It can be difficult to understand why people would still be interested in a career in general real estate even after the real estate market has taken such a downturn but in reality real estate is a lot like the stock market and many people in general real estate are setting themselves up to make a small fortune when the economy cycles back around.

What all intelligent investor in general real estate understand, is that the economy has it’s fair run of cycles and for every bad turn there is a good turn right around the corner. Many people in the field of general real estate are buying property while the values are low and they will cash in when the economy! comes good again.

To many people this is an exciting way to make a living while others would consider it an invitation to a heart attack. But there are many attractions to getting into general real estate and those that do it for a living are well versed in how to maximize any type of market.

If you are involved in general real estate then now is not the time to start to sell and the good investors and developers know that. This is a time to build your real estate portfolio and prepare for the upturn in the economy.

Knowing what is profitable in different types of markets and knowing what situations to avoid and recognize a money making situation when it presents itself, is what makes the real estate ventures worth their while. It takes many years and a great deal of education and training to becoming proficient in the general real estate business, but there is always money to be made if you just know how.

Think it’s Easy? Not like TV says it is.

One of the new popular types of television shows are the shows that talk about flipping a house. Flipping a house means buying an older run down property for a fraction of its real value, investing in rehabilitating the property, and then selling it for a profit. This is a more specific type of investment, yet many general real estate people get involved in flipping.

The problem is that when the economy turns bad you are stuck with not only the properties you need to get an inflated dollar for but also you have to pay your contractors. This is the really risky side of general real estate that only experienced people should attempt.

As with all business ventures, there is always a risk. Real estate has potential to be a great investment if you know how to manage it. You will need to know when to get in, and when to get out…

This means you are going to have to either fund a good portion of the expenses yourself or you are going to have to find some other means of financing your house flip. Let’s talk about first things first, the less interest you pay, the more money you bring home. You do not want to max out your credit cards in search of profits from a house flip if it can be avoided. Merchant accounts aren’t much better but they can help you keep better track of exactly how much money you are spending on the flip and some will even give you 90 days same as cash (this is great if you can complete the process within 90 days).

I should tell you that these aren’t strategies that are endorsed by me but they are definitely possibilities when it comes to finding money to fund your house flip. The best-case scenario is that you would have the money to play with and assume no real risk in the house flipping process but very few people trying to get started in real estate investing have that luxury.

That being said, one way that is probably to risky for most (especially if you are nearing retirement age) is to cash in your retirement funds. This is not attractive for many reasons not the least of which are the facts that there are hefty penalties for doing this and you are risking your retirement security. It is an option however if you are in a bind for your flip. If your property flip is successful it will be water under the bridge, the money can be repaid to the lender or reinvested and the profit that came from the house flip can then be used to fund your next flip or other types of real estate investments.

If you discuss things carefully with your family and decide that you are all willing to take the risk you can also risk your home by taking out a second mortgage for the funds. Again this is not the preferred method because the assumed risk is great for the security of your family. It is very important that everyone involved be aware that flipping houses is a risky investment. Not only is it risky because you aren’t experienced but the real estate market is fickle. Your house could sit for several months requiring costly carrying costs before it sells.

Forming a partnership is one of the ways to share in the risks and help lighten the load when it comes to flipping properties. Keep in mind that this is a stressful business venture and should be treated as a business venture. For this reason a volatile or fledgling friendship may not be the best risk for a venture such as this. If you do choose a partnership you need to carefully discuss the type of financial and labor investment that is expected of each partner and the share of profit that each partner expects to receive as well. You should also consider carefully whether you are willing to risk the friendship for the sake of profits or would you rather go with a partnership that isn’t a close friend (most real estate investment groups have people willing to help with the financial side and assume the risk for the lion’s share of the profits).

Banks will usually fund a part of the property costs if you can come up with a sizable down payment and show them a well thought out business plan. However, don’t rely on banks if you don’t have good credit, lack a good business plan, or do not have a good size down payment to invest in the venture.

Please make sure you check out my real estate blog at http://cashmoneyhousebuyerblog.com

The first thing you need to understand is that the ultimate goal in a venture such as this is to make as much money as possible in as little time as possible. This can mean several things to the smart real estate investor not the least of which is that you should always have a home inspection completed before you make any sort of offer or financial commitment to the house. A good inspection can help you identify work that must be done, whether or not there is any structural damage, or whether there are any unexpected problems such as signs of termites or water damage behind the walls.

