Creating a Timeline for a Succesful Flip

When flipping a property, it's essential to determine how long you foresee that flip taking. It is important to note that some flips will take longer than others, based on the amount of work that has to get done to the property. However, having a timeline can help keep you on track to ensure that the project stays on target is always a wise strategy. 

The following are some great tips to help you create a timeline for your flip and to ensure that things stay on schedule throughout your renovation:

Determine What the Homes Needs to Complete Your Flip:

The state of the home when you buy it will have a lot to do with how long it will take to complete a flip of the property. Determining what the property needs to flip it will help you figure out how long completing all of those tasks should take. 

Write It Down:

Getting a list of what tasks need to be completed and writing them each down with a tentative deadline will help you visualize exactly how long you need to allow to complete each task. Writing it all down and adding up the time (whether measured in days or weeks) will help you determine how long your flip will take. 

Schedule People to Do the Work:

For any tasks that you plan to hire professionals to do, this is the time to call and schedule people to come out and do the work. Scheduling all of the work that needs to get done ahead of time allows you to ensure that something is always getting done at the property. If you can't get the electrician to come one day, maybe the people doing the kitchen can begin their cabinet work early. This scheduling strategy ensures that something is always getting done and helps you limit the amount of downtime you already have.

Schedule a Couple Days of "Wiggle Room":

Something is bound to come up with each flip that eats up a couple of days you didn't plan for. Planning 2-3 days of "wiggle room" into your renovation can help you ensure that your project stays close to on time as possible.

Keep Revisiting the Timeline:

Continually revisit your written timeline to update it and ensure that you are staying on track. Time is money when you're flipping homes, so it's essential that you follow the timeline set forth from the beginning. While events can happen that will cause deadlines to have to be altered, sticking with the original schedule closely as possible is key to helping you maximize your profit so that you can get on to your next flip.

Hold Each Other Accountable:

If you are flipping a property and have other partners in the investment, holding each other accountable is critical. Whatever work your team is doing on their own needs to continue to stay on schedule. Everyone needs to follow through on their part of the deal and be aware of their responsibilities. If everyone isn't working together, that leaves more opportunities for things to fall behind and for the renovation to fall off course.

Prepare For the Unexpected:

There will almost always be something that comes up that you don't expect when you are doing a flip. Planning for those unexpected moments can help you keep yourself on track without derailing your flip progress.

Never Skip a Final Inspection or Getting a True Market Value on Your home:

Remember, once your renovation gets done that you never want to skip a final inspection on the property. That final inspection ensures your buyer's safety when they move in, and few buyers will place a bid on a home that has not gotten thoroughly inspected after the renovation work got done.

Finally, having a true market value assessed to you by a certified real estate agent can help you ensure that you are getting the money your home is worth. It also helps you make sure you are not overvaluing your home and it may sit on the market far too long and cost you more money.  Getting a market value for your home lets you know what it is truly worth.  

Understand that most flips take 8 to 12 weeks before they are ready to go on the market. It depends on the condition of the home you have purchased and the number of renovations that have to go into the property for it to be ready to put back on the market. Flipping is not an overnight process and it requires patience to get the project done right. 

Setting up reasonable timelines and goals for your flip will help you ensure that your project is getting done right. 

Conclusions:

Sticking to a timeline can help you ensure that you get the project done on time without neglecting the details of your flip, which can cause more headaches later on. Doing the flip right the first time on a schedule can help you maximize your profit and minimize the time the flip takes to get complete.

Kitchen Remodeling Mistakes to Avoid

Whether you are selling, renting, or staying in your home, the kitchen is a very important part of a house. Convenience is essential for the home cook in any relationship. The kitchen is a place for the family to gather for meals, snacks, and conversation. Family memories are made in kitchens and often the home revolves around this common room. Before taking on a kitchen remodel, it's a good idea to learn some routine mistakes to avoid.

It's too Pretty

A kitchen needs to be functional. Magazine kitchens lined with open shelves take nice pictures. However most real humans don't have the time or energy to keep them looking perfect. Open shelves require careful placement and the kitchen isn't usually the best place to create a showroom. A kitchen is easy to maintain when everything has its own space. A practical kitchen is much more valuable than a beautiful one. A great remodel can bridge the gap to create both.

