Flipping Houses for Gold: How to Find the Perfect Fixer

by: Jeanette Joy Fisher

Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.

If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.

HOW TO FIND THE PERFECT FIXER

1. Know Your Market

Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?

Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.

2. Know When "Ugly" Means "Gold"

When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.

Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.

3. Know When "Ugly" Means "No Thanks"

When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.

If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.

Turn Yucks into Bucks

Why would anyone want to do this hard work? How much does the average rehabber make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.

When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.

You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance, and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhousefordollars.com/


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How Millionaires Get to Be Millionaires

by: Daegan Smith

Money is not just a necessity nowadays; it has become a supplement for sustaining wealth and luxury. Anybody of practical reason who’s being asked will have to say that riches should provide for the next generations. Having this thought in mind, everyone are craving for millions even teenagers earn and work out to look forward the future having a house with a large open space, elegant façade and wheels in the garage. Yet there are only few steps, hints of answers revealed by these millionaires global wide.

Before you can manage a large amount of money learn to handle the coins in your hand. Lisa Van Duesen, a Vietnamese now a mini mogul at US was once sunk in debt and penniless. She sold her house and mortgages an amount of $ 200,000, paid her debt and move to settle in the green pasture of US. They sacrifice from eating lavish foods and satiated in rice and soy sauce as their everyday meal. She worked hard as a real estate broker after college and invested her money to real estate properties that soon earned her 40% equity. Learning fro her work, she buys and sells using the bank's money wisely placing them according to her needs. She purchase whatever that has value and can be sold with interest and plan it financially. She recovered from having sky-high debts to rising assets using only what she has into a profitable cause.

Follow your parent’s advice, earn a degree.

Education is a key factor in understanding how money talks and that are by having one potential, being knowledgeable. Invest in your mind. Acquiring a degree is gearing yourself with skill that can be used and valuable in the market. Arturo Gonzalez, son of the Mexican railroad worker dreamt of making it on top. He has promised himself of two possibilities in his life, Harvard or Bust. Later on he was accepted and pulled himself with ambition to Harvard Law School. He then land a job in San Francisco based law firm and has an income about $ 740,000 in 2003, according to the American Lawyer Magazine. This undeniable manifest how education could earn you a living.

Positive attitude towards life spiced with perseverance.

Behavior towards work and the optimism that boost up your moral after you tried hart. Starting a small business is already hard enough, to most of people especially when the resources is scarce and debts is high, study shows 20% are struggling small enterprise, according to SBA ( Small Business Administration office of Advocacy).

Rossie Herman, 42 and a resident of Tomball, Texas had experience a lot of struggle just to get her she is now. She took all the risk even placing her in $ 75,000 debt going form one credit card to another which normally happens to about 46% of small business as of 1998, SBA says. She is a manicurist who has two daughters to raise and convicted herself to get out from debt. Often people slam their door in her face during her marketing strategy of house to house delivery." It was frustrating and tough", she admitted. Yet willingness to succeed paid off. The key there is not by quitting but pursuing.

Invest and Save.

The problem of the most entrepreneurs are recognizing only on what goes in the pocket but not knowing what goes out. Spend only what is not more than your budget and compromise from it. Save, save and play out to invest it when the economy is not shaky. One of Oprah’s best advices during her talk show is that a good financial planner must always sign their own checks. This is to monitor what is left and what needs to be saved or else you’ll end up bankrupt without even knowing it.

Time is always essential.

Multi tasking is the best way of achieving your goals in a short time, this means use your potential in dividing the task to others while focusing on what needs to be done. Most of us try to do a lot of things in a short amount of time and end up finishing nothing at all. Always get your priorities straight and focused baring in mind that investing on it will profit you in the end.

About the author:
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>http://www.comlev.com Team Blog: http://www.turnkeyinternetbusiness.blogspot.com


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Don’t Let Passions Rule When Buying A Business

by: David E Coffman CPA/ABV, CVA

For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much

This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts

At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information

You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.

Changing too much, too fast

Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does

One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.

Not being interested in the business’s product or service

I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion

Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.

About the author:
David E. Coffman CPA/ABV, CVA has 30 years of experience working with and operating small businesses. His web site http://biz-buying-selling.comoffers many useful articles, links, and other resources for potential buyers and sellers of small businesses.


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Canada Plays China Card

by: Carl Delfeld

Trade friction and energy leverage has led to an unprecedented Canadian policy of “speak loudly and carry a big piece of lumber” policy towards the United States.

The long running dispute over American tariffs on Canadian lumber escalated to the point last week that Canadian Prime Minister Paul Martin indirectly linked settlement with continued U.S. access to Canadian energy supplies. Meanwhile, Canadian Natural Resources Minister John McCallum was off to China to meet with Chinese oil, mining and forestry officials.

