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The (total) number of real estate transactions is down. For most realtors this means less business and less income. The number of foreclosures is way up! Combining these two realities opens up a broad new category of opportunities for agents with vision, patience, and creativity is a key to success in this rocky market. Sales of foreclosure properties have been climbing and the numbers are expected to continue for some time. Listing foreclosures is not for the faint at heart but bringing buyers to the table can be good business! The most accessible (from a buyer's point of view) type of foreclosure property is the REO (Real Estate Owned).
A quick summary of the foreclosure process might be helpful here. When a lender decides that they must take action to protect their interest in a failing loan, they must file a Notice of Default (NOD) or in some jurisdictions lis pendens. This is the first time the bank is required to publicly pronounce their intent to act on their interest in a specific property. The borrower is given a time to cure by statute and the time varies by state. At the end of the cure period an auction on the county courthouse steps is held. This is usually called a Trustee Sale. The buyer is almost always the lender. Once the lender takes the title to the property it becomes an REO. The lender can now sell the property just like any other property owner.
Each property can only be listed by one realtor but a buyer's agent can show many available properties. The competition for REO listings is intense and the institutional owners' expectations are high for the listing broker. Buyer's brokers have more flexibility in their approach to the booming REO market. Hundreds of thousands of buyers are surfing the net on a daily basis to find foreclosed properties.
The realtor that can deliver an extensive list of available properties, including foreclosed REO properties, to potential buyers will have more to show and offer their clients and they will ultimately close more deals and make more money. A buyer's agent, armed with an accurate list of bank-owned properties for sale, has a real advantage. We are working to bring products to market to assist realtors who wish to explore this market.
Want to get in on the action so many others are experiencing? Share your thoughts on the topic and expand your business opportunities. Click Here
Dan Dunleavy
President, FixtoFlip Inc (The Tools and Resources you need to Fix and Flip Real Estate Profitably!)
(954) 889-7092 or visit us at http://www.fixtoflip.com Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
FixtoFlip.com was asked to share some information for this article. We were glad to have the opportunity to work with PopularMechanics.com and they did a terrific job on the article. The article was done by: Joseph Truini and he was glad to share it with the ActiveRain members!
1. Enhance the Curb Appeal
First impressions are never more important than when trying to sell a home. Put yourself in the shoes of a prospective buyer. Stand near the street and look with an objective eye at your house, yard, driveway and gardens. Make note of all items that need to be fixed, painted, cleaned or removed.
How important is curb appeal? Very, according to Dan Dunleavy, founder of FixtoFlip.com. He says that most people pass judgment on your house within the first 30 seconds. And that's before ever setting foot inside! So follow these six quick and easy tips:
Fertilize the lawn and cut it. Trim the edges along all sidewalks and other paved surfaces. Remove leaves and fallen debris, such as twigs, pine cones and seed pods. Trim shrubs and hedges, and remove dead limbs from trees. Fill flowerbeds with fresh mulch and plant brightly colored flowers.
Apply a fresh coat of sealer to worn asphalt driveways, and power-wash concrete driveways.
Clear the front and side yards of all extraneous stuff, such as bicycles, lawnmowers, garden tools, wheelbarrows and your brother-in-law.
Inspect your home's exterior for things that need to be fixed or replaced, such as ripped window screens, sagging gutters, broken balusters or peeling paint.
Pay particular attention to the obvious, highly noticeable areas. "I've seen buyers turned off simply because the front door was dirty and scuffed up," says Amy Willaby, a Re/Max real estate agent in Dallas.
The same advice applies to outdoor structures not attached to the house. Crooked gates need repair-as do sagging fences, frost-heaved stone steps or cracked concrete walks.
To read the full article: PopularMechanics.com
Dan Dunleavy
President, FixtoFlip Inc (The Tools and Resources you need to Fix and Flip Real Estate Profitably!)
(954) 889-7092 or visit us at http://www.fixtoflip.com Check out our NEW business! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
New at FixtoFlip.com:
Flip Tips White Papers
FixtoFlip.com Newsletter
Other FixtoFlip Blog Links:
Flip Tips: How do I find a Home Inspector?
Flip Tips: (Flipping Houses) Buyers Market, so Why not invest?
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
FixtoFlip.com was asked to share our thoughts for this article. We were glad to have the opportunity to work with MainStreet.com and they did a terrific job on the article. Here are a few thoughts from the article:
Home improvements can also increase your asking price when you sell, and can result in your home being sold sooner than later. (Of course, where your house is located should always be considered before you begin recession-proofing your home, not every home will benefit from home improvements in the same way.)
