If you are getting ready to get into the fix and flip market, and are looking to make some serious money from your upcoming flip—then you need to take some extra steps to make certain your flip really stands out. If you are anything like us, then when you are planning on financing and selling a flip, there is nothing as fun as binge watching some HGTV to help you feel more inspired.

HGTV can be great, and a lot of fun to watch. However, sometimes HGTV sets some very unrealistic expectations for those who are interested in actually flipping a property to make money. There are many precautions you should take when turning to HGTV for advice—but there are also some great pieces of inspiration that you can take from HGTV.

Here are a few updates that you can actually take from HGTV, and inspiration from Love It or List It and other shows that will help your flip really stand out.

• Don’t underestimate a fresh coat of paint. If there is one thing that the teams on these HGTV shows always do, it is painting. A fresh coat of paint on the interior and exterior of the home can make a major difference in the way that property looks. Choose neutral colors and don’t underestimate hiring a professional in order to get a professional finish.
• Don’t forget windows and doors. Windows and doors are expensive to replace—there is no denying. But this is another one of those things that you will see the professional flippers always pay attention to. You won’t see a professional home renovator skip replacing windows and doors—so you shouldn’t either. It’s going to be worth the investment anyway and it is a great fact to include on your listing details.
• Refinishing hardwood floors. If you are restoring an old home (as many flippers do) then don’t get too replacement happy. You can restore old hardwood floors for a fraction of replacing them and many times buyers love historic restored floors even more than new tiles or laminate.
• Don’t forget about lighting. Light fixtures are like adding accessories to a great outfit, they can take a home up to the next level and really make it shine. You don’t have to spend thousands on expensive light fixtures, but putting a few statement making fixtures throughout the home can really help it stand out from other flips.
• Faucets can be fun. A new trend you are going to see right now in fix and flip properties is statement making faucets. Instead of buying a builder’s-grade faucet from Home Depot for $20, spend a little more and get a quality, statement-making faucet for say $70 to give the home a higher-end look. The extra $50 won’t break the bank, but it will help your home stand out.

So, next time you are binge-watching Flip or Flop or Fixer Upper, pay attention to the aforementioned tips if you really want to make your flip stand out so that it can sell quickly and help you earn a profit.

When it comes to investing in real estate, one of the first and biggest questions that people tend to have is how they are going to finance this endeavor. However, after the dollars and cents get all worked out, it is time to figure out where they are going to be putting that money.

There is some dispute among real estate investors on whether or not they should invest in real estate in smaller towns or in big cities. So, what is the right answer? Well, it may be more complicated than you think.

We are going to take a look at the difference between buying in big cities or small towns, so you can make the most of your real estate investment.

There are many people who think about investing in real estate in bigger cities, and ultimately this is usually the best answer, and for a simple reason. There is more opportunity for growth in larger markets. You want to invest in a property that has a high growth potential. You can’t invest a small amount and fix and flip a property for big gains in an area that doesn’t have a big growth potential.

However, that doesn’t mean that there aren’t smaller towns that have big growth potential. Smaller towns that are located in close proximity to large cities or those that have seen bigger businesses open locations within this community. Many times, large companies will open warehouses or factories in small towns—and if you can get in before these bigger businesses make their way to small towns, you can end up making a smart investment that will really pay off.

Another thing to keep in mind is that while big-city growth can be great for real estate investing—investing in big cities with big growth potential also means big competition. You are going to have to compete for affordable properties in up-and-coming neighborhoods, you may have to out-bid other investors and work to get the property, and you are likely going to pay more for contractors work as well.

So, while in most situations, you are better off investing in big cities, there are caveats to both big city and small-town investing. You need to be able to run the numbers, be patient and find the right property in the right location for you.

Now that you have a little more insight on the difference between investing in properties in big cities or small towns—you have the information that you need in order to make the best investment possible for you and your future.

There are many great reasons to turn to hard money loans, particularly when you need to fund a real estate venture, fix-and-flip or other short-term investment opportunity. However, while many people have great reason to start with hard money loans, this is also a popular place to turn when you cannot get funding from the bank.

Hard money loans are a great option for a number of different types of investors—and as most investors know, most banks’ lending practices have become stricter in recent years. This is particularly true for investment properties. Timing, income, sell potential and credit score can all cause a bank to turn someone down for a loan.

