Review and Research

One of the first items on your to-do list now that you are a flipper is to FIND homes that will make a good flip. Your lunch hour is a great time to do this. You can review and research new listings from your desk on on your mobile on the go. Plan out your week. Make Monday and Tuesday your days to research your farm area for those great pickings. Review listing alerts from your agent while waiting on your serve if you eat out.  Set Wednesday as the day to contact your Realtor and text her to setup showings for the ones you like. If you have time maybe drive around your area to see what the possibilities look like. Then make Thursday and Friday your visitation days.

Visiting a Property

Did you find a property on Monday during your lunch hour that piqued your interest?  Great! So set up the appointment  to visit the property with your Realtor on Thursday. Be sure to take your Property Repair Estimate Sheet with you to weed out the weak ones. Think positive and have your Realtor bring all the necessary info to write an offer. By setting up this type of system you will be sure to get the good ones out there and avoid the slim picking for flips.

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Clean–Really Good

Sometimes we find a flip that the owners really took care of the carpet, or better yet just had it replaced. With the onset of the market fall out many mid priced homeowners were met with foreclosures as their only option. The higher the price point ,the higher the quality of the carpet…usually. So in our search for potential flips we have come across homes that just needed a good cleaning; no replacement necessary. You can determine this on your first walk through and make note on your Property Repair Estimate Sheet.

We would suggest investing in one of those steam cleaners. Lord knows we have used ours plenty of times. It is truly amazing what a good steam clean can do for some dirty carpet. You can find a good one online for under $300. This is something you could definitely work on during your lunch hour.

Replace

In almost all our flips it is necessary to replace the carpet. It is in reality one of the top items on our SOW almost always. Nothing make a home look newer inside than replacing the carpet and a fresh coat of paint. Lots of times the carpet will hold the odor of the previous home owners. If they were smokers or had animals we don’t have to tell you that your potential clients will be turned off as soon as they walk in the door and the odors hit their face.

Be smart about what grade of carpet you choose for your flip. Make sure you choose neutral colors that won’t be hard to match furniture and decor. Also make sure the new flooring is comparable with the rest of the homes in the area. While builder grade carpet is mostly fine for flips, make sure it is comparable to other homes in the area. Easy way to check this is other listings on the MLS.

Strip Away

Sometimes you are lucky enough to find a nice surprise just laying there under the dank, dated carpet. Like one of our flips from our Flipping House series, The What Lies Beneath House, where we were shocked to find hardwood under the carpet. Hardwood floors are still a trend that have sticking power; homeowners want it. So if you flip up a corner of carpet on your flipper and discover solid hardwood flooring, you’re in luck. Remove the carpet and sand the floors. Keep in mind that you can always install engineered wood flooring or, as a last-ditch attempt, wood-look laminate flooring.

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You will be surprised what you can do on your lunch hour. Especially when you are flipping homes part-time. Our team is able to pick out furniture  to stage one of their flips in less than an hour, and you can too. Here’s how.

There are many furniture rental places all over the country that can help you with staging your flip. The one we use in ours mainly is Rent-A-Center. You will have to fill out an application for credit, as everyone does, but the process is relatively easy.

What to pick out

What you pick out will depend on the house itself. You have to make sure you will make the right type of  impression on your potential home buyers. Nicer neighborhood is going to mean nicer staging furniture and vice versa. You will want to definitely furnish the living/family room. This is where the family will spend most of their time, reading, watching TV, doing homework etc. Make sure to include a couch, love seat or chairs, end tables and lamps.

Kitchens are pretty easy to stage because there is usually only table and chairs that are needed. You may also want to add a center piece and some decorative towels.

If your house has a dining room, try to add a tasteful table and chairs there too. Nothing is worse than when someone’s head bumps into a low hanging dining room chandelier! A table will prevent this from happening.

Having at least one bedroom furnished is a must as well. It is hard to imagine if the bed they currently own will fit into the room they want to own. A side table and lamp will look appropriate also.

Remember that you are just trying to show how the home would look if it had someone living there. Don’t over do it. You are not selling the furniture to the people that buy the house so it will not be everyone’s taste but do try to keep it simple and pleasing to the eye.

Tips

• Stick with neutral tones. No one wants to try to imagine around a purple couch and you could potentially turn people off from the whole house.
• Furnish weird spaces. If it is a little nook or has a bunch of angles stage it to show how the space can be useful and functional.
• Always stage at least the master bedroom. As a focal point of most homes, where the Mr. and Mrs. of the house will spend their nights is a good place to show how your house can be a home.
• If you budget doesn’t allow to furnish every room in the house (who’s does?) then we suggest checking out our tips on staging.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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A normal roof in non-extreme climate conditions will typically last on a home between 10-15 years. The seller is required to list the age of the roof on the inspection sheet so you will be able to determine the age there. Don’t try to get on the roof yourself to inspect. Instead use binoculars to look for any damage before you call in the professionals.

