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Lots of people dream of purchasing a brand new home for their family. Yet this is not the only reason why there is a growing trend for the purchase of property. Such individuals invest in real estate as a means to earn money. In fact there are lots of people who make a living by buying ugly houses and then selling them for great profits after a few months. This has been adopted as a serious profession, and there are people out there who earn millions out of it.

But the question is how can anyone make this possible? There’s definitely a set of rules that they follow, and those are the fundamentals of flipping a house. Flipping is done when you purchase a house that’s in need of repairs for a value that’s a lot lower than the market price in order to sell it once you had renovated it. This would probably explain why many ugly houses seem to be selling like hot cakes. By flipping houses, you can easily bring them to the market standards, which could yield a high price upon the resale. However flipping homes isn’t as easy as it may seem, and it’s definitely not for everyone.

You have to get acquainted to some rules before you decide to begin flipping houses. That way you can get some good cash by investing in real estate. Anyway, here are the rules:

- Buying ugly houses at the proper price is crucial in making a profit. If the market prices are constant, then it is not the selling price but rather than of the purchasing is what indicates your profit (bear in mind that you make the money when you buy). It’s only the realization of the profit that comes after selling it. If you consistently use the formula for this, you will be able to make better decisions about the potential of certain ugly houses. This will significantly improve your buying decisions.

- A vital task in the flipping process is finding an experienced Real Estate Wholesaler. If you would like to purchase ugly houses, then you need to find a local Real Estate Wholesaler who focuses on finding the best and most profitable deals in your area. NOTE: Not every Wholesaler is appropriate for you if flipping homes is your goal.

- For buying a run down house, you should be capable of taking advantage of leverage. Leverage is the use of borrowed money to increase your profits to several folds while purchasing an old house. By investing no money from your side, you can still get some good profit on somebody else’s money OPM (Other People’s Money). - The homes you have bought will demand some repairs. Yet avoid going overboard with them. Bear in mind, you’re not the one to live in those houses, so it should appeal to the buyer. After a little survey, you will be able to learn their likes and dislikes.

Flipping homes is one of the ways you can get high profits by purchasing ugly houses. It is common knowledge that most millionaires around the world have started earning their first million through real estate. So, are you interested in doing the same?

Another great article by Jerry Dewhurst Real Estate, Re/Max Properties, Inc.

I’m often asked what I think of open houses. Well, I think it’s a good a way to waste a Saturday afternoon as any. My advice is to just take a long nap and catch up on your sleep instead. It will advance your real estate practice a lot faster than an open house! Let me explain.

An open house is simply an advertising idea. Nothing more. Nothing less. As such, it should be evaluated like any other advertising plan. Cost per lead versus budget per lead. So how do we do that? Get out your calculator, and let’s crunch some numbers.

First, let’s take a look at cost per lead. Any advertising plan has a cost per lead, and open houses are no exception. I understand that you are probably thinking, “Open houses are free.” That is simply not true. First there is the cost of the ad to bring people to the open house. For example it’s $50. Then there are balloons, streamers, directionals, refreshments, and such, for let’s say another $25. I’m being very conservative, you will have to admit.

Then there’s your time cost. If you spend 6 hours counting setup, placing the ad, buying the refreshments, cleaning up, taking down balloons, streamers, and directionals, it will be a miracle. We’ll have to submit you to Guinness Book of World Records! Now how much is that? If you are planning on making $100,000 this year, your hourly time cost is $50. Now, 6 hours times $50 is $300. Add that to the hard costs and you’re $375, and we were being very conservative.

Now we count the leads. If you are extremely lucky, you may get 4 or 5 leads in one afternoon. Now do the math: $375 divided by 5 leads, and you have a cost of $75 per lead. And odds are that 3 of those “leads” are not leads at all. They are more likely to be curious neighbors. Either way, $75 per lead is simply not going to work in most markets. Why? Because it’s over your budget per lead.

