Let us tell you how…

One of the most important documents you need is s Property Repair Estimate Sheet.  A properly done one will include a list of all of the major items (roof, hvac, kitchen, paint, flooring…) as well as cost estimates for each item.  You should complete one of these during your initial visit of every house you look at. We usually call this your initial walk through.  This form is going to give you 2 important benefits; save you time and give you confidence.

Saving Time

Saving Time

Many rehabbers waste time looking into every dark corner of the house during their initial walk-through.  They may spend hours measuring and documenting every detail to come up with the best estimate possible.  This can be a tremendous waste of time especially since there is a good Click here to see our list of houses not to buy.

With a good Property Repair Estimate Sheet you should be able to complete your initial inspection in 15-30 minutes.  The goal is to get a rough estimate (within $5,000) so that you can make an offer.  Simply checking whether the repair is needed and including the corresponding amounts will allow you to total the necessary costs in a few short minutes.  Anything beyond that is a waste of time.  If you have a tried and true system in place, steps that you follow for every rehab, then you will not spend unnecessary time on issues and will have a turn-key process. It will mean every rehab is done consistently.

Providing Confidence

Having a list of what actually needs to be done to the property will give you confidence that you aren’t overlooking anything. By referring to your list, you will make sure that no major items are missed.  It is easy to be distracted by something odd in a house and forget to check out every other area.  By referring to your Property Repair Estimate Sheet, you can be confident that you have reasonably captured all items.  The cost of overlooking a missing air-conditioner, damaged roof or cracked foundation is way too high to rely on your memory.

Also with a system in place it will help to build your confidence that you haven’t overlooked any repairs. You will know how much a kitchen over haul costs so when a contractor over bids you have the confidence to speak up about it. Remember, knowledge is power.

The essential thing to remember is that systems work.  Having good systems in place will make sure everything is done in the most financially sound and cost-efficient way. In the end, systems are what will save part-time real estate investors time and money by preventing costly mistakes.

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Daytona Beach is historically known for its  hard-packed sand that  allows motorized vehicles to drive on the beach in restricted areas. But soon it may be known for  being one of the best flipping markets in the US. While the hard-packed sand made Daytona Beach a mecca for motorsports, it may be their propensity for a property flip that gets them in the news.

A recent national report has listed Volusia County as the fifth most profitable place in the country to flip homes. Daytona Beach is a city in Volusia County, Florida, United States. The city lies about 51 miles (82.1 km) northeast of Orlando, 86 miles (138.4 km) southeast of Jacksonville, and 242 miles (389.5 km) northwest of Miami. In the 2010 U.S. Census, it had a population of 61,005. It is a principal city of the Deltona–Daytona Beach–Ormond Beach, Florida Metropolitan Statistical Area, which was home to 494,593 people in 2010. Daytona Beach is also a principal city of the Fun Coast region of Florida.

RealtyTrac reported 168 homes sold in the second quarter in the “Deltona-Daytona Beach-Ormond Beach” area by sellers who owned those properties for one year or less. The average gross profit was a whopping $49,000, for a 63 percent return, according to the Irvine, California-based real estate research firm.

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Located in the Southern United States, the state’s  name derives from the Mississippi River, which flows along its western boundary. Jackson is the state capital and largest city, with a population of around 175,000 people. The state overall has a population of around 3 million people. Mississippi is the 32nd most extensive and the 31st most populous of the 50 United States. On multiple other rankings, however, Mississippi ranks last of all states, such as in health, educational attainment, and median household income.

Maybe this is why the state is not a great state to invest in real estate? As home prices have retreated significantly across the country, flipping is starting to become popular again. But real estate sources say Mississippi’s market is not quite as “flippant” as some of the other southern states.

“This is not a flip state,” said Cynthia Joachim, broker associate with Coldwell Banker Alfonso Realty Inc., Gulfport. “You buy in states like Mississippi, you buy to hold. We don’t see much flipping here because we don’t have the business climate for it. For a flip market to work, you need a constant flow of buyers moving quickly. Real estate is best as a long-term investment. It was never intended to be a liquid investment. When it is treated as a liquid investment, that is dangerous for investors and the economy.”

It is important to remember that flipping houses holds risk. We have talked about how to reduce that risk but sometimes people think they can pay $50,000 for a house, and sell it for $100,000. Then, after fixing it up, they have trouble getting $60,000. Flipping houses  is not for everybody and not for every region. As long as property values are appreciating, flipping works. When people read about flipping in Southern California and South Florida it makes them think that can happen anywhere but the economics of the state have to be strong for this to work.

Most home buyers being seen by Ken Austin, broker\owner Mississippi Coast Realty, are people who are buying to thicken their rental pool.

“I have not seen a lot of people house flipping,” Austin said. “I saw a lot of foreclosures and 90 percent of the foreclosures we sell are for rental properties.”

But there has been some success. Like in the  Golden Triangle area with investors flipping houses.

