Doghouse To Dollars

Want to know what to fix to sell?

2008-01-22T16:22:00.000-08:00

Are you having trouble selling your home?

We have some ideas that can help you in today’s difficult market.

Join our special conference call on Facebook. The advantages of this call system:

* You can type your questions in so I can see them.
* You can mute yourself by clicking on a microphone icon.
* You can “raise your hand” to speak.
* You can even upload your pictures so I can see your house outside and inside.

How to participate:

1- Join Facebook
http://www.facebook.com

2- Join my Conference Call for Home Sellers. Click the link below to add the conferencing application and join the call.
http://apps.facebook.com/freeconference/conf/show/11113

3- Join the group: Jeanette Fisher’s Home Seller’s Helpline
Click on the Groups button on the left under applications.
Search for Jeanette Fisher’s Home Seller’s Helpline or try this link:
http://www.facebook.com/group.php?gid=9721931758&ref=mf

I know all this seems complicated, but the conference call will be unlike all the other teleseminars we’ve done. This is a hands-on experience where you will get answers to YOUR home selling questions.

Joy in technology!

Jeanette

Details Sell in Buyer's Market

2007-11-08T17:54:00.000-08:00

Stencil above Entry Door

When I wrote my first book Doghouse to Dollhouse for Dollars, I shared our family's fix and flips. What's important about our story is that the 30 houses I talk about in the book all happened before the recent rise and fall of sales prices. This means that my book helps investors more in a buyer's market than in a seller's market.

Selling houses today is possible. People still need housing. If you want to sell your home or rental, you must make your property stand out. You can either keep lowering the price or add details that make your home more attractive to a buyer, like the stencil above on a new million dollar home in California. A stencil costs very little and gives a great impact.

Read more about fixing and flipping houses. Find out how using Design Psychology can increase your profits.

Turn you house into a buyer's dream home. Add color and details that SELL!

Joy,

Jeanette

Question about Granite Countertops

2007-10-01T10:32:00.000-07:00

First, thank you to the readers who watched the Flip That House TV show over the weekend.

This is the answer to a question from one of the kind emails I received after the show.

Some buyers think they want granite countertops. We used granite in our flip because one of my students gave us a great price.

Personally, I don't like the business of granite. In our home, we used engineered granite. I prefer the clean lines and lower price. See our Kitchen Remodeling Pictures

Video, Podcast, and Feature Story of Flip

2007-09-29T09:17:00.000-07:00

The Press Enterprise featured our flip in today's newspaper.

Video:
http://www.pe.com/video/southwest-index.html?nvid=179302

Podcast and story:
http://www.pe.com/localnews/inland/stories/PE_News_Local_D_mural29.3d55bdb.html#

More about Flip That House with Fishers

(I was told the show will be on at 9:30 tonight.- Jeanette)

Flip That House Featuring Our Family

2007-09-28T18:20:00.000-07:00

Flip That House Featuring Fisher Family Benefits Habitat for Humanity

Louis, our producer on Flip That House, told me that the house is the star of the show. It will be interesting to see the show tomorrow evening and how they cover the story of our family tragedy. Will the house remain the star? Will the artists that rescued the house with love be the stars? Will the family's sadness make it like an episode of Extreme Home Makeover?

Most episodes of Flip That House film a shopping spree at a home improvement store that donates materials to the flipper in exchange for the advertising. We chose to film at Habitat for Humanity's ReStore to let the world know about the home improvement outlet that helps pay for houses.

This is from the Flip That House press release:

Saturday, September, 29, 2007 at 09:30 PM ET on TLC

Flip That House

Brian and Jeanette

The Fisher family and their 22 person crew are flipping a 3 bedroom 1 bath home in Lake Elsinore, California that they purchased for $340,000. They have a budget of $10,000 and a 1 month schedule. Will they be able to finish on time and under budget?

If you want to see before and after pictures, go to Flip That House with Faux.

Let me know what you think about the show. Post your comments below.

Great Faux Finishing Tips For Obtaining Professional Results

2007-09-24T18:54:00.000-07:00

Faux for More

Faux finishing a wall can be a fantastic way to create a one-of-a-kind look in a room, and the good news is faux finishing is the type of project any relatively competent do-it-yourselfer can tackle. However, any task can be smoother if you learn a few tricks of the trade, so here are a few of my favorites to add to your own repertoire before you begin.

When laying down your base coat, use an eggshell latex paint that has a slight sheen to it. Latex paint dries more quickly than oil-based paint and the eggshell finish will allow you more options as to what you want to do with your top coats. Clean up is also much easier. If you use an eggshell base coat, use an eggshell top coat, too. It will give a more uniform texture to the overall wall.

Another good idea is to experiment on a practice board first. If you can get a spare piece of material that’s exactly like the wall you'll be working on, so much the better. If you'll be working on drywall, for instance, try to practice on a piece of drywall so you can see how your proposed faux finish will look before you begin on the wall itself. If the wall you'll be working on has already been primed and painted, you'll want to do the same to your practice piece. This can be very useful--especially if the colors or technique don't turn out to be what you were hoping for.

It may sound strange, but one of the best tips I can give you is to practice, practice, practice before you begin your wall. I know it’s human nature to just want to plunge in and get started, but you'll get better results and save possible frustration if you have a good handle on what you're doing==well before you start your wall project. If you're going to be doing a sponge project, I don't recommend using artificial sponges. Use natural sponges because they aren't uniform like the manmade kind. If you're hoping to create a random look, you'll have a much more difficult time if you try to use manmade sponges. They're just not irregular enough. As you begin dabbing on your sponge paint, be careful about overlapping areas you've previously done. You want continuity, but you don't want new sponge prints over old ones.

Overlapping risks the possibility of getting too much paint on the wall. As you work your way across the wall, move quickly, reloading your sponge as often as necessary, but don't overfill it. Again, that can result in too much paint on the wall, which is generally not the effect you're hoping to achieve. Twist your sponge slightly in your hand between dabs. That will create a more random look and avoid having your sponge pattern look like printed wallpaper. Moving quickly also helps keep you from working too long in any given area.

Faux Finish by Kari Barron

See more faux and designs for making more at Flip That House with Faux

Copyright © 2007 Jeanette

"What improvements will make the biggest difference in attracting buyers to the home I'm going to flip?"

2007-08-11T20:11:00.000-07:00

One of the questions I get most is, "What improvements will make the biggest difference in attracting buyers to the home I'm going to flip?"

I answer that question in one word: paint. Then I go on to explain that a carefully chosen painting scheme can make the difference between a looker and a buyer as people walk through your house.

One of the most profitable places you can spend time on is in the kitchen. The kitchen truly is the heart of a home, so it needs special attention when you begin remodeling a house with flipping in mind.

The first thing you always want to do is bring in lots of light to a kitchen. Begin by using a light-colored paint, although it’s not quite as easy as just finding the brightest white you can find and slapping it on the walls and ceiling. Choosing the perfect paint color also has to do with what season of the year your home will be on the market, the price you're going to be asking, who your target buyers are going be, the area your house in, and how it’s situated on the lot.

To give you an idea of how a well-chosen paint scheme can work, let’s look at my own house. I live in Southern California and our home has wood shingles on the outside, but we've painted the exterior trim of the house green with brick red accents. That means that our front door has been painted red. It looks great from the outside, and we love it.

However, when you walk into the house, you'll find that the interior walls have been painted a lighter shade of green. Using a slightly lighter shade of green in the entryway to the house makes for a nice, smooth transition from the outside to the inside. By carefully choosing our colors, we've made sure that it all flows together.

So when you paint the inside of a flip, make sure that you bring some of the outside colors into the entryway. That will reinforce the exterior theme, which is important, because the potential buyers probably liked that theme. After all, it was inviting enough to prompt them to take a look at the inside. Taking a lighter version of the main color scheme and using it inside makes a house feel harmonious, and will go a long way toward making people comfortable.

About the chicken: Jennifer West, Caricature Artist, painted a "Chicken Soup" theme in the Faux Flip featured on TLC's Flip That House scheduled to air September 29.

Mural Artist Kim Schaffer and Decorative Painter Evan Dahlke helped me finish the kitchen paint with a tea glaze after my friend Imelda and I painted it three times.

Copyright © 2007 Jeanette Fisher

Make Money Flipping Houses in Any Market

2007-05-05T21:50:00.000-07:00

If you think there's no money to be made in a soft real estate market, think again. History has proven that some of the world's biggest fortunes were made during downward economic cycles. For instance, Warren Buffet made a huge part of his fortune by buying companies that had fallen on hard times and turning them around, and Donald Trump made his billions by buying rundown or vacant properties and rehabilitating them.

The secret? Trump or Buffet had a strong grasp of the most basic law in the world: the law of Supply and Demand.

The important thing, if you want to make BIG money, is to go against "what everybody knows" when it comes to the economy's current situation.

For example, common wisdom says that buying foreclosures is the next big thing, since the market is slowing, interest rates are creeping up, and homeowners are increasingly feeling the pinch. That's all well and good, but that means an ever-growing number of would-be investors are clamoring to buy those foreclosures, driving prices up and making them less attractive as investments.

However, you can go against what everybody knows, while staying well within the law of Supply and Demand, by buying homes that are in short supply in high demand areas, whether they're foreclosures or not. I live in Southern California, where the demand for homes is high, but the supply of homes is limited, so if I can locate reasonably-priced properties and give them a new life, I generally find a line of buyers waiting to bid on them when I'm done.

But what if you live in an area that has the opposite situation--high supply and low demand? You can still make money. If you happen to be buying properties at a time when many people are trying to sell their homes, you're in a position to get a better sales price, giving you more room for profit when you flip the property. What you're doing, in essence, is increasing the demand for YOUR particular property, even if it's a buyer's market overall.

If you've familiar with my experience in using design psychology and home staging to sell homes, you know that there are many ways to increase the value of a home without spending a great deal of money. Then, once you've increased the demand for your home, the profits will come--even during an economic downturn.

Learn how to use interior design secrets and make money flipping houses.

Copyright © 2007 Jeanette J. Fisher

California Real Estate Market Cooling

2007-04-21T08:06:00.000-07:00

After several years of runaway price increases, it appears that California's market is due for a bit of a downturn. According to the California Association of Realtors (CAR), the trend will be downward throughout the coming year as the market begins to correct itself from the upward spiral it had been enjoying until recently.

Read the rest of the story: http://www.joytothehomerealty.com/california_real_estate_market.html

Short Sales Mistakes

2007-04-13T12:47:00.000-07:00

There’s an old saying "it's an ill wind that blows no one good," and that’s especially true today as the real estate market begins to decline in many parts of the country. As many homeowners begin to feel the pinch and edge closer to foreclosure, the potential for investors to buy those homes through a short sale becomes more tempting.

However, short sales aren't for everyone. They can be frustrating, even when they go smoothly, but they can turn into nightmares if you don't avoid certain mistakes. Here are some examples of mistakes many short sale investors make: Short Sale Mistakes

Real Estate Seminar at MSJC

2007-01-25T09:52:00.000-08:00

Flipping Houses for Profit: Still Possible in Riverside County?

Join us at Mt San Jacinto College, Menifee Valley Campus, Saturday, January 27 for a low-cost real estate seminar: "Flipping Houses for Profit: Still Possible in Riverside County?"

Although the college website says that no seats are available, they moved the class to a larger room and you may still be able to register by calling (951) 487-3711. Class section #9348

Learn how to find, finance, fix and sell houses for profit in any market. Explore fresh ideas for fixing houses using interior design methods that make houses simply irresistible to buyers.

More information: Flipping Houses Seminar

Flip This House - FSBO in South Carolina

2006-11-11T20:35:00.000-08:00

Not all flips need fixing. If you want a bargain house in South Carolina, check out this property offered by owner.

$10,000 BELOW APPRAISAL MAKE OFFER NEED TO SELL
440 Whispering Winds Drive, Lexington, SC 29072

Ready to Move In, Lovely 3 BR, 2 Bath home in quiet neighborhood with privacy priced below market value provides savings to the buyer.
Approx. Sq. Ft.: 1486

Home has a vaulted ceiling in the great room with fireplace and ceiling fan.

It has an open white kitchen, dining room and great room layout that provides for spacious living.

Crown moulding throughout with chair rails in Kitchen and Dining room gives a nice touch of elegance.

All windows are wood framed. Warm Earth tone colors on the walls round out this peaceful setting.

The Master bedroom has tray ceiling, fan, and a walk-in closet and private bath with double sink, white tile floors, a garden tub and separate shower.

The home has a two car finished garage providing ample storage space. The attic is also partially floored to provide additional storage.

Landscaped back yard with privacy fence and brick patio lets you get away from it all.

Owner: Martin Lee (803) 767-2882

See more pictures at Sell House Race

Rehabbers: Current Carpet Trends Help You Sell

2006-11-06T16:18:00.000-08:00

If you're rehabbing a house to sell in today's market, keep up with contemporary features home buyers expect to see in your remodel.

