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 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.
Yes, you can make money flipping real estate. Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits!
Nearly 80 million Baby Boomers are edging ever closer to retirement. In fact, about a hundred thousand Baby Boomers who have chosen early retirement will be receiving their first Social Security checks next month. The outlook for these retirees and those who come after them has never been brighter. Although each person’s situation is different, as a whole, this generation will have a quarter of a century of retirement to look forward to, and will bring to retirement an unprecedented level of affluence and continued good health. Because they want to ensure a comfortable retirement, droves of Baby Boomers are snapping up land for sale in interesting locales across the United States.
Boomers are Value Conscious
While this generation might be financially more well off than their predecessors, it doesn’t mean that they’re spendthrifts. On the contrary, it seems as though they’re very aware that their longevity means that they have to be careful with their assets to ensure that they’ll have enough money for retirement. As a result, the trend is for Baby Boomers to bypass traditional real estate opportunities and financing, and instead find land for sale by owner (also known as FSBO) or foreclosures, with the intent to build at a later time. In other words, they aren’t going to buy land for investments, but rather as the foundation for their golden years. And they want to find land for sale at bargain prices.
Location, Location, Location
Part of the process of finding the right kind of land for sale is finding the right location. Current trends indicate that Baby Boomers are choosing to buy land that is off the beaten path. Few are able to afford to buy or build Malibu beach houses or Manhattan penthouses. Instead, they are electing to go where property prices and property taxes are low. But – and this is an important factor – they want many of the amenities that make retirement living relaxing and rewarding. So, for example, they look for land in or near a golf community, or lake land that affords them wonderful opportunities for fishing. They often opt for land in areas that are going to be developed into private communities, replete with lakes, rivers, recreation centers, and nature trails. Most importantly, they don’t want to be “snowbirds,” living winters in one area and summers in another. Instead, they want mild temperatures that they can enjoy year-round.
Moving to the Ozarks?
Some of the most inexpensive land for sale can be found in areas not traditionally considered retirement communities. Land near the Ozark Mountains, for example, meets the requirements for mild temperatures, natural wonders, and planning for private communities. Plus, since Arkansas has one of the lowest property tax rates in the nation, Baby Boomers can afford to hold on to the land until they’re ready to build.
Unlike previous generations, Baby Boomers know what they want and have the means to achieve it. Buying land for sale in affordable locations is just the first of many trends to come.
You’ve heard it a million times. If you were to get a property that is entering foreclosure, you can get a great deal on the price of the home or property. The main question is how do you acquire the necessary knowledge to get this property. There are a lot of loopholes when it comes to foreclosures, so it’s best to know as many of them as possible to prepare yourself for what can be a great and rewarding investment.
When deciding to invest in real estate foreclosure, it’s important to know where to find these properties and how to acquire the right information. You have to decide if you will invest in commercial properties or residential. Either case, you then need to gather information on any liens or other defaults that may be associated with the property. Depending on how you buy these properties, you may end up being responsible for the liens on the property.
Though not known by many, properties that are foreclosed upon are public knowledge. The list of foreclosed properties is available through your local county building. This will only include properties that are already foreclosed. You can usually access this list around the time they hold the auction for the current month. This will give you time to do the research necessary to be prepared for the next month’s auction.
If you want to purchase a property before it goes to public auction, that will take a little footwork on your part. There are websites that offer information on properties that are in pre-foreclosure. Be aware, the information on these sites is not always accurate. We had a property bought, remodeled, and getting ready to close; yet on the website we used to find it, it was still listed as in pre-foreclosure. It’s a good idea to call the lender and make sure that the property is in fact still in pre-foreclosure. If it is you will want to contact the property owner, explain who you are and your interest in their property. This may not start out as a pleasant conversation since the owner does not want to sell the property, yet when you explain to them that this will work in both of your interests, they may change their mind. In buying the property this way, the owner will not have to complete the foreclosure process which means that their credit score will not get a negative rating for this instance. They will pay off their mortgage and you will get the property at a dramatic discount.
Whether it’s pre-foreclosure or in foreclosure, it’s best to be informed about the property that you will attempt to purchase. You can do this by ordering a title search in which a company will research the records dating back a certain time period. This will bring up any liens or back taxes owed on the property. You may end up being responsible for these extra expenses. Therefore you must be aware of them so that you can bid fairly to cover all of the expenses, not just the mortgage owed. If you do not have the money and are willing to spend a little time at your local county building, you can do a search for these records yourself. You will need to visit the tax assessor’s office in order to determine if their taxes are paid in full or delinquent. You will also need to visit the recorder’s office and the county clerk’s office. In these two offices you will research liens on the properties in which money is owed. This type of information is the same that a title search will turn up and you will be able to do it for free.
