to perform the contract.

·Refund of earnest money deposits. Contracts should provide for refund of the entire earnest money deposit within agreed contingency periods. Seller’s attorney should hold earnest money deposits.

·Attorney approval period. Your attorney reviews and makes changes to the contract, typically 5-7 business days.

·Property inspection period. The right under a contract for the buyer at their expense to discover the actual condition of the property. This period typically runs 5-7 business days.

·Well and septic inspections. These are independent of structural and mechanical inspections.

·Timelines for contingencies run concurrently.

·Contingency. A provision in a contract requiring certain acts to be completed before the contract is binding.

·Closing/ escrow date. The date of the end of the transaction process where the deed is delivered, documents are signed, and funds are dispersed.

·Possession date. The date agreed by contract when the buyer can occupy the property.

·Final walk-through. A property tour before closing or escrow that permits the buyers one final verification of condition, agreed repairs and personal property.

·Tax pro-rations. The amount of credit given to buyers at closing for unpaid property taxes, when taxes are paid in arrears. Pro rations should always be more than 100 %.

·Personal property. List and initial all personal property included with the sale, such as air-conditioners, appliances, and playground equipment.

·Home sale contingency. The contract is contingent on the sales of the buyer’s property.

·Buyers show motivation when including a home sale contingency by having their current property already on market.

·Home closing contingency. The contract is contingent only on the successful closing of an existing real estate contract.

Marketing your home to prospective buyers should include these methods.
·A professionally painted yard sign.

·Newspaper advertisements classified and photo.

·Public and broker open houses.

·Internet: virtual tour and at least eight photos.

NYC Real ESTATE

With a reputation for being a difficult destination to land a decent and affordable piece of real estate, New York City is becoming an increasingly popular market across the nation when it comes to offering a wide range of choices. While the recent boom in the foreclosure market has made it easier to land reasonably priced property, an overall spread of lowered prices throughout the area has also appeared in the New York City area.

Economists across the board believe that New York, NY will profit from a renewed interest in the area real estate market. Interest rates have become stable, consumers are slowing regaining their confidence in the market, and property bargains are popping up everywhere you turn. Due to ARM resets, a larger amount of foreclosures and pre-foreclosures are becoming the latest trend.

Higher-ups in the city have also lent a hand towards the housing effort. New government properties are being constructed throughout the area, which encourages a general increase in optimism that the once-declining real estate market will experience blossoming future results. HUD is also helping to create a boost in the New York City real estate market. The government agency, which is responsible for running the Federal Housing Administration, as well as accomplishing Fair Housing and Equal Opportunity goals, has announced plenty of helpful considerations for the near future.

This year, close to 2 ½ billion dollars has been set aside for the pushing of 38 grant programs that will aid many New York City residents in acquiring a piece of property of their own. It is advised that interested parties should make their moves in the registration department to avoid the last minute rush that tends to occur.

Overall, the current and upcoming plans for New York City is catapulting the area into the forefront of a progressive real estate future across the nation. Investing in foreclosure property in New York may be the best option, though, as this will allow you to get property at a cheaper price than you otherwise might.

SEARCH HOMES AT : http://www.avidrealtor.com

How to find good real estate investments?

Look Past the Bottom Line for a Property's Potential

It's unfortunate that many real estate investors tend to look at the bottom line when deliberating about a property, rather than the big picture. The real moneymakers in real estate investments are the people with vision, who think creatively, and are willing to assume some level of risk.

A client's initial line of questioning about an investment property goes something like this: What has the property's revenue been for the past three years? How much money will they make starting out? and, How much will they have to invest in the property in the beginning? These are all valid questions. After asking and answering them, investors might try taking off the blinders and thinking outside of the box.

Our population is growing, and land -- unlike cars, furniture, or other structures -- cannot be remade. Real estate investors might ask themselves these simple questions:

0. Is there growth in the area where the property is located? Is there anywhere for the growth to go? If so, is it headed towards your property's location?
0. Has the city or county zoned the are for revitilization or economic development? If so, are there any special funds or benefits available?
0. Is the property accessible to public transportation?
0. Are people beginning to look for homes in this area? If so, investors want to be looking far in advance of others to secure the best property deals.
0. Is the property value in the neighborhood in a slump or an upswing? Purchase during a slump for maximum profits.

The truth is, an investor not make a profit from the property for the first two years. Investment property owners should be looking at the long-term, because they may make money over the next 15 years, while others are not.