Home buyers frequently preview model homes and dream about living in a perfect home. When they are forced to buy a more affordable resale home, they look for a home that has features like the models they preview. If you want to attract these buyers, use carpet similar to what they see in the model homes staged by professional interior designers.

Flipping Houses for Profit: Current Carpet Trends Help You Sell

Real Estate Market and Media

2006-11-01T08:03:00.000-08:00

Is the Real Estate Market Crashing?

We've all been bombarded recently by reports in the various media about how the real estate boom of the past few years is over. Whether you read it in the newspaper or a magazine or see it on television, it seems as if the media has decided the real estate bubble has burst and the housing market is in the initial stages of a major swoon. Not so fast, say a number of leading economists who are challenging the negative view being portrayed in the media.

Statistics Challenge Negative Media Coverage
Real Estate Market & Media Coverage

Flip THAT House | Flip THIS House

2006-10-26T11:43:00.000-07:00

Flip THIS House on A&E focuses on two real estate investors who transform eyesores into "profit-making beauties." Filmed in San Antonio and Atlanta, each investor has a team of "characters" who buy, rehab, and flips for a profit. The show loves friction between all the players.

Flip THAT House is a documentary series for TLC. Each episode follows one investor/flipper through the process of buying, fixing-up, and selling a house.

One criticism of Flip THIS House come from viewer Jennifer B who says "The show is not informative at all, and most of the time you watch the people argue and complain about each other. They spend too much time goofing off instead of working which I don't care to watch..." Read review of Flip shows.

Critics of Flip THAT House complain that the sale is not completed so the viewer doesn't know how much money is actually made. Another real estate author, John Reed says that the show focuses on beginners who don't know what they're doing.

While that may be true of some of the show's guests, we're going to be on Flip That House. Since we have been flipping houses since 1979, maybe we know a thing or two. I just hope John doesn't watch the show since he has such a low opinion of flips.

Fisher Family on Flip THAT House

Copyright © 2006 Jeanette J. Fisher

Should Investors Hold an Open House to Sell?

2006-10-17T13:33:00.000-07:00

In 2202, a survey by the Real Estate Center at Texas A & M University found that private open houses for other agents were more effective than public open houses. The agents surveyed thought public open houses troublesome, dangerous, and generally ineffective except for agents who needed to build a client base. The survey said "Although open houses are popular with sellers, they appear to be losing their appeal among agents. Sellers see the open house as an indication the agent is actively promoting the listing. Agents know, however, the odds are long that an open house will produce a buyer."

A more recent survey conducted by The National Association of Realtors in 2005 found that open houses led to only 7 percent of all home sales. In their profile of Home Buyers and Sellers, the NAR, reported that 42% of home buyers found open houses to be "Very Useful" as an information source. In fact, 55 percent of home buyers do look at open houses to gather information. However, of the nine categories listed where buyers first learned about the home they purchased, open houses was not even mentioned.

Findings include:
Most people attending open houses are not serious buyers.
Most open houses are held merely to appease sellers.
Three out of four agents think open houses are effective in interesting buyers in homes other that than the one being shown.
Agents also pick up new listings at open houses.
Not many homes actually get sold because of an open house.
Visitors include a lot of looky-lou's and unqualified buyers.
Sometimes, thieves look for easy targets by visiting open houses.

Should investors stage an open house?

If open houses lead to 7 percent of all home sales, you might consider a open house. We like to have an open house when we finish remodeling a fixer and invite all the neighbors. Often, neighbors know a friend or family member looking for a house.

We make the open house an event and tell the neighbors to bring anyone looking for a new home. We stage the house with extra flowers and essential oil scents, play music, serve refreshments, and have our loan officer ready to answer financing questions.

To do this effectively, you need help. Our adult children actively pick up after people and run a Swiffer around the floors. Asking home shoppers to put on hospital booties helps keep the floors clean. Plus, people like the idea that we're picky about keeping the house immaculate.

Even with all this work, the best outcome for us is meeting the neighbors in our target area and finding people who want to SELL their homes.

Fixing and Flipping Houses

Copyright © 2006 Jeanette Joy Fisher

Real Estate Investing with Fixers

2006-10-15T15:40:00.000-07:00

New site with pictures of before and after of our fixers:

Real Estate Investing with Fixers

Free Real Estate Investing Teleseminars

2006-10-02T11:30:00.000-07:00

#1 Learn About Apartments and How to Find New Hot Markets

Special teleseminar Tuesday night, Oct. 3.

9:00 PM EST / 6:00 PST

There's so much competition these days among real estate investors. The good news is that great bargains still exist in most markets, because they're passed over by the vast majority of investors. Many of those bargains are in apartments.

Most investors think they must unclog toilets and deal with tenants in order to make apartment-sized profits. That suits our friend, Dave Lindahl, just fine. He buys apartments from burned-out landlords at great prices. Best of all, Dave's figured out ways to deal with no tenants.

Dave's going to tell us how to buy apartments with no down; how to manage them without ever dealing with tenants, and how to make it work in YOUR real estate market.

Dave's also an expert at market cycles. He'll talk to us about his secrets for finding the next hot markets, and how to quickly and easily "read" where a market is in the up/down cycle.

Dave built his fortune from scratch, in tough neighborhoods. He's entertaining, knows his stuff, and you'll greatly benefit from this call.

If you can make this call, and while there are a few telephone lines left, be sure to register!

Join Apartment & Market Teleseminar

#2 Can You Still Make Money Fixing Houses?

Find out how to find a fixer and how to profit in the new buyer's market.

Free Fixer Teleseminar

Live seminars coming soon at Joy to the Home Realty in Lake Elsinore, California and Las Vegas, Nevada.

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The Real Doghouse to Dollars Blog Is Back | 2006 Market Trends

2006-09-30T09:14:00.000-07:00

Hello from Jeanette Fisher,

You may have noticed that this blog was captured by someone who used it for an adsense revenue generating blog. Google played fair and returned it to me. The problem was that I listed this blog in some of my articles, one of which is Flipping Houses for Gold (viewed over 21,000 times on EzineArticles and posted on thousands of real estate websites).

In case you're wondering if you can still make money fixing and flipping houses with all the media coverage of the real estate bubble burst and the return to a buyer's market, I'll share some success stories and market trends.

Last week, we listed a property in Riverside California and sold it in one day for full price, which is $85,000 more than the purchase price.

Joe Luckino in Ohio continues to work full time fixing houses. Joe keeps most of his properties but he still flips some. You can read about his investment plan.

I see more investors like Joe getting serious about real estate as a long-term investment. Instead of house flipping, they're fixing and renting. Joe wants 100 rentals and he's well on his way with 56 houses.

Even though newspapers and TV news report that housing prices are dipping, they tend to confuse the facts. For instance, reports in our area says that the prices fell but what they really mean is that prices didn't go up as much as they did last year. According to Jamie Johnson with Keller Williams Realty, Riverside County didn't appreciate 30 percent in 2006 like it did in 2005. However, prices overall appreciated over 6 percent. Prices did not go down. In fact, southwest Riverside county saw significant gains.

Lou Barnes, mortgage broker and nationally syndicated columnist said "The best thing is to stick with the data, and evaluate commentators by what they say about it. Example: this week the National Association of Realtors announced that median home prices fell in July, headlines shrieking. Someone who really wanted to know what is going on would have to dig deep to find reality: a decline in median prices just means that more cheaper homes are selling than expensive ones; the median says nothing about the fate of an individual house or neighborhood, or city."

Facts:

* Declines in price are minor.
* Declines mainly in economically weak zones.
* 20 percent decline in new home construction.
* 50 percent nationwide increase in inventories of unsold homes.
* No sign of a downward price spiral in any market.

Decline in home mortgage refinance means less business for mortgage brokers. Two of our mortgage brokers are branching out into home sales. This means that investors will get more attention and quicker action from their loan officers.

What does this mean for people who want to get into real estate investing?

Learn as much as you can about the different strategies to make money in real estate. You can still make money flipping houses but you can also make money as a landlord.

In case you think you need a huge down payment to get started, below are pictures of the house we just finished. It was purchased for no money down, fixed, refinanced with $65,000 cash out, and just listed yesterday.

Copyright © 2006 Jeanette J. Fisher

Real Estate Investing Scams: Infomercial Schemes, Tax Sales, and Mentoring

2006-01-01T15:29:00.000-08:00

By Jeanette Joy Fisher

Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder why people still fall for those old scams? Has anyone really talked a seller out of his home for no money down WITH owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it's possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It's true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don't normally qualify for no money down financing. Institutional lenders aren't supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, "the seller" is not the right answer! Today's sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that's been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn't happen.

Today, another real estate investment scam is popular in Southern California. Here's how it works: a young person we'll call Chuck charged $4,000 on his credit card to hire a real estate "mentor," after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Chuck to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Chuck had given him the addresses, the mentor obtained the owner's address and sometimes a phone number. Then it was up to Chuck to call the owners and talk them into selling their houses for no money down, and carrying the paper, too!

I met Chauck when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Chuck and listening to his frustration about trying so hard to follow his mentor's advice, I offered to help him find a property, and I'm happy to say that Chuck now owns his own home. But he'll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Chuck did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you've purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don't pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They're a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today's real estate market.

Copyright © 2006 Jeanette J. Fisher. All rights reserved.

FREE Real Estate Investing Teleseminar
"How to Get Started Investing in Real Estate"

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Free Credit Help Offered

2005-12-30T09:14:00.000-08:00

Want to know how to finance multiple properties?

Press Release: Free Credit Help Offered for Real Estate Investors

Credit expert Jeanette Fisher offers free credit help and advice on how to make money in real estate in her new ebook, "Credit Tips: Turn Your Credit Burdens into Wealth-Building Tools." This free credit help ebook will help people get out of credit card debt and use their credit as a tool to make money.

(PRWEB) December 27, 2005 -- Jeanette Fisher, author of multiple books on credit help, real estate investing, and design psychology, offers her new ebook, "Credit Tips: Turn Your Credit Burdens into Wealth-Building Tools," as a holiday gift to first-time home buyers and real estate investors.

Fisher says she wants to help people eliminate their financial worries so they can be happy. "I spent so many years worrying about money while I was raising our kids that I didn't enjoy my life. I want to alleviate that stress for others and help people see how they can use their credit as a tool, rather than seeing it as a burden."

In her free credit help ebook, Fisher teaches people how to make money with credit. She explains how to repair credit ratings, the truth about credit scores, why people should not waste money on credit repair scams, and how to get financing on a first home or multiple investment properties, including the six qualifications for mortgage financing.

Fisher, who has no traditional retirement fund but now has great real estate assets, was shocked to learn:
85 out of 100 Americans reaching age 65 don't possess as much as $250
Only 2% of Americans nearing retirement have the resources to support themselves
The average American consumer has access to over $12,000 of unsecured credit card debt, but too many suffer from extreme stress over their credit card debt to use it properly

"Many people don't realize that credit card debt can be used as a tool for mortgage financing, if managed appropriately. With the proper knowledge, more people can take advantage of real estate opportunities to build financial security for retirement, in addition to providing great financial freedom during career years," said Fisher.

Fisher researched the best way to strengthen credit specifically for mortgage loans, and offers her advice in this free credit help ebook. This credit help information, used appropriately, will improve credit ratings, while many "credit repair clinics" actually damage individuals' credit ratings.

"Jeanette takes you through a step-by-step process of improving and monitoring your own credit unlike many other books on the subject," said Maria Palma, a Realtor in San Diego. "I thought I knew everything about credit, but I learned many new things after reading this book."

Jeanette Fisher wants people to enter the New Year with more than a plan to reduce credit card debt, but a realistic way to reach achievable goals of financial success. For a limited time, individuals can sign up for this free credit help ebook at www.WorryFreeCredit.com and begin the worthwhile journey to financial freedom.

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Breaking The Real Estate Bubble Myth

2005-12-30T00:17:00.000-08:00

By Luigi Frascati

Bubble? What bubble?

At the root of the Real Estate Bubble Myth is the fact that interest rates are on the rise and the inexplicable truth is that, all of a sudden, everybody is so worried and concerned about it. Interest rates have been steadily on the rise both in the United States and, by reflection, in Canada since mid-2004, so I will leave to psychiatrists and psychologists the arduous task of explaining the newest, interest-rates phobia. I will, however, delve into the reasons as to why interest rates have been on the rise for these past 18 months.

Interest rates are the most important mechanism of Monetary Policy used by Central Banks to expand or reduce the available pool of capital at any given time. Central Banks use this mechanism to control the level of aggregate demand for goods and services, a primary cause of economic fluctuations. By reducing the money stock the cost to the banks for using the available capital is raised and passed on to consumers with a mark-up factor. This, in turn, discourages consumer spending on goods and services and, conversely, stimulates consumer saving. The effects are widespread and reverberate throughout the economic basket including, of course, real estate. What, however, pays to bear in mind is that it is not so much the amount of the increase that is important but, rather, the time given for the economy to adjust. The effect of a one percent interest rate hike in one month is going to be very different – and much more dramatic – than the effect of a one percent rate hike in six months, and this is a fact very well known to both the Federal Reserve System and the Bank of Canada.

