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Part 1 of 5: Rehabbing Houses

This posing will mark the beginning of a 5 part series in which I will discuss 5 separate real estate investing strategies, along with the benefits and drawbacks of each. There are hundreds of ways to invest in real estate. It is very important in choosing your investing strategy that you consider the time, money, and effort you’re willing to invest. Also make sure to be realistic about your experience level, construction experience and ability to manage others.

After watching Flip this House, real estate investors think that rehabbing houses is the only real estate investing strategy out there. Although flipping houses can bring substantial profit, you can also loose a ton of money. Let’s look in detail at what’s involved.

So you have decided to step in to the big leagues and start flipping houses? First be sure to carefully evaluate your personal commitment to the projects, time available to invest into them and willingness to liability exposure. Having bought and sold over 150 houses, I am here to tell you that rehabbing houses is one of the most difficult investing strategies, but can also be one of the most lucrative.

Estimating Repairs– Okay, so you’ve heard about a great investment property that needs work. Now what? Even though your realtor or friend thinks it’s a great deal you need to run your rehab costs in details. If you’re not experienced in construction get a couple bids from some reputable contractors to give you an idea of rehab costs. Be sure never to get them out of the yellowpages, but instead use websites like servicemagic.com or get referrals from other investors. In generating rehab costs, there are some great repair estimate sheets online you can get to help in the process. In estimating repairs for house flipping it also helps to think about the 5 major systems that may need to be replaced! Roof, windows, plumbing, electrical, & HVAC. Also always make sure the foundation is in good shape as rehab projects with bad foundations are impossible to re-sell. Home buyers expect these major systems to be new, or fairly updated. If they are older than 15 years plan to update them. We have a standard cost for each based on our are. For example, we can replace HVAC systems for $ 5k or less and windows for $ 200 each.

Learning to estimate repairs can be frustrating but is an essential part of real estate investing. You’re not going to be perfect at it overnight, so have patience with the learning process. By utilizing contractors, you can learn to see things how they do and it will get easier with time.

Obtaining Financing

Getting financing to rehab houses is harder now than before the crash, but can still be done. The preferred method to buying houses for rehab is cash or using an equity line of credit. This way if you are dealing with a motivated house you can close right away without the hassle of jumping through a lenders hoops. If this isn’t an option, you can find a private lender to fund your real estate deals. By offering friends, family, and anyone you know 8-10% interest you should be able to raise the money. You can set it up to defer payments to them until the rehab is complete and you sell the property. You will give them a first mortgage and personal promissory note in exchange for the money. This means they get the house if something goes wrong and can come after you personally.

If you’re planning to get financed by a bank for rehab projects, you will likely need to contact at least ten in your area until you find ones, so don’t be discouraged at first. Don’t waste your time with big banks. Instead focus on the small community banks. If you plan to get financing for rehab projects and real estate investing in general, you will first need to assemble a loan package which lenders will request. It should consist of your last two years personal tax returns, personal financial statement (that shows all your assets & liabilities), a business plan, a cash flow statement (if you currently own property), & a brief description about yourself and the project you are applying for financing on as a real estate investment.

Managing the Renovation:

Flipping houses isn’t an easy job. The process of managing the rehab itself will require excellent organization & people skills. It is also very important that you learn how to estimate repair costs as quickly as possible.

The majority of beginner rehabbers that I know loose their shirt by overspending at the beginning of the job and over paying for the work. A lot of them also get ripped off by paying money upfront before work is done.

Follow these rules to insure you succeed at rehabbing houses:

1.)  Never use a contractor that isn’t recommended by an experienced rehabber or have great reviews online or references.

2.)  Never get a contractor for rehabbing houses out of the yellowpages.

3.)  Never pay money upfront to a contractor. (Instead you can pay the supply house directly for the material orders)

4.)  Always use a contract between you and the contractor that has a hard date that the job must be complete. This must include a per diem penalty for everyday that the job is not done. This penalty amount will be subtracted from what you owe the contractor at pay day.

5.)  Never pay a contractor more than 70% of what you owe him until the job is 110% done!

6.)  Get proof of workers comp & insurance before awarding the job. Keep this paperwork & call to make sure the policies are valid.

7.)  Never, ever break any of the above rules about flipping houses or you’ll be very sorry you did.

If you follow the above rules about rehabbing houses, you will be well on your way to doing a great job. You must have first gotten a great deal on the house. Make sure to join my email list here as I am always sending out new tricks to find houses not listed on the market with a realtor.