However, when banks say “no” you can still come to a hard money lender in order to get the money that you need. Many times, they are willing to say “yes” even when a bank says “no.” This is not the only perk of a private lender and of hard money loans. It is also a great option for those who need their funds quickly. While a bank may typically take around 90 days in order to get the lendee their funds—private funders and hard money loans can come within a couple of weeks, or less.

However, it doesn’t mean that everyone always gets approved for the hard money loan requests that they make. This is why there are a few different pitfalls that you will want to try to avoid when you turn to hard money loans after the bank.

• You don’t have any of your own money in the investment. If you don’t have any skin in the game—your hard money lender may be apprehensive about approving your loan. A loan that covers 100% of the property purchase can be a hard sell. Your lender will want to know that you are also putting some of your own money into the investment.
• You don’t have enough cash on hand. While you don’t need as much money up front with a hard-money lender, you do need to prove that you have the cash to make the monthly payments as you pay back the loan.
• You don’t have an exit strategy. Hand money loans are typically short-term and include a large payment at the end of the term, such as when you sell the investment property. While you are obviously going to have a detailed plan that you are intending on following—you should also explain a back-up plan or exit strategy to repay the loan. This can be refinancing, pulling money from a different source or selling the property.

Keeping these common pitfalls in mind can be very helpful when you go to get a hard money loan. Remember, it is a different process than going through the bank, but ultimately it may be the best and easiest way for you to get all the funding that you need.

If you are investing in a fix and flip property and are looking to make the most of your investment—then you need to do more than just make random home improvement projects. You need to make the right home improvement projects.

So, how do you know which ones to do, and which ones to pass on? Here are a few home improvements that pay off… and a few that don’t.  Use this guide to help you determine which home improvements you should consider and which ones you should pass on.

Invest In: Replacing the Front Door

First impressions are important and a new front door can make a major first impression. Replacing that old, dated, squeaky front door won’t just keep drafts out of your new fix and flip, but will give the exterior of the home a fresh, updated look.

Don’t Invest In: Expensive Landscaping

Adding a little curb appeal can really go a long way in helping your property make a good first impression. However, don’t over do it—particularly when it comes to landscaping. A few flowers and planting grass is great, but expensive landscaping isn’t going to help you recoup your investment. Simply put, most home buyers aren’t going to pay thousands more for a house just because it has a lot of expensive plants out front.

Invest In: Kitchens

The kitchen is the center of the home—and you need to be willing to put money into making the center of the home really shine. Invest in updating the kitchen, but remember that you need to keep the value of the home in mind. Don’t put $100,000 into a kitchen for a house that is only going to sell for $300,000.

Don’t Invest In: Swimming Pools

There is this major misconception that swimming pools add value to homes. This isn’t always the case. Don’t spend money on putting in a swimming pool—you can highlight yards that would be great for a swimming pool, but putting the money in yourself isn’t going to help you get your investment back.

Invest In: New Windows

It is a big investment, but upgrading your windows is a great payback—just like the front door. It can add curb appeal, improve your home and its insulation, save utility costs, is a great selling point—and it can make your home look better too!

Don’t Invest In: Room Additions

Room additions can be a huge undertaking, and in most situations it isn’t worth it. This is especially true if you are planning on adding a family room or other living space, then it’s going to be really hard to recoup your investment. The cost is high—and you’re going to have to deal with permits and major construction. Most lower cost improvements have better payback than major renovations.

Keep these home improvements in mind when you invest in your next fix and flip property. Remember, the key is to make sure that you keep your costs low and that you make renovations that will appeal to a multitude of different buyers. Keeping this in mind will only help you on your journey to making the most from your fix and flip.

If you have a senior loved one in your life who has lived in the same home for quite some time—you may want to consider a few senior-friendly home improvements for their home. As we age, we may still love our homes, but it doesn’t mean that our homes continue to work for us as we grow older.

The good news is, there are several quick and easy home improvements that can be done to a home that will help make it safer and better for seniors. If you are looking for some inspiration, here are a few home improvements that every senior should consider when they are looking to make the most of their home.

