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House Flipping Can Flop If You Over-Remodel: Tips For Home Flippers

Investors interested in flipping houses in today's real estate housing market, will need money, resources and a team of great mentors who will help you stay realistic. Can you flip the home with a profit if you go all out and install hardwood flooring? Maybe.However, it will be more challenging. It could flop.

You may be drawn to venture into the house flipping due to stories of the high profits others have made. Successfully fixing and flipping a property can be a deeply rewarding experience — both personally and financially — when you do it right and know how to avoid the pit falls that could potentially make it flop.

A true love for carpentry may pull you past a realistic perception of how much to spend as a home flipper. Read our tips as a basic overview on how to avoid an over-remodeled home and thus making it tough for you to recoup your investment costs.

4 TIPS ON HOW TO AVOID AN OVERLY REMODELED HOME & AVOID A FLOP

#1: Flipping Tip - Find a Balanced Approach

Be realistic that not every house flipping project is an initial success: if you buy several at once, you may have to hold and houses that didn't sell as quick or at the price point you anticipated.

Don't over remodel it. Keep your investment dollars at a price point where it will be easier for you to recover costs. And make remodeling decisions that follow current home design trends to appeal to a broader pool of buyers. If it needs a new bath, make sure you upgrade your bathroom on a budget.

If you have bought in a high demand location, rented them out to keep the cash flowing, a common way for flippers to accrue income while waiting for a better time to sell. read up on things to know before renting out your home.

#2: Flipping Tip - Find a Balanced Approach

Stay at lower price points until your experience flipping is ready for the higher risks that come with taking a dilapidated home into the price range where only upscale home buyers look. The more expensive a house fix and flip, the better chance you have of larger profits in the end. However, it takes a lot of skill and money to cover costs to be successful in a high ended home flip purchase.

A more costly larger house, the more interest, more home improvements, more time to make them, which may mean more holding costs and more commissions to pay out. It may not be the best scenario for a first-time buy and flip novice; avoid becoming a  home flipper that flopped. Coming with experience, the increased risk faced with higher cost investment permits the more seasoned house flipper the rewards of higher profit opportunities.

It also takes more capital to buy and repair a more expensive house. If I were to have a profit potential of $25,000 on a $100,000 fix and flip, you may come to expect a $50,000 on a $200,000 fix and flip. Try having a spare $5,000 if costs run over budget on a $100,000 purchase and $10,000 for the same on a buy and flip home that was purchased near the $200,000 range. Watch your spending carefully and follow profit-generating (and loss-avoiding) ideas that protect you from tipping your home remodeling project into an overly remodeled home.

#3: Flipping Tip - Only Extend Your Remodeling Tasks To What You Have Time For

Renovating and flipping homes is time-consuming; it takes additional funds to cover monthly utility costs, mortgage costs and gas funds traveling back and forth doing the work or to ever see the work. You probably already invested months of your valuable time just to find and buy the right property. Before you can sell and flip it, you'll need to hire a home inspector to make ensure your newly remodeled home complies with applicable building codes. If not, additional time and money will be necessary to bring it up to par. Next, you'll need to invest time to sell the property if you plan to market it yourself. Without a Realtor, plan to spend days commuting to and from the property and meeting with potential Minneapolis real estate buyers.

#4: Flipping Tip - Only Remodel To The Extent That Fits Your Handyman Skills

Professional Minneapolis home builders and skilled full-time home re-modelers, such as carpenters, electricians, and plumbers, often flip houses as a sideline to their regular jobs. They don't have the same learning curve to gain the knowledge, skills and experience necessary to buy, fix, and flip a home.

The real opportunity to make money for many in house flipping comes from sweat equity. If a hammer and screw driver are familiar to you and your are confident that you can lay carpet, hang drywall, fix the roof, and plum a leaky kitchen sink, you have the skills to flip a house. Shelling out the money to a professional to do the vast portion of the work, reduces your odds of making a profit.

Download the Apple Real Estate Flip Investing Calculator; it will help you better understand just what each aspect of your potential home flipping project may cost.