So much so, in fact, that David Dodge, the Governor of the Bank of Canada, as well as Alan Greenspan, the outgoing Chairman of the Federal Reserve Bank and Ben Bernanke, the nominee for the Chairman position are all proponents of gradual interest rates increases. Prof. Bernanke in particular, in fact, has gone even as far as postulating an inflation-targeting approach designed to keep inflation in check at 2 percent over two years. All number-crunchers out there, therefore, consider this: the posted annualized U.S. rate of inflation calculated monthly for November, 2005 using the Consumer Price Index published by the Bureau of Labor Statistics is 3.46 percent, so all the Feds are talking about is a –1.46 percent inflation-targeting reduction programme over two years. That amount should be easy enough for everyone to absorb and it certainly does not look nearly as ominous as the doomsayers are all too fond of depicting.

Contrary to the belief of many ‘bubbleologists’ and the uneducated guesses of ill-informed consumers, a rise in interest rates is actually a welcome variable for the economy and, moreover, it is specifically the tool needed to keep a bubble from bursting. An economic bubble as it is widely known – or perhaps it isn’t – occurs when speculation causes prices to increase, thus producing more speculation and subsequent price increases. The bubble bursts when prices of goods are so absurdly high that consumers either refuse or cannot afford to purchase, thus sending demand tumbling down. As real estate markets in North America have seen more than a fair share of speculation in recent times, it follows that a cooling-off trend through higher interest rates will have the beneficial effect of consolidating market wealth achieved thus far. The bubble would be likely to burst if no pressure were applied on speculation, thus increasing prices even further and causing demand to lower and finally collapse. Allowing the economy to get an even footing through a slowdown of capital appreciation and, at the same time, allowing real wages to catch up is exactly the tonic needed for a healthy foundation. Higher interest rates, moreover, promote domestic saving and attract foreign capitals thus reinforcing both the Greenback and the Loonie, another beneficial factor in finance albeit not in trade.

So, what is the prognostication for 2006? Real estate consumers need to look no further than at the prices large developers are asking – and collecting - today for new construction slated for completion by the end of 2006 and beyond. Prices for residential condos in the planning stage or just under construction sold ‘on paper’ today are about 10 percent higher than prices of equivalent existing resale units, which goes a long way to point out where big players think the real estate market is heading. The basis of this buoyance is that consumer confidence is stronger than ever. Just before the Holidays, in fact, the Feds reported that the Index of U.S. Consumer Confidence has risen to 103.8 from 98.3 in November, the second highest level since August, 2005 when the Index reached 105.5, a reflection of lower energy prices and an improved job market environment. Moreover, preliminary estimates already show an 8.7 percent rise in Holidays spending in the United States and a 7.6 percent rise in Canada over the same period last year. There is no valid reason to believe, under the circumstances, that consumer confidence applies to everything but real estate and that an economic bubble would affect only real estate markets and nothing else. Furthermore, Real Estate Boards across Canada and the United States report that inventory levels are ‘seasonally normal’ – an indication that the anticipated glut of housing due to the inability of homeowners to meet mortgage payments has failed to materialize thus far. In fact, those who worry that adjustable-rate mortgages are a potential financial time-bomb ready to explode should be informed that while there has been a surge of new adjustable-rate mortgages over the past twelve months, especially in the United States, they account overall for less than 10 percent of the total existing inventory of mortgages held by banks. Furthermore, many adjustable-rate mortgages have allowed consumers to fix rates up to 10 years, and it is only borrowers of sub-prime mortgages that face monthly-payment adjustments after three years – which therefore means that the problem, if there is a problem, will come due in 2008, not in 2006. Interest rates increases have absolutely no impact whatsoever on the vast majority of mortgagors who have locked in already.

In conclusion, therefore, it certainly appears that the Real Estate Bubble theory belongs more to Greek mythology than the reality of our times. There is in progress right now a reduction of real capital values, which will continue for some time as the direct consequence of the markets taking a breather. This trend is expected to settle real estate markets to new, more commensurate pricing levels before appreciation will surge upwards once again. Where the difference will be seen more likely than not is in the annualized rate of appreciation: gone are the times of twenty percent capital appreciation increases from year to year. As interest rates are steadily, gradually increasing, expectations in economic circles range from a conservative 5 percent to an optimistic 10 percent housing appreciation in value by this time next year. But there is no question that real estate markets still have a way to go to make up for years of decline. Those who theorize the collapse of the housing market by comparing it to the stock market are fundamentally incorrect. At its core the housing market, like the stock market, is all about supply and demand. However, the difference is that investors base their decisions to buy into stocks on future potential whereas investors base their decisions to buy into housing on inherent value. Moreover, externalities as varied as immigration, internal migration trends, marriage trends and cultural precepts as well as generation gaps affect real estate markets whereas they are totally missing in stock markets. As such, real estate markets just do not ‘crash’ like stock markets. There is not going to be in real estate the infamous Black Monday – October 19, 1987 – when the Dow Jones collapsed 22 percent in value in one day. When people buy into stocks there is no guarantee whatsoever that the companies they are buying into will be still in business five, ten, fifteen years down the road. Real estate markets, conversely, are far, far safer.

In the absence, therefore, of external negative influences the likes of wars, terrorist attacks or devastating virulent pandemics – which, on the other hand, would affect the entire economy – and until such time as consumers exhibit confidence and purchasing power the way they have been doing thus far, there is no reason to fear bubbles of any kind anywhere in real estate. Hence, do not expect to hear a popping sound any time soon.

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Article Source: http://EzineArticles.com/?expert=Luigi_Frascati

Real Estate Investing Articles

2005-12-28T10:00:00.000-08:00

Check out "Submit Your New Article.com" for new real estate and credit help articles.

3 FREE Real Estate Investing Teleseminars

2005-12-23T13:13:00.000-08:00

1. Credit Help for Financing Multiple Investment Properties
FREE! Our gift to our newsletter readers.
"Make 2006 Your Most Profitable Yet!" Teleseminar
Worry-Free FREE! Credit Teleseminar

2. "How to Get Started Investing in Real Estate Teleseminar" No schemes, get the truth about getting started for beginning real estate investors.

3. "Are You Serious About Wanting To Sell Your Home or Investment Houses for Top Dollar?" FREE Home Selling Help Teleseminar

Real Estate Mortgage Loan Checklist

2005-12-21T01:27:00.000-08:00

Real Estate Mortgage Loan: How to Prepare Yourself to Save Money

Prepare yourself to save money on your real estate mortgage loans with this checklist: Documentation Required for Real Estate Mortgage Loans. Whether you want to buy your first home or many investment properties to build wealth, this checklist will help you save money on loan costs. ***You need FREE Adobe Reader to open.

Real Estate Mortgage Loan: How to Prepare Yourself to Save Money

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New Website Resource for Investors

2005-12-19T10:26:00.000-08:00

If you want to invest in real estate out of your area, here's a website designed to help investors connect around the country.

For new investors looking to break into the real estate investment industry, Money4Investors.com is a useful tool for locating money for fixer uppers, finding wholesalers, making contact with realtors that specialize in investment property, tracking down title companies to handle transactions, and looking for properties. The site is also a great place to strengthen your knowledge in the industry with real estate investment articles, online chat forums, daily news, and other resources.

Also, the new site welcomes your real estate listings and links.

Check out Money4Investors.com. Enjoy real estate investing!

How to Start Investing in Real Estate

2005-12-17T13:47:00.000-08:00

I've received quite a few emails asking the same question: "How do I start investing in real estate?"

If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.

If you don't currently own your own home, that's the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.

Homeowners Are Real Estate Investors

Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.

However, if you split your mortgage payments with other people, you don't have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!

How to Begin Real Estate Investing

Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:

1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.

2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don't need to put a down payment into a new home to live in.

3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.

4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!

You can make money investing in real estate. Make a plan of action and get started real estate investing.

Copyright © Jeanette J. Fisher

Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
For free credit advice and free ebook "Credit Tips for Mortgage Financing," see Free Credit Help Information
For real estate investing information, see Real Estate Investing Information

Learn How to Clean Your Fixers Faster

2005-12-07T15:03:00.000-08:00

Do you want to learn some professional speed cleaning tips?

Cleaning tips article by Mary Findley helps you prepare for holiday parties. Get some invaluable cleaning tips to help you speed through your dirty fixer houses.

Speed Cleaning Tips!

Learning Annex, Los Angeles

2005-12-01T21:20:00.000-08:00

Join us for a fun and informative evening...

Interior Design Psychology for Top-Dollar Home Sales
with Jeanette Joy Fisher

Course 850CLA, Section A
Monday, January 16, 2006 from 06:45 PM to 09:30 PM
Location: Westside

Doghouse to Dollhouse for Dollars:

Don't just compete with other home sellers- Get buyers to compete with each other for your home! Whether you're selling 1 home or 20, discover how to make more money while spending less for home improvements.

Design Psychology-expert Jeanette Joy Fisher will teach you about the only home-selling system to reveal interior design secrets that go after your target buyer.

You'll learn how to:
* Use 5 new strategies to fix houses
* Spend $5,000 less on the average fixer
* Give houses the designer's touch that entices buyers to pay more
* Use Design Psychology for home staging
* Sell houses in bidding wars - for more than the asking price.

Discount Applies: Take 5.00 off this course for enrolling on the web!

Do-It-Yourself LLC Formation: Easy and Legal

2005-11-27T15:05:00.000-08:00

(Many questions in our recent Q & A Teleclass related to LLCs. Here is some more information relating to states other than Nevada.)

Do-It-Yourself LLC Formation: Easy and Legal
By Stephen Nelson

you've decided you need an LLC for your real estate investing or small business. But the attorney wants several hundred dollars or more to fill out the paperwork. Isn't there a cheaper way to set up an LLC? You bet. You can do it yourself.

An LLC formation, by design, is very straight forward. To set up an LLC, you file articles of LLC formation or articles of organization with the state government agency in charge of corporations and limited liability companies. This document is sometimes a simple, one-page form. Typically, the document can also be a type-written list of descriptive bits about new LLC (the name of the LLC, the person performing the LLC formation, and so on).

Different states have different names for the offices or agencies that process the LLC formation articles, but the agency or office is usually fairly easy to locate through a web search. Typically, the agency or office is connected with the state's secretary of state office and is named something like "Corporation Division" or "Corporations Division." Note that some states (including Washington state where I live) let you file your articles of formation or articles of organization online.

States may also have additional setup requirements beyond simply filing the LLC formation articles. Some states such Arizona require that public notice be given in a newspaper. Some states such as New York require an operating agreement. Which raises an important point: It's really an excellent idea to have an operating agreement written up to describe how the LLCs owners, or members, relate to each other and to the LLC. Attorneys even recommend that single-member LLCs should have an operating agreement because the operating agreement, if honored, improves the liability protection.

After the state accepts your articles of LLC formation and you complete any other state requirements, you're done with your LLC formation.

Bellevue WA tax CPA Stephen L. Nelson is the author of both Quicken for Dummies and QuickBooks for Dummies and an adjunct tax professor for Golden Gate University's graduate tax school.

Article Source: http://EzineArticles.com/?expert=Stephen_Nelson

2005-11-22T18:22:00.000-08:00

Is money holding you back from creating your real estate portfolio?

Learn how to improve your credit so you can make money using other people's money.

Join our FREE Credit Help! Teleseminar to find out what it takes to improve your credit so you can finance multiple investment properties. Learn what it takes to get investment property loans to build wealth.

Watch as I Guide You Through the Entire Process...

If you can talk on the phone at the same time you go online, you will be able to watch my PowerPoint presentation used in my college seminars.

This class doesn't give you the same information as "credit repair clinics" who can damage your credit. Because so many of my students needed credit improvement to finance property, I researched the best way to strengthen credit specifically for mortgage loans.

Read more about it:
Free Credit Help Teleseminar

Happy Thanksgiving!

Jeanette Fisher
Worry Free Credit Help Information

Real Estate Investing Information

Flip or Hold?

2005-11-08T07:54:00.000-08:00

In response to your questions about taxes, I am not a tax expert. However, we like to use the 1031 exchange if we sell more than one property in a year.

Expert Cary Losson tells you more about the 1031 exchange:

More Return On Equity For Your Investment Property Dollar

Few would deny that real estate is a solid investment. It
provides an attractive combination of stability, reliable cash
flow, preservation of principal and capital appreciation.
However, many investment property owners nearing retirement find
themselves in a quandary. They are equity rich, but cash poor,
with increases in the value of their property far outpacing
income growth. They also are often tied down by the day-to-day
issues of property management and, particularly in cities like
San Francisco, California, shackled to the constraints of rent
(and eviction) control. In fact, San Francisco is home to some
of the lowest cash return on equity in the state's real estate
marketplace, which is somewhat counter-intuitive given
California's ever-booming property market.