• New Door Knobs- Turning a door knob may not seem like a big task to the average adult, but for a senior with arthritis it can be a major task and one that can come with a lot of pain. This can be quite a chore if you have traditional round door knobs. Simply replace these knobs with lever style door knobs in order to make life easier.
• New Flooring- Slip and falls are very common among seniors, especially those who use walkers and other aids. Low-pile carpeting is a great option for seniors who use walkers as it won’t catch on deep pile but is still soft and plush should a senior fall. Vinyl planks are another popular option for seniors as they are durable, not too slick and walker-friendly.
• New Support Railings- Support railings should be installed in all of the bathrooms. Railings along the toilet and near the shower can help prevent falls in the bathroom—where they tend to happen most. It is important to install a railing that is specifically meant to support the full weight of an adult, otherwise it will come undone and detach from the wall.
• Stair Railings, Guides and Lights- Stairs are very common in the home, but they can also be quite dangerous. Not every senior needs to add an electric chair on their stairs—but there are ways to make stairs safer and less of a fall hazard. Nonslip stair mats on every stair can help, and new railings along both sides are important. Make sure to check existing railings to make certain they are installed properly. You may also want to consider adding motion-sensor lights to the staircase for seniors who tend to wander to the kitchen in the middle of the night.

The good news is, there are many contractors out there that specifically work with seniors and are dedicated to helping older adults make smart additions and changes to their homes. There are even certain cities that offer grants for older adults who make certain safety repairs to their homes as well—for those that qualify. Keep this list of ideas in mind, or start creating your own list of safety improvements for your senior-friendly home.

So, you need some money for a quick fix and flip? Many people looking to break into this business do and often struggle to determine what place is the right place to secure the financing that they need. The good news is, hard money lenders can help.

However, there are some people who have trepidation’s regarding hard money lenders. Perhaps they have heard a horror story in the past, perhaps it is the name “hard money” or perhaps it is the fact that they just don’t really understand what a hard money lender is.

The good news is, hard money lenders aren’t as scary as you think. In fact, they, in general, tend to make getting loans quite easy. Here’s what you need to know about hard money lenders and what they offer.

Why You Should Turn to Hard Money Lenders

Hard money lenders are private investors that are dedicated to helping people get short-term loans secured by real estate. These lenders specialize in short-term real estate investment opportunities such as fix and flips.

They typically give out loans for about 12 months, but they may lend longer, and they will ask you to provide monthly payments of interest or interest and some principal and at the end of the loan (when you sell your fix and flip) you will make a balloon payment for the remainder of the loan.

These lenders are going to work with you one-on-one and base their decisions on the deal they are presented with. They aren’t going to comb through your financial records. Instead, they are going to look at the potential for your fix and flip to earn money and base their loan terms on that.

What are the Pros of Hard Money Loans?

There are many pros of the hard money loans you can get from these lenders, this includes:

• Speed of Approval—you can typically get these loans secured very quickly compared to other mortgages, typically because the lender is mostly focused on collateral not all of the other financial documents that mortgage companies need from you.
• Flexibility—one of the biggest benefits of working with hard money lenders is that they can be more flexible than traditional loan officers. These lenders will evaluate each deal individually and are often more flexible with individuals than large companies are.
• More Approval Rates-with hard money loans, you can avoid issues with getting your loan approved. Credit issues, or bankruptcies aren’t going to prevent you from getting a loan approved in the way they would with other mortgages—hard money lenders are more focused on the deal.

So, if you have been apprehensive about hard money lenders in the past—now you know about just how helpful they can be when you need cash for your upcoming fix and flip. Keep this information in mind before you find the right financing for your investment property, as a hard money lender may be just the ticket to you getting the money you need to make your fix and flip dreams a reality.

There are so many ways to make money in real estate, especially if you are able to buy a house at a great price, make some valuable improvements and then sell that house for the right number. However, there is even more to do if you really want to make top dollar in real estate—and as every pro knows, it is all about the little extra things that you do to make that extra money and to really separate yourself from the crowd.

This is why we have curated a list of some practical, hard and fast tips to keep in mind so you can make sure you’re really earning your max potential.

