Hard Money

3 Things to Look for in a Good House Flip

If you’re going to flip houses for a living, you need the right hard money lender – but after that, you need to find the right properties. Here are three things to look for in a good flip.
3 Things to Look for in a Good House Flip
#1: Location, Location, Location
The key is to find a house in a desirable neighborhood. That’s where you’ll make the best profits (obviously). This can be tough in a slow-moving real estate market, but that’s when it can pay off the most, too. Research cities and neighborhoods within those cities to look for rising sales, job growth and other indicators that an area is doing well.
#2: Condition
You want a home that needs a little TLC but not a major overhaul. Make sure the homes you’re looking at are in fairly sound condition – the last thing you want is a money pit. The house should be structurally sound and have working systems (electrical, gas, plumbing and other systems, for the most part).
#3: A Decent Kitchen
Kitchens and bathrooms sell houses – any Realtor® can tell you that. You want a house that has a good layout and won’t require a major overhaul (especially if you’re just starting in this business).
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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 […]

  • 3 Tips for Finding Great Contractors in Real Estate Investing
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    3 Tips for Finding Great Contractors in Real Estate Investing

3 Tips for Finding Great Contractors in Real Estate Investing

Flipping houses and investing in real estate requires you to work with a great team – and that includes reliable, trustworthy and effective contractors.

But how do you find the best contractors?
3 Tips for Finding Great Contractors in Real Estate Investing
#1: Ask for References
Ask family, friends, your hard money lender and anyone else you can think of for referrals and references. Chances are pretty good that you know someone who’s worked with a contractor before, so use their experience to find one that’s going to work out well for you.
#2: Interview Three (or More)
Ask plenty of questions when you’re interviewing contractors, and make it a point to talk to at least three. (More is better, even if it is time-consuming. You’ll save yourself plenty of time down the road if you find a good one now.)
#3: Find Out What the Contractor Will Do and What Subcontractors Will Do
When you settle on a contractor or two, find out which work they’ll do themselves and which work they’ll subcontract out. You can ask for an employee list to make sure that your contractor will have vetted people working on your projects.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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.

 

Trim and Paint Make a HUGE Difference

If you add two simple lines of trim – one as a chair rail and one as crown molding – you could be adding a huge amount of value to your investment property.

But how do you do it the right way?
Trim and Paint: An Affordable Value-Add
Pro Tip: Make a big impact on the house’s appearance by painting trim before you install it.
The Chair Rail
First, pick out a trim that measures between 60 and 70 percent of the width of the baseboard. Use a stool and apron (it’ll look like a windowsill) if possible, but if not, use the same trim that’s already on the windowsills.

Center your chair rail at about a third of the wall’s height.
The Crown Molding
Pick crown molding that’s about 30 to 40 percent of the baseboard’s width for maximum effect.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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.

3 Simple Ways to Boost a House’s Resale Value

When you’re selling a flip, there are three simple things you can do to make sure it’s as valuable as possible.
3 Simple Ways to Boost a House’s Resale Value
Bathroom Boost
Install granite countertops and add a new faucet and mirror.

Total cost: Under $500 when you buy supplies at a home improvement store and perform the work yourself.

Time investment: 2 to 3 days
Brighten the Living Room
Use halogen track lighting with movable lamps to create a classy, simple solution.

Total cost: About $150 for a basic track lighting kit.

Time investment: 2 to 3 hours if you already have a junction box installed (longer if you don’t).
Make the Kitchen More Convenient
Add rollouts to kitchen cabinets – especially the ones on the floor – to make the kitchen more accessible and easier to use.

Total cost: About $50 per rollout.

Time investment: 15 minutes per rollout.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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.

4 Quick Tips to Make Your House Easier to Sell    

Before you put your home on the market, check out these simple ways to maximize your chances of closing a deal.

Hear the Real Deal from Your Realtor

Ask your realtor to suggest needed improvements for your home; many will do it as a courtesy. You can also get design inspiration from home design TV shows, magazines, websites, and books. Simple changes to things like furniture placement and paint color can make a dramatic improvement in the look of your home.

Cut Down on Energy Costs

Some local utility companies will perform free energy audits for customers to show how to maximize energy efficiency. An energy-efficient home not only saves you money now, but becomes an even more valuable and marketable asset when you decide to sell.

Popcorn Ceilings Aren’t in Good Taste

Popcorn ceilings are an antiquated look that dates your home. Getting rid of this old style can be a relatively simple DIY project that can add value to your residence. With a solution to soften the ceiling texture, which you can get from your local hardware store, scrape away the popcorn texture. This change may not seem like much, but it can eliminate a potential stumbling block for buyers.