The obvious answer is to sell the property and unleash the
dormant equity, but that can be problematic. These investors
face the reality of prohibitive capital gains taxes and
recaptured depreciation, as well as the task of identifying an
alternate investment venue; or locating, acquiring and financing
suitable replacement property in the time period allowed, taking
advantage of tax deferral under IRS code section 1031.

An ideal solution for many investment property owners may be to
reinvest the proceeds from the sale of their property and
utilize a subsequent 1031 exchange into a tenancy-in-common (TIC)
ownership type, also known as co-ownership of real estate (CORE)
interest in a suitable replacement property.

1031 exchanges, also known as Starker exchanges or tax-deferred
exchanges, permit owners to sell investment property and defer
tax payments by reinvesting the proceeds into another investment
property (or investment properties). In order to completely
defer the payment of tax, among other things, the replacement
property must be of equal or greater value and all the equity
from the sold property must be reinvested in the new property.
The marriage of 1031 exchange and TIC/CORE allows investors not
only to defer their capital gains taxes but also to upgrade
their investment real estate.

TIC/CORE is a way of sharing ownership of property among two or
more persons whereby each tenant holds an undivided interest in
the property. Tenants-in-common may own interests of differing
sizes. TIC/CORE investors are on the title and considered
separate owners of the real estate. They share pro rata in the
income, tax benefits and appreciation of the property. Their
TIC/CORE interest can be purchased, sold, gifted, bequeathed by
will or inherited; and it is subject to property taxes, gift tax,
and estate and inheritance taxes in the same manner as any
property held in sole ownership. With a TIC/CORE property, each
of up to thirty-five investors have the opportunity to own an
undivided fractional ownership interest in an investment-grade
property, such as an office building, shopping mall, apartment
complex or industrial property, costing anywhere from $10
million to $150-plus million.

The benefits of investing in TIC/CORE properties are
substantial. Such properties employ professional asset and
property management, relieving the investor of day-to-day tenant
headaches. More important, investors often receive greater cash
flow and overall returns than they had in their previous sole
ownership property. Typically, many people receive between 2-3
percent of their equity in their property in rental income. By
selling this property and placing the equity into a larger
investment-grade property, they can potentially experience
annualized cash flow from 6-8 percent, paid monthly, and 12-16
percent overall return on their investment. Also compelling is
that TIC/CORE exchange investors can diversify among several
property types, and geographic locations through fractionalized
ownership, while still enjoying 1031 exchange benefits on each
amount. Thus, investors can potentially reduce risk in their
overall real estate portfolio.

Investors seeking to exchange for a TIC/CORE property are best
advised to work with a financial advisor experienced in 1031
exchanges. Such advisors work closely with top real estate
providers, who give the investor access to the best properties
available. In addition, many TIC/CORE opportunities have
pre-arranged, non-recourse financing in place, which is perfect
for investors working within the 1031 exchange time frame.
Numerous hours of upfront investigation, evaluation, due
diligence and life cycle planning transpires before a property
is offered to an investor group. Investors faced with only a
45-day window to identify a suitable replacement property to
complete a 1031 exchange can select a suitable project with
confidence.

Given the tax deferral, institutional-grade quality of the
property, professional property management and pre-arranged,
non-recourse financing aspects, a 1031 exchange replacement
property structured as tenancy-in-common ownership can be a very
wise and profitable solution. It allows the investor to maintain
everything they like about real estate (monthly income,
preservation of principal, capital appreciation, etc.), while
eliminating most of the hassles of property ownership.

(c) 2005, 1031 Exchange Options. Reprint rights granted so long
as the article and by-line are reprinted intact and all links
made live. This article is neither an offer to sell nor an
offer to buy real estate or securities. There are material risks
associated with the ownership of real estate. You must be an
accredited investor. Securities offered through Sigma Financial
Corporation, Member NASD/SIPC.

Cary Losson is the Founder and President of 1031 Exchange Options. A luminary in the TIC/CORE 1031 exchange
marketplace, Mr. Losson is frequently quoted in journals and
periodicals concerned with investment property issues and
advice. For more resources to assist in your learning:
http://www.1031exchangeoptions.com/resources.html

Oregon bargain property for sale

2005-10-27T10:06:00.000-07:00

363 acres located in Southern Oregon, minutes from Eagle
Point. An outdoorsman's paradise. $675,000
Oregon bargain property for sale

Investing in Real Estate for Your Retirement (and Now!)

2005-10-12T16:04:00.000-07:00

By Ailsa Forshaw

You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good!

In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time.

Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha!

Buy Apartments or Condos

One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that…) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh?

Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement.

I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner.

New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee.

When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter.

Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on.

Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well.

If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible… Man, can't wait to live in the States, again!

Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment.

I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together.

Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore!

The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later.

(I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!)

Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com

Article Source: http://EzineArticles.com/

Interior Design Secrets to Fixing and Flipping Houses for Top Dollar

2005-10-09T09:37:00.000-07:00

"Amazing! Discover the breakthrough real estate investing strategy guaranteed to increase your earnings and help you build wealth for your retirement!"

Explore the one-of-a kind real estate investing system that helps you make more investing in real estate. Design Psychology, a new method of fixing houses using interior design helps you sell or rent for top dollar.

Real Estate Seminar
By Request: New seminar added October 15, 2005 10:00 AM - ?, Learning Center, Lake Elsinore This commercial site is one of the Fisher's Dollhouses! See the "after" live!

Doghouse to Dollhouse for Dollars: How to Find and Fix Houses for Fast Flips or Rentals
This special seminar emphasizes Design Psychology Redesign and Home Staging strategies for fixing houses to sell or rent for top dollar. Learn how to:
Determine profit potential on fixers
Use interior design secrets to fix for less with designer touches that look like a million-dollar home
Fix rentals with materials tenants won't damage--and they'll pay more for!

For beginning real estate investors:
* Find your first home, bargain distressed property, or next "doghouse"
* Finance your property even with bad credit without owner financing
* Fix or transform fixers into dollhouses for less
* Flip or market your real estate for top dollar
* Get a vacation or second home for free!

Your investment in this class: $69 and books. Limited enrollment (small classroom) Reserve space. Real estate seminar.

Copyright 2005 Jeanette J. Fisher.

Why Are There So Few Foreclosures?

2005-09-26T07:33:00.000-07:00

Many real estate investors used to specialize in picking up foreclosures. Like other investors, we purchased HUD, VA, and bank foreclosures. In the eighties my husband and I ran a HUD repo real estate office. We bought our last foreclosure in 2003.

Why did the foreclosure market dry up?

Besides the economy providing better employment, mortgage lenders softened their treatment of borrowers.

Since mortgage lenders created programs to help home owners in trouble, foreclosure rates have dipped. Delinquent borrowers now can stay in their houses and "work out" their problems.

Among the programs used: restructuring the note terms to fit the borrower's needs; deferring past due payments to the final payoff of the loan; decreases in interest rates; and sales-in-lieu of foreclosure, which give time to delinquent borrowers to sell their properties to pay off the mortgage instead of foreclosure.

Don't waste you money buying real estate investing books and programs on how to make money in foreclosures.

Copyright 2005 Jeanette J. Fisher
How to Make Money Today in Real Estate Investing

How to Make Money (Today) with Fast Flips

2005-09-23T09:48:00.000-07:00

Many real estate investing "teachers" advise beginning investors to find many houses and to flip the houses quickly for outrageous profits. Perhaps you've seen the claims of real estate gurus telling you how you can make $30,000 to $50,000 per month without any physical work and for little or no money out of your pocket.

Read the rest of the story: How to Make Money (Today) with Fast Flips

No Money Down Loans

2005-09-17T23:30:00.000-07:00

By Max Hunter

You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.

There are many loan packages available for people with no money to put down on the home or for closing costs. The home loan industry has undergone revolutionary changes over the last ten to twenty years. No longer is it true that you need to put down 10% and have enough money for closing costs in order to buy a home. The simple fact of the matter is that there are home loan packages that can get you in a home with no money down, or very little.

Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal equirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.

But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and
selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.

Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value
of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.

There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.

Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.

Believe it or not, there are loan packages available that combine both of these examples - no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that
this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.

Today's home loan industry is competitive. There are packages available for most people no matter what credit history they have or what funds they have available for the down payment and/or closing costs. Rather than deny your own mortgage application, speak to a mortgage professional to determine if you can begin realizing your dream of homeownership and a brighter financial future.

About the Author: Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at
http://www.homeloanave.com

Source: http://www.isnare.com

Hurricane Katrina Boosts Housing Costs Across the U. S.

2005-09-13T22:51:00.000-07:00

Tuesday, September 13, 2005

The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.

Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.

Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "

Hurricane Drives up Real Estate Construction Costs

Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.

NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."

Simple Home Staging Solutions

2005-09-09T17:44:00.000-07:00

The sunlight streaming in makes this dining space feel welcoming. Notice the round table, perfect for signing contracts...

Home Staging Tips

10 Real Estate Investing Benefits

2005-09-07T09:08:00.000-07:00

1. You don't have to quit your day job to get started.
2. You're the boss.
3. You use other people's money.
4. You establish a hedge against inflation.
5. You can quickly increase your net worth.
6. You save money on taxes compared to other investments
7. You generate cash flow.
8. You can turn over management and enjoy
9. You help improve neighborhoods.
10. You create a fantastic retirement fund independent of other plans you may have.

Let's look at number nine today. You help improve neighborhoods. This real estate investing benefit is my personal favorite. I love fixing up a dump and turning it into a dollhouse.

Every time we improve a horrible property, other neighbors get inspired to paint and landscape. Sometimes we help the neighbors with advice, tools, and even physical labor. Improving the neighborhood does mean that we make more money. But it's the satisfaction of making a difference in people's lives that really pays.

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

Get started today investing in real estate.
Subscribe to this blog and get the rest of the story.

Hurricane Help

2005-09-06T10:37:00.000-07:00

Now would be a great time to give away home furnishings you've taken out of your fixers. Check to see if you have Habitat for Humanity near you.

This would help you prepare your home for sale and help those who lost their home.

You could also give Habitat for Humanity money. They like that!

Go to http://www.habitat.org

Subscribe to this blog

2005-09-06T10:04:00.000-07:00

Receive notice of new posts to this blog. We don't collect this email information so you will not be pestered. Just enter your email in the top right box. Enjoy!

Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer

2005-09-06T10:01:00.000-07:00

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.

THREE TIPS TO HELP YOU 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 rehabbers 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.

For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free "Design Psychology for Selling Houses" Report

Real Estate Bubble In Korea

2005-09-02T15:07:00.000-07:00

South Korea recently announced a package of drastic tax measures aimed at curbing a real estate bubble. To stop speculation in residences and land in the country, they increased capital gains taxes. Investors who own two homes will pay up to 50 percent, up from previous rates of between nine and 36 percent. Investors who own three homes will pay even more, up to 60 percent.

Global credit rating agency Fitch expressed concern about the tax to stop the bubble in Korea. Fitch reports that the real estate bubble is limited to parts of the country. Fitch also said there was no evidence of a serious real estate bubble in Korea, except for affluent Southern Seoul.

I'm glad we invest in Southern California.

© 2005 Jeanette Fisher. All rights reserved.

Home Warranties: Are They Too Good To Be True?

2005-08-26T19:56:00.000-07:00

By Donald Lawson

What is a ‘Home Warranty?’

A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.

Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true?

Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.

I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims

· Lack of regular maintenance

· Pre-Existing conditions

· Questionable ‘Code’ issues

· Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com

Article Source: http://EzineArticles.com/

Doghouse to Dollhouse for Dollars College Seminar

2005-08-17T12:54:00.000-07:00

The college sent out the course catalog late. This left little time for readers to sign up to the class. However, the college just called to say the class is NOT cancelled because people have signed up today.

Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702

Doghouse to Dollhouse for Dollars book cover

2005-08-16T20:33:00.000-07:00

I don't know why the graphic artist changed the orignial cover design for the last print. He decided to add the work "by" infront of my name and no one caught that. Also, the fuzzy edges on the pictures look all right on the book when you see the cover full size. However, the fuzz looks terrible online!

Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?

Third Print of "Doghouse to Dollhouse for Dollars"

2005-08-15T20:42:00.000-07:00

Amazon just ordered my last books. Wierd how they ordered the last ten--just the number we had left! This was after they ordered a huge shipment last week. I wish they would order more books at one time instead of every day or two.

We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.

Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.

http://doghousetodollhousefordollars.com

New "Doghouse to Dollhouse for Dollars" back cover text

2005-08-15T20:38:00.000-07:00

Real Estate/Investing

Prosper in Every Real Estate Market

Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.

Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.

Rise above market trends to create an abundant financial future with Design Psychology

Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions

"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA

'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor

Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.

