"Serious sport has nothing to do with fair play. It is bound up with hatred, jealousy, boastfulness, disregard of all rules and sadistic pleasure in witnessing violence. In other words, it is war minus the shooting."George Orwell
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3 Alternatives For Investing For Your Childs Higher Education Costs
With higher education tuition increasing at double digit year over year percentages an effective saving plan for your kid's education is becoming much more important than it has been before. Most families will discover that their future higher education ...
Beat the Crowd when Investing in Real Estate
Copyright 2005 Peter Dobler We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn't produce desirable returns the more people are ...
The World Is Your Playground: A Guide To International Investing
Over the last few years, while US markets were recovering from the bursting of the dot-com bubble, the economies of India and China were booming. Compared to the Dow Jones Industrial Average's dismal loss of 0.6% in 2005, India's BSE index gained 42.3%, ...
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I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more. The bathrooms are completely redone with new tile, tubs, showers, sinks and more. The living rooms and other areas usually have walls taken out to open up the floor plan and usually carpet is replaced with some type of hardwood flooring. It's realistic to do what they show in a high dollar housing market like California to make the huge profits they usually get on that show. In a lower priced market like Memphis, TN rehabbers are looking to make $20-30,000 per house minimum. In California and on that show they are looking for $50,000-150,000 per house. That's because homes are so much more expensive in California where the show is produced. In a market like Memphis many of the same upgrades are done but maybe skipping the granite countertops and some other high end upgrades. In any market you are going to repaint and redo the floors. The areas to spend the most money to upgrade are the kitchen and the bathrooms. A great value add that sometimes adds tremendously to the value of the home is if you can add a 2nd bathroom to a home with only one bathroom. While this will probably cost in the $10,000 range to do, it could increase the value of the home by $20,000-40,000 and significantly add to your profit potential.
To do deals like this you need to go through several steps. First of all you have to get set up with a hard money lender as you cannot get a normal mortgage on a house in disrepair. You need to see what homes are listed for in your area and figure that when you fix it up you want it to be nicer and cheaper than all other equivalent homes on the market for that neighborhood. Working backwards from the price you could sell at to undercut the market, take out the repair costs and pad it by at least 50% for unforeseen costs(always there) and then subtract your expected profit and holding costs(interest), realtor fees(if you use), advertising and more. If you can still make at least $20k it should be worth doing.
Managing your contractors is a very important part of this whole process. Ask other investors who they know and trust to come in and do your work. Require the work to be done on time and put penalties in the contract for late completion. Don't pay for the work up front, but agree to pay them a part like 25% as each 25% of the work is completed.
One thing important to understand about these types of deals is that they aren't super quick money. Typically the work will take a couple of months and then it will usually take a month or two to find a buyer. Hard money lenders typically loan money for 6 months as this time frame usually is sufficient to sell the fixed up home.
Homes like these may be homes the sellers can't afford to fix up or simply don't want to fix. In real estate listings these may say things like handyman special. Foreclosure homes and bank real estate owned(REO) listings are generally good candidates. Mailing to out of state landlords can produce some homes that are good as rental homes typically need updating as they aren't set up to sell retail.
About the author:
David Neese is a real estate investing author who offers a free course for real estate investors delivered by email, audio and teleseminar which you can get for free at: http://www.FreeRealEstateInvestingCourses.com You can find more information about David at http://www.DigitalSuccessCoach.com
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Invest in India? Patience will pay offCNNMoneyBy Ali Velshi @Money May 25, 2012: 5:09 AM ET The challenges and investing opportunities presented by India -- a country of 1.2 billion people -- are vast indeed. (MONEY Magazine) -- My great-grandfather left his little village in India more than a ...and more » |
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COLUMN-College investing the low-risk wayReutersSo I've been employing an investment strategy to try to make up the difference so that tuition doesn't sink my kids into a loathsome amount of debt. The basis of our plan is that we invest our college funds in an age-adjusted 529 college savings plan ... |
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