Project Management

In rehabbing houses, you or someone that works for you will need to manage the project full time. This means being on the job everyday, ordering materials, working with a designer, getting draws from the lender, paying contractors, keeping the job site locked up every night, ordering dumpsters, communicating with the neighbors, keeping the job site clean, getting bids from contractors, and much, much more.

In closing, rehabbing houses can offer a huge return, but also be a lot of work. You might make money, you might loose money. I offer a Mastery Fast Track Program for serious investors that offer a full rehabbing system and unlimited support throughout the process. You will more than make up for the cost with the money you save on the very first rehab. It’s critical to have a highly experienced partner on your side that can walk you through the process, that you can lean on anytime.

Don’t gamble. Insure your success and sign up today! Make the commitment to your career as a real estate investor and find out what it’s like to have the freedom to build your own house flipping business. Imagine showing your friends that 6 figure. Check that you made on your first rehab deal!

Stay tuned for part 2 next week – Rehabbing Houses for Rental!

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If you’re looking for a short term savings solution, there’s no shortage of banking products available to meet your needs.  Money market accounts, savings accounts and CDs (certificates of deposit) are all common and popular short term investment vehicles.  Other products, such as municipal bonds, treasury bills and I-bonds may be available, but when you’re looking for low-risk savings strategies that still allow you to get a return on your investment, it’s hard to beat CDs.

Getting the Best Rates

Many banks claim to offer competitive rates, but some go beyond the industry standard.  The online bank, Aurora Bank (Equal Housing Lender, Member FDIC) offers some of the highest CD rates available.  Of course, to get the best rates, you’ll either need to deposit a large amount, or keep the CD for a longer length of time (called the maturity date).  Either (or both) of these options can help you get the best possible CD rates.  Maturity date lengths and deposit amounts can vary.  CD timeframes range from 6 months to 5 years, and deposit amounts vary, but it’s best to keep a minimum balance of $ 1,000 in order to avoid any extra fees or account maintenance charges.

Making Money on Your Money

One of the best reasons to consider CDs for short term investments (anything five years or less is considered short-term), is simply because you get the benefits of compound interest.  Every day, the bank pays you interest on the money you’ve deposited in the CD, and at the end of the month, this interest is added to your account on top of what you’ve already deposited.

So you’re essentially making money on the interest that the bank is already paying you.  

Safety and Security

Another reason why CDs make ideal short term investments is because of their safety, security and stability.  Unlike some other banking products (particularly investment-related products like stocks and bonds), CDs are covered by the FDIC – a government institution which protects your deposits up to $ 250,000 per account, against the highly unlikely event that the bank itself goes bankrupt.  It’s worth noting that since the FDIC was created after the Great Depression (credit unions have their own federal institution called the NCUA), not a single person has lost money in their account due to bank insolvency.  

In uncertain economic times, it pays to have money invested across a wide spectrum of banking products.  As you may already know, different products produce different results according to your risk tolerance level, amount to be deposited and how long the money is kept with that particular product.   With this in mind, it’s a good idea to speak with a banking professional about how to use CDs to reach your short term savings and investment goals.  Considering today’s competitive rates, CDs are a low-risk way to keep your savings secure for up to five years.

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If one person thinks that has the necessary skills to become a financial planner then that person should definitely give it a try as this is a wonderful and rewarding job. If you want to work this you must have possess some skills. Being able to communicate easily with different types of people is a must. Another required skill is that you are extremely good at solving computer, mathematics and real-life problems. Having a specific education in finance is also something that may be of great help for you. Last, but not least, if you want to be a certified financial planner that is wanted from every company you have to be able to flirt with your clients. And by flirt I mean that you have to be able to make them want to work with you and refer you to other people.

How to Become a Certified Financial Planner?

There are thousands of financial planners all over the world that are very good at their job. However, some companies have more specific demands. Being good at what you do is not enough when you do not possess a valid document that proves your skills. Even if you are communicative, computers and mathematics are no problem for you and you have worked in the field for many years there are still some companies that wouldn’t find this enough. So, if you want to be among the best in your job you also have to attend a lot of seminars and different courses on this particular topic in order to earn a certificate proving your skills and your competence. That way you would competitive on the market for certified financial planners and it is more than certain you would never be left without work to do.

Why Should One Want to Get a Certificate?