This is serious business. Part of the 1994 NAFTA Free Trade Agreement guaranteed that Canada would remain the favored supplier to the U.S. It might surprise you to learn that Canada supplies 17% of U.S. oil imports, 16% of our natural gas and nearly all of our hydroelectric power. The Canadian government owns the vast majority of the country’s energy resources and Canada exports more than 1.5 million barrels a day to America representing 8% of U.S. consumption.

China’s Lengthening Reach

Meanwhile, China’s aggressive moves in Canada’s energy sector are raising eyebrows in Washington. Chinese government has earmarked $100 billion for overseas acquisitions of oil and gas. The Chinese are going on a buying spree investing in Canadian energy companies and recently plunked down $2 billion to build a thousand mile pipeline from Alberta tar sands to port on the west coast and onward to Beijing and Shanghai. While the oil reserve numbers for Saudi Arabia are under scrutiny, Canada has recoverable reserves of roughly 175 million barrels. Much of it is in oil sand that is processed profitably at oil prices of $20 or higher and T. Boone Pickens thinks that Canada’s oil sand production could reach 6 million barrels a day

There are now about 1 million ethnic Chinese residing in Canada and China is now Canada’s second largest trading partner. Last month, Chinese President Hu Jintao visited Canada and declared that the two countries had upgraded their relations to a “strategic partnership”.

The US’s Waning Grasp

This Chinese-Canadian power play puts America in real jam. You could write a book about the long simmering lumber dispute but a Nafta panel recently ordered the U.S. to return $5 billion of collected tariffs to Canadian lumber companies. Relations with Canada were also weakened earlier this year when Canada announced that it would not contribute to the American-led missile defense program even though 90% of Canadian citizens live within 100 mile of the border between the two countries and Americans purchase 85% of total Canadian exports.

What’s going on? Part of the answer is that the vast majority of Canadians oppose the policies of the Bush Administration. The issue is sensitive in many areas across Canada that are highly dependent on the lumber industry and Mr. Martin and his party are preparing for national elections expected early next year. It is always a vote getter to poke a stick in the eye of the elephant to the south.

How to Play

While Canadian-American relations have seen better days, the energy boom has certainly been beneficial to investors in Canadian markets. The Canada iShare (EWC) tracks the MSCI Canada Index that has 40% exposure to Canada’s energy and materials sector. While the S&P index is up only 3%, the Canada iShare is up 16.6% year to date and 28.8% over the past twelve months.

Speaking of timber, it is smart to have some timber exposure in your portfolio and I have had timber REIT Plum Creek Timber (PCL) in our core portfolio for over two years. Here is why I like it. First, timber is a great inflation hedge and over the past 100 years has risen 3% above the average annual inflation rate. Secondly, timber is not correlated to stocks or bonds and thus is a great “shock absorber” to cushion your portfolio when shares are declining. During the 1970s bear market, timber rose in value while stocks went down. Thirdly, from 1973-2000 timber yielded an average annual return of 15%. Last but not least, timber valuations are attractive after some declines during 2000-2002 especially relative to real estate prices. During 2004 Plum Creek was up 23% and this year it has traded between $34 and $39 finishing last week just over $35 with an attractive dividend yield of 4.3%.

It behooves the U.S. to negotiate a settlement to the lumber dispute as soon as possible and lock up Canadian energy sources before the Chinese get the jump on us. Investors can’t do much about improving Canadian-American relations but they can improve their portfolios by adding exposure to timber as well as to Canada as both an energy and China play.

About the author:
Chartwell Partners publishes the investment newsletter "Asia-Pacific Growth." http://www.chartwellasia.com719-264-1503


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Bulgarian Property for Sale- An Eye to Investment

by: surrinder Ahitan

In addition to seeking out a Bulgarian property for sale for personal or family use, there are a number of people who are interested in finding a Bulgaria house for sale for investment purposes. In other words, these people want to purchase a Bulgarian property for sale, hold on to the property for a moderate amount of time (perhaps leasing it out during the period of ownership) and then they desire to sell the residence for a profit.


In point of fact, some people are able to make good money through the process of making the purchase of a Bulgarian property and then reselling the property after the passage of a reasonable period of time.


The overall Bulgarian real estate market has become increasingly attractive for investors in all sectors -- industrial, commercial and residential. Indeed, when it comes to a Bulgarian property for sale, housing prices on average in the country are rising at a rate of about twenty to twenty-five percent per year. Therefore, if a person were to make the purchase of a Bulgarian property with the intention of holding for ultimate resell, he or she likely will make tidy profit in a short amount of time.



In the immediate future, the Bulgarian real estate market is expected to remain hot and vital. This includes the sector of the market that includes the proverbial "Bulgaria property for sale." Residential property is expected to increase in value at the present rate through at least the end of the decade according to most financial analysts involved in Bulgarian economy.