ISBN/price

copyright 2005 Jeanette J. Fisher

Doghouse to Dollhouse for Dollars College Seminar

2005-08-02T17:09:00.000-07:00

Real estate bubble?
No matter what the market does, you can still flourish in the
real estate business with fixers.

Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:

1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology

This one-of-a kind real estate system comes to you in two
ways:

1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702

2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific

Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.

The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.

Forget the typical "clean it up" and "paint it white" advice.

This teleclass helps you:

1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.

Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing

Class size limited so each participant gets the same results
as those taking the college course.

How much is your future worth to you? $150. Guaranteed
Satisfaction.

Yes! I want to get started today creating wealth by real
estate investing!

More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site

Joy to you!

Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780

Beware of "Subject To" Promises

2005-08-01T07:53:00.000-07:00

Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages."

This simply isn't true.

First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.

I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.

Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.

For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.

Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.

Beware of "subject to" promotions. This real estate investing method worked last century, not today.

Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.

Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com

2005-07-31T08:14:00.000-07:00

Are You Tired of Tenants, Toilets, and Trash?
By Paula Straub

Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti?

Before selling your property, check with your accountant who
will tell you that you will be paying $60,000 in Capital
Gains Tax to Uncle Sam. Your accountant will also tell you
that adding another $20,000 to your income by that sale is
called recaptured depreciation. This will bump you into the
next tax bracket and doom you next April 15th into sending
the IRS a check for maybe another $7,000.

Are you still ready to sell that property?
It looks like that trip to Tahiti is going to be sometime in
the far future!

But wait! You decide to check with your realtor and then
find out about a 1031 exchange to defer your Capital Gains.
Your realtor tells you if you buy another like-kind rental
property of equal or greater value, you won't get hit with
the gains tax on the sale. That is all fine and good, but
it does not really get you out of the headaches associated
with collecting rent, keeping your unit occupied, finding
clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing
toilet. To top this off, now you have to pay more in
property taxes and must charge higher rent.

Hmm--maybe this idea is not the ticket to that South Pacific
paradise either.

This is the dilemma I heard from my financial clients again
and again. They were frustrated and felt trapped in their
current situation. So what is a frustrated income property
owner to do? After a lot of research and roadblocks, I found
the perfect solution that has changed the lives of my
clients and took away stress to bring enjoyment of life.

For anyone who is tired of being a landlord and who owns a
rental/commercial property that has gone up a lot in value,
take heart.
A 1031 exchange into a Tenant In Common Property may be your
answer.

There are very specific rules to follow set by the IRS, and
the entire detailed process is the subject for a future
article, but here's the gist:

1-Sell your current income
property;

2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a
qualified third party) that you intend to do a 1031 exchange
into a Tenant in Common Property;

3-Work with a reputable
company to identify a property that you would like to
purchase an interest in;

4-At the close of escrow, your
proceeds are transferred by the Accommodator to purchase
your proportionate share of a larger "A" rated commercial
building;

5-You may choose a business center, a medical
office building, or similar high-end property; and lastly,

6-You get a deeded interest in this property, so you can
keep it, resell it, pass it to your heirs, or even gift it
to charity upon your death.

The way that this works is all the new fractional owners, or
"Tenants in Common" hire an ace Management Company to handle
all the property management tasks. The company finds and
keeps high quality tenants, does the maintenance and
upgrades, pays the property taxes, and handles all the day
to day crisis that arise. Probably the three most important
factors in this entire process are:

1-Your choice of company
that offers the properties for sale;

2-the Accommodator,
and;

3-the management company.

Make sure each of the three parts is a top notch with proven
track records. Anything less could spell disaster.

When this 1031 option is done properly, your benefits will
be:

Deferral of all Capital Gains,

A monthly contractual income (usually based on 6-7% return
on equity),

Building depreciation for tax savings,

Unlimited property appreciation potential, and

No more headaches of property management.

Good-bye Tenants, Trash and Toilets!
Hello Tahiti!

Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful
business owner, Paula strives to guide clients to financial
independence in the most timely and efficient manner
possible.

(c)Paula Straub - All Rights reserved

=-=-=-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=

How much would you pay to save thousands in Capital Gains

Tax? I'll teach you for free in a Teleconference that may

change your life. Sign up at ==> http://www.savegainstax.com

=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

Article Source: http://EzineArticles.com/

Buying a Home: The 5 Biggest Mistakes that a Home Buyer Makes

2005-07-31T08:09:00.000-07:00

By Donald Lawson

As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.

Mistake #1: Not using an agent at all or using the Listing Agent as your 'Agent'. Not smart at all. By law, the listing agent is required to keep the Sellers best interest at stake, not yours! Why would anyone enter into a relationship handicapped like this?

I’m not aware of any state that makes a Buyer pay for their Agent. The Buyers agent normally gets paid from a cut of the Listing fees or the commissions are split.

If you choose wisely, you can put a trained real estate professional on your side for free! A true Buyers agent can help you negotiate a contract, fly through the mountain of paperwork, help you find the right home and help you schedule the needed inspections and appointments necessary when you do find your dream home.

Mistake #2: Relying on the Home Inspector your Agent recommends: I’m still amazed at how many people will blindly take the advice and recommendation of their Agent, or of the Listing Agent, when choosing an Inspector.

The agents have a financial stake in seeing the deal go through. Why risk the conflict of interest by solely relying on their choice of Inspectors? With a little research you can find your own home inspector who will have your best interest at stake. Don’t know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here:
http://www.ashi.org

Mistake #3: Putting up “Non-Refundable” earnest money. This is like giving the Sellers a check and saying, “Here, you keep this. Even if we don’t buy your home, you can keep our money”. That’s just plain stupid. If your Agent recommends it, find another agent because they don’t have your best interest at stake.

I’ve seen Sellers request up to a $20,000 non-refundable earnest money check. Luckily my Client had a good agent and she told the Listing Agent “That is the most ridiculous thing I’ve ever heard. We’ll give you the standard $1000 refundable earnest check. Take it or find another Buyer.” The Seller accepted rather quickly since her home had been sitting on the market for 5 months.

Mistake #4: Falling in love with the home: “Earth to love struck home Buyer, they’re building more homes every day!” The one group of consumers I see getting taken advantage of the most are those that “fall in love” with a home.

They will accept any terms set by a Seller. They will buy the home and tell themselves “It just needs a little work, I can do that myself.” Even though they have never picked up a hammer in their life. They let their “love” cloud their vision and Judgement and end up paying hefty ‘stupid tax’.

Mistake #5: Buying more home than what they can afford. There is a rule of thumb that says you should not buy a home that cost you more per month that 20 to 25% of your take home pay. I rarely see anyone following that rule of thumb today.

What I do see is consumers buying homes that take a large part of their monthly income. This leaves little room in their finances for emergency’s, furniture, vacations, investing, etc. With the relaxed lending requirements, people are buying way more home than what they can realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.

I’m not a real estate agent, broker or attorney, nor am I a financial consultant nor do I claim to be an expert in any of these fields. The above views are my own and have been obtained from experiences in the Home Inspection field. Always consult with your financial planner and/or Real Estate Agent before making any decisions.

Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (454) and Texas (#5824) and currently owns V.I.P. Home Inspections in Houston Texas. V.I.P. Home Inspections is a multi-inspector firm that inspects both commercial and residential inspections. You can find out more by clicking on this link to his site: http://www.best2inspect.com

Article Source: http://EzineArticles.com/

2005-07-31T01:32:00.000-07:00

How to Find and Buy a Bargain House with Little or No-Money Down

2005-07-24T00:49:00.000-07:00

by Jeanette Fisher

Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.

Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.

A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.

A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.

How to Find a Distressed Seller

Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.

Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.

How to Buy a Distressed House

You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.

If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.

Copyright (c) 2005 Jeanette J. Fisher-All Rights Reserved.

Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com

For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com

What Does Your Dream Home Look Like?

2005-07-19T23:10:00.000-07:00

Many women I know got into the flipping houses business because they desired a dream home. My friend Ruth bought and sold many fixers on her way to buying her dream home on the St Johns River in Palatka. Of course she also had to make enough money to retire early so she could move to Florida.

Another friend of mine sold her dream home to buy five fixers. She told me that her dream home really didn't make her happy and that it took too much time to keep up, even with hired help. After flliping her five houses, she bought an oceanfront condo and went travelling.

Maybe your dream isn't a home at all. Whatever your goals, if you want to make extra money flipping houses, transform your fixers into your buyers dream home.

Copyright (C) 2005 Jeanette J. Fisher. All Rights Reserved.
Doghouse to Dollhouse for Dollars:
Using Design Psychology to Increase Real Estate Profits

Sell Your Home for Top Dollar FAST!
Design Psychology for Redesign and Home Staging

Las Vegas Real Estate Investment Club

2005-07-09T09:54:00.000-07:00

Join the Las Vegas Investment Club and benefit from over 100 members.

I'll being speaking about how to build strong credit for financing multiple investment properties July 14 at the Gold Coast Hotel & Casino, 4000 West Flamingo Road.

Thursday 7/14, 7-9:30 PM

Get the credit you need to buy your dream home or financial future.

Apple Green Book Cover and Cars

2005-07-08T08:54:00.000-07:00

My husband insisted that I get a new car because we no longer need a van to drive children around. New cars cost as much as a down payment on a house that makes us money, so I was reluctant to purchase a car that loses money.

I test drove the new Caddie and Lincoln. Ho-hum. Then my children told us about a car they saw the same color as my Doghouse to Dollhouse for Dollars book cover. I love apple green colors. My new Mustang convertible is FUN to drive, and it matches my book cover!

New Format for Doghouse to Dollar$ Workbook

2005-06-30T23:47:00.000-07:00

Order your companion book to "Doghouse to Dollhouse for Dollars," Doghouse to Dollar$ Workbook: Turn "Yucks into Bucks" Investor's Guide, now available in softcover.

Although most of my students prefer the notebook format, you now have a choice. Because the paperback edition costs so much less to print, email for a discount price.

See the contents.

Enjoy investing!

Jeanette

Kitchen Makeover Ideas

2005-06-28T13:55:00.000-07:00

Money spent updating a kitchen rewards you better than money spent on any other upgrade to your fixer. When it comes to kitchens, buyers continue to demand improvement in efficiency and style, and they usually want the kitchen fully remodeled and operational when they move into a new home. However, find out how to fix your kitchen up without too much expense.

Read full article Kitchen Makeover Ideas for Preparing Your Home for Sale

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

2005-06-26T01:44:00.000-07:00

Get the Credit You Need to Buy Multiple Investment Properties

1. Payment History -- 35%

The number of accounts paid as agreed and a good payment history give you a higher score.

Negative points lower credit scores because of 30 days, 60 days, and 90 days late on any debt. The dollar amount of these delinquencies also impacts credit scores. Severity of delinquency, how long past due, and number of delinquencies are nasty remarks on some credit reports. The older these derogatory items are, the less impact they have on credit scores. You do not want any present delinquent accounts when applying for a real estate loan.

Never, ever pay a mortgage payment more than 30 days late. Lenders do not like to see any delinquencies on real estate loans.

Adverse public records, such as bankruptcy, judgments, suits, liens, and wage attachments negatively dominate credit history. Any of these items cleared up helps improve a credit score, unless the item is aged. The older the derogatory entry, the less the impact. Any activity on a particular item makes the item update and therefore, remain on the report for another seven years. So, if a derogatory item is more than four or five years old, don’t bother with it.

Collection items unfavorably shape credit payment history. The more age a collection account has, the less its consequence. Most mortgage companies require that collection accounts be cleared before lending. If this is your problem, see “Help with Collections” later in section six.

2. Proportional Amounts Owed -- 30%

The amount owed on a credit line compared to the available credit is termed the proportional amount owed. With a credit card limit of $5,000, the score will be higher if less than $2,500 is owed. Even better is to owe less than 1/3rd of the available credit or less than $1501. To have the highest proportional amounts owed scoring factor, owing less than ten percent of the available balance gives you the best possible rating. On the other hand, owing over $4,500 on an account with a limit of $5,000 lowers your score significantly, especially if you have too many credit cards and other loans with high balances compared to available balances.

Tip: Call your creditor and ask them to raise your available credit as long as you don’t use this credit. This raises your proportional amount owed scoring factor.

To raise your credit score dramatically and quickly, pay down as much as possible on each credit line instead of paying off one credit card at a time. If a credit card is totally paid off, it does not compute in the proportional amount owed; therefore your rating does not benefit from paying balances in full. On the contrary, paying balances in full takes the account out of the equation and you don’t get higher points for the low proportional amount owed.

3. Length of Credit History -- 15%

Any account over twelve months with a good payment history helps a credit score if the balance is not too high compared to the available credit. Six months is the minimum length of time to establish credit. The time since accounts opened and the time since account activity are factored into the length of credit history.

4. New Credit -- 10%

Whenever you apply for a new credit line, your score receives a negative hit. The more inquiries you generate, the lower your score. Obtaining new credit lowers your credit score. We only apply for credit when applying for mortgages. Every time we get a new mortgage, our credit scores go down.

