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.

And nothing compels buyers to purchase a home like “putting down roots” for those offspring.

Three esteemed So Cal professors provide hard evidence to support these assetions.

Key findings from the studyinclude:

a) The size of the down payment has little effect on the outcomes for children, except when borrowers put no money down, at which point the outcomes become indistinguishable from those for renters.

b) The impact of homeownership is particularly important for households with short lengths of tenure. Some had suggested that prior findings regarding the benefits of homeownership were simply due to a more stable housing situation, not necessarily ownership. These findings indicate that homeownership matters, particularly over the short term.

c) Parents’ marital status, income, race or age of the mother when the child was born had little effect on outcomes, after controlling for parental education, homeownership and other household characteristics.

“In a study conducted over 15 years, we found that children of homeowners fared better than children of renters.

The study was based on an analysis of the Panel Study of Income Dynamics (PSID) and was sponsored by the Research Institute for Housing America (RIHA), the independent research foundation of the Mortgage Bankers Association (MBA).

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)

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:

• 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.
• 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, atwww.nfcc.org.
• 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.
• 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.
• 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.

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)

Today almost everyone uses the internet to find homes and the few, who are not, use an internet savvy Realtor©.
An article from NAR  said that 97% of the general public, who are interested in real estate are checking first the internet and all are first looking at the pictures.

And out of the 97%, about 37% become investing in real estate. That result is a lot better than the general ads, open houses and cold calling.
On the internet, as a marketing tool, only images can capture and hold attention.
Some Realtors told me that photography doesn’t sell homes, getting it priced right does.
However, once a home for sale is priced near the correct market value it has to compete with all the other properties in that location, price range and set of features.
Getting buyers to come look at a home in today’s online search market is a matter of standing out from the other hundreds of properties a home for sale is competing with. Photography is the only way to do that.
It is not surprising that strong images play a big part in marketing homes. Images are the center of marketing everything.

The National Association of Realtors said “It’s no secret that pictures help sell listings faster.
But they also add value: Homes that are marketed with superior photos taken with high-quality cameras actually sell for more than houses that are photographed with standard, point-and-shoot cameras.

Traditional Real Estate does not work as a marketing tool anymore. If you need more information, check my website http://letpicturestalk.com .

A professional real estate photographer might be your best all-around marketing teammate.

By Ronny Geenen
Realtor and Photographer

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.

Let’s look at the main commercial properties that you may already be involved with, or are thinking about moving into.

The first are office buildings, or office parks. The term office can be used to refer to floors, parts of floors, an entire building, or an entire office park with multiple buildings positioned in a community type setting. Office space is used for a variety of reasons. It can be used for actual offices for companies, or it can be used for places of business operations, or to meet a tenant’s specific functional and technical needs. An example of this would be an office building for medical purposes.

Office buildings can be segmented into three basic levels. The first is low rise, which has fewer than 7 stories above ground. A mid-rise has between 7 and 25 stories above ground. A high-rise has more than 25 stories above ground. These buildings are often rented by the square foot according to the total useable square feet available to the tenant.

The next type of commercial property is retail property. These are places of business where products and services are provided. There are many types of retail properties which include big boxes, outlet centers, strip centers, regional centers and power centers. Each of these has distinct characteristics that differentiate one from another. Business owners can better choose where they want to lease by identifying their product position, where the best location is, and the type of retail center that will best sell their products and services.

A big box is a large, free-standing building that is often much like a huge warehouse. They can often be found near major shopping centers and along major corridors. Companies such as Wal-Mart, Home Depot and Target are all example of big boxes.

Outlet centers are usually located in tourist or rural locations, and the businesses there offer their products and services at a discount. Strip centers are consecutive narrow parcels that have a variety of stores. They are often found along main roads and commercial corridors.

Regional centers are characterized by an enclosed, inward orientation of the stores. A walkway or common area connects the stores that offer a variety of products and services. There is usually a large, common parking lot found along the perimeter of the regional center.

Power centers are areas of business where large retailers, including large discount centers lease out the buildings. Category killers can also be found here. These are companies that offer a large selection at low prices. Ross, Mervyns, and Kohl’s can all be found in power centers. Think of the one stop place to shop retail center, and you have a power center.

Any of these types of retail centers can be chosen areas of specialization for an investor, developer or builder. This gives them a competitive advantage in the commercial real estate industry because it is the only thing in which they concentrate their efforts. You can bet there is not one thing that can pass by these people when it comes to retail centers, and they know exactly how to maximize their resources.

Industrial and warehouse properties are the next category of commercial property where you will find freestanding properties, research and development, large manufacturing, as well as industrial park properties.

Freestanding industrial properties can vary greatly in construction type, design, and overall function. They stand alone, and are usually occupied by an end user, so the building is specific to a special purpose.

A research and development property is characterized by having office space and manufacturing on the premises. You can find them most often near universities, and close to other locations of professionals.

Industrial parks are large, planned developments that can be used for special scientific and technological use, or sophisticated communications uses. They have many buildings for mixed-purpose or a single purpose that are scattered in an often functional way.

Industrial buildings and warehouses are crucial to a city’s economic development, and cities often provide tax incentives when jobs are provided and new companies are brought to a city, especially to one experiencing rapid growth.

Multi-family property is another type of commercial property in which you can specialize. They offer huge opportunities to create value. A multi-family property is not considered a commercial property unless it is greater than 5 units. Duplexes and fourplexes are not considered commercial properties, though they can be a great investment. The larger the apartment complex, for example more than 100 units, the more money you will be able to return on investment. These multi-family units have living space, appliances and amenities. Multi-family units can range from low-end to luxury type units.

The last type of commercial property is raw land. Raw land is characterized by untouched land with no improvements such as utilities and roads. It can be the most difficult property to involve yourself with; however, it can return the greatest results.

Whichever property you decide to specialize in, only begin a new project in a new area with a person who has lots of experience. You can learn a lot from someone by using this strategy. It will give you a solid foundation to do the next project on your own. This partner or associate will help you to gain the experience and insight that may otherwise take you years to learn.