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El. knyga: Flipping Houses For Dummies

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  • Formatas: PDF+DRM
  • Išleidimo metai: 16-Feb-2022
  • Leidėjas: For Dummies
  • Kalba: eng
  • ISBN-13: 9781119861027
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  • Formatas: PDF+DRM
  • Išleidimo metai: 16-Feb-2022
  • Leidėjas: For Dummies
  • Kalba: eng
  • ISBN-13: 9781119861027
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Go head-over-heels for house flipping!

Flipping houses profitably may not be easy, but it's far from impossible. With the right guide, you can avoid the risks and reap the rewards like a seasoned expert. Flipping Houses For Dummies is that guide.

The perfect blueprint to property resale, this book walks you through the absolute necessities of house flipping. You'll learn how to confirm that you have enough time, energy, cash, and resources to be successful. You'll also get an inside look at the house flipping process that'll show you how to minimize risk and maximize profit in a highly competitive market.

Flipping Houses For Dummies offers:

  • Proven negotiating techniques to close real estate deals faster
  • House flipping laws and regulations for every state in the union
  • Strategies to successfully complete a big renovation, on-time and on-budget
  • House flipping tips for both investors and contractors
  • Comprehensive content on hiring and working with reputable contractors

So, if you're ready to start revitalizing your community by turning neglected properties into prize homes, Flipping Houses For Dummies is the first and last resource you'll need to navigate your way around the exciting and challenging world of real estate investment.

Introduction 1(4)
About This Book
1(1)
Foolish Assumptions
2(1)
Icons Used in This Book
3(1)
Beyond the Book
4(1)
Where to Go from Here
4(1)
Part 1: Getting Started With House Flipping 5(64)
Chapter 1 Brushing Up on the Basics
7(12)
Grasping the Concept of Flipping
8(2)
Spotting distressed properties
8(1)
Doing your homework
8(1)
Making a few minor (or major) alterations
9(1)
Reselling your rehabbed property
9(1)
Flipping Legally and Ethically
10(1)
Flipping illegally
10(1)
Flipping legally: Buy, fix, sell
10(1)
Determining Whether You Have What It Takes to Flip
11(2)
Devising a Reliable Flipping Strategy
13(1)
Building an All-Star Team
14(1)
Finding and Buying a Flippable House
15(1)
Rehabbing Your Fixer-Upper
15(3)
Planning repairs and renovations
16(1)
Applying makeup
16(1)
Making a good first impression
17(1)
Focusing on kitchens and bathrooms
17(1)
Making moderate changes
17(1)
Tackling structural enhancements
17(1)
Profiting from Your Venture
18(1)
Chapter 2 Devising an Effective Flipping Strategy
19(12)
Deciding on the Role You Want to Play
20(1)
Surveying Different Strategies
20(8)
Buy into a hot market
21(1)
Buy low, do nothing, sell quick
22(1)
Buy low, apply makeup, sell quick
22(1)
Buy low, renovate, sell high
23(1)
Buy low, move in, renovate, sell high
23(1)
Buy, hold, lease
24(1)
Invest in new construction
24(2)
Focus on a niche market
26(1)
Flip contracts (or do it all on paper)
27(1)
Cook up your own strategy
27(1)
Drawing Up a Detailed Plan in Advance
28(2)
Plan B: Surviving a Flip That Flops
30(1)
Chapter 3 Building Your Dream Team
31(16)
Teaming Up with a Quality Real Estate Agent
32(4)
Recognizing the value of an agent
32(2)
Picking an agent with the right stuff
34(2)
Recruiting Moneymen (and Women)
36(3)
Finding financiers
36(1)
Hiring an accountant
37(1)
Obtaining sound investment advice
38(1)
