Tag: flipping

5 Steps to Fix & Flip Houses The Right Way

Posted on by author

Deciding to purchase a home as an investment property is one of the most important financial decisions in a lifetime. Whether you’re a seasoned investor or a newbie, flipping houses can be a little scary. But it doesn’t have to be! With over 12 years of property management experience, we have learned a few things over the years. Here are five steps to fix and flip houses the right way. 

1. Create Your Budgets

Before even shopping for a home, you need to create your budgets. One budget should estimate how much it will cost to purchase the home and close on it. The next budget should account for the renovation. When it comes to budgeting, it’s always better to overestimate and have more money than less. If it’s your first time fixing and flipping, a professional contractor should be your first stop to get accurate pricing. When you work with TALK Property Management, we can help you find credible contractors. 

2. Find Fix & Flip Properties

Now that you’ve done the beginning research, you’ll want to continue finding outdated properties to remodel. It requires a particular skill to find these undervalued opportunities, evaluate them, and manage them, so they’re completed on time and within budget. We can handle remodeling on your behalf when you choose TALK Property Management to help you on your fix and flip journey. The secret to finding a good fix and flip property is to find off-market homes and homeowners who are highly motivated to sell. As your REALTOR®, we can help you find these covert opportunities. 

3. Make the Right Offer at the Right Price

The price you pay for your property will determine the profit you’ll make when you sell in the future. So if you overpay, it’s likely you won’t make any profit at all. If it’s in good condition, it means you’ll have to do less work. If it’s in bad shape, you can make a fair offer that’s under the market value as you’ll need to put in more time and money to fix it up. It could mean you could have a lower offer accepted. Essentially, the better the condition, the closer you’ll want to pay to market price, and the worse the state it’s in, then the less you want to offer. 

4. Hire Contractors & Begin Remodeling

After closing, the property is yours and ready to be broken down and brought back to life! Don’t make the newbie mistake of trying to tackle everything by yourself. An investor is only as successful as their team, and part of your team is your remodeling crew. 

In an ideal remodel, you’ll finish remodeling the property in five or fewer weeks. Again, timing is crucial because the longer you hold onto a property, the more it will cost. Because, as the famous saying goes, “time is money.” Make sure your time and money are going to a credible and efficient contractor, so get several quotes. 

5. Market & Sell Your Fix & Flip Property

Now that the property is remodeled, it’s ready to go live! Any good REALTOR® will tell you that marketing is essential if you want your property to sell. That’s why you can’t skimp out on marketing your newly renovated place. With TALK Property Management, we run a Comparable Market Analysis to get you a fair rent price based on the current market trends and photograph your property for advertising on social media, the Multiple Listing Service, and our website. 

Contact us today if you’re ready to buy your next investment property or need help creating a plan! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Mortgage Rates and Investing in 2020

Posted on by author

Austin area investors have incredible mortgage rates to take advantage of, and even lower rates may be headed our way for home-loans. The Federal Reserve recently pledged to buy bonds and treasuries in an effort to stabilize the market this spring and, as a side-effect, will push mortgage rates downward.

In a time when rates are already historically low, how much lower can they go? It is possible that homebuyers could see a 30-year fixed rate of 2.75%, according to President of Naroff Economics, Joel Naroff, who recognizes patterns from previous years. The Fed launched similar efforts in 2008, which in-turn pushed rates down below 5% for the first time in U.S. history.

Mortgage rates are likely to either drop slightly or at least remain the same while the Fed keeps any sudden increases at bay. The reserve institution lifted its cap of $200 billion on spending for mortgage-backed securities (MBS). That move creates the additional buying power of the bonds and treasuries as noted above, and the market for these MBS’s is what impacts the current mortgage rates. 

For now, only time can tell the future, and what is current is that rates are low, staying low, and consumers should watch headlines closely to prepare for any changes in the market.

If you are considering buying a home or investment property, now is a great time to make a move and take advantage of the all-time low rates. The money you save on a mortgage can easily be pushed into renovations, flipping, and a property management company that will set you up for long-term success and sustainability. 

Are you in need of a recommendation for a reputable lender to answer your toughest mortgage questions? Contact Dona Brown; she has a vast network and years of experience to point you in the right direction. 512-721-1094. 

Search for Homes Here

Property Management Services

The Different Types of Real Estate Investing in the Austin Area

Posted on by author

Did you know that there are several ways to invest in real estate in the greater Austin area? You heard that right! Let’s take a look at the most common ways to invest in real estate.

Homeownership

When you buy a home as your primary residence, you are investing in real estate. There is a distinction, however. When you own your home, you won’t increase your monthly cash flow or actively make money.

Rental Properties

A rental property (or properties) is another way to invest in real estate. In this case, the rental income you collect from tenants becomes an additional revenue stream that can add thousands of dollars to your yearly income. Selling the home in an appreciating market can also turn your equity into a nice profit someday. Renting out a property doesn’t come without challenges. Rental income may not be consistent from month-to-month, and there could be seasons when the property is vacant. Be sure to consider the added expenses of general maintenance, repairs, and insurance, too. (If you have a question about managing a rental property, reach out to me anytime.

Flipping

When House Flipping, the key is to buy low. While it’s a quicker way to make money than relying on rents and it can be a lot of fun, there’s always a risk that you won’t make money on your investment. There’s also a chance that the improvements will cost more than expected. Flipping requires time and effort, so be sure to consider this carefully before buying a house to flip.

REITs

Real estate investment trusts, or REITs, are not as common as the previous three examples. These are trusts or companies that finance or own real estate investments, and they sell shares to investors. In turn, the investors hope to earn a percentage of the income made from that real estate investment. REITs are more of a “hands-off” example of real estate investing, and the downside is that you don’t have any say about the decisions made regarding the property or properties.

Could this year be the year you invest in real estate? If you have questions about the different types of real estate investing in the greater Austin area, give me a call. I’m always happy to help.