Check County Records for Property Value

Do your research, or hire a REALTOR who is motivated to do it correctly. Speak to neighbors to understand the benefits of living there. Look at the neighborhood surrounding the area, and try to determine if those homes have increased in value. For a solid indicator, consider county property tax figures. In some areas you will find a slight increase in the tax base of 1-3%. In other areas, like Williamsburg, Virginia, taxes have increased 15-13%. Tax base increases are linked to improved property value.

Are Revitalization Funds Available?

If your investment property venture is a legitimate business, contact the local Chamber of Commerce and county government to see if there are special funds available for revitalization projects. Most Chamber of Commerces provide such programs as well as classes where investors learn how to access these funds.
There are lots of great examples of properties with potential. I'd like to share some background about one of my own listings, a motel in Williamsburg that has not beenfor three years. The owners do not know when it was built - probably in the 50s or 60s. The motel sits on 2 1/3 acres of land, which is all zoned commercially. The motel is situated right on a main thoroughfare that was once called "The Golden Mile" of Williamsburg. It's geographic location is near York County a phenomenal leader in economic development. York County is enticing businesses by zoning the northern section of town commercial and it will be the site of the new hospital complex that is currently housed in Williamsburg.

Thinking Outside the Box

An important fact is not widely known about the motel's location, which is key to its investment potential. One mile from the motel property, across from the Williamsburg Pottery, a gated senior community with full amenities (golf courses, recreation center, pool) will break ground in April 2004. The Fortune 500 Company behind the building of this project is set to build 3,000 homes, with an estimated completion date of 2006. Scanning the area, it is obvious there are no European Bakeries, international shops, or stores and eateries which deliver (drug stores, groceries, take out, etc.). A strip mall with leasing options for different businesses, or even an extended stay hotel could be built on this land, and run for a profit. Investors I have shown the property to are wary of the $1,000,000 price tag on the motel. In the coming years this price will seem like a steal for commercial property in the area.

There are many other examples of properties whose potential have not yet been discovered. Remember, once you land that investment property of your dreams, make sure you have a marketing plan, which includes a decent web site, to launch your business. When speculating, trust your creativity and vision, and rely upon the expertise of a REALTOR who knows the area, and shares your vision. http://www.avidrealtor.com

Real Estate Auctions

There are innumerous cities in the U.S. where builders are holding new home auctions ... and not on the courthouse steps! If you want to find some good ones, just do a simple search on the Internet. You may also check with local builders, or call some of the real estate agencies in your area. Builders will sometimes use incentives to entice real estate agents to bring potential buyers. Typically builders will give real estate agents a percentage of the sale price when they bring in a closing buyer.

Another good place to check for new home auctions is through your county sheriff's office. Many new homes have been repossessed either from the builder or from the homeowner and are scheduled to be auctioned off on the courthouse steps ... really. Some counties have websites that specify homes that will be going up for auction by the sheriff's department, including the status of the sale, scheduled sale date, time of sale, case number, lien holder, attorney for the lien holder, phone number for attorney for the lien holder, homeowner's name and other information.

Determining whether the home is new will take a little bit of digging, however. You'll need to find out the case number, since the address of the home is recorded under the case number filed in the courthouse. Note the case number and call the civil division of the courthouse. A clerk in the civil division will be able to tell you the address of the property. Now, you need to contact the Registrar of Deeds and talk to a clerk there. The clerk will be able to tell you the details about the home, including the date it was built.

Although, you may be able to get a better deal through a foreclosure auctioned on the courthouse steps, some states allow the homeowner redemption rights for a period of time after the auction. Just because you are the winning bidder, doesn't mean you can take immediate possession of the home. You may still have to wait for the redemption period to end before you can take possession. If the homeowner is able to redeem the home, then you've wasted time, effort and maybe even money in the process.

Another option is foreclosures auctioned off by the lender. Lenders have been known to hire auction companies to conduct auctions of several homes they hold in the area. Real estate agencies may be privy to this information, so you may want to contact a few in the area for this information. The local major city newspaper is a great source for this information, too.

If you decide to go to a builder-held auction (or any home auction, for that matter), you'll need to be prepared. Oftentimes, the builder will schedule a date(s) for potential homeowners to preview the home. They typically require notification and details by a certain date of those who will be viewing the home during the scheduled preview. Once the auction date arrives, in order to bid you will need a notarized note from your lending institution or bank stating that you are financially capable of purchasing the home.