MyRealEstateInvesting411

Buying a Fixer Upper - 3 Traps To Avoid!

2007-11-04T22:42:28Z

Whilst savvy investors regularly make big profits with fixer uppers, there can be many hidden risks when buying a fixer upper. Learn the traps to avoid when investing in a fixer upper to increase your profits and stay away from those properties that will cause you more stress and costs than anything else.

If you can�??t make a profit off of a property because of the expenses you have to pay into it you will not be making a profit at all. To stay in this business you need to make a profit on all of your investments. Getting stuck with a property that has a huge problem where you will have to shell out more money than you can make off of it is stressful, aggravating, and especially a waste of time and money.

Three Traps In Buying a Fixer Upper to Avoid

These traps often inflict the new and beginners in the field of real estate investing, but they can also hit the most experienced and skilled of investors. Everyone should be on the lookout for these three main traps and if found �?? stay away from them.

1. Toxic Mold: When you are looking at a newly built property you should not have to worry about toxic mold. However, since you are looking for fixer uppers you will be mostly looking at older homes. These older homes have a risk of containing toxic mold. Many more buyers today are requesting an environmental inspection, which can reveal toxic mold if it is present in the home. Watch out for damp basements, unfinished basements, and any other wet problem.

Moisture is where toxic mold loves to grow. Before you invest in a property ask for an environmental inspection to ensure that there is no toxic mold.

2. Major Structural Repairs: Major structural repairs could be roof problems, foundation problems, old beams, and rotting wood. All of these problems could be extremely costly and could cause you to spend more money than you will make. Always make sure that you get an inspection done by a constructional professional and a home inspector to detect these problems.

3. Major Electrical Faults: Since all of the electricity is run inside a home�??s walls, if there is a problem it will most likely be very costly. Major electrical faults can also be very dangerous and can come back to haunt you. You should make sure that you get a thorough and professional electrical inspection on an investment before you put any money into it.

You do not want to invest in any property that could have any one of these three problem traps. Stay away and stay safe in your investments. You can make profits in buying fixer uppers, and you can keep your business running smoothly by avoiding the risks involved in investing in these fixer uppers.

Copyright © Karsal Pty Ltd.2006 (Fixer Upper Fortunes). Full copyright reserved Karsal Pty Ltd, (Fixer Upper Fortunes). Bloggers and journalists are welcome to link to posts or excerpt so long as full credit/attribution is given to MyRealEstateInvesting411.com and Karsal Pty Ltd.

Sal Vannutini has quickly established himself as the �??go-to�?? expert in the game of fixer-upper real estate. With over 19 years of �??in-the-trenches�?? real estate investing experience, as well as helping hundreds of ordinary investors achieve their ultimate success, Sal is ready to help you achieve your financial goals and lifestyle from real estate investing. His study course Fixer-Upper Fortunes is the definitive guide on investing in fixer-uppers and foreclosures.

Thinking Outside The Box

2007-09-20T03:37:40Z

We know that once the boom has gone out of the real estate market, we have to adapt our profit making strategies to fit. It�??s no longer enough to make a few cosmetic repairs and depend on the market values to push up the price like we did when there was a boom on.

After some time it will become a little more challenging to find the right kind of real estate to purchase. Remember, before the market flattened it was okay to do some light cosmetic fixes that would make the home look better without costing too much and thus eating into our profits.

Now we have to realise we are not going to make huge profits for next to nothing. We are going to have to do a bit more work and start to think outside the box when it comes to fixing up the house. Now we are relying totally on the sweat equity principle to make a profit. This means that it is only what you do to a house that will bump up the price and still make the buyer view it with favour.

When you buy a run-down property, you still need to make sure that it is structurally sound. It may look hideous; it may even smell disgusting, but that�??s good news for you. That�??s what will turn the other buyers off and give you a good price. And you are going in with the idea of fixing those problems.

Understand that Mr and Mrs Buyer don�??t want to spend money on repairs in addition to their purchase price. They want a home that is ready to be lived in. Hey, it�??s been enough hassle just moving; who wants any further problems renovating?

