{"appState":{"pageLoadApiCallsStatus":true},"categoryState":{"relatedCategories":{"headers":{"timestamp":"2023-02-01T16:01:12+00:00"},"categoryId":34268,"data":{"title":"Real Estate Careers","slug":"real-estate-careers","image":{"src":null,"width":0,"height":0},"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268}],"parentCategory":{"categoryId":34256,"title":"Careers","slug":"careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"}},"childCategories":[{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"image":{"src":"/img/background-image-2.fabfbd5c.png","width":0,"height":0},"hasArticle":true,"hasBook":true,"articleCount":17,"bookCount":1},{"categoryId":34270,"title":"General Real Estate Careers","slug":"general-real-estate-careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"},"image":{"src":"/img/background-image-1.daf74cf0.png","width":0,"height":0},"hasArticle":true,"hasBook":true,"articleCount":124,"bookCount":5}],"description":"It's all about location, location, location. And the right training. And expert wisdom. All are needed to succeed in real estate. Check out our articles to find out where you fit in this profitable industry.","relatedArticles":{"self":"https://dummies-api.dummies.com/v2/articles?category=34268&offset=0&size=5"},"hasArticle":true,"hasBook":true,"articleCount":141,"bookCount":6},"_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"}},"relatedCategoriesLoadedStatus":"success"},"listState":{"list":{"count":10,"total":141,"items":[{"headers":{"creationTime":"2016-03-27T16:48:01+00:00","modifiedTime":"2022-09-20T21:02:22+00:00","timestamp":"2022-09-21T00:01:02+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"General Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"},"slug":"general-real-estate-careers","categoryId":34270}],"title":"Landlord's Legal Kit For Dummies Cheat Sheet","strippedTitle":"landlord's legal kit for dummies cheat sheet","slug":"landlords-legal-kit-for-dummies-cheat-sheet","canonicalUrl":"","seo":{"metaDescription":"Learn about the most important landlord legalities, as well as the most common legal pitfalls of renting out residential property.","noIndex":0,"noFollow":0},"content":"Being a landlord certainly sounds easy. All you have to do is line up responsible residents, maintain the property, and count your money as the rent rolls in, right? Actually, no. Owning and leasing residential real estate requires that you comply with a host of federal, state, and local laws. Certain residents may complicate your life by taking legal action against you or forcing you to take legal action against them.\r\n\r\nThis snapshot explains some important landlord legalities and helps you avoid the most common legal pitfalls of owning and leasing residential rental property.","description":"Being a landlord certainly sounds easy. All you have to do is line up responsible residents, maintain the property, and count your money as the rent rolls in, right? Actually, no. Owning and leasing residential real estate requires that you comply with a host of federal, state, and local laws. Certain residents may complicate your life by taking legal action against you or forcing you to take legal action against them.\r\n\r\nThis snapshot explains some important landlord legalities and helps you avoid the most common legal pitfalls of owning and leasing residential rental property.","blurb":"","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Eric Tyson</b> is a five&#45;time bestselling author, real estate investor, and syndicated columnist who gives people the tools to better manage their personal finances and investments. <b>Robert S. Griswold,</b> author, teacher, and a successful real estate investor, is an active, hands&#45;on property manager with a large portfolio of residential and commercial rental properties. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}},{"authorId":9418,"name":"Laurence Harmon","slug":"laurence-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9418"}}],"primaryCategoryTaxonomy":{"categoryId":34270,"title":"General Real Estate Careers","slug":"general-real-estate-careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":152485,"title":"10 Laws All Landlords Need to Know","slug":"10-laws-all-landlords-need-to-know","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152485"}},{"articleId":152478,"title":"Dealing with Cotenants, Sublets, and Assignments","slug":"dealing-with-cotenants-sublets-and-assignments","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152478"}},{"articleId":152475,"title":"Establishing Security Deposit Policies and Procedures","slug":"establishing-security-deposit-policies-and-procedures","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152475"}},{"articleId":152474,"title":"Meeting Your Landlord Legal Obligations","slug":"meeting-your-landlord-legal-obligations","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152474"}},{"articleId":152473,"title":"Screening Applicants","slug":"screening-applicants","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152473"}}],"fromCategory":[{"articleId":241649,"title":"Establish Awesome Service as a Real Estate Agent","slug":"establish-awesome-service-real-estate-agent","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241649"}},{"articleId":241645,"title":"Focus Your Real Estate Marketing Dollars Online","slug":"focus-real-estate-marketing-dollars-online","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241645"}},{"articleId":241641,"title":"Prepping a Home's Interior for Selling","slug":"prepping-homes-interior-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241641"}},{"articleId":241637,"title":"Qualifying Your