![]() | |
![]() | |
![]() |
Real Estate Information |
|
![]() |
Fixer Uppers: Dont Make This Mistake
Making money with "fixer-uppers" isn't about repairing drywall or planting flowers. It's about using the right approach from the start. A Big Real Estate Mistake Many people buy and sell a fixer-upper like this: They buy a house, fix it up, then add some amount (say $10,000) that's in their head onto their costs. Then they put the house up for sale for this price. This is so wrong. Would you buy a house according to what the seller has into it? Of course not. You look at what similar houses are selling for to determine the value. So if you have $110,000 into a fixer-upper and similar homes are selling for $105,000, how much can you get? It doesn't have anything to do with what you've spent, does it? The Fixer-Upper Formula 1. Determine how much the house wil sell for when you're done fixing it up. Ask an appraiser for help, or look at what similar houses have sold for (not list prices). What it's likely to sell for is the only meaningful definition of value when dealing with fixer-uppers. 2. Calculate all costs: buying costs, including closing, fees, etc.; repair costs; carrying costs, including interest on loans used to buy the house, property taxes, insurance; selling costs, including commissions, fees, title policy, etc. Subtract costs from the expected sales price. 3. Now subtract a profit that makes it all worth the effort. This gives you the highest price you can pay for the house. Walk away if you can't get it for this price or less. Offer several thousand less, of course, to give yourself negotiating room. An Example: You find a fixer-upper, and determine you can get $98,000 for it when it's done. The expenses of buying will be $2,000. You get repair estimates of $8,000. Carrying costs will be $2,500. The sales commission will be $6,500. Other closing costs will be around $1,500. You figure $1,500 for "unexpected" costs. Finally, you want $10,000 for your effort. Subtracting all of that from your expected sales price leaves $66,000. This is the most you can pay, if you want a safe real estate investment. You offer $61,000, and walk away if you and the seller can't settle on something under $66,000. Always start at the end (the eventual sales price) and work your way back. This is the right way to safely invest in fixer-uppers. Steve Gillman has invested in mobile homes and other real estate for years. To learn more, and to see a photo of a beautiful house (not a mobile) he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
MORE RESOURCES: How Jordon Hudson, 24, amassed $8 million real estate portfolio within months of meeting Bill Belichick New York Post Real estate transfers in Adams County from April 21-25, 2025 Muddy River News Real estate report: Three key factors are behind Louisiana’s surge in investment Baton Rouge Business Report Hyderabad blues: Real estate sales in city see biggest drop The Financial Express Exclusive: Trump's first real estate project in Qatar to be announced by Qatari Diar, Dar Global Reuters ArchCrest opens new real estate division Northern Nevada Business Weekly Two key real estate bills take aim at industry regulations Real Estate News by RealEstateNews.com Advocacy Scoop: New NAR Poll Unveiled—Tax Reform, Real Estate Policy and Voter Opinion National Association of REALTORS® Cattaraugus County: Ellicottville home, Machias property lead March real estate sales Olean Times Herald Lupoli Companies to Break Ground on Major Development in Littleton Boston Real Estate Times Fond du Lac County property sold for $530K in latest real estate transfers for April 21-25 fdlreporter.com Licking County real estate transfers for April 14-18 reach $1.4 million in Newark The Newark Advocate Richland County property transfers recorded April 21-25 Mansfield News Journal Ranking Arizona: Top real estate law firms for 2025 AZ Big Media ThoughtCraft Architects Marks 20 Years of Design Excellence Boston Real Estate Times The Pipeline: Commercial real estate roundup for 5.2.25 Richmond BizSense People on the Move: New execs at HomeServices, RE/MAX Real Estate News by RealEstateNews.com Urban Edge Signs First New Leases at Shoppers World Since Acquisition Boston Real Estate Times Mahoning County Real Estate Sales: $200K+, May 2025 Business Journal Daily Mid-America Real Estate closes sale of 34,431-square-foot shopping center in Midtown Detroit REJournals Real estate veteran