By Guest Author Jeanette Joy Fisher

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 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/pages/5/index.htm

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

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Homebuyer Don’ts

By Guest Author Hugh Harris-Evans

You have decided to sell your house, have engaged the services of a Real Estate Agent or decided to handle the sale yourself and are just waiting for prospective buyers to call. Someone arranges to view but, after a quick inspection, they leave never to be heard from again. What went wrong? Here are seven of the best ways to put off your buyer.

1. A house that smells of cigarette smoke or animals does not provide a welcome to visitors. Stale cooking odors are also to be avoided. While you are used to your home and may not be aware of any odors, they will be immediately obvious to any visitors.

2. Family pets should be moved outside during a visit. Many people are afraid of dogs and not everyone is keen on cats or other pets.

3. Dimly lit rooms. Buyers like a light and airy atmosphere so all curtains and blinds should be drawn back. Turn on the lights as well if the room is naturally on the dark side.

4. Dirty bathrooms and kitchens are an immediate turnoff. Make sure that these rooms are spotless and all towels freshly laundered. All cooking pots should be put away and all clutter removed. This applies to all other rooms as well.

5. Poor decorations and worn carpets will give an impression of general dingeyness. Almost as bad is loud wallpaper which can be overpowering. While buyers can imagine how a freshly decorated room would look, it is far better for them to see the fresh paint when they visit.

6. Even worse than poor decorations is mould on the walls and damp in the basement. Apart from the visual disfigurement mould can also be the cause of an unpleasant smell.

7. Owners who hover while buyers are looking round. Unless you are showing the buyers round yourself, leave it to the Agent and make sure that all members of your family are out of the way, preferably outside, while the buyers are present.

Avoid these common mistakes and your house will provide a welcoming atmosphere which will increase your chances of any early sale.

Hugh Harris-Evans is a writer and webmaster of Sell House Tips.com where you will find further articles and tips on How to Sell Your House http://www.sellhousetips.com/

Article Source: http://EzineArticles.com/?expert=Hugh_Harris-Evans

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Down Payment Tips

By Guest Author Brandon Cornett

What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential home. Inspectors focus primarily on the structural and mechanical aspects of the home.

Get a home inspection as soon as possible after the sellers accept your offer. Make the contract contingent upon the home inspection. That way, if the inspection uncovers a major flaw that you’re unwilling to accept, you have a legal way out of the contract.

Don’t confuse the home inspection with the home appraisal. The home appraisal protects the lender’s financial interests. The home inspection protects you, the buyer. The appraisal is the bank’s way of determining whether or not the house is worth the price you’ve agreed to pay. The inspection is your way of identifying structural or mechanical problems with the house.

How to find a home inspector:

* Ask a friend or coworker who has recently bought a home in the area.
* Ask your agent if he or she can recommend a qualified inspector.
* Visit the American Society of Home Inspectors website: www.ashi.org.
* Visit the National Association of Home Inspectors website: www.nahi.org.

Is a Home Inspection Worth the Price?

Consider this. Home inspections usually run between $200 and $400. Weigh that small cost against the comfort of moving into a known situation, and the answer is obvious … get a home inspection!

The List

Your home inspector will go through your home with a fine-toothed comb. So be present for the inspection – you’ll learn a lot. Afterward, the inspector will make a list of discrepancies. Some items won’t be a big deal to you, but it’s still the inspector’s job to point them out. But other items will be more serious, and these are the items you should discuss with your agent.

Who’s Fixing What?

When you review the inspector’s list with your agent, you’ll have to decide which items (if any) you want the sellers to repair. Like nearly everything else in the home-buying process, the fix-it list is negotiable. When you submit your list of requested repairs to the sellers, you face one of several outcomes:

1. The seller will agree to fix all of the items.

2. The seller will agree to fix some of the items.

3. The seller won’t agree to fix any of the items.

4. The seller will reduce the price in lieu of certain repairs.

How you proceed in light of the seller’s response is up to you and your agent. A good rule of thumb — don’t ever turn a blind eye to a major repair issue just because you’re excited about getting in the house. If you’re an experienced investor and you’re buying the house specifically to fix it up, that’s one thing. But if you’re buying your first home, be conservative and carefully consider each item on the inspector’s list. It will benefit you in the long run.

Summary

Hire an inspector to review your prospective new home for potential problems. The peace of mind you’ll get is well worth the cost you’ll pay. Review the inspector’s list with your agent and carefully consider each item on the list. Consider your ability (or inability) to make the repairs yourself, vice having the sellers repair them.

About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet’s largest and most respected libraries of home buying information — more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com

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

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Home Buyer Mistakes

By Guest Author Jeanette Joy Fisher

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.

Three Tips to Help You Find the Perfect Fixer

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 these 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.

Summary: 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/.

Fixing questions? Visit Dollhouse to Dollars blog: http://doghousetodollars.blogspot.com/.

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

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
401(k) for Down Payment