Once you’ve acquired the information needed, it’s time to prepare yourself to bid a price for the property. If you are dealing directly with the homeowner, you have flexibility. You should have a good idea of what they owe to the bank and any liens at this point. You may want to offer them just enough to cover what they owe or slightly more. If negotiations are successful and you come to an agreement, you must be able to close the sale before the time of the auction. This is the only drawback to this type of sale. The monies owed must be paid before time of auction, otherwise the property is sold at auction, regardless of any agreement you may have entered with the homeowner. If you decide to purchase at auction, you must be prepared to pay the full amount of the agreed on price within a certain time period of being awarded the property.
After the auction or the agreed upon negotiation of the property, you will immediately be able to claim ownership of said property. If you have been negotiating and talking to the people that own said property, they are already expecting this and will probably have already moved out. Be aware, however, that if the owners refuse to leave the property, you may have to go through the eviction process that can take up to three months to complete. We recently decided to walk away from the award of a property at auction exactly for that reason. Our county will not send police to enforce the sale of the property. Therefore, in order to get the people to move out, the eviction process must be used. This wastes valuable time in which you could be fixing up the property and getting it ready for sale. This is one reason why, though it may be difficult, having communication with the property owners before the auction may save you a lot of headaches in the long run.
Once the property is legally yours, you are free to invest in it and make profit from it. It can be a wonderful way to work for yourself and make money while doing it. Our business has successfully invested in many properties and yours can too.
I get asked all the time by new real estate investors if investing in hud homes is a good strategy. I will be recap in this article what I tell them….
The increased demand drives up the price and new investors tend to get any and will buy based on emotion instead of logic because they “just want to get their first deal”. If you pay too much for a property, you will lose your shirt on the deal. That’s why it important to not overpay for the property because you make your money on a property on the day you buy, not the day you sell.
This is why it’s important to have the right real estate investing training so you know how to spot the good deals from the bad and not overpay for a property. Your first deal can bankrupt if you don’t structure it the right way. I see this all the time in my real estate investment club. The guys that don’t take the time to invest in their education are soon out of business because they try and figure it out on their own and fail.
Short Sales are a great way to guarantee that you won’t overpay for properties. If you are wondering “what is a short sale “or are wondering what the “definition of a short sale is“here you go. A Short Sale is when the lender accepts less than what is owed on a mortgage on <a href=”http://www.realestateforeclosuresinvesting.com> home foreclosures</a>.
All of The deals are no money down.
We don’t give the sellers any money when we get the deed to their house.
The only thing you have to pay when you get a deal is the cost of the notary and recording fee when you record your deed. That’s a maximum of $100. Now my acquisitions manager is a notary so I don’t pay any notary fees. If you don’t put any money down on the house, you aren’t putting any money at risk.
You don’t need good credit to do short sale deals.
You don’t need to go get a mortgage when you do short sales deals. If you don’t need to use your credit, you aren’t putting your credit at risk. You fund the deal the way you structure the transaction. You fund the deal by either:
The ability to own houses without having to make monthly mortgage payments.
There are no monthly payments to make for short sale deals. The houses are either
in foreclosure or about to be in foreclosure. You don’t need to make any payments therefore you aren’t putting any money at risking making monthly payments.
Preforeclosures and Short Sales are extremely easy to find right now.
There aren’t enough investors out there to handle all of the deals in the market. That’s why I’m on a mission to equip you with all of the resources you need so you can go out there and help all of these struggling homeowners and make a lot of money while doing it.
You may here some real estate speakers say to stay away from foreclosures because there is too much competition. Well that was then and this is now. They are teaching old information because they are not currently practicing what they preach. I am actively buying and selling foreclosures in my own backyard and I know what works and what doesn’t work. And I have to tell you there is no competition for preforeclosure and short sales now because there are so many of them.
Short Sales are easy to get because it doesn’t require you to do a lot of negotiating with the seller because they know they don’t have any equity and they’re just looking for a way out. You are their solution! I love working with short sale sellers because they are the most motivated sellers out there.
Short Sales are the most profitable quick turn deals to do in residential real estate because you’re making all of your profit on the discount with the lender
One of the biggest benefits of the short sale business is that it works even better on Luxury Homes. The banks are more flexible and more negotiable on larger mortgages. Banks don’t want to take houses back and they definitely don’t want to take back Luxury homes.
