In an earlier article, we presented various options for ensuring that you have positive cash flow when holding rental houses, by minimizing loan payments. One problem which we now can address is to how to eliminate the need for paying mortgage insurance.
Any loan with less than 20% down payment will include or require mortgage insurance. It may be included in the rate (which is called "Lender Paid Mortgage Insurance" or LPMI) or more commonly it is a separate itemized item, but in either case you must pay it.
If you want to pay less than 20% down, the best way to get around mortgage insurance is to finance your purchases with two loans, a first and a second mortgage. For example, the first mortgage is commonly 70%, 75% or 80% of the purchase price and the second mortgage makes up the difference to 90% or 95% of the purchase price. You can get both mortgages from the same lender, but usually you can find better rates on the second mortgage from a lender that specializes in second mortgages. An independent loan broker can put this together for you nicely.
Both mortgages typically close escrow at the same time and both lenders are fully aware of each other. For simplicity, put both loans in the same escrow and sign them both at the same time. If you want to be tricky and try to use two mortgages to get to 100% financing (i.e. no down payment), there are ways to do this, but we do not recommend it and it is not within the scope of this article.
The second mortgage is typically at a higher interest rate than the first, but not always. For example, there are some very competitive home equity lines of credit (HELOCs) with rates only a fraction above the prime interest rate. You have to have good credit scores to qualify, but if you do, they are very attractive. The problem with a HELOC based on the prime rate is that it assumes the prime rate does not get too high before you pay it off. As you may recall from the early 1980s, the prime occasionally does go sky high and it could happen again.
There is a particularly wide variation in the interest rates for second mortgages from various lenders. Moreover, if your credit, income, and assets are not ideal, you may not be qualified for certain second mortgage programs, so it may be more difficult to find a second mortgage at a good rate that you do qualify for. It is very important therefore to ask your independent loan broker to check out various options and to shop the rates. He/she should be comparing at least half a dozen different second mortgage programs.
When you use two loans as described above, it is usually advisable to have an interest-only or minimum payment loan for the first mortgage. This allows you to focus on paying down the principle on second mortgage over a period of say 5 years, if you can afford it. If you cannot do that, than obtain a second mortgage that also has a 5-year fixed period and an interest only option. You are then covered with predictable and low payments for at least 5 years.
This article has reviewed a strategy for improving your cash flow when purchasing investment rental homes -- namely, using two loans to eliminate mortgage insurance. There is much more to say on this topic. So keep an eye out for additional articles by the same authors on this and related topics.
Copyright (c)2005 Jeanette J. Fisher and Robert S. Kramarz. All rights reserved.
Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," the only book to reveal interior design secrets on how to make top dollar investing in real estate. For real estate and interior design psychology books, articles, tips, and newsletters: http://www.doghousetodollhousefordollars.com.
Robert S. Kramarz is a loan officer for a major loan brokerage. He has over 20 years experience in finance and business management and comes from a family a long background in real estate investing and banking. He specializes in providing financing for purchase of investment real estate. He can be reached by email. Further information is available at the website http://www.sweetloan.info.
Monday, May 30, 2005
Friday, May 20, 2005
For Beginners: Three Tips to Help You Find the Perfect Fixer
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what to type of property to buy. Many real estate investors 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.
1. Learn Your Market
Your first task, exploring your market, helps you know a bargain house when you see one. Look at houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask about the terms of these sales because this helps you understand how sellers market their property. 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 pay the buyer's costs, too. Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyer often chose resale homes because they can't wait for a new home to be finished. But, these buyers like the amenities found in newer homes. When you transform your fixer, you'll know what buyers desire and you'll make informed makeover choices.
2. Know When "Bad" Can Be Good
When you first start out in your real estate "fixer" enterprise, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Don't be afraid of stinky houses that show horribly; look 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 that other investors see them as gold mines. You need to use your imagination when viewing theses homes. Try to visualize the finished product.