Five Most Common Problems

Flashing boot needing replaced

Flashing/boots–The material used around vents and pipes is a prime spot for leaks and water damage.

Gutters–A build up in your gutter of debris and water can cause molding and rotting.

Shingles–Discoloration, curl ups, or missing shingles leave the base board susceptible to rotting, holes and other damage.

Fascia–Look for moisture on the front board as an indication of water damage here.

Soffit—Small animals and insects can reach the wood under the roof’s overhang. Check for cracks, holes and rotting.

Tear Off vs. Overlay

On an overlay the new shingles are applied over the existing layer of shingles. Some states will not allow an over lay there are 2 roofs or more so check your local restrictions on building codes to find out.  If you only have one layer, the existing roof is in good condition, lays flat (no bumps or rolls) and has no leaks or any problems with the underlying roof deck (soft spots), then an overlay may be the best option for you.

Roof with shingles curling up

While overlays save on time, labor and disposal costs, they can only be done if certain conditions are met. A tear-off where all the old shingles are removed from the roof, it is inspected, and then a new roof is put on, is a better option on several scenarios.

• The  condition of the existing shingles is so rough and distorted that it would not be practical to flatten all raised areas enough for the new roof to lay flat.
• The roof structure shows signs of sag across the ridge or truss lines. If the roof does not look straight and feel solid, there may be structural defects.
• Spongy areas are noticed when walking on a roof, or an inspection of the deck reveals rotted/warped wood or large gaps between the deck boards. Any rotten or damaged boards must be replaced before applying the new shingles. These conditions are not always evident until the roofing is removed.

You may be wondering what kind of roof to use if you have to replace. You obviously want to match the roof to the existing structure, using neutral tones as well. Normally you will go with a traditional shingles as apposed to ornamental like clay or bronze. However, depending on what area of the United States you live in, clay might be commonplace. The main thing to remember is not to over improve. Make sure that the roof is in the same price range as others in the neighborhood and you shouldn’t have any problems getting your money back out of the upgrade.

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Bathroom Blues

Basement Before

Kitchen Before

Family Room Before

Foyer Before

Be sure to check back to see what we do to combat The Money “Drain” House problems!

To learn more about Part-Time REI visit us at http://part-timerei.com/

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What is it??

As real estate investors, we have all had a laugh or two about a contractor being on time. Deadlines are missed, deliveries late. How can you keep your project and contractors in line? One very important aspect of a successful flip is the creation of a Statement Of Work (SOW). Every project must have one, and if it is not done properly could cause you big delays and even bigger problems. So what exactly is a SOW? Let’s examine the concept and show why doing one is a must.

The SOW is the detailed description of the work to be done during the life of a project, a written agreement that stems from your Property Repair Estimate Sheet, specifies the end result sought by all parties, along with a detailed description of the resources required to finish the project or job. It is an essential part of the flipping house process

Basically it answers the five questions of Who, What, Where, When and How. Failure to address these basic questions can lead to failure of the project as a whole.  The project scope gives a detailed identification of exactly what will be accomplished. It also defines what will not be performed during the project – either explicitly or by omission. The clearer you can be with the scope of work, the more successful the flip will be.

Importance of a SOW when Flipping

A statement of work sets the ground rules for all parties involved in a flipping project, especially when third-party vendors become involved. We have mentioned before that subbing out to contractors is our preferred method with rehabbing. The SOW becomes especially important during the implementation, monitoring, and evaluation of the flip. At anytime you can refer back to it in order to help refocus your team and/or and contractors.

It’s impossible to accurately predict the exact amount of time and resources necessary to complete a project. However, a statement of work can be crafted in such a way that it supports flexibility and evolution for both the project and the team’s participants. When a SOW contains statements of purpose and scope with detailed descriptions of the desired end result and the resources deemed necessary for completion, it keeps the project flowing smoothly. Cost and budget statements should reflect the agreed price of the project, any contingency plans, and penalties for failing to reach specific milestones. Lastly, the SOW should identify the dates and times of all significant events that will occur like project kick off and expected completion.

Be sure to have your contractors sign your SOW

A SOW will become the baseline level of communication for all parties involved in a project.  Be sure to ger your contractors to sign off as well. Should a project evolve beyond the original statement of work, referring to the core SOW can help with amendments.

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The first thing you have to realize is you will have to think about things differently. Think about investing differently. Think about saving differently. Think about earning an income differently.