named president of regional Berkshire Hathaway HomeServices Hartford Business Journal Startup radar: Seattle-area tech companies build software for robotics, real estate, and more GeekWire Property transfers: Nursing facility, rental complex sell for more than $1 million Canton Repository Alexandria Real Estate Equities Looks Juicy But Uncertainty Keeps Me Sidelined (NYSE:ARE) Seeking Alpha Crossing Real Estate: They Shaved Another $50k off the $1.25 Million Fishtown House - Crossing Broad Household Struggles Weigh On Real Estate And Spending Seeking Alpha Raith seeks to raise $700m for non-core US real estate fund IPE Real Assets Blackstream opens luxury office near Lake Keowee GSA Business Report Current Real Estate Roundup - May 1, 2025 Nantucket Current April real estate transactions CraigDailyPress.com Franklin Real Estate Development finds inspiration in Greenville’s history upstate business journal Solano Real Estate Scene: Slow down, buy a house Daily Republic 'Slow and steady': How a couple retired early by buying one rental property a year with 5% down payments Business Insider Secluded estate near Ann Arbor is Washtenaw County's most expensive home. Price: $8.99M Detroit Free Press Job Market Defies Tariff Fears to Remain Strong in April, Offering Jolt of Confidence to Homebuyers Realtor.com Berkshire region real estate sales – May 2, 2025 The Berkshire Edge Solano Real Estate Transactions: May 2, 2025 Daily Republic How the Dallas Commercial Real Estate Industry Could Fare in the New Tariff Environment - D Magazine Real estate performance in Quarter 1, and some perspective Garden City News Here's what local experts say the Baton Rouge real estate market will look like in 2025 The Advocate CENTURY 21 Real Estate and Institute for Luxury Home Marketing Launch Collaboration With New Q1 2025 Luxury Market Report Franchising.com SDSU: SDSU Imperial Valley alumnus finds new meaning in real estate career Imperial Valley Press Online What's the most expensive property sold in Rhode Island? May 2 real estate transactions The Providence Journal Abundant listings and stable prices not enough to drive April sales in the Fraser Valley GlobeNewswire Costar Group (CSGP): “Bloomberg Of Commercial Real Estate” Insider Monkey When Donald Trump mocked a real estate icon for having a 'Trophy Wife' The Economic Times What properties sold in Bryan, Chatham and Effingham counties this week? Search the list here Savannah Morning News Real Estate Magnolia Reporter US Commercial Real Estate Leader Peachtree Group Launches 114-Room Residence Inn in Ocean Township, Tapping into Jersey Shore’s Expanding Hospitality Market Travel And Tour World Report: Health care real estate gains greater favor in Twin Cities Finance & Commerce Real Estate: Market Pulse (April 2025) Seyfarth Shaw LLP Graham Norton’s Manhattan Carriage House Is Listed for $5.595 Million The New York Times Real estate transactions: Week of May 2, 2025 Inside Tucson Business How to Choose the Right Real Estate Broker Investopedia Tarek El Moussa Calls for 'Real Reform' in Real Estate Industry: 'I Saw Families Lose Everything' House Beautiful Commercial real estate listings: Wingstop leases space on Three Chopt Road - Richmond Times-Dispatch Commercial real estate listings: Wingstop leases space on Three Chopt Road Richmond Times-Dispatch Status update: 7 Upstate commercial real estate projects upstate business journal Compass goes retro with launch of ‘Private Exclusives Book’ - Real Estate News by RealEstateNews.com Compass goes retro with launch of ‘Private Exclusives Book’ Real Estate News by RealEstateNews.com Real estate report: Industrial market remains ‘chronically underbuilt’ - Baton Rouge Business Report Real estate report: Industrial market remains ‘chronically underbuilt’ Baton Rouge Business Report |
![]() |
![]() |
![]() |
RELATED ARTICLES