These are very important things to know and should have a significant impact on your offer on the property as they will have a direct effect on how much you will need to invest in making the property sellable and whether or not the property will even be profitable when you consider how much money will be needed to get it in minimal selling condition and how much you can reasonably expect to sell the house for after that.

Once you have the inspection completed it is a great idea to take into account all the items that will need to be done to improve the house and the items that must be completed in order to get the house in sellable condition along with all the permits that are required, inspections that need to be completed, and jobs that require a licensed contractor in order to meet local code requirements. Each of these will take a significant amount of investment in order to accomplish and that should also reflect in your offering price.

Way to few would be property flippers manage to take in the big picture when making their plans and this is where most of them end up missing the bigger profits that can be made by successfully flipping properties for the lowest investment possible with the highest possible return on their money spent. When making plans you will definitely want to go with improvements that are very cost effective.

Avoid making significant structural changes to the house unless you have a licensed contractor sign off on the wisdom and safety of those changes, as they can be very costly as well as dangerous to the stability of the property. At the same time you should salvage as much as possible within the existing structure. Flooring and paint are almost always necessary in a house flip but you don’t always need brand new cabinets in the kitchen or brand new bathroom fixtures. Chances are that new doors and new hardware on the cabinets in the kitchen would be a great fix for old and tired cabinetry while make a drastic impact on the overall look of the kitchen without stealing some of your serious profits (cabinet doors cost way less than making new cabinets and so does paint and they can add the appearance of good cabinetry).

The biggest idea to walk away from house flipping boot camp with is the idea that the most eye catching impact you can have on the house for the least amount of money spent the better. In other words you don’t want to purchase a home that needs new heating or air conditioning as they are not visual changes and are quite expensive. Find a house to flip that needs minor cosmetic repairs and a little dose of style and imagination and you will be able to maximize your profit. After all, that is what real estate investing is all about.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

1) Have you had a qualified inspection and determined that there are only minor repairs that need to be made to the property and the landscaping? This is very important because every repair and improvement that needs to be made will spend more and more of your budget. You want to complete the project with as little extra money invested as possible in order to get the greatest return on your real estate investment possible.

2) Is the property suitable for the neighborhood? By this I mean is the property a 3 bedroom house built for families located in the middle of a retirement village or is it a 1 bedroom home in the middle of a family neighborhood? These aren’t exactly the best matches and can cause serious problems when it comes time to sell.

3) Can the neighborhood handle the price you will need to bring from the property? If you are creating an upscale home in a marginal neighborhood you are almost guaranteeing a loss on your investment. You want to find a house in need of repairs selling cheap in a neighborhood of much better houses so that it can bring in the profit you are hoping to get when all is said and done.

4) Can you make the changes you envision for the house on your budget and without significantly changing the structure of the house? This is a big one and one that very often gets overlooked. You usually do not want to start knocking out walls or making additions when flipping a property. That is something you should leave for the new owners. You don’t want to make any waves if possible and only make the changes improvements that will raise the value of the home.

5) Can you improve the value of the home enough to make it worth your while in a short amount of time? This is another big deal when it comes to a house flip. It takes time, effort and money to make the changes and improvements that most investors have in mind for their investment, especially those first time flippers. Do you have the time to stick with it and the money to cover the carrying costs while you are in the process of making the changes?

6) Is the property in a high demand neighborhood, city, etc. for selling properties? 1 more mistake would be buying in areas that are hard sells for buyers. It is often quite easy to find the lower priced properties that look appealing at first however; if you can’t sell the property you purchase to flip, it really does defeat the purpose of putting all that time, effort, and money into making the repairs and improvements.

7) Can you do the work or will you need professionals and if so, will it still be cost effective? Be certain that you do not overestimate your skills and abilities in this matter, if possible. It is awesome to think you can put down a hardwood floor with quality work, but the reality of actually doing it is quite another thing all together. Be sure you completely understand the potential costs involved in the deal and whether or not the property will be profitable in the worst-case scenario.