A strong, successful investor in real estate realizes that a paradigm shift happens in your mind. A person goes from ‘How do I earn money? to ‘How can I save money’? The beauty in this mindset is one paramount realization. There are always limits to how much you can save; but there is no limit to how much you can earn. It is the biggest shift in thinking you will have to make.

A good example of this is Robert T. Kiyosaki author of Rich Dad; Poor Dad and his cash flow quadrant. Your goal as an investor is to be in the bottom right hand quadrant where your money works for you. The ultimate goal for anyone flipping houses or investing in real estate is for investing to be their sole source of income.

Saving money to get rich or to achieve a comfortable retirement is not a good formula. Think about it. You are sacrificing the convented lifestyle right now in your life. Do you want to live a modest lifestyle and settle for a modest retirement? Of course not. And keep in mind that Social Security is anything but secure right now.

Reward comes with risk. The more secure and safer you are with just saving your money the less chance you will actually achieve financial security. Don’t say “I can’t do this.” or “I don’t know how.” Think “How CAN I do this.” If you think you are going to fail then unfortunately you probably will.

So you are probably wondering how to get there. How to gain that confidence to get into that investor mindset. First and foremost educate yourself. Education plus action is the key. Part-Time REI has a Flipping University to help you get started. Our team is also big promoters of mentoring. We believe it is the secret to success. Get connected with the right people.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Golf Trip

Best golf trip ever? Some are legendary that you have dreamed of playing and some are serene and off the beaten path. What you are always looking for is  world-class public access or stay-and-play golf courses. Check out The Travel Channel’s list of renowned golf vacations around the world, each with its own distinctive perks. http://www.tripadvisor.com/pages/best/best-golf-destinations.html

Disney

It is like the commercials portray it—The happiest place on Earth, well according to your kids anyways. It’s where your daughter can dine with princesses and your son can fight along side pirates.  Not only is DisneyLand and World THE place where a kid can be a kid it also has plenty of entertainment for the BIG kids. Check out some of Disney’s vacation packages. http://disneyparks.disney.go.com/

Skiing

Whether you’re a skier, snowboarder, or just a nature enthusiast you know there is a lot to appreciate about a quality ski resort. Some of the most amazing ski resorts not only have killer slops but also fantastic restaurants and atmosphere.  Check out Forbes list of Best Ski Resorts. http://www.forbes.com/sites/kenrapoza/2012/12/13/worlds-best-ski-resorts/

Sporting Events

So you have always wanted to go to the Super Bowl, World Series, or rub elbows with the rich and famous at the Kentucky Derby. Why not start saving for that dream trip now with the money you make from flipping homes part time?

Hawaii

Perhaps one of the most beautiful places on Earth, Hawaii makes our top 5 trips for flips list. Although you won’t need a passport to travel to this destination, the minute you land you will know you are in the mist of a whole different culture. With each of the 6 different islands offering a different and unique experience, check out this website to why Hawaii. http://www.readersdigest.ca/travel/world/13-reasons-visit-hawaii-2013. As if you needed any reason at all.

Our point in telling you about these wonderful trips are to stir something with in you. You have to want to succeed in order to succeed. In order to succeed you need goals. Why do you want to flip homes? Being able to take killer vacations is as good as reason as ever. Maybe your goal is to do just enough part time real estate investing to make enough money to do one of these trips a year. It is about the having the freedom to do what you want when you want.

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Where can I find money?

If you have done any investing in real estate you have probably had this happen. You are sitting around with other real estate investors and it takes just under 37 seconds before someone mentions how many more fix and flip deals he would be doing if he could just get a loan. Much like after a fisherman finishes a tale about the one that got away, the audience nods knowingly. While some people are actually un-lendable, most are not. As a part-time real estate investor, you have a huge advantage—Your Job! The real problem is knowing where to look when getting started.

Big Banks are a Waste of Time

While the large banks (Chase, BOA, Wells Fargo) are a waste of time, many local banks are more than willing to do loans for fix and flip properties. Call the bank, ask for a loan officer, and ask him or her if they do Construction or Rehab loans. When you find someone who says yes, set up an appointment to meet. Ask what financial information the bank will need and bring it to the meeting. Most will ask for a Personal Financial Statement which you can download from the SBA. I also recommend a sample proforma or a one-page document showing your goals, what type properties you intend to purchase, etc. This will show you are serious, prepared and have put some thought into the concept and plan. This will set you apart from other borrowers.

Meet with your Loan Officer Soon!