Real Estate Problem Solver IntroductionThere are many areas one can invest in. Since I was 15 years old I have looked for the fastest, most effective way to accumulate a lot of wealth, with the least amount of risk. Reprint Rights and How To Use Them To Generate A Steady Income I can't emphasize enough how important it is to have a step by step guide for sellers and tenant buyers. However, many of you are missing out on other income streams that these step by step guides can generate. The Professional Investors Plan The art of using high-leveraged activities.Here I would like to make just a few suggestions that will hopefully save you from wasting years of hard effort only to learn in the end that had you invested using a better strategy, you would have realized more profit, happiness, satisfaction, control and free time as a result. How Not To Blow Your Build Budget Most people who complete a self build will go on to make a profit if they decide to sell afterwards, but what steps can you take to ensure that you don't totally blow the budget?There are lots of advantages to a totally unique self-build but most important is sound financial planning before and during the self-build, to ensure you stay within budget and make worthwhile savings.Research all your costs carefully and get as many perspectives and quotes as possible. Las Vegas Real Estate - Luxury Properties Las Vegas is known for it's over the top hotels and casinos, larger than life celebrities and jaw dropping shows.Over the past couple of years the Real Estate Market has taken center stage breaking national sales records in 2003 and 2004 with record appreciation rates as high as 52%. Real Estate Investing: Beware of Subject To Promises Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages. Small Town Stone House with a Long History As a native Midwesterner, the first thing I noticed when moving to the Delaware Valley was the enormous number of fieldstone houses. Frankly, I'd never seen such a thing. What to Look Out For When Buying Off Plan Buying Off PlanIt can be difficult to decide when every deal seems to be not to be missed!There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference.The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years. How to Negotiate a Successful Short Sale Anyone who has ever profited from doing a short sale has also without a doubt had one or two rejected at some point. Guess what? It is just the nature of the beast?As with all types of sales; you're playing a numbers game. Investment Property Part I: How Not to Become a Slumlord After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. Home Staging Strategies Who are you preparing your home to sell to?You, as a home seller, have two initial choices.1. Home Staging: How to Make Your Tract Home Stand Out in the Crowd Home sellers who wish to market their property in development neighborhoods face tough challenges. All the houses look similar. Ten Steps for Becoming a Successful Real Estate Investor The secret to success in real estate investment is finding bargain properties that you can "flip" quickly for a profit. Here are a few ideas for becoming a successful investor:1) Obtain sound advice from investors who are already successful. Preparing for a Showing As soon as you decide to put your home on the market, all sorts of sprucing-up are in order. But let's assume you've already scrubbed to a fare-thee-well, touched up a bit of paint, cleared most of the stuff off your kitchen counters and straightened out your closets. Why Real Estate? Five months ago I was faced with a decision to keep doing the same thing that I loved or go and try something different and change my life for the better. Well would you like to know what happened?Maybe next time. Selling Houses: Design Psychology and Interior Colors Interior colors are vitally important to selling your home quickly, and for more money. But you must always take your target market and selling season into account, using Design Psychology techniques, when choosing the colors for the inside of your home. New Homes in Ridgefield Location:Frequent travelers will absolutely delight in this town! As part of the southwest section of Connecticut, Ridgefield is a convenient town to live in since it is only miles away from both the New Jersey Tri-state area and New York City. It is also close to its neighbor, Danbury, and has a steady population that continues to grow. Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Home Selection Checklist - A Good Aid When Choosing a Home This home selection checklist is a tool to help you select a home that is right for you and your family. Before you select a home and get a mortgage, you need to know if you will be happy with the home you select for the coming years. The Pros and Cons Of Hiring A Real Estate Lawyer You're travelling in a foreign country and you get arrested for something that you didn't even know was against the law. The potential fine is huge, more than you earn in 10 years. ![]() |
home | site map |
© 2006 TIGER MEDIA |