How will you know your budget per lead? Easy my friend. Assuming your market has an average sale price of $200,000 and an average commission side of 2.5%, then your average GCI or gross commission income is $5,000. Your budget per closed deal is 10% or $500. Now take the $500 and divide it by the 24 average leads you need to close one deal, and you have a maximum budget of $20.83 per lead.

So let’s evaluate the marketing idea. Cost per lead is $75. Budget per lead is $20.83. Survey says… ENG! Now if you’re looking for a good excuse to get out of the house and at the same time feel like you’re being productive, by all means do an open house. Or if you cannot say, “NO!” to your sellers, go ahead. It’s OK. But don’t for a second think it is the highest and best use of your time or marketing budget. From a business perspective, it’s just plain nuts! Don’t do it! And that is my quick answer.

Another great article by Bonnet Vernon E Real Estate, Next Home Real Estate

Lately, many individuals frown on having to pay real estate agents commission. This is partly because of uneducated agents who were unleashed on the marketplace to offer a surprising service and because of advertising done by certain property portals, advocating that property sales is a “Do It Yourself” job for the masses.

This kind of thinking is problematic within it self and usually results in disaster. Imagine taking a stance of never going to the dentist or doctor and applying self-medication. What do you think will happen? Those results are interesting. Perhaps a legal matter, you could do research on the internet, speak to a call center agent at a subscription legal service and then show up in court to defend your own case. How would that turn out? We discuss with professionals because they (hopefully) have years of experience and knowledge. We know that they are in a position to help us in a professional manner and know that we will not be subject to any pitfalls under their guidance.

Let’s get relevant. Ever heard of the person who signed an offer to sell his house and then agreed to let the purchaser move in and pay occupational rent prior to his bond being approved? This “purchaser” decided not to apply for his bond or pay occupational rent. He was a professional squatter and the property owner had to incur great expense to have him evicted. This is one of countless examples where an experienced estate agent could have saved the day.

Some folks feel that estate agents commission is just too high. Larger franchises usually change 7.5% of the purchase price, while independent agencies vary anywhere between 3% - 6%. When an agent works for a franchise, they need to share their commission with the agency and if not for the high percentage, wouldn’t earn enough money to survive. Independent agents do not have this expense and can therefore afford to lower their commissions. Generally speaking, estate agents do not make lots of sales in a month. Between 1 - 2 sales appears to be the average and sometimes. Many months can pass without getting a sales. Although these commissions may appear high, when you average it out over 12 months, it is little more than an average salary.

Please bear in mind that estate agents are real individuals with real families and real monthly expenses. Don’t ever attempt to get out of paying commission when it has been earned by an agent. I am certain you can imagine what it would be like if your employer approached you on the 20th of the month and informed you that your salary won’t be paid. Think about what you would do in this case and if you can bear doing it to anyone else?

In conclusion, if you do use an estate agent to help you sell your property, make sure that they’re qualified and experienced (as you would a doctor). Use their expertise to your benefit and always pay what’s due.

Another great article by Wakefield Jim Real Estate, Powell Realty Inc.

You work extra hard at real estate prospecting. You hold open houses, you visit many people as much as you can, you stop at every FSBO, you ask for referrals, you have a solid web marketing system.

And you get leads. Some are good, some are not. You even may have great conversations with these leads, usually spending hours on the phone, web, and in-person, serving and educating them so they feel your value and begin to gain a sense of commitment towards you.

But in the end, you have very little to show for it and your business is tanking, despite long hours of work. What is happening here?

This is what seems to be happening to lots of great agents.

At first prospects appear to be very interested and well-qualified. They answer your questions willingly enough and accept your offers of help. And suddenly they change their mind about buying or selling, put you off, or will not tell you what’s going on and leave you guessing about their intentions while they string you along. You keep them on “your list,” but the sinking feeling inside of you says they’re not going to work out and you realize you’ve wasted all that time and effort.

You’re literally working yourself out of business because you are not finding out what is really happening with your prospects. If you don’t know what is actually happening, you cannot help them make a decision. As a salesperson, you can’t simply leave it all up to them. Let me show you what I mean…

I once worked for a man who absolutely had to have a particular house he wanted for an investment property in his neighborhood. He made a very low initial offer, then played hard-ball on the counter offers and repair list. Finally he backed out of the deal altogether on some technicality. I had dropped everything for three weeks to make this deal happen.