It takes the same amount of work to do a deal on a luxury home than it does to do a starter home. The difference is A Luxury home pays 10 times as much profit. Its like doing 10 deals in one and when you combine the short sale strategy with luxury homes, you’ve got the golden ticket.
You See, Banks are in the money business. They’re not in the <a href=”http://www.realestateforeclosuresinvesting.com> Real Estate business</a>. They don’t want to own any properties. Their only interest is making interest on their money. Foreclosing on homes is a hassle they have to deal with because it’s a cost of doing business for them. The sooner you understand this the sooner you will realize how huge this opportunity is for you right now.
When banks lend out money – they have to keep a multiple of 5 times the amount of money they lend out in reserves. When a loan goes bad, it’s now considered a non-performing asset and that limits the amount of money they can lend out.
It costs a bank a minimum of $30,000 to foreclose on a home. They would rather take a discount on the mortgage and get that bad debt off their books so they can lend out more money.
You are the solution for them. Banks need you to help them liquidate their houses so they can get rid of their bad debt. You are doing them a great service.
Tax Payers are taking advantage of tax incentives and Investing their Self-Invested Pension Plan [SIPP] In Philippine Condotel Investment Real Estate for Rental Income and Retirement .
Beth Collingz, PLC International Marketing Director for Pacific Concord Properties Lancaster Brand of Condotels in the Philippines in a Press Conference with International Investors from the United Kingdom held recently at Shangri-La Mactan Resort Hotel in Cebu, reckoned – “Thousands of people in the UK are beginning to catch on”.
A Self Invested Pension Plan [SIPP] is a personal pension plan but with one very significant difference: administration is separate from investment content, giving the plan holder freedom to choose for himself and change the investments within it. The long-awaited rules on what savers can include in their personal pension plans were unveiled in April 2006 by HM Revenue & Customs. The Guidance Notes confirm that the Chancellor is permitting Self Invested Pension Plan [SIPP] holders to invest in hotels such as the Lancaster Brand of Condo Hotels in the Philippines. The only stipulation is that SIPP holders may not stay in their rooms. With more nights available for paying guests, this not surprisingly increases the room owners’ returns. It is estimated there are now more than 70,000 plans holding over £14bn.
A year or so ago, few people in the UK realized that they could manage their Pension Plan portfolios themselves, and even fewer knew that they could invest their SIPP retirement money in homes in the sun which now prove to be among the most popular potential investments to include in a SIPP.
If you’re considering using your SIPP to invest in real estate, there are some excellent reasons that you should choose Philippine Condotel Investment real estate to drive your retirement portfolio into high profit margins. The Philippines is ideal for this type of investment because a SIPP can establish title to a property in a country whose legal framework recognizes trusts – and a SIPP is simply another form of trust.
“Investing in foreign real estate is neither as risky nor as tricky as a lot of people would have you believe. While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story.
It’s still possible to buy a preconstruction Condotel suite at Lancaster – The Atrium located in Metro Manila, Philippines, for less than GBP £25,000.00”.
Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel [“Condotel”] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from
December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes [at current purchase levels] of some 12-16% ROI per annum as Owner Non-Residents when not using their units through Condotel Management.
This makes Lancaster Suites one of the Hottest Investment Opportunities in the Philippines. “The beauty of holding property in the Philippines is the low cost of property taxes and maintenance. A GBP £25,000 Condotel suite may set you back GBP £100 in property taxes per year, and maintenance costs are similarly low. When you add in the tax-protected status of investments made in your IRA, and the 12-16% returns through rental income through the Condotel advantage, you have an incredible ROI on a purchase of Philippine Condotel investment real estate” enthused Collingz.
What’s the downside about owning Philippine Condotel Investment real estate as an SIPP investment? You cannot reside at your investment property as long as the SIPP is titled as the owner of the property. The self directed pension plan rules about benefiting personally from your investments are strict – you are not allowed to make use of any property owned by your SIPP, or you risk losing its tax-protected status and worse yet you could face penalties from HM Customs & Excise. You can, however, rent out your SIPP investment for steady income – putting the profits and cash flow into your SIPP, or sell your Philippine Real Estate Investment for immediate profit, as long as those profits remain inside the SIPP.
If you’re looking for an unusual and high earning investment for your SIPP, then take a serious look at owning Philippine Condotel investment real estate. It can help kick your SIPP earnings into high gear.
