Foreclosures and Flips | Flip Houses | Foreclosure Investing

2006-12-13T23:46:00.000-06:00

Treadmill-World.com

2006-11-01T19:20:00.000-06:00

Foreclosure profits are weighted heavily on accurate estimated market value on property.

2006-05-17T10:16:00.000-05:00

Foreclosure profits are weighted heavily on having an accurate
estimated market value (EMV) on property.

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Foreclosure profits are weighted heavily on having an accurate
estimated market value (EMV) on property.

By Jeff Knize
www.foreclosuresandflips.com
www.uspropertybuyers.com

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First, let me start off by saying that I am referring to how much a foreclosure is
worth before you buy it in its "as is" condition or its before repair value (BRV) and how much it is worth after being rehabbed in its "after repaired" condition or after repaired value (ARV). This is commonly referred to as estimated market value or (EMV) by real estate appraisers.

Did you know that one of the biggest reasons investors lose money on foreclosures is
because they do not know how to determine market value on properties?

This is because the investor typically has real estate agents supply them with closed sale comparables in the area (prior to writing a contract). The comparables are supposed to support the EMV but that is not always the case.

Often times real estate agents give investors closed sales in the area,
but in many instances, they are not truly comparable to the property.
The investor does not know how to properly decipher through the sales
and determine which are comparable to the foreclosure that he/she is trying
to acquire. The investor also does not have a behind the scenes look at
each closed sale. Agents simply don't want you to know this!

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For Example: 1) How many times was the property on the market prior to
receiving a contract and selling? 2) How many times did the price have
to be decreased before the market reacted?

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Real estate agents usually do not offer this information since it reflects
negatively on the market. The information may deter buyers from purchasing
the property.

It is important to have this valuable information in order to make
educated decisions. If a foreclosure is on the market longer that expected,
monthly expenses will chip away at your overall profits. In addition, a list
price that has to be continually decreased, will also chip away at profits.

Successful Investing,

Jeff Knize, CRA, ICAP member

www.foreclosuresandflips.com

www.uspropertybuyers.com - *Investor Members Wanted In Your Area*

About the author:
Jeff Knize is a certified real estate appraiser, appraisal firm owner
and real estate investor. For nearly a decade, he has been known for
appraising REO properties, pre-foreclosures, foreclosures, investment
and distressed properties for top lending institutions.

In-addition, he is the author of 'Secrets for Success in Foreclosures'.
Jeff is also an advisor for investment club members and entrepreneurs
throughout the country. He has also bought, sold, appraised and/or
reviewed tens of millions of dollars in real estate.

To Flip Houses successfully you need to understand market conditions

2006-04-21T09:24:00.000-05:00

To Flip Houses successfully, you need to understand market conditions. Here are a few tips to successfully Flip Houses. I do not know anyone else that teaches this information .

This is information that you typically won't even find at the
$2,000, $5,000 or $10,000 seminars or trainings! Without this
information, you could have a devastating loss on what you thought
was going to be a profitable house to flip.

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To Flip Houses successfully you need to understand market conditions

By Jeff Knize
www.foreclosuresandflips.com

www.USPropertyBuyers.com

********************************************************************

How do you know if the house you are attemping to flip will be
profitable? One indicator is to have similar comparable sales in
the area. But what would be another indicator to know if you were
buying in a strong market? How could you find out how long it will
take for your property to sell?

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The ratio of the current # of listings verses the trailing 12 month
sales is one of the biggest keys to flip houses successfully!
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For example, in one of my buying areas there was 6 homes
sold in the past 12 months and 2 active listings. This would
indicate that there has been 1 home sold every 2 months. Since
there are only 2 active listings and 3 times the amount of sales,
it is fair to say this market has a pretty good listing/sales
ratio. If the numbers were reversed it would be a poor listing/
sales ratio. This is because 2 property sales in 12 months
would suggest houses were taking 6 months to sell.

There are many others factors to take into consideration. For
example, was the majority of the homes sold in the first quarter
of the year, last quarter, or is it balanced? If there were no
properties sold in the last quarter, this could be an indication
that the market is softening. On the flip side, if there were no
properties sold in the first quarter, this may be an indication
that the market is gaining strength. It is also important to check
the comparable sales to see what characteristics they have and
compare them to the houses you are wanting to acquire.

In addition, if you are looking to buy in an area that has a
lobsided listing verse sales ratio (more active listings than total
sales in the past 12 months), then you must buy the property
deeply discounted and analyze all of the previous sales in
the past 12 months. If the property lacks some of the positive
charactaristics of the homes SOLD (3 bedroom, etc.) and has negative
characteristics of the UNSOLD listings (2 bedrooms, etc.), then
this could be a red flag and you should consider staying away from
this property all together!

The bottom line is this: If you are obtaining comparable
information from an agent to determine before and after repair
value (ARV), then be sure to ask for previous 12 month sales,
current listings in the area and all property history on the
comparables. It is also recommended to obtain property history
on the property you are looking to acquire. After reviewing this
information you will be able to determine if the properties were
previously listed or sold. This will allow you to have a better
understanding of the market. You will be able to forecast how long
it will take for your house to sell.

