10
May
By support
Real Estate

How To Turn A Profit Flipping Land Into Residential Property

How To Turn A Profit Flipping Land Into Residential PropertyReality TV shows have inspired people to flip houses for profit. They make it look fun, easy and the type of business anyone with some capital can get into.

Every once in a while, house-flipping episodes show an underperforming sale and a financial loss. That is why people in the flipping business need a cushion in case things don’t pan out.

This brings us to a slightly different approach. Some speculators start out flipping land. Yes, that’s right. Land.

Flipping Land Can Be Less Risky Than Homes

Rough land can be far less expensive to invest in than blighted homes. There are also fewer unknowns in terms of flipping. Investors won’t need to worry about replacing an electric box, mold behind walls or failing a building inspection. Land flippers can also start with a modest out-of-pocket investment and work their way up to short-term lending to finance endeavors.

The Basic Considerations

There are a few things to keep in mind when selecting a parcel. Property that abuts a street with sewer and water are preferable to scrub land in areas without services. It is not uncommon to run into difficulty drilling an artesian well or getting a permit for a septic system. Developers know this and will jump at street-ready parcels first.

Make certain the parcel qualifies as a buildable lot with the town or city. Then, hire an excavation team or clear the brush and trees yourself. The goal will be to create an open area where a home can be built while leaving suitable greenery.

The next step is to call a real estate agent and list the property. Quick land turnovers can earn several thousand dollars in profit with minimal effort. Remember to factor in hidden costs such as taxes, interest, and recording fees, among others.   

Upping The Ante To Spec Homes

After gaining experience in the land flipping business, take that knowledge and apply it to homes. Rather than scoop up a dilapidated structure, employ that land development acumen and take the next step.

Select a parcel that is in a prime residential location. What a surprise it would be to find a wooded lot at the end of a desirable neighborhood that can be developed.

Create A Budget and Obtain Financing

Work closely with a real estate agent to understand the types of homes that are trending and the average sale prices. With that information in hand, come to an agreement with a general contractor who can oversee the spec house project.

Decide on a design and calculate the total costs. Don’t forget to add 15 percent for overruns. Contact your loan originator to help you secure a building loan and put the team to work.

Get The Listing On The Market

Spec home projects can be listed with real estate agents even before the first nail is driven into a 2X4. A savvy real estate agent can get a property up online with design information, an artful rendition of the finished home and key selling points. In a perfect world, a new home buyer may be found before construction begins.

It’s important to realize that it doesn’t require significant wealth to get into the home buying and selling industry. By starting with modest, low-risk land deals and working up to spec homes, a solid living can be earned in the real estate industry. If this idea intrigues you, contact your trusted mortgage professional to discuss financing options and start planning your new real estate endeavor today.

27
Apr
By support
Real Estate

Five Reasons Why Spring Is The Perfect Time To Sell

5 Reasons Spring Is The Perfect Time to SellSpring is many people’s favorite season of the year. Obviously, there are many valid reasons why this is so. One of the best things about spring is that it is an ideal time to sell your home.

If you have considered putting your home on the market any time in the next year or so, check out these five reasons which make spring the ideal time.

  • Buyers are searching – A huge majority of home buyers want to move during summer. Many families have school or work vacations that make the moving process a little easier during this time. If you put your home on the market during spring, you ready things for someone to purchase and move in during this prime time.

  • The weather is cooperative – Yes, there may be a few spring rain showers here and there, but during the spring season (in most parts of the country), you’ll find that the weather is neither too hot nor too cold to keep buyers from searching. In addition, the spring sunshine makes for beautiful listing photos.

  • It’s a great time for home improvement – Whether you want to make improvements to your house to make selling easier, or you plan to sell your home as a fixer-upper, the knowledge that spring and the coming summer months is the perfect time to attend to these tasks will benefit you during the listing and sales process.

  • Your yard will look great – They say that curb appeal is one of the most important things that is considered when someone purchases a home. When you sell in springtime, the grass is green, the flowers are in bloom and your yard will look it’s very best. You may find that it’s a little easier to sell during this time just because of the extra “wow factor” your yard brings to the table.

  • The market is prime – Listen to any news or finance program and you’ll hear that the real estate market is booming. Take advantage of this benefit and pair it with all the other reasons to sell your home this spring. You may find that selling your property quickly and at your asking price is much easier than you ever imagined it would be.

As you can see, spring really is an excellent time to sell a home. However, don’t wait until the peak of the season to think about putting it on the market and expect to reap all the benefits. Act now and be ready to make a splash when the weather warms up and the sun comes out to shine.

 

20
Apr
By support
Real Estate

Your Guide To Aging In Place Home Modifications

Your Guide To Aging in Place Home ModificationsIf you’ve had to watch your parents transition into assisted living, you may have no desire to call such a place home. You are not alone. According to the Aging in Place Housing Survey conducted by the American Association of Retired Persons (AARP), more than 90 percent of seniors want to remain in their home.

Many survey respondents said that they would rather use nursing home funds towards purchasing a home that is suited for aging in place or making accessible home modifications.  

You’ve probably heard the buzzwords — aging in place, non-assisted living, universal design — these phrases mean the same thing: growing older in your home. Today, home modifications can help you continue to live in your home as you age. Plus, aging-in-place home modifications are much less expensive than moving into a nursing home or assisted living facility.

The problem is that most existing homes are not conducive to aging in place. There are more than 100 million homes in the United States. However, only one percent of them are currently set up for accessibility. Fortunately, there are a variety of home modifications that you can do to make any home more accessible. Here is a handy guide to accessible home modifications.

Think About Your Future Needs

The first step in making sure your home is suited to aging in place is to consider how your needs might change in the future. Everyone’s situation is different.

If you have a chronic illness, such as diabetes or heart disease, it is best to talk with your doctor to determine how these health issues might make it hard for you to live on your own in the future. Consider what modifications you’ll need to make to ensure that your home will suit your future needs.

For example, if you are thinking of buying a new home with an upstairs, you might use the upper part of the house for your home office now and convert the area into caregiver’s quarters in the future.

Consider a First-Floor Master Suite

An essential home modification for aging in place is first-floor living. Although you might not have mobility issues now, hip replacements and other problems that affect mobility are frequent with increasing age.

Plus, a first-floor suite can increase the value of your home should you sell in the future. According to data from Builder Online, out of the best-selling new home floor plans, more than 83 percent feature accessible master suites.

Choose Slip-Resistant Flooring

Falls are a serious threat to the independence and health of older adults. They are the leading cause of injuries among Americans ages 65 and older. That is why it is so important to take steps to reduce the likelihood of a fall.

One of the easiest modifications that you can make in this area is to choose slip-resistant flooring. Cork and bamboo flooring are both popular for aging in place as they are softer and thus more forgiving during a fall.

These are just a few of the aging in place modifications that you can make to your home. There are many others. The important thing to remember is that you don’t have to sacrifice lifestyle or luxury to have a home that is also accessible.

Many of the above modifications can be made anytime and can help enhance the beauty and comfort of your home. As you plan for your future in your home, please contact your mortgage professional to explore finance options for these and other necessary home modifications.