So when you purchase that home that no one else wants, think outside the box to find how you can renovate it to make it absolutely brilliant. Forget new carpets and paint and look at some structural alterations. That doesn�??t necessarily mean tons of money.

Look at the layout. You may be able to add an ensuite to the master bedroom. That will jump your value up tremendously. Look for another area that can be used for a family bathroom. Try replacing a blank wall with picture windows. This could open up the home to a view that people may not have realised was there.

Look for original cladding. Restored to pristine condition, it may give the home value that was previously unthought of.

Another great move is to use garage space for an extra room - a family room or an extra bedroom perhaps. Install a carport to replace it, or if it�??s a two-or-more car garage, use half for the extra room and keep the rest for the car.

You may be able to add a deck out the back, with sliding glass doors onto it from the house. Or maybe the house would have better curb appeal if you pulled down that filled-in front porch. These are the kinds of things to look at when you want to add lots of value to bump up your price.

Can You Still Make Money In Real Estate When the Boom Runs Out of Gas?

2007-09-10T03:56:35Z

Fixer-Uppers �?? Create Instant Gains In A Flat Real Estate Market

Almost every day, I receive emails from my readers asking if it is possible to make a profit now that the boom has cooled off.

Yes, it is possible to still make money investing in real estate, even when the market is flat. You just have to know what you are doing. Basically, the idea is to create your own extra value on the property, rather than waiting for the �??market value�?? to push the price up. How do you do this in reality?

The Profit Power Of Fixer-Uppers!

Planning, preparation and research are the keywords. Don�??t just charge in and buy something that�??s wildly expensive and expect to sell it at a profit a few months later. That may work in a boom market, but if you want to deal in real estate on a regular basis, you can�??t just hang around waiting for boom times to happen.

You need to add to the value of the property yourself rather than relying on a boom in prices for your profit.

There are always real estate bargains to be had if you know where to look. What you need to do is buy something that is reasonably priced, then add value yourself by improving it. Don�??t necessarily get into structural alterations. If you�??ve done your homework, there will be no need for that, anyway. Never buy a property without knowing that the foundations, walls and roof are all basically sound.

Add Maximum Value for Minimum Cost

Do the simplest things that will give you value for money; a new coat of paint, new floor coverings and even a new kitchen if the old one looks shabby. Light fittings, new taps and door hardware also smarten up real estate at a relatively small cost.

Don�??t forget sidewalk appeal. A well-trimmed lawn and some good quality flowers or shrubs along the front fence will attract a homebuyer as much as a neat and clean house.

Increase Rental Returns By Up To 20%

You can even do this with a rental property. Once the place is smartened up it will attract more rent. An increase in your rental returns will help you happily survive such things as interest rate rises, so renovate your rental property, then increase the rent by up to 20%. This will lower your financial risk, increase your cash flow and make sure you have enough to cover any unexpected costs like repairs.

Increase Your Returns With Fixer-Uppers

By buying fixer-uppers, rehabbing them and re-selling at a profit it is possible to create an instant income stream. You don�??t stop with the one deal of course, but re-invest some - or all �?? of your profits in the next deal. How much you re-invest depends on the amount of debt you are comfortable with. You can work this out once you begin to know your market. The lower your debt is, the lower your risk will be.

You can reach Sal directly via [MyRealEstate411@gmail.com]

Handyman Specials - How to Turn Real Estate Trash into Cash

2007-08-17T00:27:57Z

If you�??re considering profiting by investing in handyman special properties, know that this is a good decision with the right amount of renovation. Some people believe that handyman specials mean that with a little paint and carpeting the house will resell quickly. This is not often the case.

In order to make money from these properties, you must be willing to renovate them. However, with the appropriate renovations you�??ll have a large profit potential with each property you take on.

When you see a property listed as a �??handyman special�?? be sure to see the property before deciding on investing. It�??s easy to invest in a property and then later find that it�??s going to require more investment than you�??ll get in return. Buying a handyman�??s special will result in you making money if done carefully. There are certain steps that you�??ll want to follow when investing in handyman special properties:

Step 1: Review the property carefully.

Be sure that you�??re going to get a good return on your investment. If a property has to be completely renovated complete with plumbing, electric, etc. You may not get back what you put into it. Don�??t be afraid to invest, but be sure the investment is worth it.

