Archive for Best Way to Find Deals

Staging Your Real Estate for Potential Buyers

April 15, 2009 at 8:43 am · Filed under Basics of Real Estate, Best Way to Find Deals, Best commercial real estate, Selling Houses Fast, Selling a home as is, buy sell home

An empty house is like a blank piece of paper that needs to be transformed into a book report. It can feel overwhelming to have to make a home out of an empty canvas. That’s where staging comes in. Staging helps potential buyers visualize how they can arrange the home to their liking.

While professionals can be hired to perfect your house’s appearance, there are plenty of simple ideas and tips that can help you increase your selling power on your own. Some of them are listed below.

Curb Appeal
The most obvious place to start your sprucing up is outside. The exterior of your home is what will entice buyers to enter. A fresh coat of paint, preferably in a neutral color, and a well-manicured lawn can make a huge impact. If you want to go a step further, break out your green-thumb and plant some colorful flowers that compliment the house paint and trim, and remember to keep your foliage within your property. Tree limbs that cut across lawns are not only unsightly, but a buyer does not want to worry about arguing with a neighbor over property lines.

Clean and Minimize
The first step to staging the inside of your home is, of course, making it as clean as humanly possible. Get the carpets steamed, corners scrubbed, and degrease the kitchen. Your house needs to sparkle.
Another way to keep your house looking fresh is to minimize clutter and get organized. Although you want buyers to be able to visualize how furniture can be arranged, they don’t need to see your stuffed animal collection showcased on the couch or know how you like to use old CDs as coasters.


A Wide Range
You are attempting to make the house enticing for as many people as possible. So ditch the sewing rooms, arcades, and exercise equipment. Most people aren’t looking for an extra bedroom to turn into a personal gym. Bedrooms should look like bedrooms. Don’t have an extra bed? Throw a box spring on some milk crates and cover with a comforter instant bed.
Keep in mind your location as well. If you live in a city full of young, single business men and women, consider making one of the rooms as an office. Regardless of how you decide to delegate extra rooms, be sure they have a clear purpose. A bed, computer desk, and mini-fridge all crammed into one room will only confuse buyers.

Details
Although it is better to keep your staging sparse, a few inviting touches can balance out any coldness. Open the curtains and let the natural light in so people can see how bright and airy the home can be. Use adequate lighting where necessary and put up a few pleasant wall decorations and some fresh flowers. Turn on some calming music and add a couple puffs of air freshener. You are having guests over, after all.

Staging can make a huge impact in the way potential buyers view your home, so spend the time and put in the effort. It might make the difference between a quick, profitable sale and a sluggish return.

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Home Improvement Tips: Bathroom Renovations

February 5, 2009 at 4:24 pm · Filed under Best Way to Find Deals, Buying Real Estate, Buying an Appartment, Overcome the Seller's Objections, buy sell home

One of the most popular areas of a house to renovate is the bathroom. There are many different ways to renovate a bathroom, from small surface changes to completely gutting the room. With some forethought and elbow grease, there are renovating techniques the do-it-yourselfer can accomplish, while saving money at the same time.



The first rule in any renovation is to start with a budget, and stick to it. After a budget is set, one must decide on how serious of a project the renovation will be. Surface alterations can be done fairly quickly and cheaply, while rearranging the layout of the bathroom, such as moving the toilet to a new location, will be more labor intensive, and require a contractor to move plumbing lines. A complete tear out is the most difficult, as well as money and time consuming, but is sometimes necessary if several years of moisture has begun to rot the bathroom’s wooden framework.



Hopefully moisture hasn’t penetrated the bathroom’s joists and studs, but it’s quite possible that drywall will have to be replaced. Today there is moisture resistant drywall called greenboard. If a wall is being replaced inside of the shower, a cement backerboard must be used that moisture cannot penetrate.




Many bathroom renovations revolve around the shower or tub. For the do-it-yourselfer, installing a prefabricated shower enclosure or tub is possible. The other option is a tiled shower or tub, which involves building a frame from scratch, and is best left to a professional carpenter. Though prefab showers were once fairly basic, today there are a variety of styles, colors and textures from which to choose. The units can come in one solid piece, to minimize assembly, and also panels if the complete unit can’t fit through the bathroom door (which is the case with many older homes).



There are a wide variety of flooring options for bathrooms, but steer clear of wood floors which will warp from the humidity. Ceramic tiles are the most popular choice for bathroom flooring, as it’s completely waterproof when sealed properly. There are also almost limitless combinations of shapes, sizes and colors combinations of tiles and grout that will fit all tastes. All floors must be level before laying down tile, which can be easily achieved by mixing a self leveling compound that is then spread across the floor, evening out any inconsistencies.



