Rehabbing a home for profit

Imagine an old, dilapidated house in the middle of a real estate neighborhood. Do you think anyone would still put value on that wreck? Think again. With the ugliest of junk, you can make out thousands of dollars from it. Rehabbing a home is one of the most profitable ways of living nowadays. But how do you do it?

The principle of profiting from rehabbing a home is simply buying a close-to-wreck house, repairing them, and sells it again afterwards. Why so? Once you buy a close-to-wreck house, you would spend only little of your cash because of the little value put into the property. Once you’ve done repairs, do renovations, and beautified the house once more, you can now raise the value of the house. But if you want to earn bigger from this, there are several points you have to pick to work on this.

First of all, check your budget. Though these wrecked homes should be of small value, some may have a price higher than the other because of several factors like location. Still, the best time for you to buy a home to rehab is when the real estate market is down. As of this time, the real estate market is facing this phase. When the market is down, the prices of real estate properties are low.

Consider the location of the house to rehab as well. With this, you can soar high the value once you’re done with all the renovations. Choose those houses situated near schools, shopping markets, and other city amenities.

Once you’ve pick a home, negotiate the price through the sales agent. The tip here is not to spend more 70% of the original price of the house when it was first bought. For example, if the original price of the house when it was first bought was $250,000, you should make it a point to settle the deal of purchasing it at a maximum of $140,000 and set aside the remaining $35,000 for the renovation. After renovation, you can sell it again for $250,000 or even more.

Now comes the rehabbing part. You’re supposed to beautify the house once more and make it stand out among all the other houses in the neighborhood but don’t over rehab nor under rehab. Like what’s said above, you shouldn’t spend more than 70% of the house’s original price. Still, with the renovation, the most important places to rehab are kitchens, master bedrooms, bathrooms, and landscaping. These are the main areas an occupant of the house most likely stays in while a good landscaping catches the attention of anyone who passes by the neighborhood.

Lastly, sell your house to the market. The most effective way of selling this in less than three months is through a realtor. Most likely, they will sell the house 15% more than what you negotiated with them. This 15% goes to both parties on a 60-40 share. You get the 8% while the realtor’s commission goes by 7%.

Home buying process

home buying processOnce you start working after college, you’ll soon face another major decision-making phase: what to invest for. Two things would come into mind when thinking of an investment: vehicle or real estate. Most would prefer a real estate property. However, the home buying process isn’t as easy as purchasing any item. The following tips would guide you in your home buying process.


Before anything else, determine your purpose why you want to acquire a real estate property. Would it be for preparation for your married couple life or simply to have a permanent place to stay in when you visit the place? How many people would occupy the house?


Once you’ve determined your reason of buying a house, it’s time to set budget for your home buying activity. Estimate your income and your credit report. You can consult a mortgage broker or apply for a house loan from banks. Once you’re already applying for a loan from these people and institutions, choose the loan plan you think you can comply with.

Help from an agent

After being accepted on a loan application, you need to find a buyer’s agent. You can talk to several buyers’ agents and conclude afterwards whom you feel you can negotiate the easiest. These real estate agents are responsible in finding the right places for you to close a deal. On your confrontations with them, you need to specify clearly your reasons why you want to own a real estate property as well as your specifications of the property you’re aiming for. This will lead them to look for properties that will match your standards.

Thorough searching

Though it’s the real estate agent who should be guiding you to look for properties on sale, you still need to search for homes for sale. Most houses for sale are not advertised on print that’s why you have to look them up online. Still, communicate with your agent and ask them to show you the list of prospect properties before going to each of them.


You need to choose at least five out of the long list your agent has provided you and your own search results. Set a date where you’ll do an inspection on these properties with your agent. Once on the site, check every corner of the inside and the outside. Are the water pipes properly working? How about the electric wires? Are there enough rooms? Is it near the driveway? How minutes will it take to drive to the city’s facilities? You might as well want to ask the neighbors about the history of the house.

Closing the deal

You’ve finally chosen your preferred property out of all you’ve visited. It’s time to close the deal. You also need to acquire a homeowner’s insurance and title insurance. Before signing the turnover contract, you can still demand for repairs to the agency. If there are repairs needed, don’t sign it yet so that the expenses for repair will be shouldered by them.