Listing Prospects","slug":"qualifying-listing-prospects","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241637"}},{"articleId":241633,"title":"Tips for Setting Up for a Real Estate Open House","slug":"tips-setting-real-estate-open-house","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241633"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282344,"slug":"landlords-legal-kit-for-dummies","isbn":"9781119896340","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"amazon":{"default":"https://www.amazon.com/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119896347-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":null,"width":0,"height":0},"title":"Landlord's Legal Kit For Dummies, 2nd Edition","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><b>Eric Tyson</b> is a five&#45;time bestselling author, real estate investor, and syndicated columnist who gives people the tools to better manage their personal finances and investments. <b><b data-author-id=\"9293\">Robert S. Griswold</b>,</b> author, teacher, and a successful real estate investor, is an active, hands&#45;on property manager with a large portfolio of residential and commercial rental properties. <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p> <p><b><b data-author-id=\"35181\">Laurence C. Harmon</b>, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Eric Tyson</b> is a five&#45;time bestselling author, real estate investor, and syndicated columnist who gives people the tools to better manage their personal finances and investments. <b>Robert S. Griswold,</b> author, teacher, and a successful real estate investor, is an active, hands&#45;on property manager with a large portfolio of residential and commercial rental properties. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}},{"authorId":9418,"name":"Laurence Harmon","slug":"laurence-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9418"}},{"authorId":35181,"name":"Laurence C. Harmon","slug":"laurence-c-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/35181"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119896340&quot;]}]\" id=\"du-slot-632a543ec4ba3\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119896340&quot;]}]\" id=\"du-slot-632a543ec5312\"></div></div>"},"articleType":{"articleType":"Cheat Sheet","articleList":[{"articleId":152459,"title":"Brushing Up on Fair Housing Laws","slug":"brushing-up-on-fair-housing-laws","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152459"}},{"articleId":152473,"title":"Screening Applicants","slug":"screening-applicants","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152473"}},{"articleId":152475,"title":"Establishing Security Deposit Policies and Procedures","slug":"establishing-security-deposit-policies-and-procedures","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152475"}},{"articleId":152474,"title":"Meeting Your Landlord Legal Obligations","slug":"meeting-your-landlord-legal-obligations","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152474"}},{"articleId":152478,"title":"Dealing with Cotenants, Sublets, and Assignments","slug":"dealing-with-cotenants-sublets-and-assignments","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152478"}}],"content":[{"title":"Brushing up on fair housing laws","thumb":null,"image":null,"content":"<p>The federal Fair Housing Act prohibits you, as landlord, from discriminating against or giving preferential treatment to people based on a <i>protected class</i> — a characteristic that can&#8217;t be used to discriminate against or in favor of an individual or group. The Fair Housing Act specifies the following seven protected classes:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\"><b>Race:</b> Ethnicities or cultures, including African American, Caucasian, Hispanic, and Asian. Some interpretations may include designations that would seem to belong to other protected classes, such as Polish or Jewish.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Religion:</b> System of belief, such as Christian, Muslim, Wiccan, or atheist.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>National origin:</b> The country or area a person was born in, such as Canada, Mexico, the Middle East, Nigeria, and even the United States.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Sex:</b> Physical sex — male or female. Sexual harassment is recognized to be an element of sex discrimination.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Color:</b> Skin color or shade, which may seem to be the same thing as race, but whether or not someone knows another person&#8217;s race, they may discriminate based on lightness or darkness of skin.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Handicap:</b> Physical or mental handicaps or disabilities, including hearing and visual impairments, chronic alcoholism, HIV/AIDS, depression, hoarding, allergies, and more.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Familial status:</b> Whether a household includes minors. Pregnancy is also protected. An exception does apply to bona fide senior housing.</p>\n</li>\n</ul>\n<p>State and local laws may extend protection to additional classes, including age, marital status, income source, and sexual orientation.</p>\n"},{"title":"Screening applicants","thumb":null,"image":null,"content":"<p>Careful screening can help you avoid legal issues, because you have less need to take legal action against good residents, and they&#8217;re less likely to file legal claims against you. To screen applicants, take the following steps:</p>\n<ol class=\"level-one\">\n<li>\n<p class=\"first-para\">Have the person complete and submit an application.