House flippers focusing on flipping luxury homes are a part of a rising market. While non-luxury houses aren't flipping as well, this market, if you can afford it is still doing well. Consider that the National Association of Realtors showed that sales of existing homes declined over ten percent in the last year. Starter homes, which are usually a common project for house flippers, are part of a decreasing market. Sales are just down among starter homes. Some of that is because of the higher interest rates too. Many people who house flippers would normally try to sell a starter
House flipping is all about fixing and reselling a house fast. So, the idea of a complete bathroom remodel is daunting. Should you do it? You may assume that a full bathroom remodel will sell the house faster, but realtors report that it's not usually the case. Assuming the bathroom is functional, what efforts really result in a return on the investment when it comes to bathrooms? Remember, when flipping houses, time is also an important factor! The truth is that relatively inexpensive changes to bathrooms are usually enough to help sell that property and bring a return on your
Are you thinking about flipping houses professionally without existing wealth? The real cash in flipping houses comes from sweat equity. That's while you'll see professional builders, carpenters, and other handy skilled tradesmen in the house flipping business doing well for themselves. These people know enough about home repairs and renovations to create the sweat equity to make flipping houses profitable. Often you will find skilled tradesmen who flip houses during the winter when they are out of work for the season. This helps contribute to an annual income, because the unemployment checks certainly won't cover all their family expenses. Oftentimes,
Flipping houses is an expensive proposition. It's usually reserved for the wealthy or the bod, because there are risks involved. The number one most common mistake investors make while trying to flip a house is running out of money. Keep in mind, even though interest on borrowed money is tax deductible, typical interests rates are rising, so making a profit can be harder than it used to be with traditional funding sources. Though your profits will vary, the average gross profit from house flipping is $65,520 per house. Remember though, that's gross profit, not net profit. Too many times, house flippers
You might have heard the term "wholesale real estate investing," but what is it? Wholesale real estate investing is a type of real estate investment strategy. In this strategy, an investor purchases a property with the intention of selling it for a profit. The investor never plans to use or rent out the property. You may have heard of this form of real estate investment by its more common name: House flipping. House flippers either make money from quick appreciation from a very hot real estate market with rising prices or from fixing up the property (making capital investments) so
Yesterday, we discussed the 70 percent rule as it applies to flipping houses. Check out that previous blog post if you aren't sure what the 70 percent rule is. Today's question is whether you should ever pay more than the 70 percent rule suggests. For example, some beginner investors think that it's OK to exceed the amount specified by the 70 percent rule in an appreciating market. After all, in a few months or by the time you finish your rehab, the After Repair Value should go up, right? Typically, but that's a big risk to take if it doesn't!
If you're a professional house flipper, you might get frustrated by the reality TV shows. We all know that real house flipping is nothing like how it's depicted in the reality TV shows. For example, no handy investor picks from a pool of three fixer-upper homes. A great deal of thought is put into investing. Dozens, sometimes hundreds of houses are considered before choosing a home to flip. Market conditions and local dynamics are taken into consideration. Investors even take into consideration local ordinances, difficulty of permit processes compared to other areas, and the velocity of listed homes. Realistically, investors
As a hard money lender in Atlanta, we’ve discussed home improvement plans with hundreds of people – and one common theme seems to be emerging: people really want low-maintenance homes. That’s something worth remembering if you’re flipping houses in Atlanta. Why Do Today’s Buyers Want Low-Maintenance Homes? “Most young homebuyers grew up watching their parents spend weekends with their honey-do lists, or they had chores to do on the weekends," says Lou Cardillo, a NY real estate professional. "Most young buyers are not going to follow in their parents' footsteps. They don't want to do that stuff… They want their
With TV shows boosting the popularity of house-flipping as a business, people who ordinarily wouldn’t have ventured into real estate investment territory are jumping on the bandwagon. But if you’ve been in the business for a while, you know this isn’t a get-rich-quick scenario. You know that you still need to find the best deals, but the market is getting crowded with investors who aren’t… well, aren’t as invested as you are. So what do you do? Finding Turn-Key Homes in a Seller’s Market Like most real estate investors, you may find that Atlanta flips are hard to come by.
In the past, we’ve mentioned that cheap finishes can kill your sale — but how do you know what buyers really want? The answer is simple: you stay on top of fixture trends and keep an eye on what’s selling in your area. As a hard money lender in Atlanta, our team has seen plenty of trends come and go (remember popcorn ceilings?). With that said, we’re not going to leave you hanging. Check out the hottest kitchen fixture trends for 2017 before you dive into your next project. Kitchen Fixture Trends 2017 Like in 2016, people want to keep