Covering Your Back with Title and Homeowner's Insurance
39(1)
Locating an Experienced Appraiser
40(1)
Adding a Real Estate Lawyer to the Roster
41(1)
Lining Up a Home Inspector
42(2)
Calling In Your Rehab Team
44(3)
Chapter 4 Securing the Funds to Fuel Your Flips
47(22)
Recognizing the Importance of Being a Cash Buyer
48(1)
Tapping Your Own Resources for Cash
49(5)
Shaking your piggy bank
49(1)
Unleashing the equity of your current home
49(4)
Cracking open your retirement nest egg
53(1)
Leveraging the Power of Other People's Money
54(5)
Persuading a bank to finance your flips
55(1)
Passing the hat among friends and family
56(1)
Borrowing from a private (hard money) lender
57(1)
Making up the difference with a gap loan
58(1)
Partnering with an investor
59(1)
Using Conventional Financing (for Longer-Term Real Estate Deals)
59(12)
Determining what you're worth in dollars and cents: Net worth
60(1)
Checking and correcting your credit report
61(3)
Avoiding mistakes that can sabotage your loan approval
64(1)
Comparing loans
65(1)
Finding lenders online and off
66(1)
Borrowing for purchase and renovations with a renovation loan
67(2)
Part 2: House Hunting With An Eye For Flipping 69(72)
Chapter 5 Scoping Out a Fertile Neighborhood
71(16)
Pinpointing House Flipping Hot Spots
72(4)
Tracking migratory patterns
72(1)
Tagging promising neighborhoods
73(1)
Finding your focus
74(1)
Identifying areas in your price range
75(1)
Sizing Up the Local Real Estate Market
76(2)
Tracking the appreciation rate
76(1)
Noting how many homes are currently for sale
77(1)
Discovering how long houses stay on the market
78(1)
Comparing Neighborhoods
78(2)
Spotting the signs of a good neighborhood
78(1)
Telling when a neighborhood is in decline
79(1)
Considering Other Neighborhood Factors
80(7)
Grading local schools
81(2)
Digging up crime statistics
83(1)
Exploring the business climate
84(1)
Getting the lowdown on planned neighborhood improvements
85(2)
Chapter 6 Hunting for Houses in Your Target Area
87(16)
Developing a List of Criteria to Guide Your Search
88(2)
Focusing Your Search on Affordability
90(1)
Digging through Property Listings, Ads, and Publications
91(6)
Searching listings with the help of your real estate agent
92(4)
Scanning the classifieds for keywords
96(1)
Skimming real estate magazines
96(1)
Scoping out For Sale By Owner properties (FSBOs)
97(1)
Mining Special Markets for Dontwanners
97(4)
Cruising the neighborhood for dontwanners
98(1)
Tapping into special markets
98(3)
Advertising to Generate More Leads
101(2)
Chapter 7 Closing In on Foreclosure Properties
103(22)
Getting Up to Speed on the Foreclosure Process
104(1)
Brushing Up on Local Rules and Regulations
105(3)
Procedural stuff
106(1)
Different types of foreclosures
107(1)
Taxes
108(1)
Picking Your Point of Entry into the Foreclosure Process
108(10)
Pre-foreclosure
109(6)
Foreclosure
115(2)
Post-foreclosure
117(1)
Purchasing Foreclosure Properties, Step by Step
118(7)
Step 1: Find a property
119(1)
Step 2: Follow the paper trail
120(1)
Step 3: Inspect the property
120(1)
Step 4: Bid on a property (when buying at an auction)
120(3)
Step 5: Survive the redemption period
123(2)
Chapter 8 Scoping Out Properties in Special Markets
125(16)
Acquiring Properties in Probate
126(3)
Finding probate properties
126(1)
Digging up a death certificate for more info
127(1)
Finding out who can sell the property
128(1)
Contacting the next of kin
128(1)
Keeping tabs on overbids
129(1)
Scooping Up Bargains in Bankruptcy
129(6)
Brushing up on bankruptcy laws
130(1)
Knowing when to purchase
131(1)
Tracking down houses in bankruptcy
132(1)
Digging up additional info
