Smart Money Investor: Fix & Flip 101! — Part 2

Create a Budget Once you have a sense of your target neighborhood and going prices for houses in it, it’s time to set up a house flipping budget. First, you need to know what you can reasonably pay for a new home.  Buying with all cash is the simplest route for home flippers. It cuts out the mortgage application and approval process, as well as makes your offer more attractive to sellers. Plus, you won’t need to make ongoing interest payments for the property as the renovations are underway. Still, some house flippers need financing. According to ATTOM’s 2020 report,…
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Getting Started in Fixing and Flipping

Building a career buying property, fixing it up and then selling it for a profit can be a lucrative endeavor. However, it is also very competitive. You must make sure you have a good plan in place to be successful. There are some tips and advice that you should consider before you launch yourself into the fix and flip rehab market. Start With a Good Plan You should approach a fix and flip career as you would any other business. Create a solid business plan before you begin. Your plan should lay out all the details of your business. Make…
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What Lenders Look for When Providing Financing for Investment Properties

Securing a good piece of real estate is essential when you have a business. However, any piece of property that catches your eye is sure to catch the eye of other business owners, making the competition fierce. In order to come out victorious, you must have your financing in order. This means you are ready to secure a commercial real estate loan. Preparing for financing approval requires knowing what lenders will look at. Keep in mind that a commercial real estate loan is much different than a residential loan. For a commercial loan, the lender considers six different aspects of…
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Tips for First Time Real Estate Investors

Making smart real estate investments can be very lucrative and can be a great way to create wealth. When it comes to diving into your first investment property, it can seem like there are so many things you just don’t know. There are many different investment strategies and finding the right one for you will be crucial to your success in real estate investing. Whether you’re getting advice from your real estate experts, your friends or your family, there are so many things that seem like common sense that might be lost in the mix. Of course, finding the best…
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Smart Money Investor: Fix & Flip 101! — Part 1

How to separate the fact vs. fiction of flipping properties.  No question reality TV shows have shown many of us a glamorous side to the profit potential.  However, does it show the true story?  What are some of the basics you need to know to become successful as a real estate investor? Data is as critical to your success as a fix & flip investor as cash flow.  ATTOM Data Solutions, the average gross profit for house flipping was $62,300 in the first quarter of 2020. This equates to an average percent return of 36.7%, which is down about 3%…
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Prepare Yourself to Win the Commercial Real Estate Loan

Securing a good piece of real estate is essential when you have a business. However, any piece of property that catches your eye is sure to catch the eye of other business owners, making the competition fierce. In order to come out victorious, you must have your financing in order. This means you are ready to secure a commercial real estate loan. Preparing for financing approval requires knowing what lenders will look at. Keep in mind that a commercial real estate loan is much different than a residential loan. For a commercial loan, the lender considers five different aspects of…
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3 Questions to Ask When Evaluating Fix-and-Flip Properties

It should go without saying that if you’re entering into a fix and flip project, you would want to have a clear goal of maximizing on your return investment without single-handedly wiping out any profit due to excessive improvement costs. However, there are generally some out there who need help determining how to go about ensuring this process goes according to plan, especially if they’re new to the game. If you’re looking for guidance on your new real estate flipping endeavor, here are three questions to consider before making final purchase on a property. What Would Attract Home Buyers to…
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