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Should You Buy a Home Warranty When You Sell Your Flip?

Buyers seem to love a home that comes with a home warranty, so as an investor, should you buy a warranty policy to sweeten the deal?
What is a Home Warranty?
A home warranty is a policy that covers a house’s major systems and appliances when they break down. Although buyers may not need to use it, particularly if you’ve put a lot of work into the house and everything is in perfectly good shape, it can be one of those things that gives people a warm, fuzzy feeling when they’re getting ready to make an offer.
How Does a Home Warranty Work?
If something breaks down in the house, such as the air conditioner or the washer and dryer, the homeowner calls the home warranty company. The home warranty company then sends out a local technician (an expert in the field, whether it’s HVAC or refrigerator repair) and the homeowner pays a flat fee for the call. The home warranty company then covers the costs for parts and labor so all the homeowner forks over out of pocket was the original fee.
How Much Does a Home Warranty Cost?
On average, home warranty plans cost between $400 and $600 for a year of coverage. That means a relatively small investment from you could go a long way to sweeten the deal for buyers.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent […]

3 Common Attic Problems Investors Can’t Afford to Ignore

Before you buy a house to flip that looks like a great deal, make sure you and your home inspector check the attic. There are a handful of serious problems you can discover up there, including truss or rafter damage, old fire damage, or insulation problems.
3 Common Attic Problems
Your inspector should peek in at the attic, and here’s what he or she will be looking for:

Truss or rafter damage. This doesn’t necessarily show up when the inspector is on the roof—but beneath the roof, an inspection can uncover stress cracks that could lead to the loss of the roof’s integrity.
Old fire damage. If a seller doesn’t disclose that the home once caught fire, an inspection in the attic can tip you off. The inspector will check to see if the rafters are painted or don’t have a natural wood appearance, which can both be signs of a previous fire in the house.
Insulation problems. Your inspector will make sure the insulation in the attic is facing the right way and determine its R factor (that’s how insulation is rated) to let you know whether it’s high (the higher it is, the higher its insulating factor).

Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be […]

3 Ways to Improve a Flip’s Value

When you’re flipping a house, you want it to be as valuable as possible—that way, you can make the best profit.

So what do buyers want you to do?
3 Simple Ways to Increase a House’s Value
First things first: You’ll need to work with a Realtor® who can help you price the home properly and sell it quickly. You don’t want to leave the house sitting on the market for too long.

Before you get to that stage, though, here’s what buyers want you to do.

Cut energy costs.

Buyers don’t want to spend a fortune on utility bills, so if you’re including appliances, make sure they’re the green kind. You can go a little farther than that, too, by asking the local energy company to come out and give you a free energy audit; they’ll tell you what you can do to maximize energy efficiency.

Plant some trees—or at least some shrubs.

As landscaping improvements that improve and mature over time, trees and shrubs are a great investment. If you can boost the curb appeal of the property by helping buyers feel more connected with nature, all the better.

Install a water filtration system in the kitchen.

If you’re up for it—and if your market will support it (talk to your Realtor first)—install a water filtration system in the kitchen. It’s a selling point: No more bottled water, and you know exactly where it comes from.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that […]

What is After-Repaired Value?

When you’re taking out a hard money loan in Atlanta or any of the surrounding communities, you need to know that the loan can be based on the after-repaired value, or ARV, of a home. But what is ARV, and how does it affect your loan?
What is After-Repaired Value?
A home’s after-repaired value reflects the property’s value after it’s been fixed up—not its value in its current condition.
How is ARV Calculated?
In order to calculate a house’s ARV, a skilled appraiser will figure out its current value (based on its current condition, as-is). Based on a list of repairs the appraiser notes, experts estimate the home’s value if all the sub-standard conditions are repaired. That’s done by finding comparable properties in the same area, just as any appraiser would do if a home didn’t need to be rehabbed.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

Should You Replace Vinyl Siding on an Investment Property?

First things first: If you replace the vinyl siding on your investment property, the national average of return on investment is about 80 percent (give or take a few points).

However, that investment may be a good one—especially if you consider the boost in curb appeal.
Should You Replace Vinyl Siding on an Investment Property?
The job averages less than $11,000 across the nation, which means it’s relatively cost-effective (but that’s also a pretty large chunk of change). New vinyl siding will make the house look brand-new on the outside, but if you’re not making significant improvements to the inside (or if the inside doesn’t already look next-to-new), that may be a wasted effort.
The Deal With Vinyl Siding
Vinyl siding typically lasts about 25 years. Contrast that with house paint; houses need their exteriors repainted every five to seven years, which means buyers are more likely to want a house with low-maintenance vinyl siding.