“We do have investors in our area who make it a practice to purchase homes that may be in foreclosure or in disrepair with the intention of renovating the home for resale,” Kris Davis, broker/owner, Re-Max Partners, Starkville and Columbus, said.“These investors are able to purchase the home at a reduced price because the repairs that are needed prevent the home from qualifying for a traditional mortgage. Investors purchase by cash or an in-house bank loan that does not have the same requirements for the condition of the home.”

So Mighty MS may not be the best place to flip houses but the key is to know your farm area. Anybody can really make money in any region if you know what you are doing.

Source: Mississippi Business Journal online

http://msbusiness.com/blog/2014/08/29/flipping-flipping-houses-popular-much-country-mississippi/

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Article originally appeared on the RenTec Aug 25th Blog https://www.rentecdirect.com/blog/2014/08/dont-miss-a-step-in-your-real-estate-investing-plan/

1. Assess Your Finances

Make spreadsheets that include all of your  incoming and outgoing cash flow. Tracking your monthly income and expenses for a couple months will give you an idea in variations and possible cash savings giving you more money to invest. If you know there are some big ticket items in the near future (i.e. roofs, paint, European vacations), make sure you take that into consideration in your calculations.

2.Define Your Real Estate Goals

Now that you know how you sit financially it’s time to come up with some goals. Before you start searching for real estate to invest in take the time to sketch out your goals. Explore your desired outcome in investing in the real estate market. You should have a clear idea of  how long you want your money tied up for, what type of properties you are interested in investing in, and what type of risk you are willing to take.

3. Educate Yourself and Use The Advice of Trusted Experts

Good deals don’t just land in your lap you have to be willing to set aside a great deal of personal time to research a deal to avoid making an expensive mistake. It pays to do your homework when investing in real estate rushing into a deal without doing basic due diligence could cause you to lose money. Remember the bottom line is what matters when purchasing real estate. Just because a property can be bought for $50,000 and rented for $850 per month doesn´t necessarily mean it´s a great deal. You need to know and keep track of all of the expenses associated with the property. Things like high taxes, homeowners association dues, property management, income taxes, repairs, and vacancies all tap into the bottom line

4. Be Wary of the Deal of a Lifetime

If you find a property that looks to good to be true you are likely not seeing something. Amazing investments don’t stay on the market long and chances are you didn’t find the good deal before everyone else did. A good clue is if it has been on the market for quite sometime and no one has snatched it up. In my opinion the best deals are the ones that are safe and will bring you cashflow for the longterm or be easy to offload if you plan on flipping it.

5. Visit the Property and the Neighborhood in Person

Proper due diligence involves research at home as discussed in number 3 above and actually getting out and seeing things for yourself. In addition, there are  many reputable realtors who will give you accurate feedback on different neighborhoods. Check out the neighborhood, the crime rates, demographics, average income, average rent, and sales prices.

6. Just Do It!

If the deal pencils out after you’ve covered all your bases and considered all the foreseen, and have included a buffer for some unforeseen, expenses take the plunge and buy the property.

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Recently  Zillow ranked the healthiest real estate markets in the US.  The “health” of housing markets is ranked on a scale of zero to 10. The rating takes into account several sets of data, including home value increases or decreases and the average number of days homes remain on the market.

It is amazing that all but one of these markets is in the same state. One would expect that the Sand States would be on the list. Check out the top 5 healthiest market right now in the US and some might surprise you.

#1 Pittsburgh, Pennsylvania (9.72)
We’re #1! Did this really surprise anyone? Despite the longest average time to sell a home on this list at 111 days, Pittsburgh takes the title of the “Healthiest Market in America”, thanks to having some of the most responsible and financially solid homeowners in the country. Not to mention they have been riding the recovery wave all year long.

With the lowest rate of mortgage delinquency on the list,  (less than 4%) Pittsburgh homeowners are sitting pretty. When you combine this with an extremely low foreclosure rate and a very affordable market (average home value is $123,300), it’s not a bad time to be a Pittsburgh homeowner.

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Podcast #01

In our first podcast, Bryan reveals how he got started flipping homes in his spare time. More importantly, he breaks down how he is able to complete a rehab project in less than 15 hours of his time (and how you can do the same).

Getting Started Flipping Homes in your Spare Time

Podcast # 02

Today  in our second podcast we are going to tackle another of the biggest misconceptions in real estate investing.  Specifically, we want to dispel the myth that you have to have a lot of real estate and construction knowledge in order to be successful flipping houses.
Dispelling a Major REI Myth

Podcast # 03

In our third podcast we are going to look at another myth when it comes to flipping houses; that you have to have a lot of money in the bank to start. Today Erik and Bryan talk about how to finance the deal and what the process looks like.

How to Finance the Deal

Podcast # 04

Today in our fourth podcast we will delve a little more into systems. Our past few podcasts we have mentioned how important having systems is while investing in real estate. In this episode Bryan and Erik talk about how using the seven step system will put you on the right track for rehabbing success.

The 7 Steps to Every Rehab

Podcast # 05

Today in our next podcast, we will be discussing your real estate team and why you need it. In this episode Bryan and Erik talk about not getting overwhelmed by building your real estate team. They will discuss who is on that team and what responsibilities each team member has.

