A fast growing trend in today’s rocky real estate market; buy a house, flip it and sell it quickly to earn a lucrative profit. In today’s real-estate market you have to be smart about the purchase you make and do your homework. Choosing the right neighborhood, a home with good bones, a large lot, and quiet street are key factors in producing a profitable investment. Choosing a home in sketchy transitional areas and over improving for the type of market can leave a real estate investor with a property that stays on the market, causing the investor to loose profit and have to lower his asking price below market value. Flipping properties is a risky business that can pay off handsomely or leave the developer in financial distress.
If I were given 150,000 dollars to invest in a distressed real estate purchase, I would start by securing a knowledgeable realtor on investment properties. Next, I would look for a single family home, with an open floor plan, three bedrooms, two baths, in a desirable neighborhood and priced at least twenty percent below market value to get the best deal. In order in get a larger lot and more square footage at a nominal price, I would look at foreclosures and short sale homes with good bones. Once I found a home in a nice neighborhood near a great school district and large yard, I would place an offer contingent upon a satisfactory home inspection and three percent closing cost assistance. Securing a property before any other buyers knew it was on the market would be a top priority in order to avoid a bidding war and paying more money than necessary.
Once I purchased a suitable property, I will start planning my flip by making a timeline and setting a budget. In the budget, I will include carrying cos...
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...nt profit. In the world of real estate, the road to riches can be rough, but with a smart plan, a reasonable timeline, creativity and great work ethic anything is possible.
Works Cited
1 Kemp, Kristin. "Kristin's Tips." TLC: Property Ladder. Discovery Communications, 8 Sept. 2008. Web. 4 Nov. 2011. http://tlc.discovery.com/fansites/propertyladder/about.html.
2 Conor, Cayden. "How to Enclose the Carport to Make an Additional Room | EHow.com." EHow | How to Videos, Articles & More - Discover the Expert in You. | EHow.com. Demand Media. Web. 10 Nov. 2011. http://www.ehow.com/how_4886797_enclose-carport-make-additional-room.html.
3 From, More. "Adding a Portico : Archive : Home & Garden Television." HGTV - Decorating, Outdoor Rooms, Landscaping Ideas, Kitchen and Bathroom Design. Web. 10 Nov. 2011. http://www.hgtv.com/home-improvement/adding-a-portico/index.html.
An employee of ABC Company, Luke is in charge with a project of developing new purchased land. The company is planning to build an adult entertainment retail store which confidently lay near where his brother, Owen, lives. If the plans are announced to the public, the property of the surrounding neighborhood will drop significantly. What concerned Luke is that Owen just told him about the offer to sell his house at a decent price compared to the current real estate market. However, Owen is considering if he should wait for a couple year and sell his house later at a higher price as the estate value may increase.
Collateral for the defaulted loan. Distressed real estate involves making a distressed purchase. According to Financial Crisis (2011), “[A] distressed purchase is whereby the property owners are usually in a foreclosure/short sale situation.” Foreclosure applies to a residential real estate loan in which a bank or creditor repossesses a home because of nonpayment. The institution will legally possess the right to resell the property as collateral for the defaulted loan. The selling price can be sold at a price equal to or greater than the original loan. The reason distressed properties can be bought at a lower price is the institution has already received a series of payments toward the original home loan. In many situations the lender can sell the house for a lower cost than the normal market value, leaving the buyer the opportunity to make a purchase at a lower selling price than market value and reselling the property at a profit (Demand Media, 2011).
Fixing and flipping real estate is a great way to approach the real estate market, in spite of its nasty reputation. Approached with care, it is an easy way to make money in the business of real estate.
.Given the choice between two investment properties—both 3-bedroom, 2-bathroom, 1,700-square-foot single family residences listed at $125,500, one a turnkey in Stockton, California, and the other a fixer-upper in Chapel Hill, North Carolina—and the singular goal of turning the maximum profit on my investment, I would choose to purchase the Chapel Hill home. Because I believe that the listing price of that property is lower than its true value, and because I expect a growing real estate market to increase the value of the home by 10 percent over the next two years, I think that with an additional investment of $50,000 in renovations and a two-year buy-and-hold rental strategy, I could flip the Chapel Hill home for more than $180,000 in profit.
And why on earth shouldn 't you consider these options? This can be a lucrative proposition, that millionaires all over the world will agree, to create a massive fortune quickly. However, real estate investing could be a very risky venture therefore your necessity of having some more stable ways of bringing in money in order to establish a truly diverse portfolio plus a better security structure for your financial future is imperative.
A very good strategy to start with is the “rent to own” option. In the rent to own process the potential buyer basically rents or leases the home for a set period of
National Association of REALTORS. (2010) Profile of home buyers and sellers 2010. Chicago: NAR Publishing.
Best bet: If the market is lukewarm or you reside in a neighborhood with widely varied property values, set your sights just under the most expensive home on the block. That way, the showcase homes will tend to reinforce your potential asking price.
"Real Estate Agents and Brokers." Encyclopedia of Careers and Vocational Guidance. 15th ed. Vol. 5. Chicago: Ferguson's, 2010. 235-44. Print. Ferguson's.
Investing in real estate gives the everyday person like you or me the opportunity to get into the game. It gives us a chance to build that wealth and status. To create passive income that compounds into freedom.
You just graduated Grad school and landed your first job at a fortunate 500 company. Now it’s time for you to make some real life investments. You decided that you wanted to purchase your first property instead of renting. Renting can be a great option but will not be a great investment, nonetheless owning a condominium is more of an affordable route if wanting to own a property. In my research paper I will discussing the benefits of owning a condominium as well as becoming finically ready to make your first purchase.
Across the board most private residents are looking for suburban areas offering open spaces for entertaining friend and families. City dwellers continue to change the dynamics of urban living enriching property values for both single family homes and multiple units. What’s common among both of these personalities, they all start at the same point, each looking for a home that’s comfortable, affordable and offering access to daily living requirements.
As a child and an adult, it is good to learn patience and this game in many ways teaches us that. Every turn in this game takes a little time, especially as the properties have been bought because you can only add houses or hotels on your turn. We must also plan and not just buy everything up, if you buy without discipline when investing, you will just have to hope the market behaves in your favor. Investors don’t invest based on hope, they invest with a disciplined approach. Patience is a big part of that approach.
Our goal is to be the premier apartment and single family home leaser of Northern Illinois and Southern Wisconsin, a goal we can only accomplish through our residents and employees. We understand that our customers establish the criterion for quality and service, and their loyalty must be earned. To our employees, we are dedicated to developing our employees personally and professionally. We understand that by supporting our employees with a positive work environment, continuing training, and performance based appraisals and opportunities for advancement, our business will continually succeed. We believe that by encouraging personal and professional growth, our employees will exceed their expectations with the benefits being realized by all. To our partners, we are devoted to maximizing real estate asset value. We quickly adjust to the diversified needs of investors, and residents through comprehensive management, industry expertise and our absolute commitment to service.
Real estate is a fixed, tangible and immovable asset in form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants includes developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that make impacts in the market (Seldin & Richard 1985).