If you have been thinking about buying a home, whether it is an investment property, a fix and flip or even your primary residence, the main goal is always the same—you want to figure out how to get that property under contract.  Now, every house is different and every property is going to be listed by a different type of seller, so there may be some differences in getting your foot in the door.

However, the biggest thing that you are going to have to do when it comes to getting any property under contract is to make sure that you execute the documents correctly. After all, so much of buying a house all comes down to paperwork.  Here is what you need to know about turning your offer into a “SOLD” sign.

• Always make sure that the legal address and description are accurate—this will save you a lot of headache down the line.
• If you plan on whole-sailing the property, pay close attention to the line items: “Purchaser” and “Deed is Made out to” so that they also include the “and assigns.” This will let you sell the contract to your end buyer.
• Think about the Earnest Money Deposit, or Good Faith Deposit. It is always negotiable, you just have to think about who you are buying from.  Basically, this deposit shows you are serious and prevents you from backing out without a reason. Sometimes, this doesn’t matter as much to a homeowner, as other factors, like how quickly you will be able to close.
• Know who will be holding the earnest money deposit before closing. This is typically a closing attorney.  The title office may also hold it. A neutral party should hold the deposit, so that if the deal falls apart, it goes back to the buyer (or the seller) depending on what happens.
• Be smart with your due diligence period. Even if both parties want to get this deal wrapped up quickly, there needs to be some sort of due diligence period that gives you time for property inspections, surveys, insurance quotes and a title search, among other things.

As you can see, there is a lot that goes into buying a home.  You’ll want to be prepared for all of these things if you are serious about turning a home that you are interested in, into one you have under contract.

While there are many different ways to find good deals on investment properties in today’s market, one of the best ways to get the best deals on real estate is to try to get a pre-foreclosure.  If you aren’t already familiar with pre-foreclosures, they are great because they can benefit both the buyer and the seller, and if you are a real estate investor, you can purchase a property, at a low price, for a great deal, while avoiding competition as you would once the bank owns the home.

A property is in pre-foreclosure, when the home has a mortgage that is in default.  Usually this means, the owner has missed three or more payments and the bank has started the legal process of taking back the home.  You can sweep in and take the home off the seller’s hands before they have to deal with the foreclosure process.

This can be some pretty personal information, which means the average seller isn’t going to be advertising that their home is in pre-foreclosure. However, there are still ways that you can find pre-foreclosures and come in and make a great offer on a great property all for a low price.

• Visit the local courthouse and look through files of pre-foreclosure legal filings. From there, you can make a list of potential homes.
• Look at the local newspaper to gather information on potential pre-foreclosures. There are also some home search sites that will list pre-foreclosure information since it is public record.
• After you have a list of potential pre-foreclosure information, start looking up info on the property you are considering. You want to look at the location, the value of the home, the mortgage information and how much you think you can get it for in order to make the deal worth it.
• Find a way to contact the owner. You can dig into public records, Google them or even go to the house. While it can seem intrusive, many times, owners are more open to a deal then you may think as it also benefits them as a foreclosure will go on their record and make it difficult for them to ever buy a house in the future.
• You can then start negotiating with the owner. As the investor, you will want to try to find the perfect price to make the owner happy and make you some money.

A pre-foreclosure can be a great way for you to get a property at a low price, no matter what your end goal with that home may be.  Just keep these tips in mind as you start to look for pre-foreclosures as they may just lead you to the home you have been looking for.

If you are planning on flipping a home, this can either be a huge pay off or a huge bust for your bank account. This is why it is so important to pay close attention to how much you are spending on your renovations. You want to make sure that you are spending the exact right amount. Spend too little, and cut corners, then you won’t get top dollar for your flip. Spend too much money, and you may not be able to sell the home for your desired list price.

The key is to make sure you are doing the right renovations. This includes doing these small, cheap updates that have BIG returns. These little renovations have a big return on investment and can help make sure your home is a profitable flip, instead of a big flop.