</p>\n</li>\n<li>\n<p class=\"first-para\">Order a credit and background report for the prospective resident.</p>\n</li>\n<li>\n<p class=\"first-para\">Contact the applicant&#8217;s employer to verify the applicant&#8217;s employment or check other sources of income.</p>\n</li>\n<li>\n<p class=\"first-para\">Check recent paystubs, W-2s and 1099s, the previous year&#8217;s tax return, and a recent bank statement.</p>\n</li>\n<li>\n<p class=\"first-para\">Contact the applicant&#8217;s personal references and ask questions about the person&#8217;s character and reliability.</p>\n</li>\n<li>\n<p class=\"first-para\">Contact any landlords the applicant rented from in the past and ask about payment history, the condition the applicant left the property in, and whether the applicant caused problems with her neighbors.</p>\n</li>\n<li>\n<p class=\"first-para\">Interview the applicant in person.</p>\n</li>\n</ol>\n<p class=\"Remember\">When screening prospective renters, you must comply with fair housing laws, so certain questions are off limits. You can gather information about a prospect&#8217;s employment status, income, credit history, housing history, and criminal past, but you&#8217;re prohibited from asking an applicant whether she has children, what country she&#8217;s from, which church she attends, and so forth.</p>\n"},{"title":"Establishing security deposit policies and procedures","thumb":null,"image":null,"content":"<p>One of the most common sources of landlord-resident disputes is the return of security deposits. To prevent confusion and disagreements, make sure you establish security deposit policies and procedures that address the following:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\"><b>Amount:</b> Usually no more than the equivalent of one- or two-month&#8217;s rent. Some states and municipalities have specific limits.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Due date:</b> Usually due at the signing of the rental contract.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Allowed uses: </b>State and local laws usually allow landlords to use security deposits only to cover unpaid rent, damages to the unit beyond ordinary wear and tear, cleaning expenses (only to make the unit as clean as it was when the resident moved in), and to restore or replace damaged or missing property, including keys<b> </b>and appliances furnished with the unit.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Where the deposit will be held:</b> Even in states when it is not required, deposit all security deposits in a separate interest-bearing account and pass along any interest earned to the resident when you return any unused portion of the deposit.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Return of the unused portion:</b> Check on the required maximum number of days you&#8217;re allowed to hold any unused portion of the security deposit before returning it to the former resident, and return it earlier if possible.</p>\n</li>\n</ul>\n<p class=\"Remember\">The security deposit is the resident&#8217;s money. Don&#8217;t treat it as another source of income, because doing so may get you into legal trouble and tarnish your reputation as a fair landlord.</p>\n"},{"title":"Meeting your landlord legal obligations","thumb":null,"image":null,"content":"<p>As a landlord, you have certain legal and ethical obligations to your residents that are rarely spelled out in the rental contract, including the following:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\"><b>Maintain habitable living conditions. </b>According to the <i>implied warranty of habitability</i><i>,</i> you must provide residents with dwellings that are fit for human occupancy.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Address safety issues. </b>Comply with all local building, fire safety, and pool and hot-tub safety codes; provide sufficient exterior lighting; maintain walkways, stairwells, and railings; secure any construction sites; enforce pet policies; and address safety issues within rental units by using safety glass, ground fault protection outlets, and safe-cord window coverings, where necessary.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Disclose and address environmental hazards. </b>Let residents know about any potential environmental hazards, including lead paint, toxic mold, carbon monoxide, asbestos, and methamphetamine contamination, and take any steps necessary to mitigate risks.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Protect residents from criminal activity. </b>Enforce your policies consistently and work with local law enforcement to minimize crime in your facility.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Honor the resident&#8217;s right to quiet enjoyment. </b>Enter a resident&#8217;s premises only in an emergency or after giving 48 hours&#8217; advanced notice to perform essential inspections or repairs or to show the unit to a prospective renter or buyer.</p>\n</li>\n</ul>\n"},{"title":"Dealing with cotenants, sublets, and assignments","thumb":null,"image":null,"content":"<p>Residents often need or want to take on a new roommate, sublet the rental unit, or assign their rental contract to someone else. To deal with these types of situations, consider this advice when you’re a landlord:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\">Require that all prospective roommates be screened and added to the rental contract.</p>\n</li>\n<li>\n<p class=\"first-para\">Prohibit residents from subletting their rental units. When a resident sublets, the new resident has no legal obligations to you under the contract.