Here are a few tips to recession-proof your abode:
CURB APPEAL
Spend a little time on landscaping. "Within the first 30 seconds, people are passing judgment on your house," says Dan Dunleavy, CEO of Fix to Flip. If you're a do-it-yourself type, then this will cost you absolutely nothing for labor. A quick trip to Sears (SHLD) is a good place to start for landscaping tips. Hiring a landscape artist on, say, Craigslist might cost you $22 an hour and up. The payoff is a house that might be easier to sell.
GET BEAUTIFUL ON THE INSIDE
"Flooring, painting, carpeting and molding" are the first things you see when you walk through the door, says Dunleavy. It should be "eye candy," which means no carpet that predates the birth of its homeowner. Other rooms to modernize? The kitchen and the bathroom. "People want a bathroom that looks appealing," says Dunleavy. "They don't want a stone age bathtub or sink." A contractor might hit your wallet "pretty hard" but there are websites, such as the Do It Yourself Network that can help you with your own home improvements. And even though a new toilet from Home Depot (HD) might cost you $149, the added value is real. "Bathrooms are a big deal," says Dunleavy
There are more ideas in this article. To read the full article go to: MainStreet.com
Dan Dunleavy
President, FixtoFlip Inc (The Tools and Resources you need to Fix and Flip Real Estate Profitably!)
(954) 889-7092 or visit us at http://www.fixtoflip.com - Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
New at FixtoFlip.com:
Flip Tips White Papers
FixtoFlip.com Newsletter
Other FixtoFlip Blog Links:
Flip Tips: How do I find a Home Inspector?
Flip Tips: (Flipping Houses) Buyers Market, so Why not invest?
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
You would be surprised how your business and personal relationships can help you find your next FixtoFlip bargain properties. You truly get the best deals by finding the property early and discovering the real bargains. Negotiating the selling price is truly where must flippers make their money! Investors understand finding the FixtoFlip bargains can take awhile in order to find a diamond in the rough but with patients, the right network relationships, and bargaining to get your price. You can succeed!
Networking is key to finding your next flip and there are many personal and business relationships to consider for your next FixtoFlip bargain. Let me share a list of potential areas of finding your next deal. Please keep in mind I don't condone all these types, but wanted to share a list for your review. I hope you find this list helps you to discover your next flip!
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- Banks or Lending Companies
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- Foreclosure Websites and Reports
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- Sherriff Sales Listing on Websites or Newspapers
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- People in Financial Distress
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- Finding Houses Look Vacant and Grass is High
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- Families Inheriting Properties They Can Not Use
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There are many more resources for finding bargains. I hope you find this list helps you to discover your next flip!
Dan Dunleavy - President, FixtoFlip Inc
(954) 889-7092
http://www.fixtoflip.com/ - Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
The Tools and Resources you need to Fix and Flip Real Estate Profitabl
Other FixtoFlip Blog Entries:
Flip Tips: How do I find a Home Inspector?
Flip Tips: (Flipping Houses) Buyers Market, so Why not invest?
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
A home inspector can be exceptional at uncovering surprises in a potential house flip. So, don't take a home inspection lightly! If you are not a qualified general contractor or experienced in home inspections, we recommend you to hire a professional.
Each home inspection service will have an initial cost for their service to identify any minor or major flaws with the property. This is money well spent if it saves you from making a serious financial mistake by selecting the wrong fixer upper or house flip.
Consequently, Flipping Houses requires you to do a full inspection and document all the damages, flaws, or issues, so you can accurately access the cost of repairs.
Here are a few things to consider when selecting your home inspector:
- What is your experience in inspecting potential house flip properties?
- What do they charge for their service?
- Do you have a sample of your report?
- What is included with their service?
- Do they charge extra for septic inspection?
- Where were they trained?
- Are they continuing with their education and where?
- Are they properly insured? And, by whom?
- How long does it take for you to perform your inspection? (If they tell you 1 hour, move on to the next candidate. An average inspection can take approximately 2 to 5 hours depending on the size of the property.)
There are a few good methods for finding the best home inspector. If you are working with a great real estate agent, typically the agent's home office will have a few referrals of their favorite home inspectors. Or, consider one of these websites to find your next home inspector.
Home Inspections USA: http://www.homeinspections-usa.com/
American Society of Home Inspections: http://www.ashi.org/
HomeInspection.com: http://www.homeinspection.com/
Dan Dunleavy - President, FixtoFlip Inc ( The Tools and Resources you need to Fix and Flip Real Estate Profitably! )
(954) 889-7092
http://www.fixtoflip.com/ - Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
Other FixtoFlip Blog Entries:
Flip Tips: (Flipping Houses) Buyers Market, so Why not invest?
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
There is a pretty interesting video on a company called Condo Vultures. It talks about how the south Florida market has stalled and prices are free falling. But, condos are still being built, but the property values are dropping considerably. Some condos have dropped up to a 44%.