1. Curb Appeal- The moment a buyer drives up to a home, they are going to form an opinion on that home. If it is a good opinion, you are off to a great start. If it is a bad first impression, the interior is going to have a lot of making up to do. A fresh coat of paint, nicely painted shutters, trimmed grass and a few flowers can really go a long way in giving a home curb appeal. While leaving some old “character” in a home is sometimes nice, you should also consider replacing exterior hardware and getting a new mailbox.
2. First Impression Interior Updates- The first impression a buyer gets when they drive up is important, but the first impression they have when they open the door is even more important. Spend a little extra time on the entryway. Fresh paint, a new light fixture and the right staging can completely transform an entryway and leave a great impression for buyers.
3. Paint Cabinets- If you have old cabinets that are still in good shape, just a bit outdated, give them a fresh coat of paint. It can help your cabinets look brand new and more clean and updated. While you’re at it, swap out the handles and you will have what looks like brand new cabinets at a fraction of the cost.
4. Add Molding- Molding is a relatively cheap update that can help any home look super luxurious. Just go for in-stock molding, instead of custom molding and you can have a high-end look with a low price tag. Crown molding is great for any room, while molding around cabinets will help them feel more custom and built in.
5. Add a Closet- If you have a small office space or rec room that has room for a closet, add one. It is a relatively cheap upgrade, but one that is worth it in the end. Then you can list your home as having more bedrooms, and get a higher price tag. If there is room for one, add it, even if the room seems small. Trust us, it is worth it in the end.

Remember, every home and every market is different, but these general updates tend to always deliver returns and can always help any flipped home appeal to buyers and ultimately sell quicker, and for more, than you may have ever thought.

If you are interested in getting into the fix and flip industry, then you are not alone. This industry is tremendously popular right now, and is filled with both novice and experienced flippers who are looking to make some money off of the real estate market. There is a lot that goes into fixing and flipping homes besides just having an eye for renovations. It involves a great deal of real estate expertise and a lot of patience. It also requires a lot of money upfront. After all, if you want to make money, you are going to need to spend money.

This is why the number one question that new flippers always have is “do I really have enough money to flip this house?” While there are a number of different lending options that can help you get the cash you need, you still need to figure out exactly how much of this cash is going to be necessary. This is why your first step should be to figure out what all you are going to need to pay for.

Here’s a list of expenses that you are going to need to be able to account for.

1. The Purchase Price of the Property- This is a pretty obvious one. You need to start with how much the home is going to cost. Pay attention to how much the property costs and make sure that it is only 70% of the After Repair Value. You can figure this out by looking at comps in the neighborhood.
2. The Extras With the House- Don’t forget about taxes and insurance. While you are going to sell the home rather quickly, you are still going to have to pay taxes and insurance on that property.
3. Closing Costs- You still also have to pay closing costs on any property you buy. This includes all of those little fun fees and real estate commission. A good rule of thumb is to plan for closing costs to be 5% of the total property’s purchase price. So if the house was $100,000 then plan to spend $105,000 total for the house,.
4. Rehab and Repairs- There are so many unknowns when it comes to rehab and repairs. Remember, the more repairs that you do the more opportunities there are for something to go wrong or something unexpected to come up. Tearing down a wall can be a great solution to get that open concept kitchen, but you never know what is in that wall and what type of electrical or plumbing is in the wall that needs to be repaired or rerouted. Get an estimate on the repairs and save an extra 10%.
5. Materials- Budgeting for labor for all of the work you need done is one thing, but don’t forget about materials. This means all those new toilets, new sinks, new cabinet pulls, new window treatments and new tile. It can really add up and is the area most people under budget for.

While this can seem overwhelming, these are all of the things that you are going to need to have money for when you fix and flip a property. Once you have these numbers all written down you can really decide if you have enough money to flip that house and get started on this exciting new adventure.