I realize now what I didn’t know then. I had allowed him to tell me just what he wanted to tell me and I did not press him to discuss his “background noise.” That’s what I call the complex environment in which a person lives and has to make their decisions.

It turned out that his wife did not want to have anything to do with owning a rental property and she was insistent that he get a great deal “or else”.

If I had known the soft sales skills that I know today, I might have been able to help the wife have a completely different perspective about owning a rental property. But because I didn’t think beyond whether or not he was motivated and had the funds, and because I did not know how to get him to discuss his thoughts with me anyway, I invested a large amount of time in a bad deal.

So next time you meet with a prospect, perhaps one you are working on currently, stop telling them about your qualifications, the market, and the process of buying or selling, and begin asking them the kinds of questions that surface their background noise. Here’s a good question to start: “What is your scenario?” or “Tell me regarding your situation.

Another great article by Scholz Jim Real Estate, Kohan Realty

Several times you’ll hear people talking about great deals. Finding the best deal is very crucial if the success in anyone’s endeavor is to be registered, be it social or business. However, understanding the best strategy that can guarantee you success has never been easy and that’s a fact. Many traditional ways no longer work because of the rapidly evolving nature of real estate business. In this article, I will share with you the strategies that work and if followed, will improve the possibilities of getting a good deal in real estate.

The properties that look ugly are the ones that can get you the best deal in real estate. The dilapidated buildings with roofs falling apart are prized possessions with the potential of being given away at a cheaper rate. But unlike several of the properties listed in the directories, you may certainly need to approach the owners of those buildings and try negotiating for better deals personally because lots of them don’t list the properties in the major property directories. Your negotiation skills can assist you move forward after finding the owner of the house. If you make an offer based on the right information, your chances of success will be higher. Most agents prefer not to deal with ugly properties hence the best deals can be found there. The owners will cooperate when you make a reasonable offer and the deal will be closed faster.

Another thing, websites with ugly properties are good because you won’t need to pay an agent any commission since most of them do not like to handle such properties. You can pay the property prize and keep the commission hence you will be able to save a lot.

Again, for the properties listed in the major directories, you will find most of the information without lots of struggles. You’ll save a lot of time because major information is laid for you. This will enable you to contact the dealer faster than you would have but since the property is known to many other interested people you’ll need to face stiff competition with other interested parties.

Whether you are an agent or a buyer, it will help knowing who to do business with. You need to make the other concerned parties know the importance of working with you. Make a continuous campaign throughout since something new may come your way. Be on the look out full time since many great deals might pass by you.

Advertise yourself in the yellow pages or directories. Come up with creative adverts that will draw property sellers to your side. Save for those property speculators who would like to test the market without informing you, you can manage to acquire better deals through good advertising.

Generally, knowing which deal finding methods can help a lot. Use the methods that can generate good leads. Do not focus on duds. Good deals come from referrals, go for them. So you don’t waste your money and time on unproductive strategies.

Another great article by Harshman Colleen Real Estate, Killion Land Company

Real estate is kind of a risky matter in all times however we can make few assumptions about it that when we should buy property to get more profit? Therefore everybody wants to know what the proper time to buy or sell a property is, it’s quite natural. If you’re at the selling end and the market is going down then I will not suggest you to sell as it won’t give you sufficient profit. If you’re at the buying end, then buying a property with sufficient funds in declining market is a good move. It is because you are spending less and will eventually get more profit at the end.

It won’t be an equal opportunity idea; a mediocre income person can not take such risk. This is because there’s an equal chance of loss as well so it’s a significant risk. It may happen that you have consumed your saving funds and the possibility that the market will not turn out to be positive soon. Out of all odds, if you have decided to buy a home in the declining market, you’re at benefit. As the seller really wants to sell his home because with passing time prices are more declining so he wants to sell at tremendously low prices. I’m going to cite few reasons that an individual might be considering from purchase perspective.