1. Make sure you are investing in neighborhoods with future growth potential. You can also look to “next-wave” cities based on economic growth. You can access this information through your local government office.
2. Consider strategies to lessen your capital gains taxes on flips. If you live in the property for two of the five years before you sell—you can exclude a lot of your property gain. Make sure to read up on the rules, but being creative in this way with your fix and flip can really end up helping you make a great deal more.
3. Consider hard money lending. It is a great way to let your money work for you while you secure the funds you need in order to make your fix and flip a reality.
4. Educate yourself. There are programs such as those available on Real Estate Express that can help get you certified in things like home inspections, or appraisals—which can really help if you are planning on investing in a fix and flip.
5. Look for pre-foreclosures. Also known as lis pendens, these properties can be more difficult to track down, but they are some of the best deals out there, as you are able to secure a house on the cheap, while the seller can effectively avoid foreclosure proceedings.
6. Consider REO (real-estate owned) or bank-owned properties. The bank is going to do a lot of the dirty work for you, like evicting tenants and clearing any liens—so you can spend your time and money on getting it ready to make the big bucks.

It is easy to get caught up in all of the improvements, financing and other obstacles that come with fix and flip properties. However, it is important that you remember, you still need to keep these real estate essentials in mind during the process so that you can make the most of your investment and have the financing you need to move on to the next one!

If you want to buy a house, flip it and make a profit—there are so many opportunities for you to make some money, but if you haven’t done it before, there are also plenty of opportunities for you to lose-big and lose all of the hard-earned cash you put into this investment.

If this is a first-time flip for you, and you don’t know what it is that you are doing—you may be surprised to find just how difficult this in. In fact, flipping a house is nowhere near as easy as they make it seem on TV. This is because TV shows aren’t going to tell you the real deal or fill you in on all of the secrets that you need to know about how to actually make money in this type of venture.

With this in mind, here are four things that no one will tell you when you are a first-time home flipper.

1. Always get your permits. While you may think you are savvy enough to do everything yourself—if you don’t pay to get your building permits, it can really cost you in the end. Go through the proper channels and visit the city to pull permits on major renovations, if you don’t it can lead to lawsuits or kill a sale in the future and saving yourself the time and money won’t be worth it in the end.
2. Know your neighborhoods. Not every fixer-upper is going to be an investment. No matter how cheap it is or how much potential you see in a home, there is never going to be anything that can compare to a good location. When flipping the house, think not only about the neighborhood, but what a potential buying in that neighborhood would want in a home so you can design it for that type of buyer.
3. Don’t expect a profit. It is an insider tip that no one wants to hear, but it is one that you need to keep in mind. No matter what your reason was for getting involved in home flipping or what you see on TV, when you are just getting started, you shouldn’t expect to make any real money at all. You will need some experience under your belt first, and if you go into buying a house with the expectation that you are going to make money, chances are, you will only be disappointed in the end.
4. Always have a backup plan. Very few things ever really go according to plan in the world of real estate. This is why you need to plan ahead when it comes to your budget, and plan ahead with a backup option in case your house doesn’t Whether that backup option is renting, or even living in the house yourself, you should always have a “Plan B.”

Now that you have a few insider tips on what you can really expect when fixing and flipping a house, you can make the decision for yourself on what you want to do and how you want to move forward with this investment opportunity.

Fix and flip properties are one of the most popular and profitable ways of investing in real estate today. The right fix and flip can make you a great deal of money—just like the wrong fix and flip can lose you a great deal of money. There is no denying the popularity of flipping in today’s market. However, most people think that they need a lot of cash on hand in order to make a fix and flip work. This isn’t always true.

While cash is always valuable when it comes to any time you are making an investment. There are ways that you can invest in a fix and flip property with hardly any money in your pocket. Here are three different places you can look for help when you need money for your fix and flip investment, but don’t have enough cash on hand.

Find a Partner

This is probably the easiest way to get some cash for your fix and flip property, without having to take any type of loan out. There are many places to find partners. You can ask a family member, close friend, business associate, local business owner or even another real estate investor that you can partner with.

Think about who you interact with on a daily basis in order to find a partner.

There are lots of ways to enter into this partnership. Many people enter into a simple 50-50 split. Your partner will finance the deal, you do all of the legwork and the two of you split the profits. However, there are many different partnership options available—and remember you will need to be able to sell yourself or your services to the other parts you are partnering with. 