There are 3 reasons to meet with the loan officer as soon as possible. The great thing is you can do this on your lunch hour. First, having a lender in place shows your real estate agent that you are a serious investor. Second, you often need a pre-approval letter when you make an offer. If the bank already has your financial information, it only takes a few minutes to generate a letter. Third, the lender will be able to give you terms and estimated closing costs. This will help as you prepare your estimates.

a financially secure future awaits…

For reference, here are some sample terms.

1. 6 month interest only loan at 6.5%

2. Investor puts down 20% or purchase price

3. Investor pays for appraisal, title work, and ½% origination fee

4. Rehab costs are reimbursed as draws with proof of work being complete

5. Loan can be extended another 6 months for a nominal fee

Search Outside Your Hometown

Finally, do not limit your search to your home town. Part-Time REI has several lenders who are almost 50 miles away. Lot’s of times those smaller town lesser known banks have less red tape and better loan opportunities for flippers. Don’t count them out.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Paris, France

Like all great cities, you can spend months in Paris and barely scratch the surface of the city’s cultural treasures. It has museums galore, stellar shopping and busy cafés perfect for people-watching. Follow Anthony Bourdain’s advice: Do Paris right. Fall in love with Paris.  See signs of the City: Paris.

New York, New York

New York is true to its roots and remains a city of immigrants with inspiring architecture and a thriving arts scene. Take in a show on Broadway, shop in SoHo, spend a lazy day in Central Park and explore the city’s diverse neighborhoods. Inexpensive fun: New York on a budget. See the signs of city: New York. Watch the Lost Girls get lost in NYC.

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Rome, Italy

The Eternal City Rome celebrates its long history with monuments, churches and restored ruins that offer a glimpse into life during the days of the great Roman Empire. Celebrate the city’s roots and immerse yourself in the culture over a heaping bowl of pasta and a taste of gelato. See all the reasons why we love the Italians. Hungry? Get a taste of Italy. See Anthony Bourdain’s layover in Rome.

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Cancun, Mexico

Miles of beaches, endless luxury accommodations and a nonstop party atmosphere in Cancun have transformed this once sleepy village on the Yucatan coast into one of Mexico‘s most popular tourist attractions, particularly during spring break. Take a tour of Cancun’s best attractions. See the party capital’s life after dark. Looking for a place to dine? Check out Cancun’s must-eat cuisine.

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London, England

London is a cosmopolitan city with a unique blend of historic traditions and a hip, modern culture. You can enjoy tea and crumpets and celebrate the city’s royal roots before heading out to a slick gastropub for gourmet dinner and drinks. From the Beatles to the Royals, see why we love the Brits. See the most popular attractions in London. Sport fan? Check out London’s football stadiums.

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Miami, Florida

The American Riviera, Hollywood of the East, SoBe, or the Art Deco District — whatever you call it, Miami’s South Beach is hot year-round. The embodiment of excess, South Beach is an international playground offering non-stop nightlife, sandy shores, unique architecture and plenty of eye candy. Spice things up with a stay at Miami’s super-sexy suites. Cool off with a dip in Miami’s best hotel pools. Experience glamour and luxury Miami style.

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Orlando, Florida

There’s fun around every corner in Orlando with wild roller coasters, twisting waterslides and theme-park fun. Mickey Mouse certainly plays a starring role in the festivities, but there’s plenty of magic beyond the realm of Disney. Planning a family vacation? Check out these kid-friendly hotels in Orlando. See our list of Orlando’s top 5 attractions. Where do the locals eat? See our picks for best local restaurants.

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San Francisco, California

Bring a hearty appetite and good walking shoes to the City by the Bay. For a quintessential San Francisco experience, climb aboard a cable car, peruse the farm-fresh goods at the Ferry Market, stroll through Golden Gate Park and board a ferry to the island of Alcatraz for a dose of history and great city views. Nature lover? See the national parks just outside of San Francisco. Check out the endless things to do in San Francisco.

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Myrtle Beach, South Carolina

As the largest resort along South Carolina’s 60-mile Grand Strand, Myrtle Beach is the East Coast’s ultimate vacation hub. The town teems with summertime action along the Strand with beaches, amusement and water parks, restaurants and live entertainment and a host of hotels ready to pamper guests young and old. Taking the whole gang? Check out our picks for family fun in Myrtle Beach.

Doug Wertman, flickr

Branson, Missouri

Branson is an unassuming vacation destination with small-town charm and big-city entertainment in the heart of the Ozark Mountains. Millions of visitors come each year to see a show at any of the 50 theaters and enjoy outdoor fun on the lake. Check out our picks for things to do in Branson.

– See more at: http://www.travelchannel.com/interests/travel-tips/articles/top-10-vacation-spots

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