If you are thinking of getting a home then it is the right time because the prices are continuing to fall and people must be after nice and lucrative homes. And if you will keep on thinking about purchasing, several good opportunities will be slipped from your hands. There will be few homes left which need more repair and maintenance charges, so take advantage of the opportunity soon.

The next worrying thing can be “what is my home’s worth”, if you are purchasing the property to live in and it does not require maintenance, That’s the advantage. Secondly, housing prices will soon go back to a good level so you do not need to worry but don’t take out an adjustable rate mortgage with a better interest rate on the hopes of refinancing in the near future. Never start mortgage with the hope that the market will get better and will have refinancing. This is the reason why people loose their homes.

If you are taking a property in a rental investment point of view then with all previous considerations, you must also take the neighborhood into consideration. How can you rent out your property after purchasing? What improvements do I need to make? Will I have sufficient funds to spend for the maintenance?

Once you make purchase while considering all these points now, soon if you want to sell it then wait for the perfect time to sell as the market returns to a profitable state. I will recommend you buying a home that can give you more profit at the end. So make this good investment while you’re still able.

Another great article by Kathy Russo Real Estate, Excel Real Estate

The advantages of buying a home are many. Appreciation, tax write-offs, and stability are among the most important. If you have saved up a large down payment and have been careful with your credit, you should be in great shape to take advantage of the lowest interest rates and lock in a low payment.

Nowadays, most home searches will start on the internet. Buyers are technically savvy and know the advantages of virtual tours and on-line listings. They also understand the way to map out the property and even get satellite views of the house, also see how it looks from the street. Obtaining a decent idea of what you want can be accomplished with a night of browsing the internet.

When you discover a few homes that you’re interested in looking at, call one of the agents that have the homes listed. Unless of course, you already have an agent you are interested in working with. First time buyers are usually surprised to find out that any real estate can take them to see any home- not just the ones that they’ve personally listed. Find somebody that you are comfortable working with, and who returns your calls promptly, and it should be a fruitful partnership. Be sure that they only show you houses that match what you’re looking for, and that they look at the houses first to ascertain they match the parameters you’ve set.

When touring homes, take a notepad and pen with you. After seeing a few houses, they will all become a blur, and you’ll remember the kitchen from number two being next to the patio in number four. It is tough to remember specifics regarding many different homes checked out in one day, therefore your notes will come in handy to jog your memory later. Additionally, pick up available fliers, or take several pictures of features you like, noting which home they belong with by taking a photo of the house number first. Is the location great? Concentrate on the surroundings- watch for parks, excessive traffic or noise, power plants or large electrical towers nearby, as these all detract from its attractiveness, and its price. If it does have one or more of those elements, decide if you can live with it, and bid low. Another trick is to give each house a rating from 1 to 10 as you leave.

If you find a house that is perfect, buy it. Though you may feel you need to keep shopping, why would you? Chances are, you will not find another house that you like as much as that one. If you do not place a bid on it immediately, somebody else might come along and snap it up.

After looking at a number of homes, you most likely have a few that are on the top of your list. Ask to see those favorites once more and you will see different things than you noticed the first time you looked at the houses. This is the time to nitpick the houses and keep track of anything negative that you overlooked on trip one.

Negotiate the purchase price, handle the financing and paperwork with the assistance of your real estate attorney, and enjoy your new home.

Another great article by DeBoer Kelly Real Estate, Robert Fox Realty

The advantages of buying a home are many. Appreciation, tax write-offs, and stability are among the most important. If you have saved up a large down payment and have been careful with your credit, you should be in great shape to take advantage of the lowest interest rates and lock in a low payment.

Nowadays, most home searches will start on the internet. Buyers are technically savvy and know the advantages of virtual tours and on-line listings. They also understand the way to map out the property and even get satellite views of the house, also see how it looks from the street. Obtaining a decent idea of what you want can be accomplished with a night of browsing the internet.