132(1)
Dealing with the gatekeepers
133(2)
Planning for delays
135(1)
Finding Government Owned Properties
135(3)
Buying Properties at Tax Sales
138(3)
Part 3: Evaluating Properties And Crunching Numbers 141(66)
Chapter 9 Researching Distressed Properties
143(20)
Creating a Property Dossier
144(2)
Checking Out the Property
146(3)
Doing a drive-by, walk-around inspection
147(2)
Snapping photos
149(1)
Following the Paper Trail
149(14)
Honing your title acquisition and reading skills
150(2)
Picking details off a foreclosure notice
152(4)
Digging up details at the Register of Deeds office
156(5)
Gathering tax information at the assessor's office
161(1)
Getting your hands on the property worksheet
162(1)
Chapter 10 Inspecting the Property and Estimating Rehab Costs
163(18)
Packing for Your Inspection Mission
164(3)
Finding the Perfect Candidate for a Quick Makeover
167(2)
Poor-but-promising curb appeal
167(1)
Cosmetically challenged, inside and out
168(1)
A second-rate showing
168(1)
Assessing Potential Curbside Appeal
169(1)
Taking a Big Whiff, Inside and Out
170(1)
Inspecting the House for Big-Ticket Items
171(5)
Focusing on the foundation
171(1)
Checking out walls and floors
172(1)
Examining the siding
172(1)
Giving the roof and gutters the once-over
173(1)
Glancing at the windows, inside and out
173(1)
Evaluating the plumbing
174(1)
Exploring the electrical system
174(1)
Checking out the furnace and air conditioner
175(1)
Adjusting your eyes to the lighting
176(1)
Discovering Some Promising Features
176(3)
Arriving at a Ballpark Figure for Repair and Renovation Costs
179(2)
Chapter 11 Calculating Your Profit and Best Offer
181(12)
Doing the Math to Ensure a Profitable Flip
182(2)
Adjusting for market conditions
182(1)
Crunching the numbers
183(1)
Estimating a Realistic Resale Value
184(1)
Accounting for Expenses
185(8)
Unpaid property taxes and water bill
185(1)
Closing costs
185(1)
Cost of repairs and renovations
186(2)
Holding costs
188(1)
Marketing and selling costs
189(2)
Income tax
191(2)
Chapter 12 The Art of Haggling: Negotiating a Price and Terms
193(14)
Planting the Seeds of Successful Negotiation
194(1)
Making an Offer They Can Refuse (But Will Consider)
195(5)
Calculating a price
196(1)
Proving you're earnest: Money talks
196(1)
Dangling additional enticements
197(2)
Protecting your posterior with weasel clauses
199(1)
Tending to the Details: Inspections, Appraisals, and Walk-Throughs
200(4)
Inspecting the house from the ground up
200(3)
Ordering an appraisal
203(1)
Taking one final walk-through
204(1)
Closing the Deal
204(3)
Part 4: Fixing Up Your Fixer-Upper 207(96)
Chapter 13 Building and Managing Your Rehab Team
209(12)
Identifying the Expertise You Need
210(2)
Finding and Recruiting a General Contractor or Subcontractors
212(2)
Adding a Handyperson and Other General Help to Your Crew
214(1)
Structuring Financial Agreements
214(1)
Contracting with Your Contractors
215(1)
Managing Your Rehab and Your Team
216(5)
Drawing up a punch list
217(1)
Assigning projects
217(1)
Scheduling the work
217(1)
Managing your team
218(3)
Chapter 14 Prioritizing and Planning Your Renovations
221(14)
Developing an Eye for Home Improvements
222(1)
Prioritizing Your Projects
223(3)
Tackling essential repairs
224(1)
Gauging renovations to get the most bang for your buck
225(1)
Adding inexpensive, last-minute touches
226(1)
Delegating Duties
226(3)
Identifying do-it-yourself projects
227(1)
Getting a little help from your friends
227(1)
Flagging jobs that require professional expertise
228(1)
Drawing Up a Tentative Budget
229(2)
Coming Up with a Game Plan
231(4)