So, savvy investors are taking advantage of these price drops to finally get a great deal on a FL investment. This is where Condo Vultures comes in. They try to bring together desperate sellers with aggressive buyers. They have a statistical vulture database to track the best deals and offer them to investors.
Anyway, I thought it was interesting and worth sharing.
Here is the link: http://abcnews.go.com/Video/playerIndex?id=4059269
Dan Dunleavy President, FixtoFlip Inc (954) 889-7092
http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably!
Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
Other Blog Entries:
Flip Tips: (Flipping Houses) Buyers Market, so Why not invest?
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
There are ton more properties for sale then there are buyers. This is one of the best buyers markets we have seen in years. So, what is holding you off from buying your house, investment property or next house flip?
With the excess of properties for sale, you have complete control and can negotiate some truly amazing deals. For example, sellers or banks might be willing to take a much lower offer to move the property, consider paying your closing costs or providing some type of seller assistance. You need consider the number game before the purchase or before you negotiate your deal. But, the timing is ripe for the picking.
Consequently, the real questions are:
- Home Buyers: Why aren't you buying a house today? The prices aren't going much lower, so why wait.
- Investors: Are you looking for a second home in the mountains, lake front or beach? Well, what are you waiting for? There are so many properties for sale in resort areas, so negotiate your deal.
- Flippers: Are you looking for your next flip, but nervous on whether to buy? Well, know the numbers and use the right tools to project your expenses, assume a slower resale cycle and account for finished property being completed below the other listings prices in your market. A little hard work and preparation can make the difference between success and failure.
I hope each of you have a Happy Holiday and prosperous New Year!
Copyright © 2007. FixtoFlip Inc. All rights reserved.
Dan Dunleavy President, FixtoFlip Inc (954) 889-7092
http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably!
Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions.
Other Blog Entries:
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
In the early part of the decade, people were flipping houses with the same ease and success as the stock daytraders of the 90s. There was no shortage of homes to fix and flip, and in a staunch sellers market, the ROI on even a modest mid-market home could net huge investment returns for novice flippers.
Now, the market has changed. Many areas are flooded with properties for sale and residential lots are not moving as fast as once did. Mortgage rates, although still at an all-time low, are higher than they were in the flip-centric heyday. Consequently, many analysts and real estate watchers have declared the end of the fix to flip, resulting in the exodus of many of the "make-a-quick-buck" rehabbers from the market.
Who's Flipping Now
Fixing houses is not without risk and given these conditions, this may seem like a scary time to jump into the flipping market. Like any business venture, you can plan and protect and create contingencies, but cannot plan for the unexpected. The difference though, between the new, serious flipper, and the flippers of years past, can be summed up in four words: research, planning, partnerships and management.
The smart flippers today are doing more homework than their predecessors. While flippers of the past may have conducted some preliminary market research, the new flippers are conducting more extensive research and documenting that research in their plans. The extra research allows the flipper to get a more precise picture of his or her investment property.
New flippers are also planning and managing their expenses more diligently than ever before. Instead of just a cursory evaluation, new flippers put the proper tools and resources in place prior to purchasing. New flippers use schedules and spreadsheets that detail costs and expenses, helping flippers determine the ROI before a purchase. Additionally, the new flipper creates and follows a schedule, ensuring that inspections, repairs, improvements, etc. are completed on time and within budget.
Partnerships are also key in the current short-term real estate market. Real estate service partners allow flippers to focus on the overall project, not get caught up in the details. The smart flippers assemble teams that include trusted realtors, mortgage brokers, home inspectors, contractors, and other professionals to ensure that the process moves smoothly, efficiently, on time and within budget.
The new successful flipper has one more quality not generally found in the flippers of the past: patience. Where flippers of the past may have been eager to turn a quick buck, the new flipper is more apt to wait for the right buyer or market condition before turning the property over. New flippers also have more sensible profit goals, realizing that the inflated profit gains of a few years past are probably not realistic in the current market.
Plan for Success!
Dan Dunleavy President, FixtoFlip Inc (954) 889-7092
http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably!
Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions. Our team also specializes in real estate services for Exton, Lionville, Downingtown, West Chester, Pottstown PA at www.AgentinPA.com.
Other Blog Entries:
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
Finding the right partners may make or break your business!
You may remember in one of my previous blogs I emphasized the importance of partnering with the right professionals. You need to determine your needs or weaknesses and find someone you trust that is skilled in these areas.
We recommend partnering with an experienced house flipping Real Estate Agent and very skilled General Contractor. Having a great General Contractor can save you from making a poor investment decision. Utilizing an experience Real Estate Agent in house flipping can spot the best property investment buys. Some real estate agents have actually flipped houses themselves, so ask the obvious to your agent. What is your experience in finding houses to flip? Or, have you ever flipped a house?