3. Know When "Ugly" Means "Pass"
If the house has cat urine staining the carpet, the subflooring or concrete foundation may need replacing. Dog urine cleans up easier. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Look for signs of plumbing problems such as water stains under sinks and loose flooring. When you're new to real estate investing, always remember your limitations. Use caution when considering houses needing structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems, but they acquired those skills after years of experience or pay a professional.
If you find a house with structural problems, get estimates from reliable contractors to do the work. Experience teaches you how to do more over time. Until then, rely on experienced contractors to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.
Why would anyone want to do this? How much does the average investor make? In Philadelphia, real estate investors only make offers on houses they expect to make $30,000 on. In Southern California, many investors make $50,000 to $100,000 on each house.
You can make a fortune fixing ugly houses. Learn your market. Know when "ugly" means bad that can be good, and when stinky means pass.
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
For more information about finding, financing, fixing and flipping houses, visit Jeanette Fisher’s Doghouse to Dollhouse for Dollars. Learn about decorating to attract buyers. Professor Fisher teaches Design Psychology college courses and professional real estate seminars. She is the author of Home Staging, credit for buying real estate, and other books. http://www.doghousetodollhousefordollars.com/.
1. Learn Your Market
Your first task, exploring your market, helps you know a bargain house when you see one. Look at houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask about the terms of these sales because this helps you understand how sellers market their property. 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 pay the buyer's costs, too. Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyer often chose resale homes because they can't wait for a new home to be finished. But, these buyers like the amenities found in newer homes. When you transform your fixer, you'll know what buyers desire and you'll make informed makeover choices.
2. Know When "Bad" Can Be Good
When you first start out in your real estate "fixer" enterprise, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Don't be afraid of stinky houses that show horribly; look 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 that other investors see them as gold mines. You need to use your imagination when viewing theses homes. Try to visualize the finished product.
3. Know When "Ugly" Means "Pass"
If the house has cat urine staining the carpet, the subflooring or concrete foundation may need replacing. Dog urine cleans up easier. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Look for signs of plumbing problems such as water stains under sinks and loose flooring. When you're new to real estate investing, always remember your limitations. Use caution when considering houses needing structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems, but they acquired those skills after years of experience or pay a professional.
If you find a house with structural problems, get estimates from reliable contractors to do the work. Experience teaches you how to do more over time. Until then, rely on experienced contractors to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.
Why would anyone want to do this? How much does the average investor make? In Philadelphia, real estate investors only make offers on houses they expect to make $30,000 on. In Southern California, many investors make $50,000 to $100,000 on each house.
You can make a fortune fixing ugly houses. Learn your market. Know when "ugly" means bad that can be good, and when stinky means pass.
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
For more information about finding, financing, fixing and flipping houses, visit Jeanette Fisher’s Doghouse to Dollhouse for Dollars. Learn about decorating to attract buyers. Professor Fisher teaches Design Psychology college courses and professional real estate seminars. She is the author of Home Staging, credit for buying real estate, and other books. http://www.doghousetodollhousefordollars.com/.
Thursday, May 19, 2005
How to Avoid Appraisal Problems in the Sale of Your Dollhouse
by Jeanette Joy Fisher
Before you sign a contract to sell your home, check to see if the purchase offer depends on financing. Look for the clause witch states that the offer is contingent on your home's appraisal done by the buyer's mortgage lender. This clause causes many home sellers to lose the sale or to lower the sales price later.
Appraisers draw on comparable market sales (comps) of local properties sold within the last six months to value your home. With today’s rapidly rising seller’s market, six-month-old information is ancient history. Appraised value does not always equal the true market value, or what the home will sell for on the open market.
Realtors will give you a comparative market analysis, an informal estimate of market value based on comparable sales. Lenders, on the other hand, will use the appraised value to determine a new mortgage amount. Some lenders require that the stated property value covers the mortgage amount plus their selling costs in case of foreclosure. For this reason, a sale may fall through if a home sells on the open market for more than the appraised value, which often happens in bidding wars over hot property.
