by David Glenn | Jun 21, 2017 | CRESTICO
One excellent investment opportunity that can make you a lot of money is house flipping. If you purchase properties at a cheap price and then turn around and sell them for a much higher price, you can make quite a bit of money, often in a relatively short period of time. However, not all house flipping investments really work out that well. If you are looking to increase the return on your investment so that you can really make house flipping worthwhile, consider these helpful tips.
- Make Sure That You Purchase the Right Properties
First of all, it is important to be careful about the properties that you purchase. You will need to look at a few things, such as how much it’s going to cost to fix up the house and how much the house is going to be worth later on.
For example, even though you might find a property that is available very cheaply, it might not be a good investment if the work that needs to be done is going to be very costly. If you can find a home in a nice neighborhood that mostly needs affordable work done, such as cosmetic repairs, then you might be able to buy it at a rock-bottom price and then turn around and sell it for a very nice profit.
Don’t get into too much of a rush when buying investment properties. Instead, take your time in really looking into the repairs that may be needed and how much they are going to cost and really studying the market in the area that the home is located in. This can help you make the right decisions.
- Do As Much of the Work Yourself as You Can
One big way that you can cut a lot of your costs when house flipping is by doing as much of the work yourself as you can. With many home repairs, the largest cost comes from hiring someone else to do it. If you have to pay out a lot of money in labor costs, this is going to drastically cut down on how much you actually pocket after you sell the home.
Even though you might need to hire a professional for certain things, such as electrical work, you may want to tackle some of the smaller and easier projects yourself. For example, interior painting is relatively easy for anyone who has a bit of time and patience. There are even products on the market that make basic home improvements a whole lot easier for the average person, such as locking laminate flooring and stick-down backsplashes. Plus, once you learn how to tackle some of these projects, you will be able to use this new knowledge both in your own home and in any future homes that you might purchase with the intent of flipping.
- Sell the Property On Your Own
Another big way that you can lose out on some of your profits is by hiring a Real Estate agent to help you sell the property when you put it on the market. Even though you might assume that this will make things a whole lot easier for you, you should think about how much the real estate agent’s commission will cut into your profits. If at all possible, you may want to think about listing the home yourself.
A for sale by owner process can be easier than you might think, especially now that there are tons of ways that you can advertise the property yourself online. If you need a little bit of help with the paperwork, you can also look into having a real estate lawyer assist you to ensure that everything is done properly, all without the help of a real estate agent.
As you can see, if you are looking to make a nice profit off of house flipping, there are a few tips that you can follow. This can help you make even more off of your investments.
by David Glenn | May 9, 2017 | CRESTICO
A whopping 50 percent of homes are sold in the summer. Even though there can be benefits to buying at other times of the year, you might find that shopping for a home during the traditional home buying season is ideal, since you can go house shopping while the weather is warm and so that you can buy a home and move in-between school years for your kids.
Regardless of why you are choosing to go shopping now for your home, you probably want to make sure that the process goes as smoothly as possible. Luckily, if you follow these tips, you can help ensure that you have the best possible success when shopping for a home.
Set Your Budget First
First of all, you’ll want to set your budget first. There is really no reason to waste your time looking at homes that you can’t afford, after all. Plus, you don’t want to buy more home than you can easily afford, which can make things a lot more stressful once you’re actually in the home and making your mortgage payments.
There are online calculators and basic formulas that you can use when deciding how much of a home you can afford. However, you will generally only want to use these numbers as a starting point. Only you really know how much you feel comfortable paying for a home each month, so it can be worth it for you to sit down, make a budget and get a number in mind of how much house you can afford before you ever start shopping around.
Get Prequalified
If you are unsure of whether or not you will be able to actually qualify for a mortgage, it can pay for you to work with a mortgage lender to get prequalified. Few things can be as upsetting as house shopping and falling in love with a house only to find that you can’t actually buy it because you can’t get approved for the loan. By working with a lender now, you can determine if you will be able to get a mortgage and can get an idea of how much you will get approved for.
Make a List
Before you start shopping, think about the things that are most important to you. You might want to have a certain number of bedrooms to ensure that the home will be a good fit for your family, for example, or you might prefer a home that has a nice, large yard for gardening. Making a list of these things can make it easier for a Real Estate agent to show you homes that you will actually be interested in and can help keep you focused on what you really want so that you don’t start looking at homes that won’t be a good fit.
Don’t Be Afraid to Negotiate
When looking at homes, don’t be afraid to negotiate. In many cases, you can negotiate a lower price on a home. Some sellers are also willing to take certain steps to sweeten the deal and encourage you to choose their home out of the ones that you are looking at, such as by covering closing costs or adding in a budget to swap out the flooring or to paint.
