Make Money Flipping Real Estate – Two Ways

flippingOf course you can make money flipping real estate in more than two ways. But when it comes to actually repairing and improving a house, there are two different approaches that are very different. You can do do as much of the work yourself as possible. That’s one approach. The other? Manage the project while others do all the actual repairs and other work.

Some investors will say that your time should be spent finding and managing properties, not painting or hammering nails. Otherwise you’ve bought yourself a job, they will tell you, rather than an investment. Although I tend to agree with that idea, nothing is that simple and definite. You can make money flipping real estate either way, and there are reasons for both approaches. Continue reading Make Money Flipping Real Estate – Two Ways

How To Buy Apartment Buildings

apt buildingWhy buy apartment buildings? Well, you should get more cash flow than with rental houses. Of course, big projects do take more time and research and cash, but then they pay you for year after year.

It is easier to start investing in single family homes than apartment buildings. If you have done so, however, you have noticed how difficult it is getting to get positive cash flow from houses. Even if you do squeeze a little out of each, it can take a lot of them to have a decent income.

Like in a Monopoly game, at some point you may want to trade in your little green houses for a big red apartment building. One apartment building may provide as much cash flow as twenty little houses. And once you have management in place it may be a lot less work. Continue reading How To Buy Apartment Buildings

When Will the Housing Market Finally Hit the Bottom?

The housing market is just getting worse. Home resales tumbled 8% in September to the lowest levels in this decade, prompting the obvious question: When will it all end?

The honest answer is no one knows. Optimists have been saying for more than a year that the worst is behind us, while the pessimists have been saying recovery is still a year, or years, away.

So far, the pessimists have been right about the weakness in the housing market, but their forecast that the collapse in housing would lead to a general economic malaise has, at least so far, failed to pan out. The economy has slowed, but has not fallen into recession, as consumers and investors adjust to a world in which home prices don’t automatically rise 5% or 10% a year. Continue reading When Will the Housing Market Finally Hit the Bottom?

Housing Slump May Persist For at Least Another Year

This article posted on the Real Estate Journal today talked about how the real estate slump could continue for a while.

The Mortgage Bankers Association predicts the housing recession will last until the end of the third quarter next year. And if confidence isn’t restored in the credit markets, the wait could extend until 2009, the group’s chief economist said.

In the meantime, the slowdown in housing has become a primary cause in the slowing of the national economy, said Doug Duncan, chief economist of the group.

“Tough times,” he said, after sharing the group’s loan production estimates during a briefing with reporters on Tuesday. Tough times indeed.

On Wednesday morning, Duncan is scheduled to deliver the MBA’s economic forecast to its members at the group’s annual convention. The forecast calls for home sales to bottom out in the third quarter of next year and for housing starts to hit their bottom slightly earlier, in the second quarter.

Existing-home sales for 2007 will total 5.72 million units, a 12% decline over 2006 sales, he said. Sales will decline another 10% in 2008, before picking up by 5% in 2009. Continue reading Housing Slump May Persist For at Least Another Year

Bay Area Foreclosures Hits New High

bay area foreclosuresThe front page of Sunday’s San Francisco Chronicle brought more bad news on foreclosures. The article titled “Neighborhoods Crumble in Wave of Foreclosures” talked about how Antioch has 23 foreclosures for every 1,000 homes and specifically how Catanzaro Way has had more than 30 percent of their homes foreclosed upon.

The foreclosure rate in Antioch is seven times that of the region as a whole and nearly 1,000 percent higher than it was a year ago. They now have twice the bank repossession rate of greater Stockton, an area often cited as the No. 1 foreclosure spot in California. Continue reading Bay Area Foreclosures Hits New High

Buy Real Estate With No Money Down

no money downAnyone can buy real estate with no money down. All you have to do is offer a high enough price and make sure the seller gets some cash at closing (but not yours). Do that and someone will say yes to your offer. The problem, of course, is that just getting real estate without spending your own cash isn’t all you want. You also want a deal that makes sense.

This tends to be glossed over by many who promote zero-down ways to buy real estate. If you are buying a home for yourself, so what if you get in with nothing down. You also want to be sure that it makes more sense than the alternatives (renting, waiting, lease-option, etc.). If you are investing in real estate, you want a property that will have cash flow or can be sold for a profit. With those criteria in mind, here are a few ways to do it without your own money. Continue reading Buy Real Estate With No Money Down

How to Find Foreclosures – Where Do I Start?

House ForeclosuresMany homeowners who gorged on debt during the real estate boom a few years ago are now starting to feel the squeeze. They’re struggling to keep up with their ballooning payments or, worse, losing their homes to creditors.

As the number of foreclosed properties continue to rise, new opportunities await for others. These are fast becoming ideal market conditions for a niche group of real estate investors called foreclosure gurus. They can deliver homeowners fast cash in return for their property which is inevitably sold at a nice discount. These type of foreclosure gurus used to post ads in the newspaper or staple ads to telephone poles but now there are several websites that make finding forclosures much easier.

Here are some beginner tips for those of you wondering where to start in the foreclosure market: Continue reading How to Find Foreclosures – Where Do I Start?

The #1 Factor Great Real Estate Deals Are Built On – Motivation

Money Bag HouseBeing a real estate investor, I’m always on the lookout for a good deal. That’s probably no surprise but if you ask 99% of all real estate investors I bet you the #1 important factor in real estate to them is location location location. Although this may be true for finding a property you want to live in, it’s not always true in finding a seller who has strong motivation to sell. This is really the first key ingredient in finding a good deal to invest in. Continue reading The #1 Factor Great Real Estate Deals Are Built On – Motivation

5 Things You Should Know Before You Flip A Property

1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5% for extra expenses, and see what type of profit margin you will be left with.

Example: If you buy a house for $120,000 and the houses in the area sell for $155,000, and the house needs $15,000 to fix it up. You are now at $135,000. Carrying cost for six months on the home is $6,000. Now, at $141,000, and the fees and closing cost my extra 5% $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at the home, not the sell. Continue reading 5 Things You Should Know Before You Flip A Property

Property Sales Weak in August – San Jose, CA

Not Sold HouseI used to own a house in Santa Teresa which is a neighborhood in San Jose, CA. Ever since I sold my house in 2005 I’ve been watching the market to see if I made the right choice. When I did sell it, I received twelve offers all of which were over asking price. Now looking at some of the current economic real estate data, I’m very glad I sold when I did.

Sales of single-family, re-sale homes fell 10% from July and were off 39% year-over-year. Year-to-date, home sales are off 23.6% in San Jose,CA and are at their lowest level for the past ten years. The median price for homes fell 0.5% from the month before, but is up 6.1% compared to last August. The average price fell 3.2%, up 2.8% year-over-year. Continue reading Property Sales Weak in August – San Jose, CA