Once you have acquired a certificate as a proof of all your knowledge and skills all the doors in the financial world are already open for you. You found find it much easier to get a new job and the competition would be blown away by you. Considering your pay rate some companies have increased pay rates for certified financial planners in comparison to non-certified. That’s another motivation for you. Finally, you may also like to do it for your own self-satisfaction in order to feel established and more competent in your job. No matter what your motives are for doing this it would only have positive effects on you, your career and you would certainly not lose anything.

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The main reason to use a financial planner is utilize their experience and skills in order to make the best decisions. Your goal should be financial independence. This means you have enough assets invested to live off the income the investments produce. Essentially, it means you no longer have to work if you do not want to.

The question is how do you achieve the independence being discussed here. One thing you already know for sure. It does not happen by accident. This is a goal that must be planned for. The right steps must be deliberately plotted, and the right decisions must be made. In other words, you need a plan and you must stick to that plan.

Most people are too involved living their everyday lives to be able to make the right decisions involved in a long term plan. They are busy going to work and raising their kids to have the time to plan an effective long term strategy. With a professional to help you, however, you can develop the plan that will give you the freedom that you desire.

There are several aspects to developing a plan. There is no single thing you can do to get to where you need to be. There are several critical objectives that must be accomplished to implement an effective plan. When you are on your own, trying to sort out the many options available to you, it is easy to make foolish choices. With a professional working for you, making sure your interests are protected, you will have a better chance to come out a winner.

A professional will do a complete analysis of your situation. There is no guesswork involved with doing an assessment of your economic status. There is no room for luck. A professional has the tools, the experience and the knowledge to help you make good decisions that will form the basis of your plan. Once your plan is in place you will only have to meet once a year or so to review your status and to make any needed adjustments. Of course, the best plans are flexible to account for changes that you know will be coming.

No one can achieve their goals without a plan. You can not depend on luck. Without taking deliberate steps you will not be where you need to be. Working with a professional helps you define exactly what your objectives are. Then you can plan the specific course action you must take to make your objectives become a reality.

The world has grown evermore complicated. There are more products and different options to choose from than ever before. The typical person has difficulty sorting through all the different types of investments, products, insurance policies, annuities, mutual funds and everything else. Without a professional to guide them, the typical person is likely to make some poor decisions that will have a long term negative impact. Use a professional to help avoid making these common mistakes.

Hopefully, you now understand the importance of using a financial planner. You understand how in the complex world we live in the typical family needs helps navigating the complicated world of money and finance. A trained experienced professional is the solution to make sure you attain the level of freedom that you deserve.

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If you are worried about losing your home, stressed about the lack of money, mortgage repayments or do not have enough money to live, then this article will help you to eliminate some of your worries.

Whether you’re single or have a circle of relatives, planning your financial future is something that you need to do. Your financial stability will create a huge effect on your lifestyle for the best. One of the many benefits of having the right financial structure is that it will help you to minimize on your tax bill leaving you with more money thus the potential to create more wealth for you.

Do you feel that as soon as you get some extra cash together to put towards your savings, what happens is that all these unexpected bills arrive? Now you start wondering why you are unable to save your money and what you should do to control this. Well let me tell you, that you are not alone, the fact is that there is information out there in this world that should be easily available to everyone to help with their money problem, but unfortunately it’s not. It should be provided to you when you visit your lender or by professionals you deal with from time to time, such as accountants, financial planners and so on. But the thing is that some of these professionals also do not have any idea of what would be the best way to help you and many of them are only interested in the fees and commission they receive.

People today don’t even get information easily about investment/mortgage loan structures. Money Elements have important information that can immediately help you eliminate any concerns such as losing your home and information about the right investment/mortgage structures that suits your need.

We, at Money Elements offer the best report called “The Money Elements Report” that could help people like you to get straight forward information about loan structures and how to reach financial freedom. This report will help you protect yourself and your families, to create wealth for you and also information on how to get started in the property and investment markets.

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It is very essential to make a particular planning and arrangement about your financial issues. A proper planning and arrangements of financial matters and dealings can lead you to the way of profits and gains otherwise you may face a lot of financial troubles. For this reason people hire the best financial planners for their numerous financial deals.

If you are looking for the best financial advisors in Perth, you should consider some of the reasons so as to select for your financial transactions. While going through the financial planning in Perth, the advisors will deal with many underlying issues including cash flow management, education planning, retirement plans, investment planning, risk management, insurance planning, tax planning or insurance planning.