So, you are ready to invest in real estate, and couldn’t be more excited to buy an investment property, fix it up and sell it for the big bucks. Well, congratulations! This can be a great way to make money, but it is also a huge undertaking and one that comes with a lot of risk and a lot of potential setbacks. If you are looking to flip a property, you need to make sure that you are aware of some of the biggest mistakes that people make and some of the big things that can cause those flipped properties to become a major flop.

While there is no way to completely predict how one of these projects is going to turn out, these tips can help anyone interested in fixing and flipping to try to avoid the most common setbacks.

1. Asbestos- Asbestos was a common material used in homes built before the 1990s. It can be harmful if bothered, but is generally safe if left unbothered. If you find asbestos when you start digging into a wall or floor, you will need to get it removed, which can be costly. Keep this in mind if you are buying an older home.
2. Mold- If you smell mold, see mold or see moisture in a home before you buy it, just plan on there being mold in there. Mold has to be professionally remediated and is expensive. So avoid buying a house with mold or account for the extra costs into your budget.
3. Termite Damage- A termite test is only about $50 and can be done during your inspection. It is smart to do it. If you do happen to find termites when you start your repairs, you can end up spending thousands.
4. Load Bearing Walls- Open concept is super popular, but don’t assume all of the walls in the home are easy to take down. Many walls are actually load bearing and you will need an expensive beam to be put in the wall in order to safely remove that wall. These are thousands of dollars, sometimes more. So, proceed with caution, or have a backup plan.
5. Old Electrical- If you see knob and tube wiring in a house or what looks like outdated electrical, it can end up costing you a lot of money to get this electrical work up to code so you can safely resell the home. Electrical work is one of the biggest unexpected expenses that can ruin a budget.

The best thing you can do when fixing and flipping properties is to make sure that you over budget for repairs and renovations, and keep your potential profit margins as big and as open as possible. The more room for leeway you have the better, and the less likely your new flip purchase will end up being a major flop.

Fix and flip properties are becoming a very popular investment for people who want to take a little bit of a gamble, and hopefully make a lot of money in the process. However, fix and flips are much more complicated than they first appear. You need to renovate the property in order to get top dollar, but there is also such a thing as over-renovating. You need to make sure that you are only spending money on upgrades that actually add value.

Remember, your goal is to spend as little money as possible to make as much money as possible. Here are a few ways to make sure you that you are adding value to your fix and flip.

1. Remember the golden rule. There are three things that determine the value of real estate: location, location and location. This has always been the rule and will always be the rule. If you buy in a good location, for a low price, you are already ahead of the curve, no matter what improvements you make. There is no better “value add” than a great location.
2. Keep the comps in mind. It is really easy to over improve a property. You may spend all this money for higher end upgrades and end up with a home that is pretty, but overpriced given the neighborhood. This is not adding value, this is just spending money.
3. Don’t limit your buyers. There are plenty of ways you can spend money in a home to add things, but in the meantime you may end up cutting out some of your potential buyers. If you really want to add value to the property, you need to make it appealing to as many people as possible. So, don’t be buyer specific with what you add.
4. Make a strong first impression. Curb appeal is huge and it is worth spending money on the exterior of the home in order to have better curb appeal. Paint the front door a bright color and plant flowers and plants outdoors. Upgrade the exterior lighting and consider a new mailbox. However, this isn’t the only first impression. The interior of the home needs to make a strong first impression as well, so spend a little extra really sprucing up the entry way to give buyers a great first impression of the home.
5. Kitchens and bathrooms sell houses. If there is anywhere in the home that you are going to spend money, it should be the kitchen or the bathroom. These are the two areas in the home that are going to be worth spending money in. They may be a lot of money up front, but they have a great return on investment.

Keep these tips in mind as you start to renovate your fix and flip and remember that you goal is always to add value with every dollar that you spend.

There is no denying that home flipping shows have made a huge impact on the reality TV market. And while it is important to remember that these shows aren’t necessarily a guidebook to fixing and flipping homes in the real world—they can provide you with some great inspiration if your are planning on investing in and flipping a property. If you are looking for an excuse to do some binge watching and want some TV shows that will get you in the mood to start flipping, here are some great ones to get you started.