Step 2:

Once purchased, take the time to do the job right. When work is done haphazardly, it�??s very obvious to potential buyers. When they see that something has been thrown together, they will feel that the entire property has been taken care of that way and will be less likely to purchase it. Take the time to make sure it�??s done right.

Step 3:

Be sure to price the property right. Talk to others that are selling and find out what other properties are selling for. Don�??t just look into what they are asking for properties, but what those properties are sold for. If you overprice the property you�??ll sit on the property for a long time. If you under price the property you�??ll cheat yourself of profits. Be sure to find out what other properties are priced for and price your property just below the others.

Step 4:

Take care of property well when it�??s on the market. Renovating the property is not complete until it has been sold. Be sure that even though the property inside is done; the outdoors will need constant care. Be sure to mow the lawn, pull weeds, and plant flowers if necessary to increase curb appeal. Don�??t let too much time go by between mowing. If the weather�??s been cool and sunny you can be sure that the grass is growing quickly. Cut the grass at least once a week. If the lawn is starting to brown due to heat, water the grass a few times a week to regain the green.

The above steps will ensure that your property will sell quickly. You will maximize your profits by choosing your properties wisely. You will take your handyman�??s specials and turn them into cash.

Creating A Vision

2007-07-06T01:04:05Z

To be a success at anything in life you need to have a vision and passion. Without these, success would be almost impossible to attain. This can be applied to most of life�??s endeavors. So it�??s desire that fuels your internal motor to greatness. It�??s the thing that pumps the adrenaline into your system and helps to keep you awake to finish one last task when your body would otherwise give in to sleep.

You need to ask yourself 3 tough questions:

What do I love about real estate?

Here�??s where you can define your desires. Once you do, determine how you can mold them into attainable goals. Not only do you need to have these goals, but they need to be things that you truly want to achieve. If they are, then you�??ll have the burning desire to make them happen.

What will success in real estate bring to my life?

What are the reasons for choosing your path in real estate? Take the time to think about your own aspirations. Only you can know what�??s right for you; think about this. What is it that you want it to do for you? People consider success and fortune to be different things in their life. Decide what you want out of it and make sure it�??s something that will be a good fit for you.

What do I consider success in real estate?

Again, this is another thing that people define differently. The more success you want, the more you must be willing to pay for it. It may mean you�??ll have to sacrifice more of your free time to get it. However, the more you are prepared to pay, the greater your success will likely be.

Six Benefits of Real Estate Investing

2007-06-29T02:39:09Z

Real estate investing involves a lot of work and research. However, there are numerous benefits to enjoy as a result of all this work.

1: Successful investing creates multiple streams of income. You can purchase a property and hold on to it. One of the more lucrative scenarios includes bringing in renters. Another way to create income is from flipping: buy a property, perform a rehab and sell it for a profit. Savvy investors are making huge profits right now by simply buying rundown homes.

2: Tax Shelter and Deductible Benefits. Real estate investing offers significant tax shelter and deduction advantages. Interest paid on mortgages is deductible as are the profits from a Roth IRA if you use one to handle your real estate investments.

3: Profit. There is an enormous earning potential from investing in real estate. The current market is ripe for rehabbing and flipping. Even at a conservative estimate, a real estate investor could stand to bring in 30% or 40% profit.

4: Portfolio Diversity. Diversifying your portfolio is a safe way to secure your profits. This way when one of your investments isn�??t working out, there are other, stronger investments to carry you until things even out. Investing in real estate is a great way to diversify.

5: Continuous Income. If you choose to rehab a property, you can choose to hold on to it and rent it out. This is a great option for individuals who are retired and are looking for ways to supplement their income.

6: Appreciation. Real estate has a natural way of increasing in value �?? even if the only thing you do is mow the lawn. This is because real estate traditionally appreciates at an annual rate of 9%.

So, real estate will always offer profitable opportunities - these benefits prove that it is one of the safest investment vehicles around.

Successful Real Estate Investing - It’s All In The Mind!