A new sink or vanity can spruce up a bathroom as well. There are many popular styles, such as wall mounted sinks, pedestal sinks, and vessel sinks that are fairly easy to install. It’s often possible to use the current sink piping to reconnect to an updated sink which can drastically change a bathroom’s appearance.



Some of the most effective updating can also be the easiest to do. Changing all the hardware, such as drawer pulls, faucet handles, and shower heads, can make a great impact, especially when they are all pulled together with the same materials, such as stainless steel, bronze, or brushed nickel. The cheapest home improvement choice of them all- paint- can also give a bathroom a new feel. Ditching a bland, frameless mirror for a new, large one with a funky frame is also an easy fix.



Sometimes the cost of new bathroom features is the priciest part of a renovation, but looking beyond big box stores can save cash. The local craigslist may have a treasure being thrown out by another remodeler with a different taste. Ebay can work the same way. Buying discontinued tiles is another good money saving technique, but remember to pick up extras to replace damaged tiles in the future.



Most remodeling techniques can be learned, but a contractor may be necessary to deal with new electrical or plumbing lines- it will be worth the money for it to be done correctly, and they will follow building codes properly. Getting referrals from trustworthy friends is always advisable when looking for a good and efficient contractor.

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What’s the Best Way to Find Deals?

October 20, 2008 at 4:17 am · Filed under Best Way to Find Deals ·Tagged , , ,

This one of those questions that must be answered by another question, to wit: what’s a good deal? And this is not a facetious question, because the answer depends on:

1) Your exit strategy.
2) Your financial resources.
3) Your skills.
4) Your goals.
5) The risk and hassle involved in a particular property.

So let’s say this: I’ll let you in on my favorite ways to find good deals—after I explain why they’re good deals to me.

First, let’s talk about exit strategy. If I put a property under contract, one of two things is going to happen to it. If it’s in very poor shape or out of my “farm”, I’ll wholesale it to another investor for a quick cash profit. If this is the case, a “good deal” is a 1-3 unit building that I can get under contract for about 60% of its “as is” value. The other thing I might do is to close it and lease/option it for a year or two. In this case, my “good deal” will be a one family that needs cosmetic work in a decent area that I can buy for 70% or less of the as-is value. In any case, my exit strategy determines what I think is a good deal. If I find a 40-unit apartment building that can be had for pennies on the dollar, I won’t necessarily consider it a good deal, since I have no desire to be a landlord, and know few wholesale buyers who want such things. Ditto a commercial property or a historic rehab.

Your financial resources, including the cash and credit you have available to you, also determine what a good deal is to you. Imagine you have no cash and poor credit, but find an owner who will finance with no money down If you pay 100% of the value of the property, but his terms are such that you can still rent it out for a $300/month positive cash flow. Is this a good deal for you, despite the fact that you have no equity? Could be. Is your time well spent looking for these types of deals? Yes, since they are what you can manage. Is mine? Probably not, since I can find lots of deals that cash flow AND have 30% equity the day I buy them. What’s the difference? I know how to offer owners cash. You can’t.

Your skills also matter. If you don’t understand repairs, looking for properties that need major mechanical work in order to rehab and resell it isn’t the best use of your time. And for heaven’s sake, don’t start looking for “good deals” in large multi-families until you’ve taken at least one landlording seminar! If a deal doesn’t meet your goals, it’s not a good deal no matter how cheap or how good the financing. If your goal is to hold properties long-term for the tax advantages and avoid major rehabs, no junker should ever turn your head. If you flip it, you’ve created a capital gain that you don’t want. If you rehab it, you haven’t met your own goal of avoiding rehabs.

Finally, the risk and hassle involved in a deal affects whether the price and terms are “good” or not. I’ve noticed that my wholesale buyers will pay 70% of the after repaired value of a junker property less the cost of repair—as long as the cost of repair doesn’t exceed about $15,000. More than that, and you’re talking really major rehab. Buyers of these types of properties typically want a higher overall profit. Similarly, people who buy rentals in warzones often look for yearly returns approaching 50% of the purchase price. Why? Management hassles, rent collection hassles, hassles with the city…you get the picture.

So, in light of what I consider a good deal (a 1-3 family property that I can get for 70% or less of the as-is value by offering cash) what are my favorite ways of finding good deals? In order of importance:

a) Direct mail.
b) My ad in the paper.
c) Referrals from other investors and wholesalers.
d) The MLS.
e) Door-to-door flyers.

There you have it!

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