We learned the importance of securing a sufficiently high appraisal when we sold a rental property in Lake Elsinore, California. We listed the house for $234,700 on Friday. By Monday morning, we had three offers: $245,000, $255,000, and $260,000. We accepted the one for $255,000 because the buyers had $80,000 down, reassuring us that they had sufficient funds.
As usual, the lender sent an appraiser to review the property. This busy appraiser didn't take the time to view all the upgrades we put into the custom-built home. Even worse, he used only comps from the local one-mile radius. Because this home is close to a shopping district, there were not many homes sold in this limited area during the six-month period.
The appraiser used comps six months old; during this time housing costs in Southern California appreciated around thirty percent. Sales from six months previous should have gone up in value by $30,000 on a $200,000 home. This means that our home should have been worth $250,000 to $260,000, especially since buyers are willing to pay this price on the open market. To increase the value of this home, at the time there was not another three bedroom home listed in the area for under $250,000 (excluding manufactured homes). However, the appraiser valued our home for only $230,000 -- and we would have lost the sale if the offer did not include a sufficient down payment.
Because a low appraisal can kill your sale, finding a buyer with a large down payment provides you with a safety net. You may also choose a buyer with strong credit who doesn't have to put a large percentage down. If you think that your home’s appraisal could become a problem, make sure you don't include a clause in your sale’s contract which states "subject to appraisal."
How to Avoid Low Appraisals
Hire your own appraiser before the sale. Then ask your buyer’s or lender’s appraiser to review your appraisal.
Retain the option to approve your buyer’s mortgage lender. Make sure that the buyer doesn't use a lender with a history of deliberately underestimating property values. A good real estate agent should know which lenders routinely under value homes.
Keep records of repairs and upgrades, including costs. Take "before" and "after" photographs. Create an organized journal with a listing of expenses and include pictures to show to the appraiser during the appraisal appointment. Stage your home for the appraiser like you do for buyers.
Secure your own property comparables to make sure the appraiser uses complete information. Call real estate agents with homes in escrow and get the sales prices. Make a list of these properties with the agent’s phone numbers and give it to the appraiser.
What to Do When Your Selling Appraisal Comes in Too Low:
1. Ask for another appraisal.
2. Protest the appraisal with documentation of your upgraded expenses.
3. Have the buyers make a larger down payment.
When you sell or buy real estate, remember that the certified appraisal is just one person’s opinion of the value of your home. The opinion that counts for you is the buyer’s: you want to be sure the buyer values your home above all others.
Copyright (c) 2005 Jeanette Fisher, All rights reserved.
Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST, Staging Houses for Top-Dollar Sales, Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits, and other real estate and interior design books, teaches Design Psychology and real estate investing seminars. For information on Design Psychology, visit: http://designpsych.com/. For help selling houses, articles, and home staging tips, see http://www.sellfast.info/.
Before you sign a contract to sell your home, check to see if the purchase offer depends on financing. Look for the clause witch states that the offer is contingent on your home's appraisal done by the buyer's mortgage lender. This clause causes many home sellers to lose the sale or to lower the sales price later.
Appraisers draw on comparable market sales (comps) of local properties sold within the last six months to value your home. With today’s rapidly rising seller’s market, six-month-old information is ancient history. Appraised value does not always equal the true market value, or what the home will sell for on the open market.
Realtors will give you a comparative market analysis, an informal estimate of market value based on comparable sales. Lenders, on the other hand, will use the appraised value to determine a new mortgage amount. Some lenders require that the stated property value covers the mortgage amount plus their selling costs in case of foreclosure. For this reason, a sale may fall through if a home sells on the open market for more than the appraised value, which often happens in bidding wars over hot property.
We learned the importance of securing a sufficiently high appraisal when we sold a rental property in Lake Elsinore, California. We listed the house for $234,700 on Friday. By Monday morning, we had three offers: $245,000, $255,000, and $260,000. We accepted the one for $255,000 because the buyers had $80,000 down, reassuring us that they had sufficient funds.