These planners can advice his/her clients about the highly customized financial advices and investment strategies.

Apart from the above mentioned functionalities the financial advisors in Perth also work on the mentioned areas- self managed super funds, taxation, property and mortgages.

Advisors who are expert in these fields will deliver high level of comprehensive financial advices which will be highly beneficial for you. Both professional and personal financial requirements are dealt easily with the help of Perth financial planner.  

With the strategic planning you can go step by step to reach to the final profitable stage of financial issues.  Also you will be confident to deal with any kind of financial transactions in your daily life and can easily make financial decisions with the help of tax accountant in Perth.

Some of the below mentioned financial strategies that are easily dealt with the financial planners in Perth:

• They can mange tax effectively and will make the clients understand any potential risks involved in the financial decisions and will recommend effective strategies to maximize returns and achieve the short or long term financial goals.

• The planners will help the families to get the right insurance although the premiums can possibly be costly. But the sufficient insurance is imperative for the welfare and protection of family which may include life insurance, income protection insurance, health insurance, trauma insurance as well as home and content insurance.

• They suggest advices in case of job changes. Changing jobs and promotions, salary cuts or redundancies can affect the financial situation of the family. So they will help you to review the superannuation, investment and insurance needs.

• Financial planners in Perth also make long-term planning for your retirement by maximizing the retirement income so that you can maintain your lifestyle.

• With proper estate planning by a financial consultant, an investor’s family affairs and family members are properly cared according to the change in tax laws.

Therefore, a financial advisor Perth can bring many improvements in your financial life by maximizing savings and investment returns, getting right insurance and managing tax effectively. Dig into some of the major search engines to get the right kind of financial planning.

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Choosing the certified financial planner certification Dallas as a career option is the ideal career option. Making career in this field will give you a secure job, eminence, money, career growth and job satisfaction. Financial planner certification Texas builds intelligence within you to handle money in an optimum way. Many qualified institutions are successfully running best-certified financial planner training courses in Dallas these days you just need to make the right choice. CFP exam for certified financial planner training Dallas includes wide array of topics and includes six individual courses that are relating to financial planning, insurance planning, investment planning, income tax planning, retirement planning and estate planning. The CFP exam for financial planner certification Texas also includes case studies and at least 10 to 20 lessons.
The CFP exam for certified financial planner certification Dallas covers many important aspects of all the major courses offered. The financial planning course for financial planner certification Texas includes financial planning tools and techniques. The courses study aims at making the aspirants understand financial statement analysis, basic economics, funding for education needs and dealing with clients. The main aim of these courses is to make the applicant aware about the ethics and financial concepts used in business organizations through CFP exam.
Another type of course offered under CFP exam for financial planner certification Texas are insurance and investment planning. The concepts of insurance planning makes the aspirants aware about insurance products and benefits offered under insurance planning. Moreover, the concepts of investment planning for the CFP exam certified financial planner training Dallas includes the study of stocks, bonds and mutual funds. This makes the individuals to become masters in financial planning field and manage peoples money efficiently.
Income tax, retirement and estate planning are also the important topics in CFP exam certified financial planner training Dallas. The courses for income tax planning make them understand the impact of income on tax and also the income, expenditure and tax computation. The courses help aspirants be become qualified tax planners and provide people with efficient tax planning consultation services. Under retirement and estate planning, the certified financial planner certification Dallas CFP exam includes retirement planning issues and ownership, taxation and estate planning documentation issues.
Thorough study of all the concerned topics makes an individual capable of handling all the aspects of financial, insurance, investment, income tax, retirement an estate planning. It requires absolute dedication and determination to clear the CFP exam for certified financial planner training Dallas. There is a huge demand for financial planners in Texas these days and the one pursuing the CFP exam has wide career scope in the field of financial planner certification Texas. There are various companies and individuals looking for financial planning assistance out there and the one passing the CFP exam will have to cater to a broad consultation.
You can also earn huge amount by selling bonds, stocks and mutual funds without any limit. The industry of certified financial planner training Dallas is at boom and has wide scope in the current job market. You just need to get the certified financial planner certification Dallas and start your career. The thing you need to keep in mind is the institute you are choosing for the certified financial planner training Dallas needs to be accredited and recognized under a deemed university. You are looking for the best-certified financial planner training courses in Dallas and you should end up paying only to the best in the service institutions industry.

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