1. Do Learn the Art of Leverage

Please don’t be this guy; the one that thinks he can do all the trim work, the landscaping, the listings, the cleaning…get our point? Don’t overextend yourself. Be sure to keep your ambitions in check and don’t bite off more than you can chew. One of our main lessons in the Flipping Houses University is how to build your investing team and choose the right dependable people to help you accomplish your investing goals. Remember this word. LEVERAGE.

2. Don’t Be Too Big for Your Britches

Remember your mom telling you that? Don’t try to act like you know everything when in fact you are just starting out your flipping career. In reality, whether you are just starting out or have been investing for years… be yourself and be real. You will gain many more meaningful relationships that way–ones that you can use to your benefit. See LEVERAGE. Admit to what you know and what you don’t know. Don’t dismiss the advice of those who have been investing for years. They’ve seen both the ups and the downs in the market, and really know what they are talking about!

3. Do Use a Property Repair Estimate Sheet

One of the more important documents you need is Property Repair Estimate Sheet.   This document should 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.  The 2 main benefits of the form are 1) to save you time and 2) to give you confidence to proceed with the deal.

4. Do Know “Why”
Always know your why. Keep the main thing the main thing. Don’t get side tracked in all the hype. Keep in mind the reason you chose investing in real estate as your alternate income revenue. Maybe you want to be able to retire early. Or you are trying to pay off your house, or save for your kids’ futures. We provide these blogs so that what is important to you stays important. For example like spending time with your family. Don’t ignore your family while trying to build your business because then you would be sacrificing the very goal you are  trying to reach.

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

Or connect with us  

The real estate industry is booming. More and more investors are choosing real estate as their main investment for their retirement accounts. Based on recent polls and surveys, real estate has been voted by Americans as the most viable and the best long term investment option. The stability, low risk, and high income characteristics of this investment type makes flipping houses very appealing to even traditional retirement investors. We have seen many news reports on stock investing in which these investors are switching to this kind of investment. However, not everyone is familiar with how real estate works. Many investors may not know what to suggest to their clients. This is primarily why the market is seeing a shift with plan providers of retirement plans  bringing in  professional and seasoned real estate advisors on their team.

There are many reasons why the market industry shift makes sense. Experienced and professional real estate consultants have worked with numerous buyers and sellers and they know the different needs of their clients. They know what to provide and they know what will be beneficial for them. It’s not entirely about buying and selling but it is also about making sure that the service being offered could provide for the needs of the client.

They know the different types of real estate investments and how the processes for each type are. An expert real estate advisor would be willing to discuss these types of real estate investments and helps individuals to start their own according to what suits them the most. They would also have key bit of information about the potential investing farm area and be able to recommend a certain neighborhood or area of town.

In the end it is the bonus of communication that is relevant. A professional real estate advisor knows that prompt communication in a turn key venture is one of the crucial steps to being successful at investing in real estate.

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

Or connect with us  

1. Treat it as a Business

First and foremost being a landlord is different from being a private homeowner — it’s a business and you need to treat it as such. Although some lending requirements for personal mortgages have relaxed a bit recently, the requirements for rental property have basically remained the same. If you’re borrowing money for your first rental house, you’re going to need at least a 20% down payment. If you can swing 25% down, it’s likely to get you a better interest rate and lower fees. If it’s your first rental property, your current income is going to have to be enough to handle the mortgages for both your residence and your new property.

2. Don’t Bite off More Than You Can Chew

What we mean by this is start small. Starting with a single house or smaller multiple-dwelling unit, perhaps with a partner, would be ideal to see if the business really suits you. Save your condo buys when you can afford  a larger down payment and monthly association fees. Starting with a single home will allow you to get a feel for the maintenance, bookkeeping and other work required. Finding a good first tenant is also an important step. Beware of shady tenants!

3. Know Your Farm Area

Location, location, location. We can’t stress researching your intended investment market. A home that seems to be a steal might be priced lower because it’s in a neighborhood most people wouldn’t actually want to live in — one that has higher crime, noisy streets or poor schools. This will also be helpful when figuring out the right rent and rate of return. Make sure you budget for maintenance as well. A common rule of thumb that also assigns 5% of gross rental income to regular maintenance and another 5% to pay for the downtime and repairs that come with vacancies should cover you.