As usual, the lender sent an appraiser to review the property. This busy appraiser didn't take the time to view all the upgrades we put into the custom-built home. Even worse, he used only comps from the local one-mile radius. Because this home is close to a shopping district, there were not many homes sold in this limited area during the six-month period.
The appraiser used comps six months old; during this time housing costs in Southern California appreciated around thirty percent. Sales from six months previous should have gone up in value by $30,000 on a $200,000 home. This means that our home should have been worth $250,000 to $260,000, especially since buyers are willing to pay this price on the open market. To increase the value of this home, at the time there was not another three bedroom home listed in the area for under $250,000 (excluding manufactured homes). However, the appraiser valued our home for only $230,000 -- and we would have lost the sale if the offer did not include a sufficient down payment.
Because a low appraisal can kill your sale, finding a buyer with a large down payment provides you with a safety net. You may also choose a buyer with strong credit who doesn't have to put a large percentage down. If you think that your home’s appraisal could become a problem, make sure you don't include a clause in your sale’s contract which states "subject to appraisal."
How to Avoid Low Appraisals
Hire your own appraiser before the sale. Then ask your buyer’s or lender’s appraiser to review your appraisal.
Retain the option to approve your buyer’s mortgage lender. Make sure that the buyer doesn't use a lender with a history of deliberately underestimating property values. A good real estate agent should know which lenders routinely under value homes.
Keep records of repairs and upgrades, including costs. Take "before" and "after" photographs. Create an organized journal with a listing of expenses and include pictures to show to the appraiser during the appraisal appointment. Stage your home for the appraiser like you do for buyers.
Secure your own property comparables to make sure the appraiser uses complete information. Call real estate agents with homes in escrow and get the sales prices. Make a list of these properties with the agent’s phone numbers and give it to the appraiser.
What to Do When Your Selling Appraisal Comes in Too Low:
1. Ask for another appraisal.
2. Protest the appraisal with documentation of your upgraded expenses.
3. Have the buyers make a larger down payment.
When you sell or buy real estate, remember that the certified appraisal is just one person’s opinion of the value of your home. The opinion that counts for you is the buyer’s: you want to be sure the buyer values your home above all others.
Copyright (c) 2005 Jeanette Fisher, All rights reserved.
Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST, Staging Houses for Top-Dollar Sales, Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits, and other real estate and interior design books, teaches Design Psychology and real estate investing seminars. For information on Design Psychology, visit: http://designpsych.com/. For help selling houses, articles, and home staging tips, see http://www.sellfast.info/.
Friday, May 13, 2005
Softening Your Walls with Color Wash
Copyright © 2005 Pamela Cole Harris
Home and Garden Makeover
http://www.homeandgardenmakeover.com
If you like the soft look of watercolors, why not try using a
color wash on your walls? In addition to a softer color, color
washing can accentuate the texture of your plaster or stucco
walls. And it’s so simple that even I, a faux-finish-impaired
decorator, can do it.
There are two techniques for color wash application: sponge
or brush. Each requires a slightly different glaze formula.
Sponge Technique:
Color Wash Glaze: Mix together 1 part latex paint and 6 parts
water in a bucket.
1. Mask off (using painter’s tape) parts of the room which will
not receive the wash. Its best to cover the floor with
plastic drop cloths (especially if you are as messy as I am).
2. Prime the wall with a low luster latex paint and allow it
to dry completely before the next step.
3. Dip the sponge into the color wash glaze and squeeze lightly.
4. Beginning in a lower corner, apply the glaze to the wall
in short, overlapping strokes. Change the direction of the
strokes frequently. Work on a small portion of the wall at
a time (3 foot by 3 foot is a good size).
5. Repeat moving upward until all the wall is covered.
6. Allow to dry completely.
Brush Technique:
Brush Color Wash Glaze: 1 part flat latex paint, 1 part latex
paint conditioner (available at your local home improvement
center), and 2 parts water. Mix in a bucket.
1. Mask off (using painter’s tape) parts of the room which
will not receive the wash. Its best to cover the floor
with plastic drop cloths.
2. Prime the wall with a low luster latex enamel paint and
allow it to dry completely before the next step.