Answer these questions when checking out potential real estate investment and house flipping properties and you should be well on your way to a successful flip, at least as far as the selection of the property goes. You should also try to find a house to flip that you might like as you will probably be spending some time there.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

1) Do put everything on paper and plan it out very carefully before you begin. If you are going to enter into this to make money you need to treat it like a business. This means you must have a plan of action and you need to make every effort to work towards carrying out that plan.

2) Do establish a budget for the entire project. You need to have a plan for how much money you are willing to invest in the property itself, how much for renovations, and how much money you need to make in order to be a worthy investment for your time and labor. A house flip is a lot of work in order to pull it off successfully. You want to have a good idea of how much homes in the neighborhood are worth, the value of your property as is and the estimated value of the property once improvements are made. In addition you should also have a pretty firm grasp of the costs involved in making the repairs in order to create a realistic budget for the entire project.

3) Do have an inspection–It is a must!!. This is the single most important detail that can save you a great deal of time, money, and heartache when everything is said and done. Be prepared to walk away from the deal if the inspection determines that there is to much more work needing to be done than simple cosmetic repairs. You want to make changes that people can see because those are generally the changes that drive up the cost of the house. You want to avoid needing to make changes and improvements that aren’t visible but are very necessary. If you need to invest a lot of money and labor into the house you need to seriously consider the realistic profit potential the property offers. If it isn’t significant then you need to walk away before the property becomes a real estate investment money pit.

4) Do know the neighborhood and plan your flip according to the needs of the area rather than your personal tastes and needs in a home. This is another thing that many first time flippers forget. This is not a personal project it is a business project and you need to treat it as such. Keep your costs down and your feelings out.

5) Do remember that you are in this deal to make a profit not waste money when it comes to establishing a price for the house. You’ve poured blood, sweat, and probably more than a few tears into your flip but you cannot set the value of the property by the effort you’ve placed into it. Have realistic expectations of how much you stand to earn from your efforts and how much you are willing to go down on the price in order to walk away with some profit in your pocket.

You should also take a moment to reflect upon the fact that many first time flippers actually lose money on their first flip. If you turn a profit at all, even a small profit you have learned many valuable lessons that you can carry with you into future flips and make more money. More importantly the lessons you learn from your first flip are lessons that money really cannot buy so it is worth a lower profit or even taking a slight hit if your experience makes you even more money in the future as you continue along your real estate investment path.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

1) Do what needs to be done and nothing more. Don’t cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase. You can not accomplish this by taking shortcuts and using crappy workmanship.
2) Avoid spending money that doesn’t need to be spent. By this I mean don’t spend money by creating work that does not need to be done. Most investors do this by tackling additions, ripping out walls, or changing the floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house. Otherwise spend most of your money in the kitchens and bathrooms where they are more likely to bring in bigger profits.
3) If it ain’t broke don’t fix it. There is a lot of wisdom in this age-old saying. There is no reason to go in and fix something that doesn’t need to be fixed unless doing so will improve the value of the house to its buyers.
4) Always work within a budget. Most investors set a budget for their money when planning to flip properties but very few manage to stick to that budget. This is the difference in making the profits you anticipated and putting the entire project at risk.
5) Create a home that the buyer will want to live in not the home that you will want to live in. You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it. Second, it will set you up for feelings of rejection if a potential buyer rejects any of the small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it often leads to unnecessary expenses, which defeats the purpose of a quick flip type of project.
6) Time is money. Don’t forget this in all things. The more time it takes to do the flip the more money it’s going to cost and the less money you are going to make. Plan small changes that have a big impact and can be done quickly to get the most out of your flip.
7) Never attempt a champagne flip unless you have a champagne budget to back it up. Just as flipping above the market is not a wise move it is also equally unwise to flip a house beneath your target market as well. Do not attempt to flip a house in an upscale neighborhood if you can’t manage the upscale building supplies and appliances that will be needed in order to make it a success.

While these aren’t guarantees for success they are solid advice that will minimize the risks you face when flipping properties.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

Staging your home in the current Boise, Eagle, and Meridian real estate markets is one of the most important things you can do to get it sold. “Staging” is presenting your home to a home-buyer in the best of light that will mesh with most home-buyers wants, needs, and living style. As a listing agent, people always ask me “what is my home worth?”. The answer is always, “Well it depends on how we can stage it.”

