It seems that during the last decade, the trend of flipping houses has taken a new level. The issue is that what you see on TV is usually not anything like what you are going to experience in the real world of real estate investing. So here are just a few of the big items that you should look at and understand before you go out and try to make big bucks flipping houses.

Following are some of the key points to look over before you set out to buy your first real estate investment propertly.

If You Buy Them Cheap, You Will Invest More

I don’t care what kind of deal you think you may be getting, if the house is incredibly low priced, then there is a reason. The key to understanding this concept is knowing that if the bank could have gotten 90% of the value or more, then they’d have sold it to a home buyer themselves. The fact that they are willing to sell to you for a 70% reduction means there is something major going on that is not worth their time and energy, thus the low price for you.

The major issues you face in a cheap house could range from structural issues, all the way to new plumbing or electrical or all three! You should be prepared to invest a few thousand dollars before you even get to the fun part of painting and decorating.

Location Location Location

That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won’t matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.

Make The Big Things New

There are certain parts of a house that serve as hot buttons for buyers and these should almost always be brand new or nearly new. Some of these would include the furnace, central air, water heater, sump pump and the roof. If these big ticket items are new and in good shape, you will get a buyer much quicker than if they are older.

Fresh Landscape The Outside

Curb appeal is one thing for you to sell the house, but it is also something that makes people feel at home. Buyers will fall in love with the house the minute they pull up, especially if the landscaping trees and shrubs are well placed and in good order. There is something about green spaces that make people feel good.

These tips should be considered for sure before you go out and try to flip a house!

Source: investing

Source: ReliableRemodeler.com

Here is a step by step guide to help you hire a quality home improvement contractor.

Before talking to any contractors the first thing to do is create a budget for the project. Without a budget you will be flying blind and may end up over spending. Having a tight budget will also help you make decisions about what kind of fixtures, and materials to purchase. Most products have a wide price range and having a budget will help keep you in line when making buying decisions.

After you have your budget dialed in get three written estimates from three different contractors. Be sure the estimate is complete; getting a “written” estimate on the back of a business card is not a sign of a good contractor. Getting three estimates will enable you to compare prices from different contractors. Reliableremodeler.com is a great service that will help you get free estimates from quality contractors for free.

Take the time to talk with each contractor and get a feel for which one you will be most comfortable working with and having in your home. Be sure and pay attention to things like who shows up on time and who is prepared to talk about your project. If a contractor shows up late to your appointment chances are they will show up late when working on your project.

While you are in the process of selecting a contractor it is a good idea to make sure they have the proper license, insurance, and bonding. All three of these items are in place to protect homeowners. Working with a contractor who isn’t licensed or doesn’t have the proper insurance might come back to haunt you. A good contractor will show you copies of these documents when they present your written estimate.

The next step is to check the references of the contractor you are leaning towards selecting. Be sure to ask specific questions about their experience with the contractor. “Did the contractor show up on time?” “Did the contractor clean up after themselves?” If you want to be more aggressive you can ask the contractor for the names and numbers of their last three jobs and call those instead of their handpicked references. This will provide a more realistic overview of the contractors daily work habits and skills.

The last step is to select your contractor and have them provide you a timeline for the completion of the project. Having a timeline will help ensure your project is completed in a timely manner.

Source: ReliableRemodeler.com

Source: Home Improvement