1. Flip or Flop- This is the original flipping show and one that has created several other spin offs. Tarek and Christina are a dynamic duo that renovate disastrous homes in California and sell them for top dollar.
2. Flip or Flop Atlanta- The original Flip or Flop created several new spin-offs, but Flip or Flop Atlanta is one of the front-runners, with the booming Atlanta market at its center, this is one interesting area to flip homes in and a city that proves that location really is everything.
3. Brother Vs. Brother- While it isn’t your typical fix and flip show, like Flip or Flop, Brother Vs. Brother is a fun program for home renovators to tune into. This show stars the infamous Property Brothers fixing up and flipping old homes.
4. Texas Flip N’ Move- This HGTV staple has been on the station since 2014 and features tiny houses that are sure fun to watch being flipped.
5. Fixer Upper- Perhaps the most popular home flipping show out there is Fixer Upper. While Chip and Joanna buy homes to flip for one buyer, they still have some great renovation ideas and are sure fun to watch. Unfortunately, the program ended this year, but there are still plenty of reruns to browse!
6. First Time Flippers- As the name suggests, this show on the DIY Network is all about amateurs trying to break into the flipping business. It is both informational and very entertaining to see these newbies take their hand at renovations.
7. Good Bones- We love this HGTV show because instead of featuring the normal husband and wife duo, it actually has a mom and daughter fixing and flipping their very own hometown.

Give these shows a try next time you are looking for a little flipping inspiration. They can be a great way to get your creative juices flowing and take a first step towards your next fix and flip investment.

So, you want to start flipping homes. It can be a great investment, but it is can require some serious money, meaning it can be a serious risk. There are so many people who want to flip homes but they just don’t know where to start when it comes to breaking into this competitive industry. If you think you have what it takes, here are a few steps you need to take to get your dream of fixing and flipping homes off the ground.

1. Make a Business Plan- If you want to fix and flip homes and actually make money, you need to treat the process like the business that it is. Make a plan, and be realistic about your goals, your profit expectations and your exit strategies. You also nee to detail the geographic areas you will be focusing on, the type of properties you plan on buying and your expected return on investment.
2. Hire the Right Flipping Professionals- You need a team on your side to really excel at flipping. This means a great accountant, real estate attorney, realtor and contractor. You will hire them per project, but you need to have experts you really feel like you can trust.
3. Give Your House Flipping Business an Entity- You need to set yourself up as a LLC, S Corporation, DBA or sole proprietor. This is all for tax purposes. You can talk with your accountant about your best option. You also want to give your company a name to establish credibility and make sure that you register your flipping business.
4. Figure Out Financing- You will want to open a business bank account and a business credit card for your home flipping business, but if you really want to get in this industry you will need lots of cash too. Look into private money or hard money loans to get a better understanding of the loan options that are out there for you. It takes a lot to buy a home and pay for renovations, and traditional mortgages aren’t always the best bet for fix and flips.
5. Do Your Research on Neighborhoods- You need to have the right location to fix in so make sure that you do your homework. Essentially, you want to find the worst house in the best neighborhood and look for a home that you can buy low, spend minimal on in terms of renovations and ultimately sell high. Make sure that the ideal sell price is reasonable for the neighborhood and that you are familiar with the comps before you ever make an offer.

These steps are essential to helping get your fix and flip venture off the ground. If you are willing to do the work, make the financial commitment and take the risk, this can be a very exciting new adventure!

Autumn is right around the corner and as most real estate investors know, the fall is one of the biggest times of year for buying and selling homes. If you are looking to invest in a property in hopes of fixing and flipping that home, then you need to be aware of some of the biggest trends that are going on in the fix and flip industry. If you are looking to make money in 2018, here are some of the biggest trends that you should keep in mind.