Plan for Other Costs
You shouldn’t just be thinking about the cost of buying the home. You should also be planning for other costs, such as by saving up for closing costs, shopping around for home and auto insurance quotes so that you can secure affordable homeowner’s insurance and thinking about how much you will have to spend in utility deposits and moving expenses.
If you are getting ready to start shopping for your dream home, you probably want to ensure that the process goes smoothly. Luckily, following these tips can help you enjoy the best possible success when shopping for the home of your dreams.
by David Glenn | Apr 7, 2017 | CRESTICO
Purchasing a new home is usually a complicated and stressing experience. One wrong move can kill the deal in minutes. You have to play it safe to get what you want. Here are some key tips you need to consider.
Know What You Want
A Real Estate agent can only help if you know exactly what you want. Be specific about your requirements so that the agent can identify the right house for you. This may include the number of bedrooms, type of exterior, floor plan, security of the neighborhood, noise level and desired footage. You might also consider the distance of the house from the grocery stores, schools, restaurants, highways, hospitals and places of worship. Knowing exactly what you want will minimize surprises and enhance the quality of search. You will also save a lot of time spent in evaluating various homes you come across.
Get Your Loan Pre-approved
You can apply for a mortgage to finance your house in a cheaper and more convenient way. However, you need to make sure it is pre-approved before you proceed with the buying process. Make sure your credit score is within the acceptable limits to get pre-approved with the best interests possible. Avoid a new debt, as this will complicate the process and reduce the amount you qualify for. You should also consider paying down your consumer debt since most banks factor in your debt-income-ratio when approving your application. It is wise to get pre-approved for the mortgage before bidding on a house to avoid major disappointments associated with failed applications.
Choose a Good Real Estate Agent
Choose a real estate agent who can communicate and listen to your demands. A good real estate agent should also be in a position to adjust well to your needs and work within the set timeline. There are about two million active real estate agents out there, so you need to employ effective strategies when selecting the most suited person for the job. Choose a real estate agent by looking at his track record. Let him provide you with at least 20 past clients. Ask the clients about their overall experience with the agent and whether he worked up to their expectations. You can also do some research online or ask friends and family members who have had a previous experience with a real estate agent for recommendations. Above all, ensure the agent is fully certified and licensed by the relevant state agencies.
Consider Location
You surely don’t want a home that is located in a place with no good highways, grocery shops or schools. For instance, a place with poor roads will only damage your vehicle and increase the premiums in your auto insurance coverage. Convenient access to popular places, restaurants and shops will make your life easier and enjoyable. Be aware of things associated with a bad location. A home in a busy intersection or near a fire station will make the environment very uncomfortable. Same applies to homes located in open neighborhoods with no security provisions.
Save Enough Cash
There are a lot of things that come with buying a new home. You need to have enough money to sort them out quickly when they come up. Some of the related expenses you will have to deal with include earnest money deposits, home appraisal and home inspection. Running out of money when the deal is in the middle will force you to pull out. You don’t want to find yourself in this situation, especially if the house has all the things you always wanted. You should also expect your mortgage financier to ask for a down payment ranging from 3.5 to 5 percent.
About one million Americans buy new homes every year. You could be among them, but only if you employ effective strategies when purchasing your new home. The tips discussed above could help you make prudent choices when selecting the home you want for your entire life.
by David Glenn | Mar 14, 2017 | CRESTICO
Renovations that Increase a Home’s Value
All home renovation projects are not created equal. Some add a significant percentage of the cost directly to the home’s value and some not so much. So before you take out that second mortgage and dump it all into remodeling projects, take a moment to read through our list of projects that add the most bang for your buck to the bottom line. Stay tuned to the end for advice on what traps to avoid.
The King of Improvements – The Front Door
According to Remodeling magazine’s Cost vs. Value report, a new front door should be on the top of your renovation tips. The report claims adding the correct front door to your house returns a 96.6 percent increase as a portion of the purchase cost. Think classy and one that fits the style of the house. Don’t forget that a simple paint job might create the same payoff. A new door might not be sexy to think or talk about but it gets the job done.
More Space
Today’s buyer is looking for open space and good flow in a house they buy. ThisOldHouse.com quotes Kristin Wellins, Senior Manager of Program Development at ERA Real Estate: “Right now buyers want a wide open floor plan, the living room right off the kitchen. They are into big spaces.” Achieve this by taking out a non-structural wall or the kitchen island. Keep in mind that some people LOVE an island, though. One option is to have a movable version that can be relocated or even hidden away when not in use.
Front Yard
Sprucing up the front yard is about as exciting as painting the front door, but don’t underestimate the value of pruned shrubs, new pavers, colorful flowers, and a fresh mowing. You’ve probably heard the phrase “curb appeal.” The bottom line is that if you don’t have it, don’t expect buyers to give the house a second look. A well-tended yard builds confidence that the inside will be just as thoughtfully cared for.
