Archive for March, 2010
There Is Gold In Those Handyman Specials
Some people while combing the real estate ads shy away from the cheaper listings labeled “Handyman Specials” or “FixerUppers”. These properties have often been neglected and mean extra work for the new owner. This is true but for a smart buyer this translates into “profit”.
Don’t get me wrong investing in a distressed home is not easy money but the opportunity to make a substantial profit from restoring these houses can be very real. The possibility of losing money is also a reality and the investor needs to do their homework and know exactly what they are buying and what sort of profit they can expect. Here are some of the considerations when assessing a potential investment property:
Use a professional realtor or appraiser to determine a realistic selling price based on the market and the neighborhood. You can complete a dream renovation but if the neighborhood can’t support the type of buyer you are attracting your home will never sell. If the market is declining and home prices are dropping this too will affect your selling price.
Use the services of a house inspector to get a detailed analysis of the condition of the home. Learn what is worth fixing and what you should walk away from. Will you mainly be concerning yourself with cosmetic repairs or will you be ripping out plumbing or making costly repairs to the foundation?
Assess which improvements you will be able to handle on your own and which you will have to contract out. When calculating the costs make sure you get at least three estimates for these you will be surprised at how much the price can vary. Determine if a building permit will be required as the cost should also be added to your budget. Get a good understanding of which renovations increase the resale value of the home and stay away from the one’s that will only add to your bottom line.
Most fixer uppers are the result of some form of distress sale be it divorce or bankruptcy; these people want to unload it quickly and that sense of urgency can work to your advantage. You may be able to negotiate a lower selling price by offering a quick close on the house.
Another option is to buy new have a builder complete the shell of your investment property and you complete the inside making the profit on all the finishing work. Often you can have the property sold before you build; the money down subsidizes the interior renovation.
Whether building new or renovating you will need to do a cost analysis to determine whether this investment will yield the profit you are expecting. Calculate the buying costs selling costs closing fees legal fees commissions taxes interest on loans repairs miscellaneous fees and take this total probably pretty big and subtract it from your expected sales price. Decide whether this final figure is worth the effort.
Investing in fixeruppers is a very simple process; you need to know what to look for in a bargain house be thorough in completing your cost of repairs vs. selling price analysis and then sell it at a profit.
About the writer: Huntsville AL real estate is ideal for Baby Boomers young professionals and retirees alike. Rated by CNN Money Magazine Relocate America and others Huntsville Alabama real estate continues to win awards thanks to the jobs the entertainment and the Southern hospitality.
The Necessity Of Establishing Exclusive Mortgage Leads
It’s no secret that exclusive mortgage leads have become a necessary aspect of making a profit. Without them one is basically sifting through age old stale information that has been resold or in circulation for months. Chasing down nonexclusive leads becomes a waste of time effort and money.
Typically an Internet submission form requires very little information. This is to assume the air of a hassle free process on the part of the person submitting the information. In all reality much more information is required for those who have to turn the information into a profitable lead.
Applicants in this venue are often not ready to make a serious decision about a mortgage and are in the very beginnings of the decision making process. Sometimes they are only looking to get an idea of the required elements that make up the process. It is not unheard of for a person to enter information that is incorrect which makes verifying the lead a time consuming process.
Many who are in the market for a mortgage shop around on the Internet because they do not want to feel pressured to make a decision right away. On the other hand this can require that they enter their information in a number of places. That information is now considered nonexclusive because it is open to a number of sources.
A popular method is to enter information into one website that then allows lenders to compete for a rate that is viable for the applicant. The applicant is contacted by a various number of lenders. This is good for the applicant but can be another waste of time for a lender who even if they are the first in line may not have a serious applicant on their hands.
Exclusive mortgage leads gained from verbal applications are a best bet for those looking to turn leads into profits. The process of a lead gained from a verbal application involves a one on one interaction that can gain extensive information that basic submission forms cannot. It is a more solid and reliable lead.
Those who are willing to commit to the process of answering questions on a verbal application are beyond just looking for information. These applicants are ready to move forward in the process of getting a mortgage. The extensive information gained can move the process forward nicely.
Many like the idea of talking to a live person when it comes to dealing with their personal information. The rise in identity theft has made people weary of sending their information off into the depths of cyberspace. This may be why partial or incorrect information is often entered in the Internet based lead.
When talking to a live person the application process takes in a lot of information. Applicants are likely to only feel the need to complete this one time. This type of verbal information gathering process is what makes exclusive mortgage leads exclusive.
A lead of this type can not only gather an applicant’s name and number it can gather credit profile any coborrower information loan information and additional data relevant to the applicant’s profile. It can also note any negatives or bad lead information that can determine if the lead should be followed any further.
With exclusive mortgage leads such as these more time can be spent going through the processes of funding rather than turning up a handful of dead ends. It is not only a way to weed out the serious inquires from those just looking to shop around; it is a way to connect those who want to get funded with those who want to do the funding.
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The Modern Reality Of Prefabricated Homes
Mention that youre looking at buying a prefabricated or mobile home to friends and often the response youll get is one of confusion. Most people have an image in their mind about prefab or mobile homes that is a holdover from the early days of mobile home construction. Gone are the days of builders creating metal shoebox monstrosities. And as in any new industry as the standards have evolved the quality of product has gotten increasingly better.The modern mobile or prefabricated home has many benefits for the home buyer that might not be immediately apparent.
The obvious benefit of buying prefabricated is of course the speed in which you actually have a new home to live in. If you are buying a custom home it will take about 12 weeks for delivery but a previously built home takes only as long as delivery and set up! Building a home onsite can take much longer due to weather conditions contractor scheduling and availability of materials or workers.
A less obvious benefit to mobile and prefab homes is that theyre environmentally friendly. Because they are built in a climate controlled assembly line factory environment there is less waste generated and less building materials ruined by weather or vandalism than you would find with onsite building. Many companies also give you the option to choose more energy efficient options for your custom built home saving you even more money in the long run.
Having your home built in a factory setting is also more efficient for the workers building your home which in turn helps lower the price of your home. Since all the building materials are at the factory where your home is being built and the construction process is done on an assembly line the work is completed more quickly. The set up of your new home on the building site is also much quicker because your home will be mostly completed when it arrives.
You might think that buying a prefabricated or mobile home will let result in a home thats a cookie cutter version of all the other prefabricated or mobile homes out there; in reality there are many options that you can choose from when arranging to have your home built. Take a look at the builders that are available to you and see what your options are. Shop around for floor plans that appeal to you and fulfill your particular needs.
Whether you require a cozy bungalow or a more spacious design rest assured that there are mobile or prefab designs out there that will suit you. And once youve picked out the best plan and customized the details to your tastes you may just change the way that your friends view modern prefabricated or mobile homes!
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