Hard Money Loan  

Hard money loans are some of the most popular sources of financing for people who are looking to get into the fix and flip business, but who don’t necessarily have as much cash on hand as they need.

Hard money loans do have higher interest rates than some other loans, but they aren’t as difficult to get as mortgages, and they are designed to be for short-term projects, such as flipping. Hard money loans are a great solution for many flippers—but are best if you know that you can flip the property quickly.

Private Money Lenders

Private money lenders, like the name suggests, are regular people who have money they are looking to invest. This is different than getting a partner, because typically, these lenders will act as a bank, giving you a loan at an interest rate they see fit—instead of working together with you.

You can typically negotiate a better rate with a private lender than you would with a bank—and you can get more control over the terms of your loan. The good news is, as fix and flip properties get more and more popular—so do the number of private lenders who are looking to invest for flippers without enough money. There are even online directories available that can help partner flipper with private money lenders.

Remember, when it comes to getting started with the fix and flip industry—where there is a will there is a way, even when you don’t have thousands of dollars on hand in the bank. All you need to do is determine which option is the right option for you.

Regardless of the type of investor you are and your loan scenario, there is an array of loan
programs that are designed to meet all your mortgage needs.

Hard Money and Fix & Flip Loans are among the most popular programs that investors utilize
for their real estate investments. Although they are two different programs, many inside and
outside the industry believe them to be the same loan…but this is the furthest thing from the
truth.

Hard Money Loans

A true Hard Money Loan is an asset-based loan, which means the financing is based on the
Loan to Value (LTV) of the Asset. Unlike the Fix and Flip loan, it doesn’t go through full
underwriting and there’s no minimum FICO requirement for the borrower, as it doesn’t have
many guidelines and criteria.

This type of loan doesn’t have as many restrictions as one might think considering that it’s just
money, so no more having to worry about bankruptcies, foreclosures, collections, etc.
Due to the lack of guidelines and underwriting, a true Hard Money Loan is generally capped at
65% LTV or less. For example, let’s say you have a home worth $1M, if you want $500K against
it (50% LTV), you’re able to receive the money within 1-2 weeks (from day of application),
commonly as a first lean position – because it’s just money. It’s normally in the form of a Bridge
Loan, which is short term financing in a period of 12-24 months.

One of the reasons why Hard Money Loans are for investment properties ONLY, is due to the
high cost regulations and predatory lending – you can’t put such high interest rates and cost on
an owner occupied property.

In certain states, there are non-judicial foreclosure laws, which allow a Hard Money lender to
get their money back quickly if the borrow defaults on the mortgage.

These foreclosure laws make the lender more comfortable doing high-risk loans, usually the
money is not sold on the secondary market – the lender holds the note, they don’t sell the
paper.

Fix & Flip Loans

Fix & Flip Loans are also asset-based loans, however they utilize more underwriting guidelines
and criteria. While Hard Money Loans focus solely on the asset, Fix & Flip loans look at both the
asset and the borrower.

The reason why people confuse Hard Money Loans with Fix & Flip Loans, are because both the
loan and the laws are very similar – they are both private money to an investment property.
Virtually all fix & flip and hard money loans are funded by hedge funds, the money comes from
the same place, but the underwriting is different.

Contrary to Hard Money Loans, Fix & Flip Loans are usually sold on the secondary market and
goes through a full underwriting with tighter guidelines. For instance, depending on the lender,
Fix & Flip loans have a minimum FICO requirement. Additionally, the borrower can’t have late
payments, foreclosure, judgments, or bankruptcy on their credit for 24-36 months.

Furthermore, a Fix & Flip loan is a rehab loan, a loan that you utilize to acquire a property and
then receive the funds to rehab that property in short term financing (12-18 months).
Depending on whom you are working with, it’s important to bring something dynamic to the
table, to help you close your loans quickly, efficiently, and professionally.

However, make sure that when you move forward with a mortgage lender that you know all
the details of your loan, why they are utilizing that program, and whether or not that loan
program is being properly presented to suit your needs.

Written by New Jersey based Mortgage Expert, Michael Mikhail, CEO of Stratton Equities.