Switching on utilities and ordering materials and a dumpster
231(1)
Tackling underlying problems first
232(1)
Working from the top down
233(1)
Working from the outside in, or vice versa
233(1)
Allotting sufficient time for your projects
234(1)
Chapter 15 Giving Your Property a Quick Makeover
235(14)
Sprucing Up the Yard
236(2)
Freshening the Facade
238(3)
Touching Up the Interior
241(8)
Revitalizing the entire interior
241(3)
Updating the kitchen
244(1)
Spending quality time in the bathrooms
245(1)
Modernizing the bedrooms
246(1)
Making the basement look livable
246(1)
Attending to the furnace and hot water heater
247(2)
Chapter 16 Perking Up the Curb Appeal
249(16)
Revitalizing the Landscape
250(4)
Doing the bare minimum
250(1)
Revitalizing a tired lawn
250(1)
Designing an adequate landscape
251(1)
Prepping areas for planting
252(1)
Positioning and planting your greenery
252(1)
Adding the final touch: Fresh mulch
253(1)
Maintaining the landscape
253(1)
Tidying Up the Driveway and Walkways
254(3)
Asphalt driveways
255(1)
Concrete driveways and walkways
255(1)
Stone or brick walkways
256(1)
Making Entryways More Inviting
257(1)
Refinishing the front door
257(1)
Refurbishing the front porch
257(1)
Adding some finishing touches
258(1)
Refreshing the Outside Shell of the House
258(4)
Laying a new roof
259(1)
Repairing or replacing gutters
260(1)
Retooling the siding
260(2)
Glamming Up the Garage
262(3)
Chapter 17 Dazzling the Crowds with Updated Kitchens and Baths
265(16)
Giving a Facelift to Kitchen Cabinets, Countertops, and Sinks
266(4)
Refinishing or replacing cabinets
267(1)
Updating hardware: A cosmetic fix
268(1)
Resurfacing or replacing countertops
269(1)
Installing a new sink and faucet
269(1)
Modernizing Kitchen Appliances
270(3)
Deciding whether to install appliances
270(1)
Adding or replacing the dishwasher
271(1)
Roaming the range, oven, and cooktop
271(2)
Installing a space-saving microwave
273(1)
Keeping, removing, or replacing the refrigerator
273(1)
Updating the Bathrooms
273(8)
Repairing bathroom walls and floors
275(1)
Refinishing or replacing tubs and showers
276(1)
Dealing with la toilette
277(1)
Updating the sink and medicine cabinet
278(1)
Adding or improving ventilation
279(2)
Chapter 18 Tackling Moderate Makeovers
281(10)
Installing Replacement Windows
281(4)
Knowing your window options
282(2)
Trimming the cost of new windows
284(1)
Replacing Drab, Weathered Doors
285(2)
Making the quick fix with a new storm door
285(1)
Replacing an entry door
285(1)
Repairing or replacing sliding glass doors
286(1)
Installing new interior doors
287(1)
Putting on Your Own Floor Show
287(4)
Laying vinyl or linoleum flooring
288(1)
Refinishing hardwood floors
288(1)
Updating the hardwood floors
288(2)
Laying ceramic tile for a touch of class
290(1)
Chapter 19 Reconfiguring Spaces and Other Structural Overhauls
291(12)
Attending to Essential Structure and Infrastructure Repairs
292(1)
Fiddling with the Floor Plan - or Not
292(1)
Identifying Load-Bearing Walls
293(2)
What is a load-bearing wall?
293(1)
How are conventional and truss roofs different?
294(1)
Is this wall load-bearing?
294(1)
Maximizing the Use of Existing Space
295(4)
Knocking out walls
295(1)
Raising the ceiling
296(1)
Designing a whole new kitchen
296(1)
Adding a bathroom
297(1)
Spreading out to an attached garage
297(1)
Transforming a porch into a room
297(1)
Creating a room in the attic
298(1)
Deciding whether to finish a basement
298(1)
Building New Rooms from Scratch
299(1)
Adding a Deck or Patio
300(3)
Part 5: Cashing In: Realizing Your Profit 303(50)
Chapter 20 Considering Your Options: Cash or Cash Flow?