2007-05-25T04:27:28Z

Before beginning any real estate venture, starting any course or reading any books, the overall attitude may need its own checkup. By being in the right frame of mind, the “Millionaire Mindset”, investors will be laying the proper foundations for long term success.

Having mentors throughout the course of a career can be the secret key to success. Even better, it’s good to have several mentors with a variety of backgrounds. This way there is a range of knowledge and ideas at the investor’s disposal. Despite the differing backgrounds of the mentors chosen, it may be easy to spot that they possess similar characteristics. It’s having these characteristics that have probably made them successful �?? and should be emulated by the protégé for success. There are 6 essential characteristics they share.

Those 6 characteristics are:

1: Having a clear idea of the ultimate goal. It’s virtually impossible for anyone to attain success without really knowing what they want from the get-go. Having a clear goal helps to define the steps needed in order to get there. Additionally, it’s crucial to have the burning desire to see that end to fruition. Having the goal is important, but being passionate about it will make that goal easier to reach.

2: A positive mindset and strong self-belief. Along the lines of “you get out of it what you put into it” is the belief that negativity begets negativity and thinking positively will bring about positive results. Consider the obstacles along the way to the final goal as challenges, not problems. This shift in thinking changes the approach toward them.

3: Acquired specialized knowledge. Again, whether in real estate or any other business venture, a solid base of knowledge is required. Therefore, investors must be knowledgeable in real estate investing in order to have any measure of success.

4: Goal-oriented. Similar to the first characteristic, being goal-oriented helps to keep investors on-track to attaining the “big picture” success they see for themselves down the road. Being goal-oriented helps to prepare for the next characteristic�?�

5: Decisive in nature. Being decisive makes it that much easier to make the necessary decisions �?? and at the right time. With a goal in mind, and a passion to achieve that goal, it becomes easier to do what is needed.

6: Team players. Rich and successful people realize that they haven’t gotten to where they are without the help of others along the way. They surround themselves with like-minded people and feed off each other for ideas and support.

Sal�??s Rant!

Having a “millionaire’s mindset” is probably the single biggest factor for success. Yet it is also one the most overlooked by the majority of investors. Which is probably why over 90% of the world’s wealth is controlled by just 5% of the population. Follow the six characteristics, and you’ll put yourself ahead of the 95% who struggle, and achieve success beyond your wildest dreams.

Getting Started in Real Estate Investing

2007-05-22T23:21:28Z

As you embark on your real estate investing venture, realize that although you�??ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.

You wouldn�??t be able to start a new job without the proper training, and you probably wouldn�??t be able to successfully invest in the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. You need a plan if you�??re going to succeed, and you�??re also going to need some help.

Investing as a collaborative effort

You can know all there is to know about real estate, but there are some things that you absolutely must leave to the professionals. Throughout the investing process �?? and not just the first one, but with each and every property you purchase, you�??ll need the following professionals to aid you:

An attorney. A lawyer will help you wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.

Title or escrow company. The best ones to go with are the ones that work mostly with investors; they�??ll speak your language.

An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.

A CPA. As investing should be treated as a business, you�??ll need an accountant to help you with your finances and profits. The theme here is to find one that understands real estate and investors.

A mortgage broker. Again, it�??s good to stick to one that understands investors and has experience with investors.

A contractor and a plumber. If you�??re investing in a fixer-upper, you�??ll need to have a contractor come in to determine if there are structural or cosmetic repairs needed. A plumber will be able to tell you if there are any leaks or problems with pipes. Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. You want to shy away from the structural issues as these tend to kill your profit.

Just as lawyers specialize in an area, so should the pros that you choose to work with. This helps to keep everyone on the same page �?? and operating in harmony.

Sal’s rant!

The key to fast-track your success lies in your abilility to apply the rule of leverage in every aspect of your business. The vast majority of investors beleieve that leverage only applies to the use of OPM, or Other People’s Money. Nothing is further from the truth.

Time leverage and expertise leverage are just as important. For example, you leverage your time by employing contractors to do the renovation work, and you leverage your expertise by assembling a team of experts such as the one mentioned above.

As the old saying goes… you can either do it the easy way, or the hard way. Remember that you should always do what you do best, and leave everything else to the rest. It’s your call.

