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Sunday, October 28, 2007

A Beginner's Guide to Flipping Houses

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!

Tais 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.

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Managing Your Phobias and Fears While In A Relationship

How can you manage your phobias and other related fears while being in a relationship? It can be tough to be in a relationship and have to deal with your fears and other phobias.

One of the ways to manage your particular phobia is to find out what exactly is your fear. If you have trouble finding out what that fear may be, then try to talk to a professional who can help you figure out what the fear may be. Once you know what the fear is, then the next step is to find the ways to deal with that fear.

For instance, one of the ways to manage your fear is to challenge your negative thinking with positive statements and realistic thinking. When encountering thoughts that make your fearful or anxious, challenge those thoughts by asking yourself questions that will maintain objectivity and common sense. For example, your afraid that if you do not get that job promotion then you will be stuck at your job forever. This depresses you, however your thinking in this situation is unrealistic. The fact of the matter is that there all are kinds of jobs available and just because you dont get this job promotion doesnt mean that you will never get one. In addition, people change jobs all the time, and you always have that option of going elsewhere if you are unhappy at your present location. Changing your thinking can help you manage your fears.

Sometimes, we may be nervous doing a certain task that may be scary. When this happens, visualize yourself doing the task in your mind. For instance, you and your team have to play in the championship hockey game in front of a large group of people in the next few days. Before the big day comes, imagine yourself playing the game in your mind. Imagine that your playing in front of a large audience. By playing the game in your mind, you will be better prepared to perform for real when the time comes. Self Visualization is a great way to reduce the fear and stress of a coming situation.

When facing a current or upcoming task that overwhelms you with a lot of anxiety, divide the task into a series of smaller steps and then complete each of the smaller tasks one at a time. Completing these smaller tasks will make the stress more manageable and increases your chances of success.

As a layman, I realize it is not easy to overcome our phobias. Remember that sometimes our worrying and fears can make the problem even worse. Take things in stride and try not focus too much on the problem. In time, you will find the ways to overcome your phobia. If you have trouble, talk to a professional who can give you additional insights on your situation.

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Buying Rental Properties - Ten Tips

Buying rental properties can be a great way to build your wealth. However, as in most real estate investment, it is sometimes difficult to know if you've found a good deal - especially the first time. Here are some things to look for to be sure that rental is a great investment.

1. Location. If traffic is heavier, rentals are easier to rent. A sign will often pull more response than an ad in the paper. If it is a nice locale, it will usually rent faster. This is also true of places close to amenities.

2. Numbers. Run the numbers. Get every last expense figured into your calculations, and be sure that you will have positive cash flow from the start.

3. High home prices. Look in towns with high home prices, as this creates rental demand. What do people do when they can't afford to buy? They rent.

4. Low maintenance buildings. Avoid cedar-shake roofs, and wood-sided buildings. Look beyond current expenses to how much maintenance the building will need. Low maintenance means less headaches and more profits.

5. Good rental history. Ask to see the rental history. Note how long residents are staying on average, and how well they pay on time.

6. Below market rents. Buying rental properties with below-market rents means you get to raise rents. Raising rents means you imediately raise the value, because rental property values are based on income.

7. Complies with zoning and fire codes. Have it inspected, and ask local officials if there are any problems.

8. Less than 20 years old. This is somewhat arbitrary, but if you limit your search to newer buildings, you will be less likely to have building code and maintenance problems.

9.Owner/manager that is out of state. These properties are often the best deals, because it is tough to manage a property from far away. An out of state seller is often more concerned with a quick sale than a high price.

10. Neighborhood is stable or improving. Stable is okay, but if you can buy in a neighborhood that is improving, you'll rent the units more easily, and therefore get automatic appreciation in value with time.

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