305(12)
Setting a Goal: Cash or Cash Flow
306(1)
Cashing Out: Selling the Property
307(1)
The buy-fix-sell approach: Listing the property for sale
307(1)
The buy-sell strategy: Selling to another investor
308(1)
Exploring Cash Flow Possibilities
308(9)
Refinancing to cash out the equity
309(1)
Reselling a foreclosure property to the previous owners - or their family
309(3)
Leasing the property to the previous owners
312(1)
Offering a lease-option agreement
313(1)
Assigning your position to a junior lienholder
314(3)
Chapter 21 Marketing Your Home
317(14)
Harnessing the Power of a Real Estate Agent to Market and Sell Your House
318(2)
Knowing why you should hire a seller's agent
318(1)
Negotiating with an agent during the selling process
319(1)
Taking advantage of your agent's access to the MLS
320(1)
Setting an Attractive Asking Price
320(2)
Don't be greedy
321(1)
Understand the current market
321(1)
Know the price you need to make the profit you want
322(1)
Staging a Successful Showing
322(2)
Recognizing the value of staging
323(1)
Making your staging checklist
323(1)
Offering to Help Secure Attractive Financing
324(1)
Becoming a Real Estate Marketing Maven
325(6)
Choosing a method of contact
325(1)
Planting a For Sale sign on your lawn
326(1)
Listing your home online
327(1)
Designing, printing, and distributing flashy flyers
328(1)
Advertising your home in the classifieds
329(1)
Hosting an open house to build word-of-mouth buzz
330(1)
Chapter 22 Negotiating the Sale to Maximize Your Profit
331(12)
Comparing Seemingly Similar Offers
332(5)
Does the buyer have financing?
332(2)
How "earnest" is the buyer?
334(1)
What else is the buyer asking for?
334(2)
What conditions has the buyer included?
336(1)
How soon does the buyer want to close?
336(1)
Mastering the Art of Counteroffers
337(3)
Submitting a counteroffer
338(1)
Leveraging the power of multiple offers
339(1)
Shuffling Papers and Other Legal Stuff at Closing
340(3)
Having the right folks represent you
340(1)
Prepping for closing
341(1)
Sealing the deal with paperwork
341(2)
Chapter 23 Trudging through Some Taxing Issues
343(10)
Estimating the Tax Collector's Take from Your Flipping Profits
344(2)
Maximizing Tax Savings from the Sale of Your Principal Residence
346(3)
Proving "principal residence"
346(1)
Qualifying for the two-out-of-five-years rule
347(1)
Taking the ownership test
348(1)
Splitting hairs: Special circumstances
348(1)
Slashing Your Capital Gains through Careful Deductions
349(1)
Deferring Taxes: Rolling Your Gains into Your Next Purchase
350(1)
Selling Your Home at a Loss (Ouch!)
351(1)
Paying Income Tax: When Flipping Houses Becomes Your Occupation
351(2)
Part 6: The Part Of Tens 353(22)
Chapter 24 Ten Ways to Find Dontwanners
355(8)
Cruising the Neighborhood
355(1)
Teaming Up with a Qualified Real Estate Agent
356(1)
Checking Classified Ads and Online Listings
356(1)
Skimming Foreclosure Notices
357(1)
Monitoring Tax Sales
358(1)
Scoping Out Bank-Owned Properties
358(1)
Probing Probate Properties
359(1)
Digging Up Houses in Bankruptcy
360(1)
Sifting through the Government's Stash
360(1)
Networking and Advertising for Leads
361(2)
Chapter 25 Ten Signs of a Great House Flipping Opportunity
363(6)
The Location Is an Obvious Hot Spot
363(1)
Nobody's Home
364(1)
The "For Sale By Owner" Ad Is Shrinking
364(1)
The Seller Is Highly Motivated to Be Freed from the Burden of Ownership
365(1)
The House Is Ugly Outside
365(1)
The House Is Ugly Inside
366(1)
The Decor Is Outdated
366(1)
The House Has Character
366(1)
The House Has Undeveloped Living Space
367(1)
The Property Backs Up to Nothing
367(2)
Chapter 26 Ten House Flipping Blunders
369(6)
Falling for a Scam
370(1)
Speculating on the Housing Market
370(1)
Waffling on an Obviously Good Deal
370(1)
Backing Yourself into a Contractual Corner
371(1)
Failing to Inspect the Property before Closing on It
371(1)
Assuming That the Title Is Clear
372(1)
Underestimating the Cost of Repairs and Renovations
372(1)
Doing Shoddy Work to Save Money
372(1)
Over-Improving a Property
373(1)
Forgetting to Pay the Taxes
373(2)
Index 375
Ralph R. Roberts is a real estate expert, investor, and author. He has sold over 10,000 homes, and focuses on affordable housing. He wants to help everyone become a homeowner! Ralph is the author of the previous edition of Foreclosure Investing For Dummies, as well as many other publications.