Cheap Cabinets

Cabinets are a vital part of the kitchen and always a good investment. Consider the things you have to store in your kitchen. Your cabinets must store large heavy pots and pans, dishes, and dry goods. Cheap cabinets aren't only ineffective, they change the look of the entire room. Quality cabinets pull the room together and provide effective storage for a functional kitchen.

Too Much Empty Space

If there's unused space in your kitchen, you've failed to maximize the room's full potential. Functional kitchens have plenty of counter space for small appliances and food prep. Cheerful family kitchens have big tables for family meals and cozy bars for quiet moments. Quality appliances take up large amounts of space.

Empty space guarantees future clutter in a kitchen. Shelves and cabinets that go up to the ceiling add height (and additional storage space) to a room. An island can create additional space for food prep, or with stools become a center focal point. Making use of all the space in your kitchen will make it complete in more ways than one.

A kitchen renovation is an important investment in any home. If you plan to sell, a kitchen renovation may be your biggest asset. Some of the top reasons for kitchen renovationinclude additional value, lifestyle, and energy savings. Maximize your resale capability with these tips in mind.

How to Calculate Hidden Costs of Renovating a Flip

While accounting for costs during your flip might seem pretty straightforward, there are some hidden costs that many flippers tend to overlook in their project. Sure, it's not hard to count the prices of raw materials you pay for or labor you hire, but some costs aren't so easy to spot. These hidden costs can add up to $1000s and eat into your profits if you don't carefully account for what you are spending.

Calculating these costs in the future will help you have a better clue as to what you spend and what your actual profit was. Don't let these costs eat into your profits on your flips anymore! Calculate the costs right and know what you are genuinely making on each flip you take on!

The following are 9 of those costs that you might be thinking of when you are flipping your home, but that you should be thinking about calculating when you flip your next house. These costs may seem minor. However, they can catch up with you and cost you a chunk of your profit later on:

1. Account for Work You Did Yourself: It may sound silly, but "time is money" as the old cliche goes. You easily count the working hours that go into the flip when you hire someone to do the work because you have to pay them. What about the work you and your crew do yourselves? Your time is equally valuable as the labor hours you hire other people to do. You deserve compensation for them when you sell the home. Calculating your labor hours and the rate you would like to get paid for your time should count as part of the cost of flipping a property, as well. 
2. Account For Delivery Fees: Many companies will charge a delivery fee to drop off large appliances such as dishwashers, refrigerators, or washers and dryers. The same can get said for deliveries of building supplies such as wood. The same can be said of furniture and other large items (if you are selling a furnished home). Calculating the delivery fees and counting them into the cost of your renovation is vital to ensuring you have an accurate prediction of how much money you have spent on your flip. 
3. Tools You Need to Fix the Property: If you buy any flowers or trees for landscaping, you will count the costs of those items in your renovation. However, say that you had to buy shovels and spades and rakes to get the trees and flowers planted. Those are also expenses that you need to account for if you had to buy them for a specific job. Bonus? Those same tools may come in handy for future flips for doing similar jobs.
4. Costs/Fees for Renting Equipment: If you rent equipment to renovate the home for your flip, you will need to count those costs in your flip. For example, if you rent a carpet cleaner to clean carpets and you have the machine for two days, and you pay $75/day to rent that machine, you need to account for $150 in your cost column to cover the cost of that rental. Sometimes determining if you are better off renting or buying equipment that you may use on other renovations will help you save money in the long-run.
5. Interest/Borrowing Fees Paid: If you take out a loan to do a flip, you need to account for any fees/interest you pay on the loans taken. These interest rates and borrowing fees can add up to be rather expensive, so these expenses need accounting for if you want to know how much you indeed profited from the flip project.
6. Property Taxes: You have to pay property taxes on the property when you settle the deal (you may owe the rest of the property taxes for the year) as well as the fact that you may have property taxes due monthly in your area. Consider where you buy properties as property taxes can vary even within the same state or municipality. The higher property taxes may deter buyers from choosing that home over one in a location with lower property taxes.
7. Insurance Coverage: Homes that are getting flipped should have a coverage policy that is specifically for vacant or unoccupied homes. This insurance will cover your losses if a flood or a fire or something other cause would ruin the property you are working on and you suffered monetary or capital losses.
8. Utility Bill Coverage: Many homes, especially those in apartment buildings or townhomes might require you to pay upfront for the bills if the utilities are on during the renovation. Some even may require up-front payment if the previous owner had very high-cost bills. Accounting for the cost of these will eat into your profit if they get ignored.
9. Marketing/Closing Costs: All of the miscellaneous fees that are involved with purchasing the home, marketing it when it gets renovated, and closing on it when it gets sold should get counted. These might seem like small amounts of money, but they can add up into the $1000s and eat into your profit if they're not planned for.