</p>\n</li>\n<li>\n<p class=\"first-para\">Prohibit residents from assigning their rental contracts without your written consent and only on condition that the assignee be screened and approved by you.</p>\n</li>\n</ul>\n<p class=\"Remember\">Except for children and other dependents, everyone living in one of your rental units should be screened and approved and required to sign the rental contract.</p>\n"}],"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-09-12T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":207681},{"headers":{"creationTime":"2016-03-26T11:10:05+00:00","modifiedTime":"2022-08-16T19:26:53+00:00","timestamp":"2022-09-14T18:19:55+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"General Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"},"slug":"general-real-estate-careers","categoryId":34270}],"title":"Ways You Can Incorporate Your Business as a Landlord","strippedTitle":"ways you can incorporate your business as a landlord","slug":"ways-you-can-incorporate-your-business-as-a-landlord","canonicalUrl":"","seo":{"metaDescription":"How you choose to structure your business as the landlord depends in part upon your willingness to share its future and yours with others. Forming a corporation","noIndex":0,"noFollow":0},"content":"How you choose to structure your business as the landlord depends in part upon your willingness to share its future and yours with others. Forming a corporation is a fairly complex legal endeavor that involves the following steps:\r\n<ol class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Choose and register a name for your corporation that complies with state requirements.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Write and file your articles of incorporation.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Write bylaws to govern corporate operations.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Issue stock certificates to your [email protected]’s owners and investors.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Obtain any business licenses and permits required by your state and local governing bodies.</p>\r\n</li>\r\n</ol>\r\nYou can take any of the following three approaches to form your corporation:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Do it yourself. If you’re the sole owner of the business and don’t intend to add owners, seek outside capital, or do business in multiple locations, you may be able to incorporate without expert assistance.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Use a third-party service.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Hire a reputable, local attorney.</p>\r\n</li>\r\n</ul>\r\n<h2 id=\"tab1\" >Outsourcing to a business-formation service</h2>\r\nNumerous firms offer services to help you form a business entity. Three of the best known are <a href=\"http://www.legalzoom.com\" target=\"_blank\" rel=\"noopener\">Legal Zoom</a>, <a href=\"http://www.rocketattorney.com\" target=\"_blank\" rel=\"noopener\">Rocket Attorney</a>, and <a href=\"http://www.incorporate.com\" target=\"_blank\" rel=\"noopener\">The Company Corporation</a>. Others include <a href=\"http://incauthority.com\" target=\"_blank\" rel=\"noopener\">Inc Authority</a>, and <a href=\"http://www.directincorporation.com/\" target=\"_blank\" rel=\"noopener\">Directincorporation.com</a>.\r\n<p class=\"Warning\">Before using a service, check with others who’ve used it, and expand your search to include <a href=\"http://www.linkedin.com\" target=\"_blank\" rel=\"noopener\">LinkedIn</a>, <a href=\"http://www.facebook.com/\" target=\"_blank\" rel=\"noopener\">Facebook</a>, and <a href=\"http://www.twitter.com\" target=\"_blank\" rel=\"noopener\">Twitter</a>. Find out how they’re regarded by the <a href=\"http://www.bbb.org\" target=\"_blank\" rel=\"noopener\">Better Business Bureau</a> and local consumer protection organizations to determine whether any complaints have been filed against them.</p>\r\nKeep in mind that these firms are ordinary retailers who tend to advertise low prices “Starting at …” for only a few of the services you need. Comparison shop. Find out what’s included and what’s not. Get a price quote from a reputable local attorney, as well, for comparison purposes. Make sure you get a price quote that covers everything you need to form your corporation.\r\n<h2 id=\"tab2\" >Hiring an attorney and accountant</h2>\r\nWe recommend that you hire a reputable, local attorney to guide you through the process of incorporating your business and an accountant to manage the corporation’s payroll, taxes, and financial reporting for several reasons, including the following:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Your attorney can help evaluate your specific needs for the area where you’re setting up shop and recommend the best business structure to meet those needs.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Choosing the wrong business structure may imperil your personal assets and limit your tax benefits.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your attorney makes sure all documents are filed properly with the right government agencies and in a timely manner.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your attorney can refer you to experts in accounting, banking, financial planning, insurance, and web design.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">A good business attorney will have an ongoing professional interest in your success.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your accountant keeps the books and creates and files financial reports in compliance with federal, state, and local laws.