I hope you find this information to be useful for your current and
future real estate investment needs. You can read more about this topic
and other useful topics in my Foreclosures and Flips manual.

www.foreclosuresandflips.com

www.USPropertyBuyers.com

Successful Investing,

Jeff Knize, CRA, ICAP member

Flip Foreclosures by Fixing | Flipping them.

2006-04-19T00:01:00.000-05:00

Flip Foreclosures by Fixing | Flipping them.

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Flip Foreclosures by Fixing | Flipping them.
Part of 'Highly Effective Investing Tips'

By Jeff Knize, CRA, ICAP member

www.ForeclosuresandFlips.com

www.USPropertyBuyers.com

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The concept of buying low and selling high is not a new discovery.
Just ask Donald Trump! He is a billionaire from the very concept.

Having a rehab business is the same concept but on a smaller scale.
We look for distressed properties to buy low and sell high!

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To Profit From A Find/Fix/Flip We Need To:

1st - Find a property.
2nd - Fix the property.
3rd - Flip the property.
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Don't be overly concerned with the competition buying real estate foreclosures.
Sure there will be competition but there is in all businesses!

You have probably seen more and more paid programming tv shows about
flipping properties. For Example, 'Flip This House' & 'Property Ladder'
are about new and seasoned investors attempting to flip foreclosures for a
profit.

I must say there have been more people coming into the market attempting
to flip properties over the last few years. There are also more people
losing money and getting out of the market. More importantly though, there
is and will continue to be record breaking amounts of foreclosures coming
onto the market!

The increase in the foreclosure market is partially due to interest only
loans. Interest only loans allows a consumer to only pay monthly interest
on a loan. Therefore, the principal balance on the loan is not being paid.

Back to How To Flip Foreclosures By Fixing | Flipping

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After purchasing a property, there are a couple of ways to go about fixing
and flipping the property.

1) Delegate all the repairs, doing little or none of the work on your own.

Or

2) Complete some repairs on your own and eliminate potentially high contractor
costs.

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I prefer delegating all of the work to contractors. This allows me to do
the things I love the most - Such as, getting my son on and off the school
bus, going to the gym or spending time with my family.

A good way to buy 'fixer upper' properties is by calling a local agent in the
area. A good reason for this is because banks usually list their properties
through real estate agents. The properties are usually cleaned out and you get
a clear title at closing.

After you purchase a 'fixer-upper', you will then need to decide if you are
going to get your hands dirty and cut costs or delegate the work to a contractor.
You can also do minor work at the project in order to oversee the project.

You can read more about this topic and other useful topics in my Foreclosures and Flips manual.

www.ForeclosuresandFlips.com

www.USPropertyBuyers.com

Successful Investing,

Jeff Knize, CRA, ICAP member

How using listing agents for buy foreclosures to flip can provide leverage over the competition

2006-03-13T23:10:00.000-06:00

Using listing agents for buying foreclosures to flip can provide you with a tremendous amount of leverage. This eliminates a third party agent that would be receiving a commission. Typically, a listing agent lists the home but does not sell it. There is usually an outside real estate agent bringing in the buyer.

If an agent lists a home for $100,000 with a commission rate of 6% and an outside agent brings the buyer, the commission would usually be split between the two realtors.

Because of the power of the multiple listing service, selling agents usually bring a buyer to the property. The multiple listing service is a service provided by an association of realtors. Licensed real estate agents input listings into a network so a large scale of members can have access. Therefore, the listing has a tremendous amount of exposure.

If the selling agent is eliminated, the listing agent is considered the 'dual agent' and receives full commission on the property. Listing agents are absolutely thrilled to be a 'dual agent' because they receive double the commission at closing. Their clients are thrilled as well because they do not have to deal with any other parties.

When an agent becomes the 'dual agent', it provides an opportunity to the investor. The agent can decrease the commission rate. If asked to do so, the agent may reduce their commission rate by a percentage or two.

I have had lenders accept my contract over other contracts on foreclosures I was buying to flip even when I wasn't the highest bidder. This is because agents willingly decreased their commission when they were 'dual agents' on foreclosures they listed.

Successful Investing,

Jeffrey Knize

www.foreclosuresandflips.com

About the author:
Jeffrey Knize is a certified real estate appraiser, appraisal firm owner
and real estate investor. For nearly a decade, he has been known for
appraising REO properties, pre-foreclosures, foreclosures, investment
and distressed properties for top lending institutions.

In-addition, he is the author of 'Secrets for Success in Foreclosures'.
Jeff is also an advisor for investment club members and entrepreneurs
throughout the country. He has also bought, sold, appraised and/or
reviewed tens of millions of dollars in real estate.

Flip Foreclosures

2006-03-07T14:32:00.000-06:00

To understand the concept of how to flip foreclosures is not rocket science. This step by step manual (with bonuses) will allow you to glide through flipping your first foreclosure.

Real estate foreclosures are becoming more abundant. Right now there is a tremendous opportunity to start buying foreclosures and flipping them for profit.

www.foreclosuresandflips.com