3. Allow the paint to dry.
4. Dip a paintbrush in the glaze and remove the excess against
the side of the bucket.
5. Apply the paint in a criss-cross pattern.
6. Brush over the surface repeatedly to soften the look of
the paint.
7. Wipe excess glaze away, if necessary. (Better get the
industrial-sized package of paper towels!)
There you have it! A soft paint look perfect for your newly
decorated room...And since you have the technique down to a
science, why not come and do my family room? Powder room?
Closet?
---------------------------------------------------------------------
Pamela Cole Harris has been a writer and designer for 35 years
(Yikes, has it been that long?) Enjoy her tongue-in-cheek
approach to inexpensive interior design at:
http://www.homeandgardenmakeover.com and http://www.diy-homedecor.com
Home and Garden Makeover
http://www.homeandgardenmakeover.com
If you like the soft look of watercolors, why not try using a
color wash on your walls? In addition to a softer color, color
washing can accentuate the texture of your plaster or stucco
walls. And it’s so simple that even I, a faux-finish-impaired
decorator, can do it.
There are two techniques for color wash application: sponge
or brush. Each requires a slightly different glaze formula.
Sponge Technique:
Color Wash Glaze: Mix together 1 part latex paint and 6 parts
water in a bucket.
1. Mask off (using painter’s tape) parts of the room which will
not receive the wash. Its best to cover the floor with
plastic drop cloths (especially if you are as messy as I am).
2. Prime the wall with a low luster latex paint and allow it
to dry completely before the next step.
3. Dip the sponge into the color wash glaze and squeeze lightly.
4. Beginning in a lower corner, apply the glaze to the wall
in short, overlapping strokes. Change the direction of the
strokes frequently. Work on a small portion of the wall at
a time (3 foot by 3 foot is a good size).
5. Repeat moving upward until all the wall is covered.
6. Allow to dry completely.
Brush Technique:
Brush Color Wash Glaze: 1 part flat latex paint, 1 part latex
paint conditioner (available at your local home improvement
center), and 2 parts water. Mix in a bucket.
1. Mask off (using painter’s tape) parts of the room which
will not receive the wash. Its best to cover the floor
with plastic drop cloths.
2. Prime the wall with a low luster latex enamel paint and
allow it to dry completely before the next step.
3. Allow the paint to dry.
4. Dip a paintbrush in the glaze and remove the excess against
the side of the bucket.
5. Apply the paint in a criss-cross pattern.
6. Brush over the surface repeatedly to soften the look of
the paint.
7. Wipe excess glaze away, if necessary. (Better get the
industrial-sized package of paper towels!)
There you have it! A soft paint look perfect for your newly
decorated room...And since you have the technique down to a
science, why not come and do my family room? Powder room?
Closet?
---------------------------------------------------------------------
Pamela Cole Harris has been a writer and designer for 35 years
(Yikes, has it been that long?) Enjoy her tongue-in-cheek
approach to inexpensive interior design at:
http://www.homeandgardenmakeover.com and http://www.diy-homedecor.com
Monday, May 09, 2005
What do real estate newspaper classified advertising acronyms mean?
This is a partial list, in progress.
assum. fin -- assumable financing
dk -- deck
gar -- garage
gard-- garden
expansion pot'l -- expansion potential: may be extra space on the lot, or vertical potential for a top floor or addition. Verify potential by checking local zoning restrictions with county building department prior to purchase.
FDR -- formal dining room
frplc, fplc, FP -- fireplace
grmet kit -- gourmet kitchen
HDW, HWF, Hdwd -- hardwood floors
hi ceils -- high ceilings
In-law potential -- potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units; check for legality.
lsd pkg. -- leased parking area; may cost extra
lo dues -- ask how low these homeowner's dues are; compare to area.
nr bst schls -- near the best schools; who says so?
pvt -- private
pwdr rm -- powder room, or half-bath
upr- upper floor
vw, vu, vws, vus -- view(s)
assum. fin -- assumable financing
dk -- deck
gar -- garage
gard-- garden
expansion pot'l -- expansion potential: may be extra space on the lot, or vertical potential for a top floor or addition. Verify potential by checking local zoning restrictions with county building department prior to purchase.
