DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

Flipping a property can be a lot of work, but if you pay enough attention
to the right details, it can be a great money-making endeavor. There are
five basic things you should know before actually flipping a property that
will help you bring in more revenue.

1. You will make your money at the purchase, not the sale. If you buy a
house with the intentions of making a large profit when selling, you will
most likely be very disappointed in the end. Often times, money is not made
after all the renovations have been completed because the price at which
the home was purchased was too high. When buying the property, make sure
you do so with enough money to make renovations and have carrying costs.
You will then need to add on  extra money you’ll need along the way. Make
sure to have several thousands of dollars to work with here because as you
already know, things rarely go exactly as planned. That way you won’t be
stuck trying to make enough money to actually pay for the renovations that
are to come.

2. Be sure to have a complete inspection done on the property. While this
will cost you a few hundred dollars, it will save you thousands on those
problems that aren’t visible to you. This includes: foundation problems,
pests, rotted wood, and numerous other things that will be quite costly to
repair once you are the proud owner. Allow seven days for the inspection to
take place. This should be specified in the contract. That way if the
repairs are going to cost more than you are willing or able to spend, you
can get out of the contract without paying a penalty.

3. Don’t make all the renovations yourself. Instead, hire contractors to do
it for you. This will ensure the job is completed more quickly; after all,
you need to flip the house as soon as possible so it can go back on the
market and you can make a sale.

4. When placing the property up for sale, do so at 1 to 2 percent below
market value. Since the objective of flipping a property is to buy and sell
quickly so you can move onto the next home, you want to do everything in
your power to shorten the time span between buying and selling. If you try
to sell at top dollar, you will most likely wind up with a home that stays
on the market for a long period of time, in which case, you won’t be making
money. Instead, beat the competition by flipping quickly. If you  flip several properties in a shorter amount of time, you will begin seeing a
profit.

5. Use a real estate agent. This will work better than trying to sell the
property yourself. When you utilize the services of an agent, you are
gaining not only the knowledge and power of someone who knows how to really
sell real estate, but you are also gaining the power of the MLS system. An
agent will actively market your house which will increase your chances of
making a sale more quickly. This will also free up more of your time so you
can go out and search for more properties to flip.

Use these five tips and begin making money flipping homes today. Remember,
as with any other process, be patient and go after what you want. This, in
the end, is how you’ll see a profit.

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Many homes are considered to be fixer uppers, and these homes often need a great deal of work before they can truly be considered livable. Other homes are good, but their owners do not consider them great until some work is done to make them more like how the owners want them. Homes are sometimes returned to the way they were in earlier years, either to make them a museum or just to keep their architectural beauty.

When you are planning to do work on your home it is important to know what the words renovate, remodel, and restore mean. You could find yourself to be incredibly disappointed if, for example, you think renovate means one thing but it actually means something else. You could end up with the wrong home project being done and out several hundred or even thousands of dollars.

When you renovate a building, you are working to make it into a new space. For example, if your bathroom is old and outdated and you install a new sink, fixtures, and counter to bring a modern look into the room, that is a renovation. There are many types of renovation projects. You could be updating a bedroom, living room or kitchen. You can also update other areas of a home or business, such as the windows and doors.

Remodeling is where you take one room of your home and you turn it into something completely different. You are actually changing the character of the house when you remodel. An example would be turning a bedroom into a game room. You may not want to simply paint the room and add some different furniture. Instead, you may want to put in custom shelving for video game systems, a sound system, and seating that can fold or be converted. Some people even add in a bar. This is a remodeling project, one of the most popular types of home construction projects.

When you restore a home you are returning it to the way it once was. An example would be to buy a plantation style home. If you restore the home, you return it to the way it looked when it was a working plantation home. You can restore the original wood used in the home for example. If you have remodeled a home and return a room to what it was before the remodeling, this is also considered to be restoration.

You can update your business just like you update your home. Remodel a room to make it more comfortable for customers or renovate an area to make it more modern and impress those customers. In some cases, depending on your location, it may be a good idea to restore an older building and create a historical look for your business. Knowing the difference between the three types of projects can save you a lot of headaches.

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When you buy a home, you will incur many different expenses. Among them will be insurance. Homeowner’s insurance exists because of the size of your investment and the money you could lose if it wasn’t insured. It’s all about protecting the value of your home, which is important since it’s one of the largest investments you’ll probably ever make.

Homeowner’s insurance is a contract between you the home owner and an insurance company. As long as you pay your premiums and meet all other policy requirements, the company will reimburse you for any losses that occur from natural disasters or other damages.

Upon acquiring homeowner’s insurance, it will be essential to understand the coverage you are receiving and what that means for you. A basic home owner’s insurance policy will protect you against property damage resulting from natural disasters such as: fire, wind, lightening, or hail storms. Should you be forced to leave your home because of such damage, your food and hotel costs will be covered until the necessary repairs are made.

It is important to note that a typical policy does not cover damage caused by an earthquake or flood. Because these natural disasters are usually typical to certain areas or regions, policies for each may be purchased separately. If you live in a flood zone or near a fault line, your mortgage company may require you to carry these types of coverage.

A basic policy will also provide protection should you experience loss from theft or vandalism. Here, as with natural disasters, you will be reimbursed for any damaged or missing personal items.

Your basic policy will also provide for something you may not always associate with home protection, and that is liability. This coverage is specifically designed for any lawsuits that may brought against you, the property owner, by persons who were injured while on your property. This typically includes the cost of your legal defense up to the limit the policy allows. Most policies also include a provision covering basic medical expenses for all parties.

Most mortgage companies require home buyers to purchase homeowner’s insurance. Since the investment is almost as big for the mortgage company as it is for you, both parties need to be protected. The mortgage company has a personal interest in your protection. Should you ever be unable to keep up with your house payments, the lender will be able to reclaim ownership and subsequently resell the property relatively easily.

Whether you will owe money on your home for many years or will buy it outright, homeowner’s insurance will provide protection you’ll need in the face of the unexpected. This will ensure your home retains its value for many years to come and will prove very beneficial should you ever decide to sell.

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