Finding the Right Property to Invest In

2007-05-18T00:35:12Z

If you�??re starting out in real estate investing, the first thing you�??ll need to do is know your market.

Where are you investing?

You need to know the market to know if you�??re getting a deal or not. Is the area seeing a lot of sales, or are the properties lingering on the market a long time? Even in a soft market, you can make a profit. This is because there are always sellers.

The idea is to find the motivated sellers that will really be looking to unload their house. A profit can be made in any kind of market. You just need to be prepared and know what you�??re getting into from the get-go.

What features sell?

As I said, regardless of the market, people will be selling and buying houses. As you investigate the market, find out what features sold the property. In the case of finding the fixer-uppers, you�??ll want to know about the cosmetic things, nothing structural. Making structural repairs can drastically cut into your profit. But pay attention to the types of things that attract buyers and see about incorporating them into your strategy.

Enhancements like replacing walls, plumbing, structural beams, sub-flooring, and electrical systems can certainly be done �?? and have been done �?? by investors such as you. However, the successful ones are only successful after many years of investing; it should not be done by anyone brand-new to real estate.

The bottom line: an ugly house could be your cash cow

Fixer-uppers are that way because they need work. Maybe the yard is overgrown and in disarray. Cosmetic repairs can be simple enough to do. You should embrace the garbage-filled houses, stained carpets and nasty odors. These are all things that you can fix �?? and see a profit on when complete.

Sal�??s Rant�?�

Real estate isn�??t rocket science. The trick is to really understand the market that you operate in. Especially in today�??s market where you can become unstuck very quickly. Let�??s face it, anyone can make money when the market goes up. The real magic is making it when things aren�??t so hot.

Which is why research is the biggest risk-minimization method you can adopt. And I ain�??t talking �??lazy�?? research either. I�??m talking about getting off your butt and inspecting real houses. If you aren�??t prepared to do the hard yards�?� don�??t expect to make easy money!

Sal Vannutini has quickly established himself as the �??go-to�?? expert in the game of fixer-upper real estate. With over 19 years of �??in-the-trenches�?? real estate investing experience, as well as helping hundreds of ordinary investors achieve their ultimate success (see Coaching Program), Sal is ready to help you achieve your financial goals and lifestyle from real estate investing. His study course Fixer-Upper Fortunes is the definitive guide on investing in fixer-uppers and foreclosures.

Real Estate Investing: Which Is The Best Strategy For You? Part 2

2007-05-15T23:08:36Z

In Part 1, I discussed finding balance and deciding what your ultimate goal is for your investment; what do you want out of this?

Selecting the best strategy for you is something to which I devoted considerable time to in my Platinum Coaching Program, simply because too many students were becoming confused in the current market place.

The following is an extract from my recent Platinum Coaching Program call�?�

When deciding on any strategy you need to ask yourself some important questions:

Is the plan something that you can educate yourself on and master? Will you be able to become the expert with this strategy? Once you do, what are the many ways you can profit from it?

Do you have the time it will take to do the proper research? You need to know from the start that you have the time to make it work. Since some strategies can require a great deal of time, you need to decide what time you have available to devote.

Is it something that enables you to achieve your objectives? In other words, can you make the kind of money you want within the boundaries you are willing to explore?

Finally�?�

Are you passionate about it?

At the end of the day, if the plan you map out doesn�??t �??do it�?? for you, then it�??s not likely that you�??ll be very successful with it.

Sal�??s Rant!

When asking yourself the above questions, it is vital that you answer them honestly. Why? Because if you don�??t and you then decide to test the waters with a �??half-hearted�?? approach, then you can only expect �??half-hearted�?? returns for you�??re your efforts.

If you are still struggling to nail it down, and looking for a step-by-step way to build a lucrative real estate empire, then consider working with me in my Platinum Program.

Click here for full details: http://www.SalVannutini.com

Full copyright reserved Karsal Pty Ltd, (Fixer Upper Fortunes). Bloggers and journalists are welcome to link to posts or excerpt so long as full credit/attribution is given to MyRealEstateInvesting411.com and Karsal Pty Ltd.