About the author:
Surrinder Ahitan's website www.Bulgarian-Property-Advice.comprovides detailed information and advice on the most lucrative areas to invest in Bulgaria. You will learn how to get around, get a flavor of the language, history, culture and more.


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Building Wealth: Don't Waste Your Money on Real Estate Investment Schemes

by: Jeanette Joy Fisher

You've seen the real estate guru advertisements for books, DVDs, programs, seminars, and mentoring coaches promoting no-money-down deals. Perhaps you've watched the infomercial on TV with the people telling their stories of how they made millions investing in real estate with no-money-down and cash back to the buyers.

Maybe you, like me and many others, have purchased books or expensive systems based on these no-money-down and lease-option investing schemes. Here's the rest of the story.

Perhaps you've seen an ad in your local newspaper offering a home with 100% financing from the seller or a lease option. You should know that the investor offering these types of deals makes money by purchasing the property at a discount and selling the property for an inflated price.

Lease-option real estate investors play the odds. They bet that most people won't be in a position to purchase the lease-option home in a year. So the investor seeks a hopeful tenant to make higher than average rental payments, pay more move-in cash, and make the investor's mortgage payment. Those tenants who do eventually purchase the home paid much more for the home than the investor. Many tenants never come up with a new mortgage loan to purchase the property when the time runs out. Either way, the real estate investor makes money.

First-Time Home Buyers

If you need to buy your first home to live in, these home-purchase methods may help you if you have terrible credit and can clean it up in time to finalize the purchase in a year. Just understand that you're paying too much for the property and may not make any money on appreciation. On the other hand, if you have strong credit, you can purchase a bargain house with no money down legitimately.

Tips for Beginning Real Estate Investors

Don't buy overpriced property! Avoid 100% investor-financed "deals." You will have to wait too long to make any money. Plus, the rental income most likely won't come close to making the mortgage payment for you.

Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Would you buy a book on how to make a fortune on the Internet that was written in 1995?

These out-of-date, no-money down schemes, tell you to look for home sellers in distress who will let you buy their home for no-money down with the seller financing the property for you. This system worked last century. Today's home sellers know that they can get a buyer who can get their own financing.

Plus, today's home sellers know that other sellers have lost money selling with no-money down. They've heard the stories where home sellers didn't get paid and had to foreclose on a property. They've heard the stories where the investor-buyer rented the house to tenants who trashed the property. They've heard the stories where the investor-buyer collected the rent and didn't pay the home seller.

To get started building wealth in real estate today:

1. Get your credit ready for mortgage financing. (Mortgage credit differs from consumer credit.)

2. Buy right. Don't overpay for deals that sound too good to be true. These schemes are too good to be true!

3. Guard your money. Don't get yourself in over your head with high mortgages on rental properties that cause you negative cash flow and jeopardize your financial well-being. The best way to do this is to make sure you get the best mortgage rates on a bargain-priced property.

You can buy investment property for little -- or even no-money down. Get started by buying your home or a second home. Real estate investing offers you the most tried and true way to build wealth when you avoid investing schemes.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhouse.com/


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Finding a Brochure Printing Company

by: Max Bellamy

A brochure can be a great promotional tool, whether it is for is a real estate listing, a trade show handout, a data sheet, or some other application, but sometimes it’s hard to know where to start. Brochure printing companies can provide their expertise as well as a wide range of printing and marketing services.

Most brochure printing companies do other types of printing as well. The range of services available within a company that prints brochures is quite broad. The process of finding the right company that meets the requirements of your job is an easy step-by-step process.

First, carefully consider your budget. Then assess the job you have in mind, whether you prefer full color or a single color, whether you prefer offset printing or digital printing, print run, type of fold, paper and shipping. Following these basic guidelines should help make finding the right brochure printing company a simple and painless task.

Before you enlist the aid of a customer service representative at a printing company, you can look at online templates or fill out a questionnaire that will help assess the cost of a job and the services that brochure printing company provide. This makes it easier to shop around and get the best deal without feeling obligated to go with a particular company.

Most brochure printing companies will provide an experienced estimator who will help you to determine the proper paper, inks, coatings, bindery and distribution for your brochure project. It is worth it to check to see if this service is offered, as it will save you time and trouble. It also usually produces an accurate quote, thereby insuring the best quality at the best possible price.

The services offered at brochure printing companies will usually exceed your brochure printing needs; most brochure printing companies will also offer other printing, bindery and mailing services. Beyond that, there are brochure printing companies that will also assist you in your brochure design, recommend marketing strategies, write brochure content for you, and offer other marketing tools. Finding and learning about brochure printing companies and their services is an educational endeavor no matter how small or complicated the brochure, and the rewards can be substantial.

About the author:
Brochure Printing Info provides detailed information about cheap, color, and full color brochure printing services, and advice on finding a brochure printing company and quote. Brochure Printing Info is the sister site of Laser Toner Web.

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