Buying a Second Home

buy homeAre you thinking of the finest investment you can make with your extra cash? If so, then probably you are thinking of buying your second home. Buying this type of property is one of the many choices of all people today, not just because it helps your financial standing to be a bit higher than what it is, but because of the fact that buying a property is considered a wise investment since the value will never depreciate unlike when you buy car which will lose its value in a few years time.

When buying a second home, you may want to consider several factors too in order to enjoy your new investment. The first thing that you have to consider is your budget. Make sure that this additional expense will still be covered within your budget. If you do not, you will end up losing the property in the end especially if you are not able to comply with the scheduled payments. Cash buyers will have less of a problem here, since they are able to pay for the property in full.

The second thing that you may want to look at also is the way you want to use your second home. Do you want to use it as a holiday house, or do you want to use it to spend the weekend? If you are looking to have it as a holiday home, you may want to consider the surroundings and make sure that you will have a different ambiance from what you currently have. However, if you want to enjoy your weekend in it, might as well get one that is just within a few hours’ drive. That way, you do not have to spend your limited time travelling on the road and spend more on fuel.

Third is you may also look at several expenses such as the property tax, and insurance, which is very important when making a huge investment. When it comes to home insurance, do not be surprised to see that the interest rate for this type of properties is relatively higher than what you have with your first home. This is normal and you have to consider this factor in order to give you peace of mind.

There are still other factors to look at when buying a second home. However, the first three factors that are mentioned above are one of the most important of all. Buying a second home is indeed a perfect idea to make your life less uncertain in the future. Aside from having the peace of mind that you will always have a roof for shelter, you can also have it rented to make sure that you will be having continuous income every month.

Just make sure that prior to buying a second home; you must consider seeking advice from real estate experts and financial advisors. These people will help you make a good plan that will reduce the risk of uncertainties along the way.

Property flipping process

In real estate terms, house flipping or property flipping means buying, gearing up and then reselling the property in the real estate market. It is like buy and sell business only that it is specifically talking about properties. These days, property flipping is more popular because the real estate business sees that people are looking for ready-to-live-in house rather than making one from scratch.

There are three phases in the property flipping process and each phase is important because you want to make sure that your investment will gain profit in the coming days. In this type of real estate business, you need to make the right decisions and moves so that you will succeed in the end.

The Buying Phase

This is the first phase and what is crucial about this is that you need to buy the right house for the flipping project. It sets the tone on how things will go from here on end. When you buy a house that is not in accordance with what is “in”, you need to do so much work and spend more for polishing the place.

The Renovation phase

You need to redecorate and renovate the house before selling it in the market. A certain degree of budge is needed and you need to have a timetable on how things should go and a target phase to finish everything.

In the renovation phase, you should pay attention to the things that are often looked at and examined by prospect buyers. Don’t just focus on the aesthetic needs like repainting, changing faucets and lights and the like. More importantly, focus on the fundamental things like the plumbing, electrical wirings and others. Pay attention to the bathroom and the kitchen because these are some of the crucial parts of the house that is often neglected yet the most important ones. you always have the option to hire a contractor to make things easier.

Your personal taste does not matter in the flipping the house. Remember that you are selling the house and not live there. Therefore you need to make sure to meet the preferences of the clients or prospect buyers. Choose safe colors, neutral and comfortable colors and design to make it look attractive to clients.

The selling phase

If everything goes well in the first 2 phases, the last part should be easy. Researching and information gathering is really important so that you can sell the house after a few weeks. Remember that the longer the house is for sale, the more payments are made to your mortgage. So you need to remember to sell your flipped house a little less than the market value. This is a tricky decision because you may not profit from it at all. However, with the right research and negotiating skills, you can still earn and flip the property to its new home owners.

Some flippers also enlist the house to a realtor. This is a smart move because the realtors have more access to buyers and clients. They also know the right price range where you can sell the house quickly and earn good and also have their own share. Make sure you get a good realtor to make things work for your end.