Category : General
When it comes to making money in the business of flipping houses and other real estate investments you will find all kinds of do’s and don’ts along the way. The truth of the matter is that these are extremely useful whether this is your first house flip or you have been flipping houses for years. In fact you might just find that you can learn something new on occasion by reading lists such as this even if you’ve been flipping houses for years and have many successful flips under your belt.
1) Don’t forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also take the time to make sure that the plan you have in mind for the property will match well with the other neighborhood residents in order to guarantee a quicker sale.
2) Don’t blow your budget without just cause. Your budget is what you used to determine whether or not the house would be a profitable venture. If you blow your budget and cannot recover the extra money you’ve spent in the selling price on the house you will have seriously cut into your profits if not eliminated them all together. The goal in property flipping is to get in and out quickly and spend as little money as possible in order to make as much money as possible.
3) Don’t forget to set daily goals and hold yourself accountable to those goals. If you don’t reach your goals for the day it can set the entire project back by as much as a month depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don’t neglect the exterior. Curb appeal is what brings buyers into the property. If you spend all your money, time, and effort making improvements to the exterior of the home you will have little left to make the outside appealing to potential buyers. A homebuyer is in the market for the entire package. A home that looks run down on the outside leaves the impression of being neglected on the inside and many potential buyers will never walk inside if the outside looks forlorn.
5) Don’t spend money you don’t need to spend. While it would be great to put in granite countertops and gourmet kitchens into every home it isn’t always practical and this is often money that will not be recovered, particularly in homes that are in marginal neighborhoods. If you want to get the most for your money avoid costly expenses that aren’t exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, and add a few cosmetic touches before moving on.
The biggest mistake most flippers make is holding out for an unreasonable sales price. Never forget that one of you major costs is time. The longer you hold onto a home, the lower the probability of making the return you wanted. It is almost always best to take a profitable offer quickly than to hold out for more money. If you can make a reasonable profit in a short period of time you can move on to your next project.
by GARY BOYER
According to a report just out, it is too easy to be fooled by home staging. Home staging is a term that we have become familiar with in this recent Real Estate Market downturn. It is the idea that we try to create the best impression of our home when selling the house. It used to be just run the vacuum over it and do the dishes but nowadays there is a whole set of rules to follow!
The idea is, that a staged home stands out from all the others and therefore gets sold more quickly. It certainly can be carried to extremes with reports of sellers hiring storage units to cart their junk off to. Larger items of furniture are encouraged to be put into storage by professional ‘home stagers’ so that the house looks bigger and more spacious.
Another instruction is to remove anything personal like photographs, so that the prospective buyer can visualize the house as their own. Closets are de-cluttered so that they look more spacious and all bathroom paraphernalia is supposed to be gone from the counter top! Garbage bins are even removed and hidden from sight.
However it has been suggested that home staging can also be deliberately used to hide a multitude of sins!
The National Association of Exclusive Buyer Agents has suggested that as much as 82% of buyers are sidetracked from the important issues by a well-staged house. This organization also concedes that home staging nets more cash and faster sales – so it works!
Some of the underhand tricks used in staging can include using smaller furniture to make a room look larger, placing rugs over damaged parts of the floor, or using curtains to hide rotting sills. Also specified is the practice of putting a cheap paint job on to cover defects. Your Realtor is legally obligated to let you know of any defects, but only if he actually knows about them!
Please keep in mind it’s common courtesy to make sure that a home is clean and presentable when buyers are viewing the home. Some people just live in such an organized state that some homes that appear staged are just owned by superhumans who somehow are able to keep a home impeccable with 3 kids and a dog. Your Real Estate Agent typically knows the difference because of the number of homes they view and will share that with you.
On the other hand, you need to be able to look past the reality that most of us mere mortals live in where there might be dirty dishes in the sink or laundry in the hamper.
Buyers are urged by the NAEBA to be cautious and to remember that when the house is sold, the stage is taken away. The tricks of home staging do not improve the floor plan, or the square footage of the home or the quality of the neighborhood, and these are the qualities that you will be re-selling at a later date.
Regional Airports:
Ontario International Airport-Ontario. Hollywood Burbank, Long Beach, Orange County-John Wayne and LAX
General Aviation Airports:
Cable Airport – Upland (Cable is the largest private airport in the U.S.)
Chino Airport – Chino
Brackett Field – La Verne
El Monte Municipal Airport – El Monte
Colleges:
There are Three Community Colleges in the top 5% nationwide
Chaffey Community College – Alta Loma
Citrus College – Glendora/Azusa
Mount San Antonio College – Walnut
There are nine 4 year Universities/colleges in the top 5% nationwide
Cal Poly – Pomona
University of La Verne – La Verne
Pomona College -Claremont/Pomona
Scripps College – Claremont
Harvey Mudd College – Claremont
Claremont McKenna College – Claremont
Pitzer College – Claremont
Azusa Pacific University – Azusa
Mass Transit
The area is home of one of the most comprehensive suburban mass-transit areas in the nation. Served by Metrolink, Metroail, Foothill Transit, OmniTrans and the MTA
Location
Almost any city in the area is about 1.5 hours to the beach, mountains and desert (both high and low desert)
by SARAH BARRON
Calif. median home price: July 2012: $333,860 (Source: C.A.R.)
Calif. highest median home price by region/county July 2012: Marin, $845,860 (Source: C.A.R.)
Calif. lowest median home price by region/county July 2012: Tehama, $95,000 (Source: C.A.R.) Calif. Pending Home Sales Index: July 2012: 116.1, down 4.2 percent from June’s 121.2
Calif. Traditional Housing Affordability Index: Second quarter 2012: 51 percent (Source: C.A.R.)