Never finance a new car or get a new line of credit when you are getting ready to finance property. Wait until after closing to apply for further financing. Be aware that after your new loan shows up on your credit report, your financing abilities shrink. If you need credit funds for any reason, including renovation costs for your new house, apply for this after closing your property purchase.

5. Types of Credit Used -- 10%

The different types of loans taken out by consumers affect credit scores. Credit assessors view mortgage accounts more favorably than consumer finance accounts. Too many installment loans, auto loans, and department store credit cards affect credit negatively. To improve your credit score, pay off installment loans and consumer finance company accounts after you have lowered your proportional amounts owed. Then pay off your department store retail accounts. Keep balances as low as possible on home equity lines of credit because they often count as consumer finance accounts instead of mortgages. Achieve higher credit scores by having only mortgage accounts and a couple of major credit cards with low balances.

Note: In addition to credit scores, lenders consider length of time at residence and employment as well as income and education.

Do You Need a Credit Score of 700?

Don’t believe it! We have so many loans; our scores are in the mid 600s, but we buy and sell property all the time. Even with a perfect payment history, we can’t get our scores up because we have so many real estate loans with high balances remaining. We often need to get “B” loans instead of “A” loans, which means we pay higher tax-deductible interest, points, and fees.

Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Real Estate Credit Help Center
Doghouse to Dollhouse for Dollars Books

Bloomberg News Radio

2005-06-22T02:05:00.000-07:00

After Bloomberg News called me for an interview about "flipping houses" last week, Amazon ordered more Doghouse to Dollhouse for Dollars books than ever.

I was the one woman on the show between a US senator and Steve Forbes. Seems like the big guys want to know how to make money flipping fixers.

Also, we went to Philadelphia where I was on TV talking about flipping houses with Mary Caraccioli, Executive Producer and an Emmy Award-winning television journalist, for "Money Matters Today."

My husband and our son enjoyed at least five Philly cheese steak sandwiches during our vacation in Philly. If you've never been to Philadelphia, GO! You really feel like you're in America!

New Design Psychology Website

2005-06-11T19:20:00.000-07:00

Check out the Real Estate section with articles, teleclasses, and information on home staging vacant houses. http://www.designpsych.com/realestate.htm

How to Buy Fixers for Profit

2005-06-01T19:30:00.000-07:00

Do you dream of becoming a multi-millionaire real estate investor? Here's how to get started: find a bargain "fixer-upper" owned by a worried seller.

Why Home Sellers Accept Rock-Bottom Prices

Home owners' troubles often keep them from staying on top of their home's maintenance. Circumstances such as divorce, job loss, devastating illness, assorted addictions, or other personal problems quickly overcome distraught home owners, forcing them to sell. These home owners can't keep up with monthly mortgage payments and repairs because of financial or physical limitations. When these troubles arise, their home becomes a low priority and sometimes goes into foreclosure.

"Triple-D" Deals

Home sellers with three problems offer breaks to beginning real estate investors. A "Triple-D" deal is a Doghouse, involved in a Divorce, and in Default. The label "doghouse" comes from Southern California real estate agents who described the worst fixers this way. You may have seen ads for "ugly" houses. These houses maybe "tired" and need only cosmetic work in order to compete for resale with other homes in the area.

The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who don't have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.

As you look through the classified ads or at real estate listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale phrase. Ask your buyer’s agent to list these words when scanning the Multiple Listing Service for you.

Once you've found a property that you can turn from doghouse to dollhouse, find out the seller's problem and then offer a solution. Distraught sellers commonly experience financial difficulties and need cash as soon as possible. Therefore, if you're ready to close rapidly, you'll be set to negotiate a lower sales price.

How to Complete a Fast Sale

Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers. Sellers with problems love it when an offer to purchase says "close in 10-14 days."

Use a trusted closing or escrow agent who knows what they’re doing; one not over-worked. Even in today’s busy market, you can find an officer who can help you close in two weeks, when your financing is prearranged.

Real estate investing should be fun as well as profitable. Enjoy your property search!

Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.

Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance

2005-05-30T12:38:00.000-07:00

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.

For Beginners: Three Tips to Help You Find the Perfect Fixer

2005-05-20T11:10:00.000-07:00

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/.

How to Avoid Appraisal Problems in the Sale of Your Dollhouse

2005-05-19T21:08:00.000-07:00

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/.

Softening Your Walls with Color Wash

2005-05-13T02:04:00.000-07:00

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

What do real estate newspaper classified advertising acronyms mean?

2005-05-09T08:43:00.000-07:00

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)

What is the first step in finding a doghouse?

2005-05-08T10:27:00.000-07:00

(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.

How long does it take to fix up a home and sell it?

2005-05-05T08:19:00.000-07:00

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

Types of Real Estate Bargains to Find

2005-04-03T14:17:00.000-07:00

To make a good profit in real estate, you must buy right. Check out all property types available to find the best transaction for your specific situation. Consider fixers, distressed sales, repossessions, multiple listings, for sale by owners, and vacant properties just wasting away.

Distressed Properties

Recognize the difference between a fixer and a distressed property. Distressed properties may be fixers or just unwanted houses. Divorce, job loss or transfer, death, financial difficulty, and other problems often force a sale for less than market value. Just because an owner’s problem causes a distressed sale does not mean the house requires fixing.

REPOSSESSIONS

Although the repossession market seemed dried up last summer, houses are beginning to appear on foreclosed lists again. Lender Rob Kramarz with Nationwide Mortgage (www.seetloan.com) says that this may be the beginning of another real estate investor boom.

Look for great bargain properties for sale by HUD, VA, Freddie Mac, Fannie Mae, and Bank-REOs (acronym for real estate owned). Real estate agents try to discourage you from repos and switch you to multiple listed homes. Do not listen to negative remarks about how hard it is to find a good deal property. Find another agent. Even in the hot market at the time of this writing, when the average house sells in less than three weeks, we found two properties for at least forty thousand dollars under market value.

Paying a listing service to mail you lists of repossessed properties is a waste of money. Actually, by the time you get these lists, the houses are already sold. Many web sites listing foreclosures thrive on the web for no charge to you.

Take a flashlight with you to view a repossessed property. With no electrical service and boards covering windows, viewing dark rooms is tough. A good real estate agent will have her own flashlight, but you want to see what you want and not what she wants you to see.

HUD

In our area, new HUD listings post online late Thursday night or Friday morning. New “Daily’s,” homes previously sold which fell out of escrow, post Saturday morning. Properties not sold during the bid time stay listed as daily’s. Bids, due by the following Tuesday at midnight, must be submitted by a real estate agent who has completed HUD registration. Don't waste your time using a Realtor who is not familiar with selling HUD homes. Any mistake causes the bid to be rejected. Don't use an agent who says you must bid way over minimum bid. Find an agent specializing in HUD homes who wants to work with you on your terms. Many bargain HUD homes do sell for far more than the minimum bid. Hold out for the one property which doesn't get way overbid. (I bid about $40,000 under minimum on our second home owner-occupant mountain cabin.)

We submit many bids and win enough to make it pay us well. HUD only allows one repo purchase as an owner-occupant every two years from the date of closing.

Rely on your gut instinct and don't let your real estate agent unduly influence you. It is not a difficult process for your agent to make a computer bid. You need an agent willing to make a few bids to get a successful bid. This is like winning a lottery, with the odds in your favor.

Bids must have a lender’s loan commitment statement. Lenders unfamiliar with HUD requirements also waste your time. Any mistake causes you to lose the purchase. Not all lenders understand HUD’s bid, finance, and purchase process.

When placing a HUD bid, raise your offering bid to cover some of your closing costs. This means you get HUD to pay your closing costs and save out-of-pocket expenses. Also, the higher sales price impacts the market comparable sales in your favor for sale later. Your purchase price influences the values of the market area. Keeping prices higher for active sales during your renovation time protects your investment potential.

Don't get attached to one particular property. We placed a bid on a home I loved in Apple Valley and lost it by a few hundred dollars. The house came back on the list later, not at all uncommon for HUD repos. But, by this time, we had already purchased a better distressed property.

VA

Cleaner than HUD repos, homes owned by the Veterans Administration are also offered on a bidding system through real estate agents. The VA partially fixes up their repossessed homes. The VA sometimes offers vendee (seller) financing with few processing costs, low interest, and no prepayment penalty. You do not have to be a Veteran to buy these easy to qualify for homes.

As of this writing, the VA is changing the way these homes are offered for sale. This is another reason you need a real estate agent who stays on top of recently revised marketing procedures relating to government-owned properties.

Less known government agencies such as Fannie Mae, Freddie Mac, FDIC, SBA, the IRS, and GSA list repossessed properties on their individual web sites. These properties, rarer than HUD and VA, usually get cleaned and repaired before listing with real estate agencies with sale prices closer to market value.

REOs

Banks often offer their real estate owned—REO homes at bargain prices. Depending on the bank’s resale policy, conditions of the property, and available financing, REO opportunities vary widely. Several banks lend on their repos while other banks just want out. Great financing becomes possible through the banks who offer in-house terms. Ask for no points, minimal loan costs, and no prepayment penalties. Check with your local lending institutions and find out how they market their repossessions. Many of these bankers will give you their web page listing available property. Befriend real estate agents who specialize in listing bank-owned repossessions so they will notify you of a new listing immediately.

Multiple Listings

It is hard to find a bargain in multiple listings, but not impossible. Check out listings which have been on the market for awhile. Look for vacant houses, as these cost the seller money every month. Make an offer for much less than asking price with a quick escrow. Many anxious sellers jump on an offer if they think they will be out of their problem in only ten days. This is another reason you need a lender and an escrow officer who perform fast.

I follow the multiple listings in our area on the Multiple Listing Service. One of my agents emails me new listings daily. You need an agent who calls you the minute a new distressed property listing becomes available. Under-priced listings mostly get snapped up by the real estate agents and their investors before they hit the market.

Just like making many bids, make many offers. You never know when a seller’s problems reach a critical point causing abrupt action.

For Sale by Owners

Houses for sale by owner may not always be a great buy, but there is always at least one bargain out there. Many investors prefer buying directly from the owner. If you have ever tried to sell your home by yourself, you probably met some of these investors. Cruel, hard, and in some cases, fraudulent investors dream up all kinds of schemes to steal houses from distraught homeowners. Understand that the home seller most likely dealt with these callous investors before you and therefore may view you with suspicion. Earn their trust by working with them honestly and compassionately.

Seller’s Motivation

Let honesty and kindness guide your actions with sellers. Finding out the seller’s specific problem is the key to helping them and yourself. Uncover the seller’s particular need and find a solution. Because it is embarrassing for some sellers to let you in on their troubles, extra sympathy and relaxed timing helps you unearth their underlying motivation. Listen carefully, stop talking, and pay attention to details which lead to understanding the real reason they need to sell.

The seller may need a quick escrow, need to rent back the home for a while, or want immediate cash. You could give the seller a loan of cash with a note secured by the property. Ask an attorney about your state laws regarding this type of purchase advance. We offered a seller a $2,000 deposit outside of escrow, which went toward the down payment, to entice a money-hungry seller to commit to our low price.

Many sellers do not need all of their cash out. Owner financing is a great deal for you. Usually, you get a lower interest rate and you don't have to pay lender’s points or prepayment penalties. Also, these loans typically won't show on your credit report so you won't have these payments counted against you. If you have a good credit report, take a copy with you to show to the seller. This prevents more inquiries on your credit history and keeps your credit score from dropping.

Ready to Buy

Be prepared to make an offer immediately when you find a bargain. Make sure you are pre-approved with a great lender who can close quickly.

Distressed sellers and fixer houses offer you a great way to get into the real estate investing business.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, and newsletters, see http://www.doghousetodollhousefordollars.com/

Creating an Exciting Exterior to Sell Houses

2005-03-27T18:28:00.000-08:00

Curb appeal has grown up, and using innovative Design Psychology techniques for marketing homes puts curb allure to work, enticing buyers to come inside your home.

Suppliers and Exquisite Details

To be successful, you need to spend less to make more; yet there are times when spending a little extra will yield significantly more profit, and adding exquisite details can also add dollars to your bank account. For instance, if you don't find what you're looking for at a bargain price, visit an upscale retailer and look for similar items at sale prices.

If you use ugly, cheap, or tacky fixtures, you'll actually make it harder to sell your home by lowering your home’s attractiveness. Think of it this way: spending $100 more for a quality fixture will save you at least one, and possibly more, mortgage payment. That means that your $100 fixture was really an investment, rather than an expense.

There are some things that you can make relatively inexpensively, compared to buying them ready made, such as lace curtains. But if you don't have the time or skill to make quality things yourself, you can save money by haunting home improvement warehouses and discount stores, assuming you're able to find quality merchandise at reasonable prices.