Building Your Real Estate Team

Podcast # 06

In our last podcast, Bryan and Erik talked about building your team and the different levels each team member make up. This week they discuss the most important team member…YOU!

The Most Important Team Member

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Educate

First and foremost,  more education and information is the key to reducing your risk in any investment. So if you’re getting your information from reliable sources, you stand to reduce risk. That is why we suggest gaining all the knowledge you can before you dive into the flipping pool. Where to start? Our Flipping Houses University is filled with answers to questions and helpful tips.

Know the Local Law

No we are not talking about getting to know your local sheriff here. Know the real estate laws. It doesn’t matter if you are a novice or a savvy investor, ignorance of the rights and regulations of real estate in your farm area can put your investment at risk. You don’t have to become an expert on the matter or an  attorney, but you should be brush up on the laws that govern the market.

Leverage a Team

We have talked a lot about having the right team. The most important member is yourself and no one has more to loose.  So build your team to help you invest in real estate for the long-term.Your team should include a good attorney, Realtor, contractor, and property manager.  Your team will be able to provide you with the advice you need from acquisition through renovations–and long-term with property management.

Last but not least, know your boundaries and limits. Don’t over extend yourself or think you can do it on your own. You will most likely fail on your own. connect with a good mentor who has been there and done that.  Ask them questions and for advice. This will help you gain that killer confidence to close the deal with the result you want.

“To win you have to risk loss.” ~ Jean-Claude Killy

Here are so more great resources on how to reduce risk in REI:

http://www.streetdirectory.com/travel_guide/147385/investment/how_to_reduce_the_risk_in_real_estate_investing.html

http://www.creonline.com/blog/9-ways-to-eliminate-real-estate-investment-risks/#ixzz3D7SDkR2p

http://www.realtor.com/home-finance/homebuyer-information/lowering-risk-when-buying-an-investment-property.aspx

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

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AKA the NOW generation, they are characterized by a more self-absorbed attitude, and born since 1980, the Millennials are the demo most criticized for their spending habits.  Still living with mom and dad… frugal or family fail?

Some studies have even gone as far as to say they are holding back the surge of the economic recovery with avoiding big purchases like houses and cars.  While other surveys mark Millennials as a generation of “super savers” burdened by a “Depression-era mentality.”

One thing is for certain: Millennials are and continue to be molded by the financial crisis. The Transamerica Center for Retirement Studies reports that Millennials start saving for retirement (mostly through 401(k) plans) at a much earlier age, 22, compared with older workers. Like their older Gen-X siblings, but unlike their boomer parents, two-thirds of Millennials expect to self-fund retirement, not believing Social Security will be available for them.

As a generation  “permanently scarred by the 2008 financial crisis,” they are left  insecure about job prospects and uncertain about future earnings potential. As a result, Millennials take an “extremely conservative” approach to finances, holding 59 percent of their assets in cash and fixed income instruments rather than investing in stocks — just like their Depression-era grandparents. Funny how sometimes history repeats itself.

But does holding nearly 60 percent of your money in cash make economic sense for a young person? Most would say no. But Millennials are very gun shy at Wall Street for sure. Their generation’s financial conservatism, citing student debt, a tough job market, a decade of war, the real estate bubble and market meltdown are all good reasons to be gun shy. It seems for many of their generation, finding meaningful work and sharing experiences are higher priorities than building a stock portfolio or buying a house.

Which brings us to our next point that Millennials make great flippers.  Although most would describe themselves as  “insecure,” this hasn’t held them back. Overcoming their  “negative stereotype” we are seeing a lot of them not only avoiding the stock market,  but also preferring local real estate. They are investing in their community.

It seems Millennials truly march to the beat of their own drum, with a side of humor and enthusiasm. And while they may not be investing in housing, cars or the stock market to the extent economists and brokerage houses would like, many are investing themselves in molding the world they will inhabit. Here’s to our future generations.

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Think of it this way. To generate continuous leads, you will need the have the skill and habit of consistently planting seeds that will later grow into opportunities. Just like a real plant, it will need to be cared for and paid attention to. If you get a lead and do nothing with it, you will just watch it wither away like an unattended plant.

Here is a list of potential lead generators to think about:

• MLS daily searches
• Business cards you accumulate at networking events
• Direct mail
  • Non-Owner occupied
  • Owner-occupied with equity
  • Probate/estates
  • Local Professionals (attorneys, CPAs, etc)
  • Eviction landlords
  • Tax sale owners
• Radio advertising
• Wholesalers
• Coffee Shops
• Yard Signs
• Foreclosures
• Car magnets
• LinkedIn
• Facebook
• Bigger Pockets

The list could go on and on. We hope that you take these LEADS for starting your own leads in your own real estate investing opportunties. Where have you found a lead? Did we forget one? Tell us how you generate leads for REI.

Read more: http://www.nasdaq.com/article/why-more-real-estate-deals-dont-fall-into-your-lap-cm383348#ixzz3CIv8Q2XC

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