Building wealth flipping homes

Flipping homes can be good way to build wealth, but there are many pitfalls to consider before plunging into a project.

Always be mindful of what can be expected.

Prepare for the worst. Make sure you include all potential costs into your budget assumptions. Add a minimum 10 percent margin for error. Here are just some of the costs that flippers need to calculate before purchasing:

• Repairs
• Holding costs (taxes and insurance)
• Debt service
• City fees (permits and deposits)
• Sales costs (title, escrow and sales commissions)
• Income taxes
• Price fluctuation (potential 5-10 percent change in either direction).

If you start to see price declines, increased inventory levels or longer days on market, be cautious. It could take longer to sell your property, which would increase your holding costs and eat up your profit. Plus, your final price could end up lower than you initially calculated. Always have plenty of reserves on hand to cover the possibility of extended holding costs.

Research your local city regulations. Nothing can kill a deal faster than a slow permitting process. You've got to understand what the local municipality will demand of you. If you try to do the work without permits, you could be held liable if you don't disclose it to the buyer. You most likely will not pass inspections if you don’t comply with the code enforcement requirements.

Anticipate higher costs. Calculate higher costs of building supplies from recent tariffs, higher labor costs due to a shortage of skilled construction workers, higher permit fees due to increased regulations, higher interest rates, higher gas prices and higher acquisition costs.  

Budget your time. If you have a full-time job, make sure you have enough time left over to manage the purchase, renovation and sale of your flip. Otherwise, partner with someone who has both time and experience to get the job done right.

Know your tax liability. If you're in a high tax bracket, nearly half of your flip profits may go to Uncle Sam.  Consider putting the property in an LLC for both asset protection purposes and increased tax deductions. Always talk to your CPA before making any investment.

Smart investors can certainly make a good amount of money flipping homes today. Those who succeed have systems in place. If you're just starting out, make sure you have an experienced expert/mentor to help you, even if you pay for their time.

For more good information or to search for homes go to https://homesalesneworleans.gardnerrealtors.com/

Planning to Sell your Home Without a Realtor

There are quite a few home owners who believe they can sell their home without the help of a real estate agent. Some are trying to save money, while others simply want greater control over the process. However, they often experience more stress than those that hire an agent. Here are some challenges people face when they try to sell their home on their own:

Getting the highest price based on market conditions. Many homeowners due to their feelings and emotional attachment to the house, are unable to price their home objectively, often valuing it for more than it's worth. When the price is too high, fewer buyers will be interested and the sale will take much longer. Statistically For Sale By Owners net considerably less than what their home is worth.

 Understanding and Executing Paperwork. Selling a home requires more paperwork than most homeowners think. Some of it can be difficult to understand and complete. A real estate agent has the training to comprehend all the legalese and explain it to you. Plus, they can remove this unnecessary stressor from the selling process.

 Preparing and Fixing a Home for Sale. Addressing deficiencies, creating curb appeal and staging a home is an essential step that most homeowners overlook when selling on their own. Potential buyers judge the house by the photos posted with the ad, and if the photos don't show a clean and beautiful home, they will keep on scrolling.

 There are so many more obstacles that come with selling your home if you choose to do it on your own. Make selling real estate easier and stress-free by working with a real estate agent!

For more information visit https://homesalesneworleans.gardnerrealtors.com/

Approaching Homebuying with Swagger

Would you agree that there are many among us thinking about buying a home and not taking the first step because they heard of many complications that their friends or family members encountered?

In reality, if you have a great Realtor by your side, and if you are willing to start the journey, it can be a very pleasant one. Here is the great article by RISMEDIA that can help you to approach the home buying process with swagger: http://rismedia.com/rrein/20128/1023666/5079737/76986?utm_source=newsletter&utm_medium=email

To start the home buying process go to http://findneworleansproperties.gardnerrealtors.com/

and call me 504-610-7415

Is Refinancing Home Equity Line Of Credit Good For You?

A home equity line of credit, or HELOC, has two stages. First is the draw period, which usually lasts 10 years but can be as long as 20 years. Monthly payments are applied only to the interest during the draw period.