There are some things that you need to think about when you are selling your house:

• Inspector
• Lender
• Escrow Officer
• House
• Title Officer
• Appraiser
• Agent

If you really look at it, staging is not that hard or expensive, many but I do see homeowners that have a hard time being objective with their own home since they have lived there for years. If you get in this mode, you can be pulling thousand out of your own bank account at closing, and with the real estate market the way it is, you are going to need to pull out all the stops.

If you take a look at homes that are “model” homes for Boise area builders, you will see how much better it feels inside the home and how their staging effects the feel of the home. They obviously think that the benefits outweighs the cost, because it does almost every time.

Basic Home Staging Rules

#1 – Clean. In the real estate market, your home has got to be clean and sparkling! The is your first staging step. The best way to do this is to hire a good cleaning crew. Even if the crew comes in every week or two, it is probably a good way to go. Make sure your windows are clean too.

#2 – Fix. Do you have leak or cracked tile? These problems will give the buyer a bad impression of your house right off the bat. Make sure to get these things fixed. Have you thought about getting a pre-listing inspection from a licensed real estate inspector?

#3 – Get rid of Clutter. When staging, Live by the “50% Rule” which requires that you get rid of clutter by at least half. This can be tough! Even though some of our clutter brings back memories and gives comfort, it does not sell homes! In the Boise market, clutter makes homes seem much smaller and unorganized and it can cost you thousands too.

#4 – Neutral, Neutral. Neutral colors help you sell and I see this everyday in my Boise market. If you are in New York city, it might be a bit different or more liberal, but it is a fact that you need to appeal to the most buyers you can. Neutral colors and decor make it more likely that someone will pay more for your Boise home.

#5 – Get rid of the “personal”. When staging, get rid of things that most real estate buyers don’t relate to. For example, religious and political items may turn off entire groups of potential buyers. I have seen someone walk away from their perfect home because it had an elk head mounted in the family room. They must have been a vegetarian.:)

A good comparison tool for your house is to visit some model homes and try to match their styles, configurations, colors, and feel. Most of them will be a great tool for you to copy. Don’t reinvent the wheel, look at what real estate buyers are purchasing and duplicate it. Use the MLS as a guide and a resource.

Happy staging, and happy home selling!

Your home needs to be immaculate both inside and out before you even think of putting the property on the market. Home buyers are attracted to clean, spacious and appealing homes. Remove all clutter and clean your home thoroughly, including all windows, carpets and rugs. Never underestimate the power of curb appeal either. Cut back any tree branches, plant colorful flowers and ensure your lawn is neat and tidy. Another instant turn off for potential purchasers is to be overpowered by a not so sweet scented house odor as soon as they set foot inside your front door. If you have pets, you need to make sure that the air is not permeated with that all too familiar doggie aroma. Some aromatic oils placed in discreet places will help. Since you in all likelihood do not notice the smell yourself, invite a friend or neighbor to give you a honest second opinion.

To sell your house rapidly, the most significant factor to take into account is the selling price. If the house is over priced, which is the main reason that many houses for sale by the owner do not sell, you will likely find that it will sit on the market for quite some time. Check house listings for similar properties in your locality and then price your home accordingly. As a general guideline, if you pitch your asking price at roughly ten percent greater than the true going rate, you will in all likelihood receive offers, and hopefully a sale, very close to the true market value of the house. Even though you are trying to save money, securing the services of an experienced attorney is a smart move.  A survey by a professional home inspector should also be carried out to find any issues that you may not be conscious of.

Of Course, if nobody knows about your home being on the market, you are not liable to sell it very promptly. This is why effective advertising is so essential and to that end, there are several FSBO web sites in the United States where you can post ads You might even be able to publicize for free as many sites allow FSBO listings at no cost. Your actual advertizing copy should be simple and to the point with a selection of good quality pictures of the property that show it off in all its glory. Make sure that you underline appealing characteristics using words and phrases that are appealing to potential vendees. Terms such as Freshly Remodelled, Close to All Amenities or Priced Under Market are good for starters. Lawn signs are one the most essential selling tools for home sellers and if you attach a container of information sheets to the sign, then browsers will have instant access to your contact data.

Even though selling a home yourself may appear daunting and time consuming, the financial payoffs are well worth the effort. Presentation in concert with  proper pricing and effective publicizing should see your property being sold in no time at all. Educating yourself about the subtleties of the realty market in your area will make you as effective as any realtor but minus the high-priced fees.