These are 9 hidden costs of renovating flipping properties that you may not have previously thought. Making sure that you are accounting for everything helps ensure that you are not overspending on your renovation itself and that you do make a profit from each property flipping. 

12 Steps to Flipping an Investment Property

When you want to flip a home, there is no easy way to do it. Every flip is bound to have a "monkey-wrench" thrown into it somehow. There's always something that comes up that you didn't see. These "monkey wrenches" often include added expenses or additional repairs that you didn't see coming when you had the initial inspection done on the property.

However, despite the different things that might come up during a flip, there are some clear processes and steps that you want to follow to ensure that the flip goes smoothly and on schedule as possible. Ensuring that you take the proper steps to flip each property ensures that you can flip each property on schedule and turn the profit that you are planning to turn with each property.

The following are 12 tips that will help you ensure that your flips go as smoothly as you can make them go:

1. Search the Market: Comparing many different markets and real estate agents allows you to determine which homes you want to consider flipping. You should have a maximum budget in mind for each home, the condition of the home, and what you're willing to pay. These guidelines will help you decide which homes you can afford to invest in and which ones you will pass on.
2. Set A Budget & Timeline: Decide how much you are willing to spend on the property and then on the ensuing renovation. Consider a timeline for this property. Many flips are completed in 8 to 10 weeks, but some may take longer or not as long depending on the state of the home when you purchased it and the work that needs to be done. While budgets and timelines may never be 100% accurate, it gives you a basic guideline to follow when determining how your project will go.
3. Choose a Neighborhood with Amenities: People will be more likely to pay more for a home that is located closer to the daily amenities they use. Look for neighborhoods with parks/green spaces, local libraries, nearby medical facilities, recreational facilities, a high walkability score (many people do not drive or own a car), nearby shopping, a variety of different dining options, and nearby access to public transportation. Consider neighborhoods that are also free of litter/debris, are well light at night, and that have relatively low crime rates. 
4. Check School Districts: Many families will only consider moving into areas with "average" or "above average" school ratings. If the school district is poor, this may detract from many families with children wanting to move into the area. Checking the ratings on the school district your potential property is in is key to ensuring the home's location appeals to families.
5. Compare Other, Similar Properties: Understand what other, similar homes are going for in your area. If the property you are looking at is comparable in features and location and not in price, you may not be getting the best deal around. Moreover, consider how many days the property has been on the market and the lot size as well as other variables. Homes that have been on the market for months might give a clue of a reason that no one else wants this property either. Shopping smart can save you money and help increase your profit.
6. Narrow Down Your Search: Once you find a list of homes that meet your criteria for budget/affordability, location, amenities, etc. narrow the search down to the top few homes that you want to bid on and create a "short list" of shorts.
7. Have The Properties You Wish to Bid On Inspected: It's worth the inspections fees which usually run $300 to $500 per property to ensure there are no underlying issues. Homes that have structural or foundation issues are generally ones you wish to pass on. Those few hundred dollars can save you weeks of time and thousands of dollars if you don't have any "surprises" during a renovation.
8. Place Your Bid: Place your best and highest competitive bid for each property you wish to flip. On bid on a few at a time to ensure that you are not stretched too thin if you win the bids you put in. Remember that coming in with a competitive offer is key as the real estate market and economy improve. Many other people may want the same property you do. If they give a better offer you may lose on sales when you could have paid more. Best and final offers are key to ensuring you are competitive in going after the property you wish to purchase.
9. Forecast Your Renovation Budget & Draw Up Plans: Once you have the property in your possession, determine how much you can afford to spend on renovation. If you paid more or less for the property than you originally planned, that could influence your renovation budget. Set a timeline for the renovation and how long it should take. Then get to work with a plan and outline in mind.
10. Keep Things on Track: While no one can avoid the occasional issue or problem that sets the renovation back a few days, try to keep the project on track or close to it as you can. A few late nights or long days can pay huge dividends to keep you on track and not stopping the home from going on the market and making a profit.
11. Consider A Final Inspection: Most buyers will want a final inspection before they close on a home. The final $300 to $500 investment can help make selling your home much easier (and faster) when buyers know a reliable inspector approved the home for sale. Knowing they are moving into a safe home will also make many buyers willing to pay a little more for the finished product.
12. List the Property For a Profit: Finally, your renovation is complete. Listing the property for a profit lets the bids flow in so you can take the best offer! 