"House flipping has become the day trading of this decade. But in the rush to make a profit, far too many would-be real-estate moguls overlook the basics and end up failing. ~ MSN Real Estate

Read more at http://www.homedestination.com/real-estate-blog/Twin-Cities-home-flippers-can-flop-if-you-over-remodel  #HomeFlippersNeedToAvoidOverRemodel #TipsForHouseFlipping   #HowHomeFlippersCanAvoidAFlop #HouseFlippingTipsForTheNovice  
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Stay tuned guys! Tax season has me tied up but I'm about ready to fire up the real estate engine again. I trust everyone is hanging in there.

It's been a long, record-breaking winter.  Even though it's been colder than usual here in the Midwest, I'm blessed to be here to see it. So let's celebrate it because winter is SUPPOSED TO BE COLD and SNOWY! 

WooHoo!!!
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The actual number of "flips" may be down, but there's still a ton of opportunities left with more on the way.
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Yep, I have my fingers crossed that they stay relatively positive. We just need good sources for properties at below market prices.
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Credit Set to Tighten Mid-November

Credit for many homebuyers is about to get substantially tighter, come November 16.

No, it has nothing to do with the debt ceiling or the government shutdown or event the Federal Reserve. In this case, it’s a long-scheduled program changeover at Fannie Mae, which is planning to change the code on the “Desktop Underwriter” program. This is the computer software program lenders frequently use in the field to ensure their underwriting is on the same sheet as Fannie Mae’s.

http://www.realestate.com/advice/credit-set-to-tighten-mid-november-86087/
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Here’s something you might not have thought about as an investment and its right under our feet.  Dirt. To be more specific, good, rich, fertile farm land. I ran across an article this morning from...
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Okay what do you all think?  Crowdfunding worked for Kickstarter, now there's GROUNDFLOOR for real estate investment.  

Given the usual and precautionary safeguards, I think this could be the answer for some projects.  

http://www.sacbee.com/2013/11/11/5900045/groundfloor-launches-first-100.html

http://www.sacbee.com/2013/11/11/5900045/groundfloor-launches-first-100.html

#realestate   #realestateinvesting   #realestatenews   #crowdfunding  
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Quick! Take a Picture!

Don’t pass on the chance to show your home in the best light all season long.

I remember when I sold my home a few years ago during a one of Michigan’s worse blizzards. Believe it or not the house sold very quickly.  It was a great home and we de-cluttered and staged it properly of course. But one of the things that I can attribute to its quick sale is the fact that I had plenty of seasonal photos of my home.

Even though the house was buried under approximately 19 inches of fresh snow, these colorful photos allowed prospective buyers to see the curb appeal of the home during several seasons.  We had great pictures of the home grounds showing the spring blooming season and a great apple blossom tree. The lush, green summer season and even with some great fall photos with the beautiful vibrant colors.  We had a swimming pool that was covered and under a ton of snow.  However we had great photos of the yard and pool area in its finest glory on full presentation.  Buyers could envision the home year round with its great ever changing curb appeal.

We also had evening shots to show the home lit up.

So even though the home was being listed and sold during the time everything was buried in snow and basically in “black and white”, we had full seasonal Technicolor photos to show.

So whenever you have a chance throughout the year, take the opportunity to take some glamour shots of your home.  Even if you are not in the planning stages of selling, you never know when they will come in handy.

This time of year only lasts for a few weeks.  Take advantage of the unique and colorful presentation opportunities this season presents.

#realestate   #realtor   #investors  
#home  
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Real Estate Acquisition and Portfolio Management
Introduction

The Acropolis Investment Group, LLC is a Michigan company that was formed primarily to invest in the real estate market. 

We as a team have held residential and commercial assets of varying value ranges. We are now refocusing our processes toward an aggressive acquisition policy.  This policy includes rapid acquisition and release of certain residential assets to increase our net worth and capital accounts. This is order to better position ourselves toward a solid portfolio of cash flowing commercial assets.

Our holdings have not and will not be limited to one geographical area.  We are in the market for parcels and projects throughout the nation.  We have professional affiliates in key areas that will assist us in our search and review process.

As a part of our lessons learned we have adopted a best practices model of management.  These practices and methods are those we glean from the talents from individuals like yourself and other professional organizations.  We pledge to apply sound and proven business principles to our processes. Most of all however, our processes and transactions will be beneficial to all parties involved. A deal that is good for me, but not good for you will not be conducted.