Once you find an agent, help them to understand the type of properties you are willing to consider:
- In side the city
- Suburban areas
- Price Range
- Type of Flip (major, minor, etc)
- Distance you are willing to travel
You get the idea! Your real estate agent is so important to your business and should be treated as an asset in order to make the right investment decision.
On the other hand, you will want to get a more formal agreement or contract with your General Contractor. First, meet to agree on the general terms of the arrangement. Second, discuss how the General Contractor will be compensated (% up front, labor & materials, or maybe a percentage of profits). There are many different types of arrangement that might work well for your business situation. You must also consider whether you want to use legal council during your arrangement. For many, this comes down to how well you know the person, but friendships can be ruined by not having a very clear - well spelled out agreement. Many software packages offer Home Remodeling Agreement of sorts that may or may not meet your needs.
An Interesting Story.
One quick story. I have a friend let's say his name is "Bob". Let's protect the wounded. Bob was the financial property investor and bought a great fixtoflip property with his General Contractor (GC). Bob and the General Contractor were friends and agreed to purchase a rehab property investment together. Now, Bob decided he knew the GC well enough to not have a formal contract or agreement. Also, they agreed to have a kitty of money for the GC to pull from for his labor pay and material costs. Unfortunately, they did not have a good system in place for tracking all of the receipts. You can see where my story is heading.
I'll cut to the chase. The property needed much more work than was anticipated and the whole job took 3 additional months to complete, beyond their projection. The total time was 6 months. They went well over their budget and now need to sell the property immediately. His friend the GC feels they don't need a real estate agent and can sell the property themselves, which is very difficult with this tough market. The GC also wants 50% of the profits, but does not want to account for the labor dollars that were already paid out for his time. Now, we all know this is quite an unusual case, but drives home my point on the importance of an agreement!
Bob asked for my advice and my suggestions were:
- Get a Real Estate Agent immediately, so you can move this property. It looks great, but they might have trouble recouping their total investment.
- Get a mediator to discuss the issues with the GC and try to reach an agreement with the money paid out versus the profit in the property. Once agreed, get it documented and signed immediately.
- They need to get the property noticed, so it can move quickly. Try marketing the property through a video to generate more market visibility. I suggest using AgentCasts. They produce high quality videos and they distribute your property to over 30 websites. The emphasis was to drive more attention to their property listing by marketing it much broader method.
- Don't do business with Bob again! I had a chance to meet Bob and he does not know the meaning of being reasonable.
What has been your experience with partnerships either good or bad? Please share your thoughts to help others.
Dan Dunleavy President, FixtoFlip Inc (954) 889-7092
http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably!
Check out our NEW business goWEBSgo! http://www.goWEBSgo.com for dependable, reliable and affordable small business internet marketing solutions.
Other Blog Entries:
(House Flipping) A Newer, Smarter, Flipper
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
Information, Information, Information While location is a huge piece in the home purchase puzzle, there are many other smaller pieces that must be addressed in determining whether to invest in a fixtoflip property. You need to consider whether there are any other additional costs or other hidden property issues. Remember whoever you sell to will most likely make this property their primary residence, so one of the questions to ask yourself is whether the property is readily accessible to amenities like stores, schools, and churches. The Right Questions - Right Now! As the initial buyer of the property you are entitled to ask questions. Ask many questions, ask often and don't settle for half answers. If you don't feel comfortable with the information being provided to you by the seller or their realtor, then it's time to walk away. Below are few examples of common things to consider and ask your potential seller or their legal representative. 1. What area is the property located? 2. Is the property in a good return area or up-in-coming area? 3. What are they willing to accept for the property? 4. Who owns the property? (Private Sale, Bank, etc.) 5. What condition it the property in? 6. What is their motivation for selling the property? 7. Is it a major or minor fixtoflip property? (Can you have the project completed in 2 months or 6 months?) 8. What are the comparison properties selling for? (Assuming the properties is restored to pristine condition.) 9. How much land comes with the property? What value does it have? 10. Is the water and sewer on-site or public? (If sewer is onsite, please make sure your get it inspected!) What are some of the questions you like to ask about an investment property before purchasing your next House Flipping Property? Dan Dunleavy President, FixtoFlip Inc (954) 889-7092 http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably! Other Blog Entries: (House Flipping) A Newer, Smarter, Flipper Flip Tips 2. (Getting Connected) FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties. Watching The Numbers Not All Doom and Gloom
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Dan Dunleavy
Glenmoore,
PA
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FixtoFlip Inc.
Cell Phone: (484) 883-9114
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