When you find a few homes that you’re interested in looking at, call one of the agents that have the homes listed. Unless of course, you already have an agent you are interested in working with. First time buyers are usually shocked to find out that any real estate can take them to see any home- not just the ones that they’ve personally listed. Find someone that you are comfortable working with, and who returns your calls promptly, and it should be a fruitful partnership. Be certain that they only show you homes that match your preference, and that they look at the houses first to ascertain they match the parameters you’ve set.

When touring homes, take a notepad and pen with you. After seeing a few houses, they will all become a blur, and you’ll remember the kitchen from number two being next to the patio in number four. It is tough to remember specifics regarding many different homes checked out in one day, therefore your notes will come in handy to jog your memory later. Additionally, pick up available fliers, or take several pictures of features you like, noting which home they belong with by taking a photo of the house number first. Is the location great? Concentrate on the surroundings- watch for parks, excessive traffic or noise, power plants or large electrical towers nearby, as these all detract from its attractiveness, and its price. If it does have one or more of those elements, decide if you can live with it, and bid low. Another trick is to give each house a rating from 1 to 10 as you leave.

If you find a house that is perfect, buy it. Though you may feel you need to keep shopping, why would you? Chances are, you will not find another house that you like as much as that one. If you do not place a bid on it immediately, somebody else might come along and snap it up.

After looking at a number of homes, you most likely have a few that are on the top of your list. Ask to see those favorites once more and you’ll see different things than you noticed the first time you checked out the houses. This is the time to nitpick the homes and keep track of something negative that you overlooked on trip one.

Negotiate the purchase price, handle the financing and paperwork with the assistance of your real estate attorney, and enjoy your new home.

Another great article by Spencer Joyce Real Estate, Century 21 Gold Rush

A home inspection is both a good idea and a wise investment. Whether you’re selling or purchasing a home, a home inspection is required. If you are a homebuyer, you will probably save money on repairs. As a seller, a home inspection could guarantee a sale. Home inspectors usually look for the same items in a home such as repairs and defects that need to be addressed before closing on a home.

If you are not so familiar with how it goes, here is what you should expect during a home inspection.

The certified home inspector will walk through the property, checking on the roof peak, search for dipping spots that may indicate foundation or structural defects. He or she should then be able to use a ladder to climb to the roof for further inspection. The inspector should additionally check around bath vent pipes, roof ventilation systems and skylights. The general condition of the shingles should also be noted and the inspector should be able to get an estimate of their life expectancy.

The inspector will check on the external part of the home such as the state of the siding or brick veneer, sprinkler systems, landscaping lighting and the condition of the driveway and sidewalks along the property lines.

An internal home inspection includes the following items: sticking windows and doors, which could mean damage in the foundation and look for any cracked drywall. The inspector will make a general overview of the plumbing like showers, faucets, sinks, toilets and garbage disposal.

The electrical system of the house will also be checked thoroughly, which includes circuit breakers, main panel, wiring, receptacles, exhaust fans, light fixtures and ceiling fans.

The inspection will also include all components and systems of the house like the age and condition of the water heater, duct-work, furnace, fireplace and chimney, and also the central air.

Home appliances are also inspected including the dishwasher, oven, range and built-in microwave.

The garage walls, doors, slab floor and electric door openers will also be inspected.

A home inspection could take two to four hours, depending on the size of the house. As a buyer or seller, you should be able to attend the inspection so that you’ll have a detailed explanation of any concerns, therefore plan ahead before the scheduled inspection.

You can expect to get a report within four or five days. Usually, a summary of the important things discovered will be written on the report. Do not be shocked to find quite a long list; this is only normal since there is no such thing as a perfect home. In some instances, experts will be called to evaluate items furthermore and give an estimate of the repair costs.

If you are a home-buyer, you could prefer to ask the home seller to repair things or else offer you a discount or credit during closing so you can fix these things yourself. Always be reasonable in your request and refrain from making a wish list of upgrades that aren’t important or structural. Most often, buyers and sellers usually reach a good solution that works best for both parties.

Another great article by Nancy Bergh-Polloc Real Estate, Prudential Jack White R.E.