FDR -- formal dining room
frplc, fplc, FP -- fireplace
grmet kit -- gourmet kitchen
HDW, HWF, Hdwd -- hardwood floors
hi ceils -- high ceilings
In-law potential -- potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units; check for legality.
lsd pkg. -- leased parking area; may cost extra
lo dues -- ask how low these homeowner's dues are; compare to area.
nr bst schls -- near the best schools; who says so?
pvt -- private
pwdr rm -- powder room, or half-bath
upr- upper floor
vw, vu, vws, vus -- view(s)
Sunday, May 08, 2005
What is the first step in finding a doghouse?
(Answer to Scott)
To speed up your real estate investing business, start with your loan approval first. You need to know what's on your credit report and your credit scores. Ask another investor for a great mortgage lender referral and get your credit reviewed.
If you need credit repair or to raise your scores, see the articles at
The Real Estate Credit Help Center.
Once you have your loan in place, you'll know what price range to look in. Then, you're ready to find a doghouse to turn into dollars. Become an expert on your chosen real estate market so you're ready to jump when you find a bargain. Great buys are still out there! We closed last week on a home in Southern California that appraised for $40,000 more than the purchase price.
Also, you can find more information on our real estate investor website.
To speed up your real estate investing business, start with your loan approval first. You need to know what's on your credit report and your credit scores. Ask another investor for a great mortgage lender referral and get your credit reviewed.
If you need credit repair or to raise your scores, see the articles at
The Real Estate Credit Help Center.
Once you have your loan in place, you'll know what price range to look in. Then, you're ready to find a doghouse to turn into dollars. Become an expert on your chosen real estate market so you're ready to jump when you find a bargain. Great buys are still out there! We closed last week on a home in Southern California that appraised for $40,000 more than the purchase price.
Also, you can find more information on our real estate investor website.
Thursday, May 05, 2005
How long does it take to fix up a home and sell it?
On 5/4/05, KIM wrote:
Hi Jeanette...My name is Kim and I recently started thinking of buying houses, fixing them up, and then selling them. I have a few questions for you. I have never purchased a home, so I am really new to all of this. How long about does it take to fix up a home and sell it? Really, I am just wondering if you could tell me a little bit more about all of this.
Thanks!
Kim
Hi Kim,
There are so many variables on fixing houses for profit. Where are you located? Can you paint and do minor repairs yourself? Or, do you need to hire out the work? Do you know how to choose decorating materials for your target buyer?
How long it takes depends on the house's condition. Some of our houses require little work; others need every surface redone--floors, walls, ceilings, kitchens, etc. We have done a house in a couple of weeks that only needed fresh paint and carpet. Keep in mind that ours is a family business--my husband and son help. I do shopping for materials, paint, and decorating, but my husband works on the houses full time. He likes this work better than teaching. We like the paycheck better, too!
Joy to you!
Jeanette
Hi Jeanette...My name is Kim and I recently started thinking of buying houses, fixing them up, and then selling them. I have a few questions for you. I have never purchased a home, so I am really new to all of this. How long about does it take to fix up a home and sell it? Really, I am just wondering if you could tell me a little bit more about all of this.
Thanks!
Kim
Hi Kim,
There are so many variables on fixing houses for profit. Where are you located? Can you paint and do minor repairs yourself? Or, do you need to hire out the work? Do you know how to choose decorating materials for your target buyer?
How long it takes depends on the house's condition. Some of our houses require little work; others need every surface redone--floors, walls, ceilings, kitchens, etc. We have done a house in a couple of weeks that only needed fresh paint and carpet. Keep in mind that ours is a family business--my husband and son help. I do shopping for materials, paint, and decorating, but my husband works on the houses full time. He likes this work better than teaching. We like the paycheck better, too!
Joy to you!
Jeanette
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