One of my favorite suppliers is Restore, which is the outlet store for Habitat for Humanity. Restore resells donated light fixtures, window hardware, paint, switch plate covers, house numbers, mirrors, sinks, and even beds. Restore also lets you bargain on merchandise, which means that the tagged price isn't always the final price. You can even sign up for Restore's mailing list and receive notices of half-price sales.

Creating an Exciting Exterior

Curb allure is the most important challenge you'll face when selling your home. Imagine prospective buyers driving up and examining your property for the first time. Your goal is to have them exclaim, "What a darling home!"

Buyers will forgive little inadequacies in your home if they love it from the first time they see it. So go a few extra steps beyond curb appeal and lure your prospective buyers inside with Design Psychology methods such as:

Psychology of the Entrance

A problem with many newer homes is that developers don't provide a separate walkway to the front door. You don't want to make buyers walk around cars and trip over driveway edges to navigate to your front door, so create a separate walkway from the street to the porch.

Feeling Welcome

When flowers line the walkway, it creates a warm reception. Cheerful flowers, in loud colors, near the entry announce to the world that you care about your home. Extras such as water fountains, fishponds, and scented vegetation will also be well received by potential buyers.

Sing Out Your Address

Address numbers should be proud, bold, and beautiful. Avoid tacky peel-and-stick numbers, and if you use brass numbers, attach them with screws, rather than pronged-end fasteners that will eventually work loose. Gold-gilded numbers look elegant on glass doors, and gold-gilded vinyl transfer numbers look especially exquisite in transom windows.

Welcoming Accessories

- Wind chimes will add pleasure to your buyers' sense of hearing.

- Potted plants, such as soft ferns, are also friendly, but you should avoid spiked plants with thorns near the doorway.

- Floral baskets with bright yellow and white flowers will show up better at night.

- A pair of rocking chairs, a double glider, or a porch swing will invite potential buyers to sit and chat.

- A welcome mat also adds a homey touch.

Taking a little extra time and spending just a bit more money, coupled with the use of Design Psychology techniques, will help sell your home faster, and for more money.

Copyright c. 2005 Jeanette Fisher. All Rights Reserved.

From Professor Jeanette Fisher’s Sell Your Home for Top Dollar-FAST! Interior Design Secrets for Optimum Selling in Any Market. For tips, newsletters, and reports, go to http://www.sellfast.info

Mark your calender

2005-03-16T15:07:00.000-08:00

If you missed "Interior Design Psychology Tips for Top-Dollar Sales" at the Las Vegas Real Estate Investing Expo, save July 14. I've been invited back. Gold Coast Casino 7:00-9:00 PM. Hosted by the Las Vegas Investor's Club.

2005-03-12T11:15:00.000-08:00

"Don't worry Brian; you can fix it!" -Jeanette

One reader of our website complained about my calling houses "doghouses." Take a look at some of our before photos and tell me what you would call our fixers.

Jeanette

P. S. Check out our other blog to see the "After."

Home Staging Tips blog

Electrical Home Inspection: What You Need to Know!

2005-03-12T11:05:00.000-08:00

By Paul Forte

Whether you’re buying a home, or just moving in to your new home, here is some advice that can help you. If you’re in the buying process the things you will be looking for are safety and repair aspects. Most electrical contractors can offer you an inspection to check for both of these. If you are thinking to yourself right now that you have or are going to hire a Home inspector, think again. A home inspector does a generalized inspection. Most of them will know a little about a lot of different areas, but be an expert in none with a few exceptions. It is a certainty in most areas to say you will be forced to hire one to get a mortgage, and that’s a good thing. If you hire an experienced licensed electrician, your electrical inspection will be more thorough and you can get an estimate to what repairs will cost at the same time.

When buying a home you’ll want to know what if any defects there are, or safety hazards. Items that rate high on the list are things like aluminum wiring, GFCI receptacles, grounding and water leaking into service parts. The two of these that are most critical, dangerous and expensive are the aluminum wiring and water leaks into the main service. If you are just moving into a home you purchased, there are some things you can do to be sure your electrical system is safe. I highly recommend that all the devices be changed to new ones. This would be all the switches and receptacles. There is a reason for this. Most electrical problems occur when termination points become loose or corroded. See Picture.

By having the devices professionally replaced, you can nip any of these problems before they occur. The other item to consider changing is light fixtures. This can be a bit expensive so if it isn’t in your budget try to at least change the very old ones. The reason for changing these is older fixture wires tend to get very brittle. If the bulbs used in them over the years were of an improper wattage, this can exaggerate the situation, a very common occurrence.

The peace of mind you will get, knowing a professional in the electrical field inspected your home, is well worth the money spent.

Paul Forte is a Master Electrician and has been in the electrical field for over 25 years. For more tips and advice including Lighting design and troubleshooting with diagrams visit the web site http://www.forteelectric.com/

A Beginner's Guide to Flipping Houses

2005-03-09T12:53:00.000-08:00

If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to “flip” houses.

A friend of mine, we'll call her Tai, made a fortune in real estate, beginning at the age of twenty, with no help from anyone else. Here's how she did it:

Tai began by buying a HUD repo, which allowed her to get into the house for no money down. Then she fixed it up and sold it herself. At closing, she had made enough profit to by a second fixer-upper, but this time, she paid all cash. Tai went right to work fixing her second house, and when she sold that one, she collected profit of $44,000, which allowed her to pay cash for her third house!

By now, Tai was comfortable with her formula, and within a short time, she had flipped her third house, realizing enough profit to pay cash for yet another house, as well as being able to buy the custom pickup of her dreams. And all of this had happened in the span of just nine months!

Tai’s formula was simple. She located houses that needed only cosmetic work, avoiding those that required structural repairs. She did all the painting herself, inside and out, and updated the home's lighting, plumbing fixtures, and carpeting. Once renovations had been completed, all three houses sold quickly, and at a significant profit.

It's the most tried-and-true way to make a fortune in real estate, so don't listen to anyone who tries to tell you that it can't be done or that you need to have a great deal of start-up money. That's not true. You can buy houses with no money down through various loan programs, and sellers will often help you with the closing costs.

I know what I'm talking about! My husband and I bought our 27th house earlier this year, for no money down, and we expect to make a profit of at least $100,000 for just one month of hard work!

But we take the process a step further, making our houses outshine the competition by also using Design Psychology, although our buyers never know that. All they know is that they feel good when they're in our homes, which makes them want to buy them, even if they're more expensive than the house next door.

There's no other business that can make you as much money, with as little start-up cost, in as short a time, as investing in real estate. In fact, more millionaires made their fortunes in real estate than in any other business. And you can do it, too. You just have to stop dreaming and get started.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com

Credit Help! Get the Credit You Need to Buy Real Estate

2005-03-07T21:14:00.000-08:00

Get Financing for Multiple Properties

My Credit Help! book is ready!

Included with all the tips my lenders shared with me is a special chapter just for real estate investors.

Don't wait another day to get all you need to raise your credit score.

See the new book cover and get more information:
The Real Estate Credit Help Center

Buy your dream home or finance your future!
Jeanette

Great Recycling Web Site

2005-03-04T20:39:00.000-08:00

.

I love using unusual achitectural pieces to create a buyer's dream home--one they just can't live without!

Here is a web site that has great finds:

http://www.recyclingthepast.com/Default.asp

Cheap Homes For Sale In Great Towns

2005-03-03T09:51:00.000-08:00

by Steven Gillman

Good Homes Under $50,000?

My wife Ana and I found cheap homes for sale all over the country during a seven-week drive, and we even bought one along the way. It was in a pretty little town in the mountains of western Montana, and it cost us $17,500. We spent almost $2000 to fix it up the way we liked it, and lived there for several months before selling it for $28,000. You can see a photo of our little pink house on the homepage of our site www.HousesUnderFiftyThousand.com. This was not a fluke. There are still great towns where you can find cheap homes for sale.

Cheap Homes, Nice Towns: An Example

In Anaconda, Montana you can fly fish, go to a movie for three dollars in a beautiful old art-deco theatre (the 5th most beautiful theater in the country, according to the Smithsonian), drop some nickles in a slot machine (a dozen casinos), eat at a fine restaurant, stop by the bar for a dollar beer, and buy a house for sale under $30,000 - all within a four block area! There are good schools and churches, a library with fast internet service, and wildlife (including bears) a few hundred yards from downtown.

Why Are There Cheap Homes For Sale?

The reason there are so many cheap homes for sale in Butte and Anaconda, is that there aren't many good jobs left. I personally found jobs in Anaconda easily-but not good ones. People left the area in the 80's especially, after the mines and smelters closed. This exodus has left one-in-seven "housing units" in Anaconda vacant, according to the U.S. census. This has driven down the prices of homes dramatically. Since both towns still have all the basic ammenities, are cleaner now, and are slowly recovering, they are great places to retire to or to move to if you have an internet or other non-location-based business.

The economic situation is the primary reason that you can buy a cheap house in many parts of the country. These are towns that have seen troubled times, but are often recovering, and with good reasons. Anaconda, an example we know well, now has a ski resort,a Jack Nicholas golf course, and beautiful mountain scenery. The houses cost four times as much if you go an hour in any direction, and those higher prices are bound to reach Anaconda eventually.

Cheap Houses You Don't Want To Buy

On the other hand, there are towns like the one in South Dakota where we stopped for lunch. The bulletin board had ads for cheap homes for sale, placed there by desperate home-sellers trying not to be the last to leave town. There was a photo of a beautiful old five-bedroom farmhouse for $11,000. We looked up the deserted street as we ate, and noticed that most of the buildings were boarded-up. This was a town that was clearly dying, and didn't have anything to help revive it. Inexpensive homes are easy to find here, but I wouldn't take one for free.

Cheap Homes For Sale In Paradise

Maybe paradise is too much to expect, but there are many wonderful towns, from Florida to Oregon, where there are cheap homes for sale. So what does a town need in addition to inexpensive houses in order to make our list? Well, the criteria are certainly subjective, but include at least the following:

1. Population between 4,000 and 80,000.

2. A good library.

3. A good grocery store.

4. A movie theatre.

5. Cheap houses: at least six for sale under $50,000.

6. The town "feels" good.

When we researched and built our website, we broke the towns up into two pages. One is for the towns with houses for sale for less than $50,000. The other is for the towns with really cheap homes for sale - under $30,000! Yes, they are still out there. Using a phone and the internet, searching for your affordable dream home is easier than ever. Good Luck!

Steve Gillman and his wife Ana Blum have traveled the country exploring beautiful towns where there are still affordable homes. The result of their research, and their experience buying their own cheap dream home, is the website: http://www.HousesUnderFiftyThousand.com

Article Source: http://EzineArticles.com/

Fixing Houses: Using Psychology for Profits

2005-03-02T11:48:00.000-08:00

Real estate investors who specialize in fixing houses for profit gain new insights from Interior Design Psychology ideas. Increase your profit potential in the new buyer’s market with these new transformation strategies.

Your satisfying and lucrative real estate business depends upon your correct assessment of profit potential, successful purchasing, and triumphant transformation of a fixer into a dollhouse. The renovation process includes the physical work and the choice of the best supplies to elicit maximum positive emotional effect from prospective buyer.

This article brings to light the psychological impact of design details which result in the desired transformation, promising the highest potential resale value. By incorporating the psychology of residential design, you intentionally choose how to transform your fixer by using colors, textures, building materials, and decorations that assure your future speedy and cost-effective sale.

The psychology of residential design joins the entire home, inside and out. Transformation Psychology differs in that you make use of residential Design Psychology with a different goal in mind. Using Design Psychology in your personal home is much more individualized. Renovating a doghouse for dollars integrates generalized design ideas appealing to a broader spectrum of buyers.

Using Transformation Psychology to increase your real estate profits means that you learn how our human senses, and thereby our emotions, are biased by different decorating details and choices of materials. Buyers view a prospective home with their eyes and yet their brain interprets what they see and feel according to subtle touches you purposefully put in. Design details additionally influence our senses of touch, smell, hearing, and even taste.

So, how does all this psychology stuff work? You choose colors and materials based on your prospective buyers’ income level and the house style.

Here’s a simplified Color Design Psychology Plan for Fall and Winter:

Selling Season: Fall and Winter

Target Market: First-time Buyers

House Style: Cottage

Exterior Colors: Pale yellow, Khaki Brown, Creamy White

Front Door: Dark Green

Interior Colors: Walls: Pale yellow, Sunny Yellow, Tan

Trim: Pure White

Flooring: Cream to Mocha wall-to-wall carpeting, white linoleum

Target Market: Upscale

House Style: Tuscan

Exterior Colors: Tuscany Gold, Chocolate Brown, Olive Green

Front Door: Terra Cotta Red

Interior Colors: Tuscany Gold, Mocha, Mixture of these colors

Trim: Ivory

Flooring: Ivory carpeting, hard wood, tile

Your goal of composing a glorious home that buyers can't live without begins with your planning of changes desired. Following a design plan, from inception to realization, bit by bit, simplifies and organizes your makeover. Taking the time to make a design plan assures you of a profitable and quick sale.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.