These are 12 great steps to help you plan your renovation. While no renovation may go perfectly, doing your homework before you purchase a property and understanding how you will go about the renovation can save you many other headaches or unforeseen circumstances along the way.

Question to Ask for First-Time Property Investors

First-time property investors often get so caught up in all of the excitement of investing that they forget to focus on the real issues that first-time investors can face if they don't do the appropriate research. When you are planning to invest in property for the first time, it's key to understand what kind of property you are investing in and how that will impact the way you handle that specific investment.

When that gets done properly, investment properties can make a great way to get a great return for the money you put in; it can also be a way to end up getting into more debt than you can afford to pay.

When investing in a property for the first time, the following are 7 questions you want to ask (and answer) about the specific property you are viewing before you decide if it makes a good investment or not:

1. Are My Emotions Playing with Me? It's important to determine if you are purchasing a property because you are emotionally attached to it (as many people are when purchasing their home) or is it genuinely a good investment. Remember, you are investing in your first property here so that lower-cost properties might be your best option. The lower the cost of the property the less you have to rent it out for to recoup your investments and start turning a profit.
2. Is This Property In a Good Location? Figuring out a property that's in a good location can be a challenge. Speak to other investors or even real estate agents about a property that might make a wise investment. Relying on those who know your area and the industry the best can help you make the most of the money you have to invest, as well as get a good return on your investment.
3. Have I Done Research on This Property's History? Before you purchase an investment property do your research on what the history of that property is. Understand how often the property has been bought and sold and at what price. Understanding the history of the property and how well you can expect the property to perform is key to knowing how long it will take you to get your investment back as well as how long it will take you to start turning a profit on your investment. View similar properties in the area and understand what rent you can get for your investment.
4. Do I Have Enough of a Down Payment Saved? Before you can put a down payment on most investment properties, you will have to have at least a 20% down payment. Strict approval requirements are also common. You will have to make sure you qualify before you can buy an investment property and afford to get the loan to pay for the difference.
5. Do I Understand the Added Expenses This Property Will Bring Me? Properties require maintenance and added expenses. Be sure to understand the responsibility you have taken on when you buy an investment property. Understand the money-earning potential that the property has. If the numbers don't add up for you to make a profit in the future, then it's not a good investment for you. 
6. Have I Considered Lower Cost Properties? Your first investment doesn't have to be an expensive one. Starting with a fairly inexpensive, the basic property allows you to "get your toes wet" in the industry before jumping all in with more expensive properties. You will learn a lot with your first investment property and investing in your first property doesn't have to break the bank, either.
7. Ask yourself if you are clear of all other debts? Many individuals who are investing in an investment property also need to ask themselves if they are clear of other debt before they invest. Most people will have to take out some loan to be able to pay for the property. In order get that money out through most lenders you will have to be free of other debt such as credit card debt, student loans, or unpaid medical bills.

These are 7 great questions that you should ask yourself before you consider before purchasing any investment property. Making sure that the property will work for you and that you are not taking unnecessary risks will ensure that you make a profit on your investment. Having enough success renting out one property can allow you to gain the capital and the ability to buy additional properties and grow both your investments and your earned income. It will take time, but it's a rewarding experience. 

Tips for Choosing the Right Neighborhood for Your Rental Property

Whether you're looking to purchase your first rental property or hoping to add to your investment portfolio, choosing the best property in the right location is crucial to your success. Let's take a look at the top five tips for choosing the right neighborhood for your rental property.

Find out About Nearby Schools

The neighborhood you choose can have a significant impact on the types of tenants you attract. For example, if you're looking to purchase in a college town, the tenants you attract will probably be younger students with limited credit history. On the other hand, choosing a property close to an elementary school may attract more established residents with children.