Mortgage rates: Week ending 8/30/2012 30-yr. fixed: 3.59% fees/points: 0.6% 15-yr. fixed: 2.86 fees/points: 0.6% 1-yr. adjustable: 2.63% Fees/points: 0.4% (Source: Freddie Mac)
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide.Edited by: Mary Burroughs, maryb@car.org |
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by SARAH BARRON
Dept. of Justice warns of debt relief scams
The Dept. of Justice Consumer Protection Branch is warning consumers about debt relief scams and providing tips to avoid such scams. Tips include:
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Fraudulent debt relief companies will often make claims of being able to negotiate a one-time settlement with creditors that will reduce a consumer’s principal by 50 percent or more. The Consumer Federation of America, an association of non-profit consumer organizations, warns that such a promise is a virtual impossibility.
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If you have trouble making credit card payments, immediately call the creditor to work out a payment plan. If that is unsuccessful, a non-profit credit counseling service may be able to help you. These services may charge a small fee, but the cost will be substantially less than using a debt relief company. An excellent resource for locating a local credit counseling service is the National Foundation for Credit Counseling, at
www.nfcc.org.
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If a company offers a “one size fits all” solution, what they are really offering is a “no size fits anyone” problem. Legitimate credit counseling services tailor a consolidation plan to each consumer’s individual needs.
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Do not be afraid to ask questions. Demand that the company disclose set-up and maintenance fees, and that these fees be set in writing. According to the Consumer Federation of America, consumers should not pay more than $50 for the set-up fee and $25 for monthly maintenance of the account.
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Do not rely on the company’s website. Conduct your own research of the company – the Better Business Bureau and the state consumer protection agencies are valuable resources.
For more information on debt relief scams, see the Federal Trade Commission’s website. Additional information on legitimate debt relief services can be found on the Consumer Federation of America’s website.
by Sarah Barron
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels.
Highlights of the June survey include:
Average home price expectation hit 2 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010.
Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception.
Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month.
The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent.
On average, respondents expect home rental prices, generally steady since May, to increase by 4.0 percent over the next 12 months.
Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down.
Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception.
The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date.
For detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
Follow us on Twitter: http://twitter.com/FannieMae.
(From Fannie Mae – 7/9/12 – by Pete Bakel)
Including those “You have been pre-approved” credit card invitations that you receive in the mail. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry
from GARY BOYER
There are many types of commercial properties available to those who work in the commercial real estate industry. Many people like to work in a specific area by working with only one or two types of
commercial properties. They do this because they have expertise with that specific type of property.
Commercial properties differ more than in just their appearance and use. How you purchase, sell, operate, manage, evaluate, and price each property can be very different. Although there are some similarities, being an expert in one or two properties can greatly increase your ability to analyze good deals and maximize your profit potential. When you know the inside and out of the processes that take place with a certain type of property, know what hidden things to look for, and what mistakes to avoid, you are less likely to run into problems, and will generate positive, long lasting results. (more…)
by Jackie Doornk
There’s nothing like the feeling of sliding on snow. Then again, there’s nothing quite like the feeling of riding a wave. It doesn’t get much better than doing both in the same day, and there are few if any places in the world that provide a better opportunity to bag this elusive logistical tandem than California.
Luckily for us, the coast-to-mountains ratio is not only favorably close, but the access to get to both isn’t bad either. While the drive is usually nothing to sneeze at, usually on the order of three hours or so, it’s reasonable enough that it doesn’t take great strains to make the transition from mountains to sea, or vice versa.
For the So Cal crowd your waves are plentiful, but your choices in the mountains are a bit slimmer and the snow quite a bit more fickle. Still, if you wake up to surf one of the many world-class breaks in the region —— Rincon, Malibu, Trestles, Swami’s, etc. — the San Gabriel Mountains are just a couple hours or so away, trafflc willing. With proper planning and a dawn-patrol start, you can surf through the morning commute, and be dropping into your first lap on Mt. Baldy before most cubicle-ites have taken lunch.
Submitted by Jackie Doornik
The 17th Annual Kosmont-Rose Institute Cost of Doing Business Survey once again lists
Glendora as one of the least expensive cities in Los Angeles County to do business.
This is the third consecutive year the study has listed Glendora as one of the ten least
expensive cities to conduct business.
City officials indicated that the city has taken affirmative steps to keep costs down for
businesses and residents. “We do not have taxes like utility user or extra sales tax
levies” said Mayor Doug Tessitor. “Our policy has been to look for ways for businesses
to prosper and expand which means more jobs in the community.”
The success of the policy has been demonstrated in the last year when nationally
known Internet commercial real estate information giant Loopnet relocated to Glendora.
The firm leases nearly 39,000 square feet from America’s Christian Credit Union, and
created nearly 100 local well-paying jobs when it relocated.
According to Kosmont-Rose Institute survey, California has put cities in a difficult
position in attracting and retaining businesses through the State’s regulations, taxes and
raiding of municipal revenues. “We have made a very conscious effort to not look at
business as having unlimited money to offset whatever the State does to us” said
Planning & Redevelopment Director Jeff Kugel. “We try hard to get businesses through
the process, and more importantly make it as inexpensive to operate over the long run
which counts most when it comes to job creation.”
As part of the City’s Strategic Plan, one of the objectives is to see how to get local
business engaged to determine what they see as benefits to being in Glendora and
what enhancements might be offered to improve their situation. The City Council is to
consider the idea in the Spring of 2012.
To learn more about the City of Glendora, visit their website at www.ci.glendora.ca.us
