Purchasing, Renovating, Marketing, and Selling

News Source: http://www.canadianmortgageupdates.ca/

    A full time rehab investor needs to manage the four phases of every deal. Becoming a rehab millionaire means having at least 16 deals in work every month and maybe more. Four deals turning a $20,000 profit each month will bring in $960,000 each year. If you’re only turning two houses each year, you’re going to need to keep your day job. If you want to be a serious, full time, professional real estate investor, you shouldn’t be swinging a hammer or even licking envelopes, you need to be managing a team that is doing the work for you. The Million Dollar Pipeline There are four major categories to your million dollar real estate pipeline . You should have four properties in each category at any given time. During each month, you should be purchasing four houses, which immediately go into the rehab phase. On an average of once a week, you should have one property finishing rehab and going onto the market. At the same time, you should be collecting a paycheck approximately once a week as your investments are sold to both pay you and invest in the next project. The novice investor focuses all of his or her energy on one stage at a time. That’s an “onsie-twosie” investor. In other words, he or she may only do one or two deals in a given year. If that fits your goals then great! Go for it! But if you want to be a million dollar real estate investor, you’ll systematize the process to keep the pipeline full. You’ll have several projects going at the same time. Have a Plan Having four deals in each phase will be a full time job managing your own business. You’ll need a system to keep it organized. You’re going to need a plan. Decide on your target market. Decide on your target buyer. Decide your price level to flip it. Organize your tools. Get your spreadsheets together. Decide how much time you are going to dedicate to this business. Line up your funds. Raise the capital to do your deals. Start making offers! It all starts by putting the first deal together and then growing your business one deal at a time. Get started by finding some seed money and putting your effort into finding the right house to renovate. These are houses that sit on the market for months because the retail buyer wants a house that is already in “perfect” condition. Your job is taking the less than perfect house and turning it into the perfect house that retail buyers will pay you top dollar for. Of course, you will have competition. There will be others fixing and flipping houses. The houses you want, won’t actually sit on the market for months. The aggressive real estate investor has a constant eye on everything coming onto the market. Making fast, low-ball offers for less than desirable houses is one of the secrets to success. Patience is another part of being successful. Your low-ball offers probably won’t be accepted right away. But when retail buyers don’t show any interest, your offer will become more attractive to sellers that either won’t fix the house or can’t afford to. A couple of months later they come back showing interest in your low-ball offer. In summary, today is a great time to be in the fix and flip business. Just remember that it’s a means to an end. The income potential is very real. But in the end, it’s not only about the money. Once you have a system in place, the money will consistently roll in. You’ll have plenty of time to do, be, and have everything you want in life!

Students Face Challenges Over Home Buying

News Source: http://www.consolidatemydebts.ca/

Buying your first home is never a cheap process and most of us will initially struggle, but it is much more difficult for students who can graduate with substantial amounts of debt. This means they often need to earn substantially more money in order to buy a home. An estimate by RealtyTrac found students typically need annual salaries of approximately one third more compared to those first time buyers without student debt. This equates to around $8,700. ReatlyTrac arrived at this figure by taking the median home price for each county and state, and calculating the minimum amount needed to qualify for a loan on this home. This assumed the buyer had a 20% deposit and was based on a 30 year 4.13% loan.

The article in the Wall Street Journal does point out that this figure is dependent on where the student is living, and the average amount of student debt can vary from state to state. Interestingly, some of the areas with the most expensive housing also have the lowest rates of student debt. A good example is California, where house prices are amongst the highest in the country, yet it has one of the lowest levels of student loan debt. Those states where graduates with student loans need to make more income to qualify for loans, compared to those without debt include Pennsylvania at 49%, Ohio at 53% and Michigan at 55% and Rhode Island at 56% and Connecticut at 58%. In comparison, students in California only need to earn 12% more than graduates without student loan debt. This figure is 17% for New York and Virginia, rising to 19% for those in Wyoming, and to 20% for graduates in Utah. The good news is that graduates with student loans, and who are earning the median household income for the US are able to afford the monthly payments on median priced homes in 96% of the markets analyzed by RealtyTrac. Apparently a graduate with a bachelor’s degree can expect a starting salary averaging $45,000, but is likely to have an average of $33,000 debt, a figure that has tripled in the last two decades. However other figures show that graduates who have managed to find well-paid jobs are pretty lucky, as around 40% of those unemployed are millennials, and many are either college age or recent graduates. In addition, recent graduates with student loans seem to find it harder to build wealth.

Hard Time Fixing Up Your Home? Try These Great Ideas!

Article Source: http://bestmortgagebrokers.net/

How one handles improving their home can say a lot about how they handle a lot of situations. An endeavor that focuses on creativity and attention to detail is what makes home improvement so popular. That can sound intimidating to a new improver, which is why they should read the list of tips below.

When building your own home through use of a contractor, add a clause to the contract that gives the builder a bonus for finishing on time and on budget. This clause will encourage your builder to do a good job in the time allotted, and can save you a lot of headaches due to missed deadlines and extended budgets.

Installing carpet can be a daunting task if done yourself, or an expensive task if you pay a professional to do it. Fortunately there is an alternative. Much like vinyl floor tiles, there are carpet tiles that exist. These too have adhesive backing that allows you to install them easily, and they look just like real sheet carpeting when installed.

If you are looking for a functional home improvement project, try "building up." Walls create a lot of wasted space. Add matching bookcases in your living room or build a window seat where your family can sit and read. Simple projects like these can make every space in your home usable and valuable to your family.

To see a return on your home improvement project, consider converting existing space into a new living environment for your family. Making an attic into a bedroom or finishing off your basement will earn you extra money when reselling your home because you are utilizing something that is already available to create a desirable feature.

Home improvement really is a creative endeavor, but that does not mean it is only for professional or serious home improvers. This creative endeavor can be enjoyed by anyone of any improvement skill level. These tips were constructed to help those of all levels find their way into home improvement.