Location Still Reigns Supreme

The old adage location, location, location still applies, so make sure to remember this with your fix and flip investments. This is still the one thing that you absolutely can’t change about a home. There are a few big things to remember about location in fix and flip homes. Walkability is a big factor with location, particularly with millennial buyers, so walkable locations are always going to sell. School districts are still another important factor, as is safety, in 2018 when it comes to scouting locations.

Flexible Spaces

When you are fixing up and flipping a home, it is important to remember that your home is supposed to appeal to a number of different buyers, not just you and not just one type of buyer. Consider making spaces that can be flexible and used for a variety of purposes, such as a multi-purpose rec room/office space/dining room/playroom instead of just being a space that is supposed to be a formal living room.

Open Concept

The open concept trend is one that isn’t going away any time soon. People are loving the idea of open concept homes, especially when they like to entertain, or if they have small children they want to keep an eye on at all times. This is another way to bring flexibility to your space.

Light Colored Floors

This is a new trend that is making its way to the real estate market. While dark floors had their moment, right now, light, bright and airy floors that really make smaller spaces look bigger. So, when it is time to pick your flooring options for your new homes. So, when it comes to finding new floors for your fix and flip, remember that neutral, light-colored floors are a great option right now.

Mixed Metals

It used to be all about keeping everything matchy-matchy, but right now, mixed metals are making a comeback. Adding different metals in the kitchen, with hardware, with light fixtures and other elements in the home is a great way to bring a sense of modern style to the space and add design features that really help your property pop. The best part is that many of these features can easily be changed if the buyer doesn’t love them, so they don’t have to commit to the trend of they don’t want to.

Keep all of these tips in mind if you are looking to have a fix and flip property in 2018. These are the types of trends that can help your property sell quick as you make certain you are making a smart investment with this exciting new venture.

A pretty african american business woman at her company

Considering investing in a fix and flip property? This can be a great project and an exciting investment that can help you make money in the process. However, the biggest question that people tend to have about fix and flip investments is how exactly to pay for the initial home investment. While most people would love to be able to pay cash for their loan, the average person simply does not have that much in their account. The good news is there are a number of different lending products out there that can help you finance these flips and get that initial money you need to get your investment off the ground.

However, before you apply for a loan, such as a hard money loan, there are a few things that you should do to help with the process and to make sure everything goes smoothly. Here are our biggest tips to preparing for your fix and flip loan.

1. Make a Business Plan for Your Flip. It seems like these days everyone is looking to get into the fix and flip market. In order to show lenders that you are serious, you need to create a business plan. THs information will not only help lenders take you seriously, but help you make sure that you get a loan that will help you cover your costs. This should include some basic information on the property, such as:
   1. The location
   2. An analysis of the neighborhood and comps for the area
   3. Your strategy and timeline for the project, including the “scope of work” and financials
   4. Background information on the team who will be helping you with the project
   5. Back up plans in case your renovation doesn’t go as it is supposed to
   6. Current value of the property from an appraiser

2. Get An Accurate Estimate for Renovations. Obviously one of the biggest expenses involved with a fix and flip is the actual flipping part. Renovations can be as much or even more than the initial property investment, so you need to have an accurate assumption of how much they are going to cost, so you can get enough to cover these expenses. Remember, it is always best to overestimate instead of underestimate on these expenses so you don’t end up in over your head. It’s always best to have a pro on your side to help you with these types of estimations

3. Know Your LTVs and ARVs. Before you head into talk dollars and cents with a lender, it is important that you know your LTVs and your ARVs. A LTV is a comparison of your loan size to the value of the property. Typically, the absolute maximum LTV on a fix and flip loan is 90%, but most products are much less. This means, you will need to provide the remaining amount in cash as a down payment. The ARV on the other hand is the appraiser’s estimate of property’s value after the renovations are done. There are many lenders who will quote your loan based on the ARV.

Keep these tips in mind if you are considering a fix and flip loan. Being prepared when you apply for your loan can only help expedite the process and make certain that everything goes smoothly so you can make this exciting new investment opportunity a reality.