</p>\r\n</li>\r\n</ul>\r\n<h2 id=\"tab3\" >Running your operation as a corporation</h2>\r\nAs complicated as forming a corporation is, running it requires even more attention to detail. You must fulfill the obligations of corporate governance, which include:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Paying yourself and other owners and investors salaries or distributions</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Holding at least one director and shareholder meeting annually</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Typing up and filing minutes from those meetings</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Updating the bylaws</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Practicing generally accepted accounting principles (GAAP) — standards and procedures for recording financial transactions and producing financial reports</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Producing and filing an annual report with your Secretary of State</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Preparing the corporation’s annual tax return</p>\r\n</li>\r\n</ul>","description":"How you choose to structure your business as the landlord depends in part upon your willingness to share its future and yours with others. Forming a corporation is a fairly complex legal endeavor that involves the following steps:\r\n<ol class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Choose and register a name for your corporation that complies with state requirements.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Write and file your articles of incorporation.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Write bylaws to govern corporate operations.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Issue stock certificates to your [email protected]’s owners and investors.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Obtain any business licenses and permits required by your state and local governing bodies.</p>\r\n</li>\r\n</ol>\r\nYou can take any of the following three approaches to form your corporation:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Do it yourself. If you’re the sole owner of the business and don’t intend to add owners, seek outside capital, or do business in multiple locations, you may be able to incorporate without expert assistance.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Use a third-party service.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Hire a reputable, local attorney.</p>\r\n</li>\r\n</ul>\r\n<h2 id=\"tab1\" >Outsourcing to a business-formation service</h2>\r\nNumerous firms offer services to help you form a business entity. Three of the best known are <a href=\"http://www.legalzoom.com\" target=\"_blank\" rel=\"noopener\">Legal Zoom</a>, <a href=\"http://www.rocketattorney.com\" target=\"_blank\" rel=\"noopener\">Rocket Attorney</a>, and <a href=\"http://www.incorporate.com\" target=\"_blank\" rel=\"noopener\">The Company Corporation</a>. Others include <a href=\"http://incauthority.com\" target=\"_blank\" rel=\"noopener\">Inc Authority</a>, and <a href=\"http://www.directincorporation.com/\" target=\"_blank\" rel=\"noopener\">Directincorporation.com</a>.\r\n<p class=\"Warning\">Before using a service, check with others who’ve used it, and expand your search to include <a href=\"http://www.linkedin.com\" target=\"_blank\" rel=\"noopener\">LinkedIn</a>, <a href=\"http://www.facebook.com/\" target=\"_blank\" rel=\"noopener\">Facebook</a>, and <a href=\"http://www.twitter.com\" target=\"_blank\" rel=\"noopener\">Twitter</a>. Find out how they’re regarded by the <a href=\"http://www.bbb.org\" target=\"_blank\" rel=\"noopener\">Better Business Bureau</a> and local consumer protection organizations to determine whether any complaints have been filed against them.</p>\r\nKeep in mind that these firms are ordinary retailers who tend to advertise low prices “Starting at …” for only a few of the services you need. Comparison shop. Find out what’s included and what’s not. Get a price quote from a reputable local attorney, as well, for comparison purposes. Make sure you get a price quote that covers everything you need to form your corporation.\r\n<h2 id=\"tab2\" >Hiring an attorney and accountant</h2>\r\nWe recommend that you hire a reputable, local attorney to guide you through the process of incorporating your business and an accountant to manage the corporation’s payroll, taxes, and financial reporting for several reasons, including the following:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Your attorney can help evaluate your specific needs for the area where you’re setting up shop and recommend the best business structure to meet those needs.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Choosing the wrong business structure may imperil your personal assets and limit your tax benefits.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your attorney makes sure all documents are filed properly with the right government agencies and in a timely manner.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your attorney can refer you to experts in accounting, banking, financial planning, insurance, and web design.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">A good business attorney will have an ongoing professional interest in your success.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Your accountant keeps the books and creates and files financial reports in compliance with federal, state, and local laws.