See Doghouses transformed into Dollhouses

2005-02-23T08:13:00.000-08:00

Before and after plus design advice for turning dumps into magical dream houses for your buyers.

The National Real Estate Investing Expo in Las Vegas
February 24, 25 and 26, 2005

Jeanette and the Joy to the Home design team will be in booth 124.

Creating Dynamic Window Coverings Without Breaking the Budget

2005-02-18T09:10:00.000-08:00

When creating dynamic window coverings, it’s important to choose carefully, because your window coverings will become the focal points of a well-decorated room. But choosing the right window treatments, at the right price, takes some thought about not only the look you're hoping to achieve, but also about the nature of the space itself.

The first consideration will be how much exposure the fabric is going to receive. All fabrics are susceptible to sunlight, but many homemakers invest in acrylic, modacrylic, polyester, or another glass-based fabric in order to get the longest life out of window treatments. Although it gives a room an elegant feel, silk is most vulnerable to sunlight.

I save money on window treatments by using some imagination and creativity. For example, I often create a custom look by covering a tension rod with a thicker piece of PVC pipe. To avoid having the PVC’s printing bleed into my fabric, I sand off the numbers, but the printing can also be neutralized by using PVC primer, acetone, or even fingernail polish.

I've found PVC pipe to be very versatile. I've spray painted it black to look like wrought iron or brown to look like wood, and I've sponge painted it with copper and dark green over a light green for a verdigris effect. I've also painted it to reinforce an accent color or to look like gold or silver. It’s not expensive, and PVC’s decorating uses seem to be endless.

When it comes to longer window spans, wooden closet dowels, stronger than PVC, cost considerably less than drapery rods. I've also used copper pipe, which works well for curtain rods and looks great for significantly less money. If the curtain fabric will be touching the copper, though, I spray the copper with a clear gloss. That way, my fabric doesn't get stained if the copper should happen to oxidize.

To save even more money, I also get creative with the decorative hardware when creating window treatments. For instance, I've used the braid cords and tassels from Christmas tree decorations to add a touch of class to my window coverings, at a fraction of the cost of what similar drapery accessories would cost at a window fashion center.

I also love to create unique treatments by using unusual tieback holders. For one remodeling project, I found some old lamp finials and used them as tieback holders. I've also created a nice, airy atmosphere in a room by forming delicate swags of sheer lace curtains by securing them with clear fishing line.

Dynamic window treatments are a vital part of the overall look and feel of a room, but they don't need to break the budget. If you're creative and allow your imagination to run free, your decorating choices are truly endless.

(c) Copyright 2005 Jeanette J. Fisher

18 Easy Steps to Buy a Bargain House

2005-02-14T01:53:00.000-08:00

What is a "distressed" property? What is "bargain" real estate?

A distressed property is one with a distressed seller. Job loss or transfer, divorce, death, pending foreclosure, and lack of money cause sellers to sell fast for less. Discovering the seller's problem and finding a solution is the key to buying a bargain property. A distressed property may also be a "doghouse," a dump, or a fixer. Owners of "doghouses" are not always distressed sellers.

18 Easy Steps to Buy a Bargain House

1. Get good advice from successful investors. Ask friends and real estate agents for referrals to investors.

2. Create your personal "Investment Journal," like Doghouse to Dollars Workbook: Turn Yucks into Bucks Investor's Guide.

3. Define investment goals: Do you want to buy a home to live in, to fix and sell, or to hold for your future?

4. Get credit reports & scores. Create a file for each credit reporting agency. Take care of any credit issues.

5. Read Real Estate investing books and articles. Attend workshops and seminars. Avoid out of date infomercials on TV.

6. Get good advice from lenders. Choose a lender with great service, good closing record, and fair costs. Arrange financing.

7. Define your target locations: Is your desired property near home or job, vacation or second home?

8. Learn your target market. Study real estate newspaper sections. Pick up homes for sale flyers. Watch sales and note prices, amenities, and conditions. Follow HUD sales in your area.

9. Interview Real Estate agents and learn from them. Do not sign any agreements with agents limiting your search for bargain property. (These contracts make you pay the agent a commission even if you purchase by owner.)

10. Use agents who know local market customs and guarantee to make many offers for you.

11. Find a good escrow officer for buying "for sale by owners."

12. Study home remodeling, design magazines and books. Learn the costs of materials, supplies, and trades. Visit home improvement warehouses. Note costs of building materials.

13. Be ready to know a bargain property when you see it.

14. Make many offers. Bid on HUD repos.

15. Buy only bargain property. Get great terms or concessions from seller.

16. Plan house transformation during escrow. This speeds your work time -- saving you money in holding expenses.

17. Monitor real estate escrow closing. Do not jeopardize your financing by charging up credit cards or making unnecessary purchases.

18. Celebrate buying your "doghouse" with an open house!

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Real Estate Investor Information

Buy the book!
Doghouse to Dollhouse for Dollars
Using Design Psychology to Increase Real Estate Profits. See interior design photographs of "fixers" transformed using Design Psychology. Discover how to find, finance, fix and sell homes for top dollar --FAST!

Interior Design Psychology Secrets to Top Dollar Sales

2005-01-27T13:04:00.000-08:00

Join us in Las Vegas for the Real Estate Investing Expo! Las Vegas Convention Center on February 24, 25, and 26, 2005. February is a beautiful time to be in Las Vegas and we are lucky to have secured such a great time and location. Jeanette invites you to "Interior Design Psychology Secrets to Top Dollar Sales"Friday, Feb. 24, 2005See http://www.realestateinvestingexpo.com/index.html

Post your questions and comments

2004-11-28T19:18:00.000-08:00

Real Estate Investing questions?

Selling your house and need help?

Post your questions here. Click on comment link.

WHAT ARE SHORT-TERM VS. LONG-TERM CAPITAL GAINS AND LOSSES?

2004-11-28T19:16:00.000-08:00

Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gains or loss is long-term. If you hold it one year or less, your capital gains or loss is short-term.

WHAT IS THE BASIS AND HOW IS IT DETERMINED?

You need to know your basis in your home to calculate any gain or loss when you sell it. Your basis is determined by how you acquire your home. If you purchased or built it, your basis is your initial cost. If you acquired it in some other way (inheritance, gift, etc.), you must know its adjusted basis to the donor just before it was given to you. You also must know its fair market value (FMV) at the time title was transferred. For more information, lot onto www.irs.gi! v ! and search for publication 551 (Basis of Assets).

WHAT ARE THE CURRENT CAPITAL GAINS RATES?

The maximum tax rate on net capital gain (i.e., net long-term capital gain reduced by any net short-term capital loss) is now 15%. Gains that would otherwise be taxed at a regular rateof 10% or 15% are now 5% for property sold or otherwise disposed of after May 5, 2003 (and installment sale payments received after that date.) The reduced rate applies for both the regular tax and the alternative minimum tax. The higher rates that apply to un-recaptured section 1250 gain, collectibles gain, and section 1201 have not changed.

Hud Repo "Doghouse" to Dollhouse

2004-11-18T19:57:00.000-08:00

See the transformed Dollhouse click here:

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

2004-11-18T18:03:00.000-08:00

by Jeanette Fisher

Wether you want to save money fixing your own home or you fix houses for investing, using bargain home improvement products helps. To make the maximum profit on your investment properties, you'll need to save money wherever you can. One way to save significant amounts of money is to mix your own paint.

I recommend that you use only water-based paints. Technology improvements in latex and acrylic paints have made painting easier than it was with the old fashioned oil-based paints, and the new acrylics provide a great-looking finish. Purchasing "oops paint," marked down at home improvement and paint stores, can save hundreds of dollars on your painting projects.

By mixing your own paints, you can also guarantee a harmonious result for the entire house, blending the colors from the exterior to the interior and from room to room. For instance, during one of our projects, we purchased ten assorted gallons of paint from the Restore thrift shop. (Restore is Habitat for Humanity’s outlet.) The paint had been donated by Lowe’s after having been returned by the original buyers, and included a lot of blues, greens, and grays. We used a fifteen-gallon plastic kitchen trash can to mix all the paint together, and then poured it back into the original cans. The color ended up a complex sage-green, which perfectly complemented the existing teal-green tile floor.

We used the original trash-can paint outside first, and then added white interior paint as we continued our color scheme inside, first painting the living room and a bathroom. Then I added a little green to the remainder and painted a bedroom. For each room, we added a little more white semi-gloss paint. As we went along, we saved a glass jar full of each paint blend for touch ups.

Paint experts suggest mixing only the same type of paints: exterior latex with exterior latex; interior acrylic with interior acrylic; interior latex with interior latex, and so on. But we routinely mix exterior and interior paints, and have never experienced any difficulty. The amount of sheen makes little difference in mixing paints, either, unless you're looking for a particular finish. (You do want plenty of ventilation if you use exterior paint indoors and don't use interior grade outside.)

For one project, I started with five gallons of thrift store baby-blue paint, and then added a quart of black, in order to "gray down" the baby-blue. As we progressed through the bedrooms, I added a little more white semi-gloss latex paint to the mix. When I was done, the entire upstairs of the home blended harmoniously, yet each space had its own color and personality.

For another doghouse transformation, I added amber pigment, which you can pick up at most paint suppliers (but use it sparingly, because a little goes a long way), to five gallons of boring beige oops paint. We started in the main bedroom with the darker color and added white as we went along. The lightest shade ended up in a living room with a 23-foot-high ceiling. This home sold for more than any other house previously sold for in the neighborhood.

How much can you save mixing your own paint? The paint we found at Restore cost us $2.00 a gallon. This type of paint sells for over $20 per gallon. Maybe saving a couple hundred dollars doesn't mean much to you, but the emotional benefits deserve consideration. People feel happy in a house where the outside colors feel connected to the inside colors.

Remember: oops paint is no different from regular paint. It was just a mistake, for whatever reason, and in case you're wondering how long oops paint can last, we recently drove by our very first doghouse-to-dollhouse home in Apple Valley, California. The paint still looks great, even though that home was originally painted in 1979.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Buying and Selling Distressed Houses for Maximum Profit

2004-10-28T19:49:00.000-07:00

By Jeanette Joy Fisher

If you want to become a real estate investor, find a "fixer-upper" owned by an anxious seller. Finding distressed houses at bargain prices, fixing them up, and then selling them on a consistent basis can make you a millionaire.

Why Sellers Sell At a Discount

Homeowners' problems often prevent them from staying on top of their home's upkeep, and factors such as job loss, divorce, serious illness, various addictions, or other personal problems quickly overwhelm them. These sellers can't make the needed repairs because of financial or physical limitations, and when that happens, their home becomes a low priority and sometimes will go into foreclosure.

Look for the "Triple D"

Home sellers with three problems give beginning investors a great opportunity. A "Triple D" is a Doghouse, involved in a Divorce, and in Default. The label “doghouse” comes from Southern California Realtors who used this term to describe the worst fixers. These houses maybe "tired" and need only cosmetic work in order to favorably compare with other homes in the area.

What to Look for in a Doghouse

The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who don't have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.

As you look through the classified ads or at realtor listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale words. Also have your agent use similar terms when scanning the Multiple Listing Service for your target area.

Once you've found a property that you can turn from doghouse to dollhouse, find out the seller's problem and then offer a solution. Distressed sellers frequently experience financial problems and need cash as soon as possible. Therefore, if you're ready to close quickly, you'll be set to negotiate a lower sales price.

How to Close Quickly

Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers.

How to Know When "Bad" Is Good

When you first start out in the real estate "fixer" business, you'll want to look for "ugly" houses needing only cosmetic work. Look for entry level fixers that just need some cleaning up, painting, and carpeting.

When you're new to the fixer game, always remember your limitations and use caution when considering houses needing structural repairs. My husband replaces structural beams, sub-flooring, walls, plumbing, and electrical systems, but he acquired those skills after years of experience.

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 professionals to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.

The Easiest Houses to Sell

A dollhouse, located in a popular neighborhood, sells the quickest. For instance, we once sold a home we named "Orange Tree Cottage" in just three hours! To qualify as a dollhouse, a home must be in a location that buyers want and must offer the number of bedrooms, bathrooms, and amenities they're seeking. Beyond the price, however, buyers purchase the house that meets both their basic requirements and their emotional needs.

Filling Buyers' Emotional Needs

After many years of investment experience, we've found that using Design Psychology and Marketing Psychology techniques greatly increases our profits. Both concepts go far beyond "curb appeal."

For instance, we use colors that target our prospective buyer's income level and match the selling season. Generally, buyers of higher-priced homes prefer complex colors, and using cool colors during hot weather and warm colors in cold seasons makes buyers feel more comfortable. We also paint the front door a happy color and entice buyers into the house by placing potted plants on the porch.

Over the years, we've bought and sold dozens of distressed properties. By using caution and common sense, as well as following a few simple rules and using Design Psychology strategies, you, too, can become a wealthy real estate investor!

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/