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I will show you house that is for sale for 12,000$ In Cincinnati, Ohio.. I make this video to explain that you need to be really careful reading description of listings.. This listing:
Buyer will be responsible for any liens/judgements/taxes related to this property..
Liens may be
1. Mortgage ( probably they borrowed $$ to fix this house and it was not enough)
2. Child Support
3. Contractors Liens
4. Medical Bills
5.Judgements
In Most cases all issues may be solved by hiring title company & asking them to “clear” Or “quite” the title, BUT be AWARE..
IF YOU WANT ADDRESS OF THIS HOUSE OR NAME OF THE AGENT – LEFT A COMMENT – i WILL SEND IT TO YOU:)
What Are 5 Mistakes That Can Make House Flipping a Flop?
KEY TAKEAWAYS
• Flipping houses is a business like any other in that it requires knowledge, planning, and savvy to be successful.
• A common type of mistake real estate investors make is underestimating the time or money the project will require.
• Another error house flippers make is overestimating their skills and knowledge.
• Patience and judgement is especially important in a timing-based business like real estate investing.
The 70% rule states that an investor should pay no more than 70% of the ARV (after-repair value) of a property minus the repairs needed. The ARV is what a home is worth after it is fully repaired.
Here’s an example: If a home’s ARV is $150,000 and it needs $25,000 in repairs, then the 70% rule means that an investor should pay no more than $80,000 for the home. $150,000 x 0.70 = $105,000 – $25,000 = $80,000.
1. Not Enough Money
Dabbling in real estate is expensive. The first expense is the property acquisition cost. While low/no money down financing claims abound, finding these deals from a legitimate vendor is easier said than done. Also, if you’re financing the acquisition, you’re paying interest.
2. Not Enough Time
Renovating and flipping houses is a time-consuming venture. It can take months to find and buy the right property. Once you own the house, you’ll need to invest time to fix it up. If you have a day job, time spent on demolition and construction can translate into lost evenings and weekends. If you pay somebody else to do the work, you’ll still spend more time that you expect supervising the activity and the costs of paying others will reduce your profit.
3. Not Enough Skills
Professional builders and skilled professionals, such as carpenters and plumbers, often flip houses as a side income to their regular jobs. They have the knowledge, skills, and experience to find and fix a house. Some of them also have union jobs that provide unemployment checks all winter long while they work on their side projects.
The real money in house flipping comes from sweat equity. If you’re handy with a hammer, enjoy laying carpet, can hang drywall, roof a house, and install a kitchen sink, you’ve got the skills to flip a house
4. Not Enough Knowledge
To be successful, you know how to pick the right property, in the right location, at the right price. In a neighborhood of $100,000 homes, do you really expect to buy at $60,000 and sell at $200,000? The market is far too efficient for that to occur regularly.
5. Not Enough Patience
Professionals take their time and wait for the right property. Novices rush out to buy the first house that they see. Then they hire the first contractor that makes a bid to address work they can’t do themselves. Professionals either do the work themselves or rely on a network of pre-arranged, reliable contractors.