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Can Home Flippers Still Make Money on Their Investment?

Can Home Flippers Still Make Money on Their Investment

Once upon a time, less than two or three decades ago, buying a run-down Fort Collins or Loveland home, revamping the building, and reselling the property was a very lucrative business for tens of thousands of individuals across the United States. As more of the less-desirable homes have been purchased and flipped in the past 20 to 30 years, the market has become more restricted, and investors are often forced to buy homes that require significant work, rather than the easy face-lift properties. Here are a few ways home flippers can still make money on their investments.

Buy on a Budget

Any builder can give you an estimate of what it will cost to make the necessary renovations to a property. But they are only estimating what they can see. Within the budget, you must include the marketing costs, repair expenses, standing costs while you repair it, insurance prices, and selling commissions. On top of that, don’t forget to add a buffer for the unseen and unforeseeable, such as discovering mold or bringing wires and pipes up to standard building code.

Buying Without Borrowing

For those investors that can purchase a property without the extra pressure that a mortgage payment can bring, success is much easier. Although your hard-money lender may present you with a short-term loan, it can be a costly partnership – often more than 10 percent. Investors can also find themselves in a bind when a property tear-out discovers costly needed repairs, and an acquisition and repair loan is required. The extra $30,000 to $100,000 in repairs can easily put the investor into the red.

Buying the Right Property

When you purchase a home that is run down, and you expect to put $3,000 into the renovations with just two weeks turn-around time, it probably won’t happen that way. The problem is you never know what the foundation is hiding, what is behind the walls, and if there is hidden water damage.

Buying at the Right Price

One of the long-time experts in the field of real estate, Steven Taylor landlord was asked, “What are the most important factors that need to be assessed when becoming a real estate investor?” After a thoughtful pause, he replied, “There are several, but I would say access to deals is critical and access to capital of course, but understanding your market and recognizing opportunities are factors that create successful real estate investors.”

Buying in a Good Neighborhood

It’s no secret that homes in some neighborhoods are highly prized and can sell for thousands of dollars over asking price. Sometimes there may even be a bidding war in a selected neighborhood that brings in $25,000 to $50,000 over market price. If you are lucky enough to locate a home in one of those prized neighborhoods, your chances of having a successful flip are high. Knowing the area is safe, schools are excellent, and values are rising can mean the home is a great deal and will be an easy flip.

Buying When You Have a Great Contractor

It may sound trite, but your contractor can make or break your project. Finding a professional that has a crew of his or her own, takes responsibility for crew reliability, and brings in a project when saying it will be done, is priceless. You will not find many of them in your lifetime, so if you know one, treat them like gold – because they are valuable.

Getting the money you put into the home back out of it quickly is always the main goal of a flipper. Doing so with an eye on quality can give you a reputation that excels. So, do a quality job, get it done quickly, and sell it for a reasonable price. That is the secret to flipping homes and making money – in a nutshell.

Message me if your thinking about selling or buying a Fort Collins or Loveland home at m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com

Ed Powers Real Estate May 2020 Newsletter

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Home Improvement Projects to Tackle During the Quarantine

You’re working from home, which means you don’t have a commute, which means you have extra time on your hands.
      You’re working from home, which means you’re bored, and you’re looking for stuff to do. If you own your home, that “stuff” probably means home improvement projects. We’ve got tips on what to tackle during the quarantine.
Do an even deeper clean than usual It is spring, after all. This year, in addition to your annual spring cleaning list, add a few tasks that are specifically intended to kill germs and improve the air quality in your home. 
      “It’s best to check if your cleaning materials are in the list of approved products released by the US Environmental Protection Agency and the Centers for Disease Control and Prevention (CDC),” said the Philippine CONTINUED >>>

Should You Ask for a Forbearance?

Whether you’ve lost your job, are worried you might be about to, or are finding your finances crunched by the coronavirus pandemic, you may be thinking about asking for a forbearance on your mortgage. But should you? Will it really help put you in a better financial position? 
      We’re breaking down the details. 
What is a forbearance?  “Forbearance is a temporary postponement of mortgage payments,” said Investopedia. “It is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure.”
      The key words here are “temporary” and “postponement.” Forbearance is a way to delay your mortgage payments CONTINUED >>>

How to Sell Your Home Now

Everything has changed in the real estate world, seemingly overnight. The incredibly hot market of the past couple years has taken a hit as the coronavirus has made its way across the country, and the world. But homes are still selling. Not with the same frequency, but people still have to sell. 
      If you’re one of them, you’re probably wondering what to do right now—especially since in-person home tours aren’t happening. These tips will help you get your home to stand out and get it sold even when others aren’t moving.
Spring for enhanced virtual tools It might cost you a little more, but creating a virtual experience for your home is as close as you can get right now to showing buyers what it would be like to walk through the place in person. 
      “As we’ve suddenly found ourselves adapting to a new normal, the meaning of home has never meant so much to CONTINUED >>>

Family Home Improvement Projects You Can Do During the Quarantine

All this quarantining making you want to fix up the house you’re stuck in? You are not alone. Despite the stay-at-home orders, the parking lot of our local Lowe’s is still packed every day! 
      The good news is, you can order just about anything you need, and with all that family togetherness, you’ve got the manpower to get some stuff done. Here are some great projects to take on while the family is hunkering down together. 
Do your backsplash Tiling a backsplash seems like it would be a complicated project, but it’s actually relatively easy, even for novices. Little kids can get involved, too, since there are so many different tasks involved, from measuring all the way to grouting. 
      “If more involved renovations are on your to-do list, let the adults handle the removal of the old unit first,” said Home Jobs By Mom. “Then allow the kids to get creative with the new backsplash. If you’ve decided on a multi-colored mosaic backsplash, for example, the kids can work together to assemble the tiles on a sheet. This DIY home improvement project is not
CONTINUED >>>

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