Siding
Remodel research shows that new siding adds a full 92.8 percent of purchase price to the home’s value. Anything over 90 percent is an impressive return. A siding upgrade can turn a dingy, blah exterior into something that grabs the eye. Yes, it could be considered expensive and you may need some heavy Construction equipment to help you with some of the heavy lifting but when you add almost the full cost to estimated value, maybe it’s worth the plunge.
Basic Systems
If any of your home’s basic systems aren’t functioning up to par, you’d be wise to spend money toward that end before ponying up thousands for a kitchen or bathroom remodel. We’re talking about plumbing, electrical, heat and air, windows, and the roof. Why so important? Think about it like this. If you were in the market for a new home, would it make a difference if the ceiling leaked, half the outlets didn’t work, and the toilet backed up with every other flush? You bet it would! If you ever plan to sell the thing, rest assured you will never get your full asking price if a major system is faulty.
High Tech Amenities
Homeowners often wonder if it’s worth the cost to spring for a home theater The short answer is it depends. Houses that go for $375,000 and up in the Los Angeles area can forget about selling if they don’t have dedicated media room. A $100,000 house in a senior community in the middle of rural Missouri might think someone had wasted good time and money on the same room. Before deciding, talk to local real estate professionals. Know the market demographics and what is in high demand before taking that particular plunge.
The Bottom Line
We promised a quick discussion about which remodeling projects to avoid. Two to pay attention to are kitchen and bathroom makeovers. While it’s true these are the first places people look when evaluating value, keep an eye on costs before undertaking either project. Don’t spend more than 25 percent of the home’s estimated market price for a new kitchen and stay below 12 percent for a bathroom update. Now get to it, and pump up the value.
by David Glenn | Feb 22, 2017 | CRESTICO
Entertaining guests in your home can be a superb method of meeting new people and getting to know them more intimately. Whether you’re entertaining coworkers or a group of friends from a local meet-and-greet, it’s crucial that you have the proper home options to lend to a fascinating evening. These home options are sure to provide hours of entertainment, taking the load off of your shoulders by not having to worry that your house guests are bored and ready to leave. While incorporating these options into your house can take time and money, they’re critical for families that host often.
Home Theater
Putting a pint-sized movie theater in your home is a great way to watch movies and television on the big screen, lending to an evening full of enjoyable entertainment. When setting up the home theater, you should pick out comfortable theater seats that are spacious and provide superior comfort. Add enough seating for the whole group of guests, preventing anyone from having to sit on a hard chair or the floor.
Wet Bar
Alcohol is always a great entertainment component of parties and get-togethers. Instead of just buying a bottle of wine and calling it a day, try setting up a wet bar in the most popular spot in the home. This allows guests to make their own drinks, having full access to a wide variety of alcohol, additives and mixes. If you’re looking to bring a little more variety to the bar, adding a slush machine or an ice shaver is a great way to give your patrons some extra choices while creating a more formal environment.
Pool Table and Arcade Games
Buying a pool table and putting it in any room of the home is a sure way to provide a fun night to your guests. Arcade games and pinball machines can be cheaper than you think, increasing the entertainment facet of your home. Be sure to have a variety of sticks and mounts so that multiple people can play.
Hot Tub
Purchasing a hot tub does not have to be expensive, as stores have a range of inflatable tubs that are easy on the budget and just as advantageous. Hot tubs are great for parties because they allow guests to mingle, talk and laugh while relaxing in a pool of calming bubbles. Add in the alcohol from the wet bar and you have a spot people won’t want to leave.
Buffet-Style Kitchen Area
While this may not necessarily be an entertainment element, a buffet-style kitchen area allows for a more enjoyable dining experience in your home. Set out hot plates, put plenty of dishes on the island and let your guests indulge. Try adding a fondue station so guests can dip cheeses, strawberries, breads and bananas into delicious melted chocolate or cheese.
Surround Sound Music System
They say music is the life of the party and without it, you just have dull, dreary conversation. Don’t just add music to the space by blaring your iPod. Install a surround sound system and connect your device to it. You’d be amazed at how effervescent good quality music can sound from the right speakers.
Outdoor Fireplace and Seating
You don’t have to spend a lot of money to spruce up your outdoor living space. A homemade fire pit works just as well as the expensive in-wall fireplaces you’ve seen in the past. Add in plenty of comfortable seating and you have a soothing outdoor entertainment spot perfect for guests of any age.
Keeping your guests entertained not only makes you feel better as a host or hostess, but it encourages them to want to come back. If their experience in your home was boring and dull, they’re not going to want to come back no matter how much they like you. Adding these entertaining home options to your property does not have to cost thousands of dollars or take months of your time. For example, you can buy a pool table second hand or build your own wet bar from scratch without getting a contractor involved. You might even find that these small changes make the home more fun for you and your family when guests aren’t there while increasing the value of your house investment.