4. Happy Tenants, Happy Life

Be a good landlord, communicate with your tenants. Happy tenants are critically important. Remember that they are the customers of your business that we talked about earlier. By keeping the property in good shape and taking care of issues in a timely manner you can expect the same respect back when it comes to paying rent on time. Then you will both be happy and you’ll be building wealth with an investment you can feel good about.

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

Or connect with us  

In a new twist it is Maryland counties that are surprisingly among those offering the

1. Reading, Pa.

Reading’s Location

Return on investment: 131%
Avg. gross profit: $100,667 (18th highest)
Flipped price: $177,733 (39th lowest)
Number of flips: 76
Flips, pct. of home sales: 11.9% (18th highest)

 

Who would have thought it!  Pennsylvania’s 5th largest city, Reading,  was the most profitable area in the U.S. for

A view of the city.

home flippers in the first quarter putting it at the top of our list for best area to flip homes in Q2.  Home flippers made an incredible average 131% return on investment in the first quarter, with an average dollar return of $100,667. Their economy is recovering, always a good sign for investing opportunities. Higher property values and a dropped unemployment rate  to 6.3% at the end of March, also makes it attractive to flippers. We are anxious to see the reports at the end of the second quarter to see if Reading can keep its position as the number one flipping market.

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

Or connect with us  

Be sure to check back next week to see what we think is the #1 market to flip in. Do you live near it?

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

Or connect with us  

7. Allentown-Bethlehem-Easton, Pa.-N.J.

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

Or connect with us  

Experts every where are saying the  national housing market continues to rebound. While some reports show flippers loosing money, most markets show they earned a decent return on their investment with most at least a 48% profit in the first quarter, according to RealtyTrac figures. Lower prices seem to be the key to making  these housing markets more affordable for investors.

Source: 24/7 Wall Street

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

Or connect with us  

Permits

Everyone knows that you need a permit to build. But different states require different licenses and permits for flipping homes. Some states require house-flipping businesses to be licensed as general contractors or if the home is being sold through a subsidiary, require a real estate selling license. In most states however you do not have to have a real estate license to flip a house.

Grants

Did you now some areas actually give out money for flipping houses?  So inquire about government grants for flipping houses with state and local governments, not the federal government. Much of the grant money the federal government gives out each year is earmarked before requests are even made for it. On the other hand, states and municipalities within states take a greater interest in granting money to people who want to beautify the communities within the area.  It is a win win situation. Do the homework to find out which municipalities or states are setting aside money to redevelop certain areas. The best way to find this out is by calling the community and economic development office of a municipality to find out what programs might be in place that could lead to a grant.

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

Or connect with us  

Gainesville is the county seat and largest city in Alachua County, Florida, and the principal city of the Gainesville, Florida Metropolitan Statistical Area. The population of Gainesville in the 2010 United States Census was 124,354 according to  Wikipedia.

Zillow reported in February this year that  the median home value in Gainesville is $133,500. Gainesville home values have gone up 5.0% over the past year and Zillow predicts they will rise 3.6% within the next year.  The city is prime for flipping opportunities with the  median price of homes currently being $150,000 while the median price of homes that sold is $130,900.

Gainesville home prices are up almost 20% from last year’s numbers. Despite the rise in prices, Gainesville remains one of the cheapest real-estate markets in Florida with a median home price of just $139,000. Folks that is  about 18% below the national average, can we say OPPORTUNITY?

The city was hit hard just like the rest of Florida. But the market is on its way up. Craig Wilburn, president of the Gainesville-Alachua County Association of Realtors, said he looks at buyer activity as reflected in pending sales and inventory to portend a turnaround. Eventually as demand increases and supply decreases, the market will reach a point at which prices stabilize, he said.

“If you’ve got a good product, a good neighborhood, priced under $150,000, it’s selling fast with multiple offers,” Wilburn said.

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

Or connect with us