Consider the Crime Rates

Both the police station and your local library can help you obtain accurate crime statistics for various neighborhoods. Vandalism, petty crimes, and serious crimes are all important factors that can impact the value of your investment. You may also want to find out how often the police visit the neighborhood due to complaints.

Check out Nearby Amenities

Parks, malls, movie theaters, and access to public transportation are all amenities often sought out by renters. Drive around the area to see what, if any, of these amenities are nearby. Sometimes, you can even find literature on planned attractions that are coming soon.

Learn the Statistics

There are several statistics that can greatly impact your success as a landlord and can help you make a more informed decision before you invest in a specific property. Before you buy, do your research on residents in the area to find out the following information:

• Median Home Value
• Median Income
• Percent Employed
• Percent of Owner-Occupied Homes

Evaluate Your Needs

When choosing a rental property, you should consider your financial goals. If you're looking for immediate cash flow, you should choose a home where you can charge enough rent to more than cover your expenses. However, if your goal is to benefit from a home's appreciation, you may want to choose a newer property that will increase in value over time.

Purchasing a rental property can be a great investment that allows you to provide a nice home for a new tenant. To ensure your ultimate success, make sure you choose a property in a neighborhood that aligns with your goals.

Why you Need to Insulate Your Home

Seasonal changes can cause home temperatures to dramatically increase or decrease without proper insulation or weatherization. While the amount of energy to ventilate, heat or cool dwellings throughout America consumes 13% of the Nation's use yearly use. Poor insulation in attics and rooms, and even basements and garages can lead to higher heating and air conditioning expenses you can avoid by better safeguarding your home in the rain, snow, or shine.

Your house can swelter in summers and chill like it's been forged from wintry ice because of how heat flows through convection, radiation, and conduction. When you winterize or protect your home, you'll want to plan for each instance, whether you insulate your house from the inside, or you insulate a home from the outside for the winter or the summer.

Let's take a look at each way heat travels and how you can protect your single-family or multi-family haven so it is properly insulated and comfortable all year round.

Heat convection

Again, heat flows and gradually cools in temperature until the space it is in no longer changes in temperature. When it moves by convection, it travels and circulates through gases or liquids that you notice when the air feels warmer near ceilings or colder around floors, the colder it becomes.

Proper insulation will buffer the home when frostier air tries to move from wintry outdoors to inside by convection when the latter's ready for its heyday. Single-family homes in damper areas can save dramatically on heating and cooling by fitting interior and exterior placed with loose-fill insulations that don't require any special finishing. These loose-fill or blown-in materials can include cellulose which is made mostly with newsprint that's recycled, mineralized wool that comes from a mostly recycled post-industrial blend, or fiberglass that's also made from up to 60% recycled glass.

Recycled materials that leave a green footprint can improve your dwelling's or unit's use of managing heat and by reducing the impact on the environment while saving on energy costs.

 

Heat radiation

Air can move by convection but a radiant barrier can protect a home from harmful heat radiation that can lurk outdoors. Reflective insulation adds another protection by preventing open space locales like attic environs and those in garages and basements from overheating.

Insulation comes in a range of insulating materials, including foam that is as affordable as polyurethane, nonflammable, and also nontoxic for greener living. When should you insulate?

A good time to fit a home with radiant insulation is now. The best prevention is to insulate before the unforeseen strikes.

Heat conduction

Conduction allows heat to pass from one material to another; like when a cup is topped with coffee and its outer housing warms the instant it comes into contact with the Java. Loss of heat in homes and multi-dwellings from conduction can be reduced in a similar vein by ensuring their R-values perform efficiently.

 

The R-value

The strength of a home's insulation is checked in terms of its thermal resistance to conductive heat flow, called R-value. The R-value correlates to the kind of insulation a home has, its depth (or density), and its width (or thickness). Higher R-values can increase the worth of your single or multi-family because the more thickness the home's insulation has, also improves the power of its R-value.

Always stay prepared

The properties of conduction, radiation, and convection are individualized and they can also be simultaneous—together they can diminish the comfort of a home without good insulation. This is especially important for renters shopping for a new residence that will help them save on heating and cooling while staying in peaceful comfort.

When the seasons change, your heating system will work more efficiently as will your cooling system with the addition or upgrading of insulation making your home a place of leisure and heat resistant for many seasons to come.