With the impending slowdown of the UK. housing market and failing pension plans, many investors are turning to using their SIPP’s to invest in overseas properties and earn tax-free or tax-deferred income. This creates an outstanding
opportunity for by offering self-directed pension plan vehicle to invest in the Lancaster Suites Atrium Tower pre-construction units.
With preconstruction property appreciating at some 20-30% per annum not only does the Real Estate Appreciation look good but the rental income is in excess of what many Pension Plans offer for the same or similar investment.
Beth Collingz says that many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate. “Clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”.
This potential, high rates of rental returns from Condotel Investments, currently from 12% up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement. “We’re here to help our clients, educating our clients and advising them of emerging investment opportunities. Self-Invested Pension Plans and the Lancaster Suites Atrium Condotels, fit this bill exactly”; adds Collingz
With its beautiful shoreline, lush fir forests and stunning Cascade Mountains Bellingham, WA real estate is certainly outstanding property to consider investing in. Prices on land and homes have risen in the Bellingham Bay area during the last several years making it a little more difficult to find affordable housing for the average person. Because of this, many first time homeowners as well as investors sometimes turn to the foreclosure market in Bellingham, WA.
Although the Bellingham real estate market has not been hit with an unusual amount of foreclosures compared to many other parts of the nation, there are still an abundance of opportunities to find that steal of a deal. Everyone should realize that investing in Bellingham real estate or foreclosures is not “amateur night.” It can be risky. You must do a tremendous amount of homework and know what you are doing. It’s usually best to have a qualified real estate broker or real estate attorney represent you in this endeavor.
You can minimize your risks in the Bellingham real estate market
If you want to buy foreclosure properties in Bellingham, WA, you must know how to find the potential property and access its value. You must know how to carefully research and inspect the property, so you don’t get stuck holding a money pit – or ever worse, a totally worthless piece of paper. You must also learn how to deal with home owners, how to bid on property and how to buy well below the market value so that you can sell for maximum profit.
Do your homework and learn how to:
Research property titles, mortgages and deeds
Obtain financing
Avoid the most common pitfalls
Good and bad candidates for buying foreclosures
Investing in foreclosures in Bellingham, WA is not right for anyone who is currently having financial problems and is hoping a foreclosure will bail them out. This is not easy money regardless of what the late night infomercials may say.
Foreclosures in the Bellingham real estate market can be very right for a person who has a ton of cash, a steady job, a reliable cash flow or a financial backer. A backer can be anyone from a business partner to your grandmother. If this is something you really want to do, you can always find sources for investment capitol.
What kinds of things do you look for as a Bellingham real estate foreclosure investor?
Lots of things, from top to bottom and inside and out. Look at cracks in concrete, windows, roof, and doors – look at everything. Foreclosures aren’t always in top-notch condition. The owners may not have been able to afford to keep up maintenance. If you can’t hire a professional home inspector in Bellingham, WA, do what you can by inspecting the property yourself from all angles outside.
Things to avoid when investing in foreclosures in Bellingham, WA
Buying from long distance, in a distressed neighborhood, preconstruction projects and avoid buying from anyone that promises you cash back at closing. This is totally illegal.
Types of Foreclosures in Bellingham real estate
Many aggressive investors go after foreclosures when there is a downturn in the housing market. Foreclosures are homes that people have lost because they didn’t pay their mortgage payments or property taxes.
Pre-foreclosure: The owner has missed three or more payments and the lending bank has started foreclosure proceedings.
Foreclosure Auction: The home is released to the mortgage company and they can arrange an auction.
Real Estate owned properties (REOs): Real Estate Owned by the lender, this status indicates the lender or bank now owns the property as a result of a foreclosure .
Each of these types of foreclosures offers its own particular unique opportunity for the investor. In Bellingham real estate, the homeowner can still list the property as a “short sale.” This is where the bank will consider offers that will not pay off the mortgage in full. The bank will forgive the difference owed because it will be less of a loss than if the bank had to go through all of the steps of foreclosure — foreclose on the property, prepare it for a sale and then resell it at a later date.
Most Bellingham real estate investors know they can often buy these homes for 15-20% less than market value. If the property goes through full foreclosure, the bank will either place it up for auction or list it with a good real estate agent. If the property goes to auction on the courthouse steps, bidding is usually extremely competitive, but it is here that investors often have the opportunity to make the largest profit.
The earlier you buy in the process, the better the opportunity of making a good profit. You must know the current value of the property, the elements of time and market cycles. If you have to make repairs, you must know how to figure your rate of return and in what time frame. If you have the necessary skills and qualities it takes for investing in Bellingham real estate and foreclosures, it can indeed be a very profitable investment.