After the draw period ends, the second stage begins: The HELOC goes into the amortization period when you have to pay principal as well as interest. Monthly payments go up. If you still owe a lot, the payments rise abruptly. That’s why some homeowners look for ways to refinance their HELOCs. Usually somewhere between six to 12 months before the end of the draw period, banks are beginning to reach out to clients reminding them that a decision they made 10 or 15 years ago is about to come due.

There are three options if you want to cushion the amortization period of a HELOC:
Refinance the HELOC. When you refinance a home equity line of credit, you start over with a new HELOC, with its own interest-only draw period. With this approach, you still have access to a credit line to deal with future needs. You will still have to pay off the balance someday. You should remember that most of HELOCs have variable rate, and nobody knows what rates will do in theirfuture.
Pay off the HELOC with a home equity loan. A home equity loan is for a fixed amount with a fixed rate. The payments remain the same through the life of the loan.
Refinance the HELOC and the first mortgage into a new primary mortgage. By refinancing the HELOC into a new primary mortgage, you could take advantage of a fixed interest rate that’s still low by historical standards. Consider refinancing into a 15- or 20-year mortgage to reduce total interest payments.

While interest rates on primary mortgages are favorable, you have to take higher closing costs into account when you take this approach. It’s best if you keep the house long enough for the cumulative monthly savings to outweigh the costs of refinancing.

For more information go to http://findneworleansproperties.gardnerrealtors.com/

The color of a home can be a decisive factor when selling

The first thing a buyer will see and comment on is your home’s exterior color. When preparing a home for the market, the most recommended shades are within the sage, tan or gray color families.

Understated browns (including the aforementioned tan) signal security. Homes painted in sandy or mushroom hues read comfort and warmth. Colors like taupe, which falls somewhere between brown and gray, call to mind traditional values. Earthy tones like sage, laurel green or artichoke can not only highlight a verdant landscape, but also evoke a sense of tranquility.

Homes in other colors may sell successfully – our retinas tend to register yellow before any other color, so a buttery yellow exterior could be an attractive option for buyers – but non-traditional colors, like oranges and purples, appeal to very specific personalities and can significantly shrink the pool of interested buyers.

It’s important for sellers to consider the home in relation to the neighborhood before swapping out the exterior color or refreshing an existing paint job. Do nearby homes share a distinct color scheme? Is each home uniquely colored? Evaluating the home’s surroundings can help sellers determine what’s most popular in their market.

For more tips visit http://findneworleansproperties.gardnerrealtors.com/

FRENCH QUARTER HOMES AND CONDOS, BY RAISA!: Are You The Host With The Most for Thanksgiving?

FRENCH QUARTER HOMES AND CONDOS, BY RAISA!: Are You The Host With The Most for Thanksgiving?: Thanksgiving is one of my favorite Holidays. Having family and friends over, and being thankful for all the wonderful things in life is w...

Are You The Host With The Most for Thanksgiving?

Thanksgiving is one of my favorite Holidays. Having family and friends over, and being thankful for all the wonderful things in life is what it’s all about.

Now, cleaning up after is a different story. Here are some tips that'll make your Thanksgiving kitchen cleanup faster and easier.

Cut down on cleanup by selecting cookware that can go from oven to table to freezer.

Before beginning Thanksgiving prep, pick up depressing home clutter and clean out your fridge to make room for ingredients and leftovers.

Plan a potluck: Let your guests share the fun and bring dishes to share. Then make sure they take home their serving bowls and platters, which will cut down on dishes to wash and put away.

 You won't have to clean what you don’t get dirty. So line your turkey roasting pans with heavy-duty aluminum foil, or cook the bird in a bag.

Double- or triple-line garbage cans, which saves time when the cleaning campaign begins. After you toss a trash bag, there’s another waiting for action.

Soak pots and pans as soon as you transfer food to platters. Designate a small trashcan as the soaking spot, fill it will soapy water and dirty pots, and hide it under a sink or in a mudroom. That way, your sink is free throughout the evening to clean as you go and rinse dishes on the way to the dishwasher.

Happy Thanksgiving!

For more helpful information visit http://findneworleansproperties.gardnerrealtors.com/