Choose a Low-maintenance Landscape

Select plants that are native to your region or are drought-tolerant. These plants can require less water and maintenance, allowing you to save more money and ultimately pass those savings on to a potential buyer. Along the same lines, make sure that your yard is well-maintained. Weed-filled landscapes and overgrown beds can make buyers question the condition of your home.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type […]

Closet Organization for Under $100

You can improve a closet’s look (and a house’s desirability) by installing a simple, neat closet organization system for under $100.

Here’s how.
Closet Organization for Under $100
All you need is a drill, a level, a hacksaw and a handful of basic tools.

Start by measuring the closet’s dimensions and, to keep things really simple, get a full organization kit from a home improvement store that matches the space you have. (Kits usually run between $50 and $100.)

You don’t have to take that route, though – you can purchase individual shelves for much less after mapping out the closet on paper. Plan the system by using masking tape directly on the walls before you start drilling and nailing, though – a mistake can cost you more time than it’s worth.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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.

What Are Holding Costs?

If you’re about to become a real estate investor and you’re thinking about taking out a hard money loan to buy a property, you need to first account for all possible expenses – because flipping houses isn’t free. If you don’t plan properly, you could end up wasting money you don’t need to waste.

And that means you need to consider holding costs.

What Are Holding Costs?

The term holding costs refers to the amount of money it’s going to cost you to hang on to a property that hasn’t sold yet.

Holding costs include:

Property taxes
Insurance
Utilities
Maintenance (lawn and HOA dues)

You’ll have to be as mindful of these costs as you will of closing and financing costs, because unlike those two types of costs, these keep building up each month. For every month your property doesn’t sell, you’re forking over more and more cash.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding in Tennessee, Georgia or Florida. 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 Estimate the Cost of Repairs

If you’re thinking about rehabbing properties for a living, you need to know how to accurately estimate repair costs – otherwise, you could end up spending a bunch of money and not getting it back at the closing table. This is particularly important if you’re getting a hard money loan to buy a property.
How to Estimate the Cost of Repairs
You’ll want to estimate the possible cost of repairs on a house before you actually make an offer to protect yourself from a bad deal.

Some investors have a $20 per square foot” rule that says most – but not all – houses will cost the new owner (you) about $20 per square foot to bring them up to a profitable value. That includes:

All-new flooring
Fresh paint
New baseboards
New electrical fixtures
New kitchen and bathrooms (cabinets, countertops and appliances)
New window treatments
New doors
Landscaping

That doesn’t work in every situation, though, so it’s important that you’re especially careful estimating repair costs until you’re extremely experienced. Make sure you go through the property, room by room, to estimate repair costs manually instead of relying on a $20 per square foot formula.
Are You Looking for a Hard Money Loan to Buy a Property?
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 Determine ARV

When you borrow money from a hard money lender, your lender will come out and look at the property to determine its after-repair value, or ARV.

But you shouldn’t even go that far unless you’ve evaluated the property’s ARV yourself – otherwise, you could be about to sink your money into a losing deal.
How to Determine ARV
Your preliminary research on a house should include looking at other, similar houses that are in better condition and determining what they’re selling for.

These are called comparables (comps for short). They’re recently sold and for-sale properties similar to the subject property, and you’ll use them to determine what the property you want is going to sell for once it’s all fixed up.

You can use major websites like Zillow, Trulia or Redfin, but you’ll get better data from the Multiple Listing Service, or MLS.

The catch: You’ll need to work with a real estate agent or be an agent yourself. (That’s fine, too, because you need a talented agent on your team if you want to be successful in this business.)

Your first goal is to look for other rehabbed properties, houses that have been recently sold as short sales or bank-owned properties (provided that they’ve been renovated or are in good condition).

Look only at homes that have sold within the past 3 to 6 months, and that are within no more than three-quarters of a mile from the property you’re interested in rehabbing. Make sure they’re close in size, number of bedrooms and bathrooms, age, and square footage, and that they’re in a similar neighborhood, too.

It’s also a good idea to check local tax records to see what other investors are paying for properties in the area.

Once you know what the […]

Should You Work With Subcontractors?

If you’re going to fix and flip houses for a living – whether you’ve done one or two or you’re just thinking about getting started, there are plenty of ways to make the process more profitable (and easier, too).

One of them is to avoid working with subcontractors and work only with general contractors.

While this won’t work in every situation, and it may not be the right choice for you, there’s certainly a case for working only with general contractors.
Why Should You Work Only With General Contractors?
When you put more variables into a math equation, it becomes more complex and harder to solve. The same is true in flipping houses.

You could hire one general contractor who will handle everything with his or her own subcontractors – electrical, plumbing, HVAC and everything else. If that general contractor is managing everything for you, your life becomes infinitely simpler – and while it may cost you a little more money for the convenience of having someone dot all the is and cross all the ts, you might find that it’s well worth it.
Are You Looking for a Hard Money Loan to Buy a Property?
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.

 

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