Long-lasting, low-maintenance convenience is what new buyers want, so new siding may be a worthwhile investment for you to make.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

How to Budget for Your Next Investment Property

 

As a professional real estate investor, you know how easy it is for your ambitions to exceed your budget. Here is a step-by-step strategy to ensure that your next project remains in the red.
Know Your Limits
Before you begin any real estate venture, you have to know how much money you have available to work with. You would be amazed at the number of people who begin searching for loans without figuring out how much they are worth in the first place. Contact a professional financial advisor if you aren’t sure of your overall worth; you’ll need an exact number before you can continue!
Is the Property Sustainable?
You are going to have to sit on the property until you find a buyer. Calculate how many months you can comfortably incur the extra costs before it starts to become a major burden on the rest of your projects, and don’t forget to factor in overlooked expenses such as inspections and even natural disasters (better safe than sorry). For a better idea of how long you can expect to be on the market, research how long it took similar properties in the neighborhood to sell – in general, quicker is better!
Self-Savings
Any contracting job that you can do yourself will obviously save money. However, the more specialized the job, the more likely you are to have trouble. In the long-run, hiring a professional may save you more money than attempting a project yourself, especially since a botched operation will require professional assistance anyway.
Plan the Right Type of Loan
Time is money! There’s nothing worse than having to halt a project because a much-needed bank loan is still pending approval. Hard money lenders can get you the financial assistance you need […]

5 Common Mistakes REIs Make With Signs

Signs are a terrific way to advertise a property you have for sale. At the same time, don’t fall victim to these common mistakes!

Breaking the Law – depending what county you live in, it may be illegal to post signs for your property. In some counties, you can only post them on specific days (for example, on weekends). The last thing you want is to spend all of your time placing your signs, only to be fined and have them removed.
Your sign is too small – simply put, a person cannot read what they cannot see. You should always opt in for the largest signs possible. This will especially make it easier for people to read as they drive by.
Neglecting the phone number – the phone number is the most important part of the sign. Without it, nobody would be able to get ahold of you! Don’t neglect it by placing it in the corner or in too small of a font (your phone number should be as large as the rest of your message, if not bigger).
Bad sign placement –be sure not to put your sign in areas of low traffic or visibility. Ideally, traffic lights and stop signs are a good idea. People will be stationary in these areas and probably looking around.
Too many signs – oversaturation is a problem. It can annoy the drivers for one, and can also make you seem less personable. You can learn a lot more by strategically placing your signs at least a half a mile apart, and pay close attention to where your calls are coming from so that you know where to concentrate your advertising efforts.

The Four Stages of Renovation

When it comes to renovating a property, every real estate investor has his or her own system. However, any house flipping veteran will tell you that some areas of the home require immediate attention while other projects can wait. Here’s a quick 4-stage breakdown that will keep your operations running smoothly at all times so that you can pass inspections.

Stage 1 – this phase is laying the groundwork for future construction.

Have all of your blueprints, permits, and land surveys ready.
Be sure to order a portable dumpster and portable toilet for the construction workers.
Repair the house’s foundation.
Check for mold and pests.
Inspect all of the trees, and remove any showing signs of advanced rot.
Address the septic system problems, if any

Stage 2 – at this stage, you need to get ready for your first wave of inspections.

Fix the windows and window panes.
Make any changes to the roofing, specifically to the gutters, shingles and the soffits.
Replace the siding of the house if needed.
Early stages of electrical work and plumbing.
Prepare the heating, venting, and air conditioning (HVAC).

Sage 3 – this is where you start to turn the house into a home.

Install any exterior additions such as decks, porches, or a garage.
Put in the insulation (and prepare to have it thoroughly inspected).
Install the wall trimming.
Set up a fireplace at this stage, if so desired.

Stage 4 – this is the home stretch. You are almost there!

Finishing touches such as the interior and exterior paint.
Don’t forget to implement your landscaping plans from stage 1.
Cabinets, flooring and countertops go in last so as to avoid unnecessary damage.
The appliances need to be hooked up.
Finish the […]

3 Ways to Sabotage Your Sale

 

Investing in real estate often means purchasing and renovating distressed houses. When it comes to selling the home, it may seem that the hard work is over. While that’s mostly true, making mistakes at this stage can mean not getting the most out of the effort you’ve put in thus far. It can be easy to make these mistakes; and they can cost you.
Overpricing for the Market
Investing in real estate can be a stressful ordeal. Obviously, you want work and money you’ve poured into a property to pay off, and pay off big. However, it can be easy to assign too high a price to a home you’ve spent so much effort to renovate. Be sure to have a current comparative market analysis for the home, and base your list price on the hard numbers within it.
Ignoring Curb Appeal
Rejuvenating a distressed home can take its toll on the property. You may need to address damage to fences, lawns and landscaping as the final step in your renovation before you list the property. Also, pay attention to outdoor features such as the mailbox, house numbers and porch light. They may need to be repaired, repainted or replaced to make the home look its best.
Not Clearing the Air
Be mindful of the smells your remodeling has created. While potential buyers love the look of fresh paint and new carpeting, no one wants a home that smells of chemicals. Air out the home thoroughly after you complete the work, and as often as possible while it’s on the market.
Do You Need a Hard Money Loan in Atlanta to Fund Your Next Investment?
If you’re a real estate investor who’s looking for a hard money loan in Atlanta, we may be […]

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.

Why?

Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take […]