Rehabbing

Long Term – Short Term – Real Life Term

by Jeff Brown | September 28, 2010

This morning I got my daily fix out of the way quickly, talking with a very bright investor who’s been doing well in turn ‘n burn mode. Not 40 yet, he’s married with three young children. They’ve been pretty successful in buying REOs, rehabbing them, and doin’ it over again. They’re now liking the whole [...]

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Rehabbing

Want To Super-Size That Rehab?

by Richard Warren | August 2, 2010

“Would you like to super-size your value meal?” Quite often the response is “Sure, it’s only eighty-nine cents.” When people decline the offer it’s more often out of concern for their waistline than the bottom line. It’s such a trivial amount that you don’t really need to think about it from a financial perspective. For [...]

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Commentary

Short Term Long Term Deep Pockets and Dinghies On Small Docks

by Jeff Brown | June 29, 2010

When Grandma spoke we listened. She was tempered steel wrapped in GrandmaSpeak. Tough? Around our family, nobody, at least out loud, claims real toughness, as the standard set by Grandma is something for which we only strive. One day I was whinin’ about an upcoming American History test. She asked if I was prepared to [...]

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Rehabbing

Better, Faster, Cheaper

by J Scott | June 9, 2010

There’s a popular saying in the technology industry (an industry where I spent much of my career): “Better, Faster, Cheaper — Pick Two“… Basically, the idea was that you can build something at 1) higher quality, 2) in less time, or 3) for less money — but you can’t do all three of those simultaneously. [...]

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Flipping Houses

Why Many Wildly Successful Flippers and Wholesalers Will Face Bleak Retirements

by Jeff Brown | June 1, 2010

It’s always been true, but since the correction the calls I get from those specializing in ‘quick turn’ projects, whether flipping or wholesaling, have more than doubled. The calls are predictable, usually coming within a few days after publishing a post about what their retirement will look like, given their long term M.O. — and [...]

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Rehabbing

Are You Sure Your Independent Contractors Really Are?

by J Scott | May 26, 2010

As a real estate investor — and especially if you’re a house flipper — you will no-doubt be hiring a lot of independent contractors to support your business. And I’m not just talking about the people who will be working on your houses; your real estate agent, your attorney, your CPA, and most of the [...]

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Real Estate

Right Time to Rehab Real Estate?

by Richard Warren | May 24, 2010

I was talking to a real estate dabbler the other day. He is neither a wanna-be nor a real investor, he just purchased acouple of rental properties several years ago. He is a classic example of being lucky rather than good. He wanted to try his hand in the real estate game and was fortunate [...]

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Rehabbing

The 8 Rules for Flipping in 2010

by J Scott | April 28, 2010

It’s been a relatively tough real estate market for rehabbers/flippers for some time now, and with the home-buyer tax credit getting ready to expire at the end of this week, it’s likely only going to get tougher. That said, for smart rehabbers who know how to buy right, rehab right, and sell right, there is [...]

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Rehabbing

FHA Property Inspection Checklist

by J Scott | April 25, 2010

As any investor who has ever sold a property to an FHA buyer knows, there is at least one mandatory FHA inspection that must be completed by the lender prior to the closing of the property. I often get asked what types of things do FHA inspectors/appraisers look for during these FHA inspections, and what [...]

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Flipping Houses

Calculating Fixed Costs on a Rehab, Flip or Wholesale Real Estate Deal

by J Scott | March 17, 2010

Last week, my blog post discussed my method for determining the maximum purchase price you can offer for a property that you plan to rehab/resell or wholesale. In the formula I presented, I referred to “Fixed Costs” and I mentioned that I know my Fixed Costs to be about $17,000 on a typical project. I [...]

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Rehabbing

What’s in a Contract? Almost Everything You Need to Know About Contractor Contracts

by J Scott | February 17, 2010

[Big Disclaimer: I am not a lawyer and I don’t play one on TV. The information I provide below is just my opinion based on my experiences, and shouldn’t be construed as anything more than that…it certainly shouldn’t be construed as legal advice. If you have any questions about the legal aspects of what I [...]

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Rehabbing

How to Pick the Best Contractor for your REO, Foreclosure Rehab, or Other Remodel

by Winston Westbrook | December 28, 2009

How do you pick someone (a contractor) to take care of your REO, foreclosure, or other home improvement or rehab needs? Do you base it on: the nice shiny truck they came to visit you in? the neatly pressed uniform they are wearing? the sharp penmanship on the estimate? the jokes he or she cracked about the weather? [...]

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Rehabbing

12 Improvements That Didn’t Pay: Learn From These Rehab Mistakes

by Justin Pierce | November 29, 2009

Two weeks ago I wrote a warning about over-improving and last week I told you about a house that I over-improved. I went long last week and I didn’t get to share any numbers with you. This particular flip was unique because there was another rehab home just around the corner from mine. It was [...]

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Rehabbing

Rehabbers: Know the Warning Signs of Over-Improvement

by Justin Pierce | November 15, 2009

Rehabbing or flipping is almost 100% art. There are very few hard and fast rules. The goal, like in any business, is to maximize profit. Many times I have quoted the old saying that you make your money when you buy a property, and I stand by that statement. Once you’ve made a smart buy [...]

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Real Estate Investing

The Best Real Estate Deal Might be the One You Never Do!

by Richard Warren | August 24, 2009

Sometimes your best real estate deal may be the one you don’t make. As real estate investors we are always looking for the next “perfect” opportunity. You look around and see potential everywhere and are afraid of missing out. If you aren’t careful it can lead to a fatal case of gotta-do-a-deal-itis.

In your quest to stay in the game you may convince yourself that a marginal deal is one worthy of your attention. Even worse, you may find yourself ignoring warning signs about the potential investment or the market as a whole. When you are knee-deep in the investment world it isn’t always easy to remain objective but your long-term survival depends on it.

Case in Point

A couple of years ago I was offered the opportunity to partner on a rehab deal. Another investor had found what seemed like a great opportunity but was short on cash. I had cash looking for an opportunity so I looked at the deal. It was an REO (foreclosure) in a blue-collar section of Las Vegas. It was an area that had reasonable demand and there was enough of a profit margin in the deal to make it attractive. I was in and we moved ahead with the plan.

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