</p>\r\n</li>\r\n</ul>\r\n<h2 id=\"tab3\" >Running your operation as a corporation</h2>\r\nAs complicated as forming a corporation is, running it requires even more attention to detail. You must fulfill the obligations of corporate governance, which include:\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\">Paying yourself and other owners and investors salaries or distributions</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Holding at least one director and shareholder meeting annually</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Typing up and filing minutes from those meetings</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Updating the bylaws</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Practicing generally accepted accounting principles (GAAP) — standards and procedures for recording financial transactions and producing financial reports</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Producing and filing an annual report with your Secretary of State</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Preparing the corporation’s annual tax return</p>\r\n</li>\r\n</ul>","blurb":"","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}},{"authorId":9418,"name":"Laurence Harmon","slug":"laurence-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9418"}}],"primaryCategoryTaxonomy":{"categoryId":34270,"title":"General Real Estate Careers","slug":"general-real-estate-careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[{"label":"Outsourcing to a business-formation service","target":"#tab1"},{"label":"Hiring an attorney and accountant","target":"#tab2"},{"label":"Running your operation as a corporation","target":"#tab3"}],"relatedArticles":{"fromBook":[{"articleId":207681,"title":"Landlord's Legal Kit For Dummies Cheat Sheet","slug":"landlords-legal-kit-for-dummies-cheat-sheet","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/207681"}},{"articleId":152485,"title":"10 Laws All Landlords Need to Know","slug":"10-laws-all-landlords-need-to-know","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152485"}},{"articleId":152478,"title":"Dealing with Cotenants, Sublets, and Assignments","slug":"dealing-with-cotenants-sublets-and-assignments","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152478"}},{"articleId":152475,"title":"Establishing Security Deposit Policies and Procedures","slug":"establishing-security-deposit-policies-and-procedures","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152475"}},{"articleId":152474,"title":"Meeting Your Landlord Legal Obligations","slug":"meeting-your-landlord-legal-obligations","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/152474"}}],"fromCategory":[{"articleId":241649,"title":"Establish Awesome Service as a Real Estate Agent","slug":"establish-awesome-service-real-estate-agent","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241649"}},{"articleId":241645,"title":"Focus Your Real Estate Marketing Dollars Online","slug":"focus-real-estate-marketing-dollars-online","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241645"}},{"articleId":241641,"title":"Prepping a Home's Interior for Selling","slug":"prepping-homes-interior-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241641"}},{"articleId":241637,"title":"Qualifying Your Listing Prospects","slug":"qualifying-listing-prospects","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241637"}},{"articleId":241633,"title":"Tips for Setting Up for a Real Estate Open House","slug":"tips-setting-real-estate-open-house","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241633"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282344,"slug":"landlords-legal-kit-for-dummies","isbn":"9781119896340","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"amazon":{"default":"https://www.amazon.com/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119896347-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119896347/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":null,"width":0,"height":0},"title":"Landlord's Legal Kit For Dummies, 2nd Edition","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b><b data-author-id=\"9293\">Robert S. Griswold</b>, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p> <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p> <p><b><b data-author-id=\"35181\">Laurence C. Harmon</b>, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}},{"authorId":9418,"name":"Laurence Harmon","slug":"laurence-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9418"}},{"authorId":35181,"name":"Laurence C. Harmon","slug":"laurence-c-harmon","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/35181"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119896340&quot;]}]\" id=\"du-slot-63221b4ba8ac0\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119896340&quot;]}]\" id=\"du-slot-63221b4ba9398\"></div></div>"},"articleType":{"articleType":"Articles","articleList":null,"content":null,"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Solve","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-07-19T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":150959},{"headers":{"creationTime":"2016-03-26T07:41:29+00:00","modifiedTime":"2022-03-30T19:43:04+00:00","timestamp":"2022-09-14T18:19:32+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"Flipping Homes: 11 Ways to Cut Renovation Costs","strippedTitle":"flipping homes: 11 ways to cut renovation costs","slug":"flipping-homes-11-ways-to-cut-renovation-costs","canonicalUrl":"","seo":{"metaDescription":"Flipping homes can get expensive! Check out some ways to cut costs, including buying overstocked material or scheduling work off-season.","noIndex":0,"noFollow":0},"content":"When renovating a property that you intend to flip, don't get carried away. Some home flippers hire top-of-the-scale contractors and insist on the highest-quality building materials from the nearest suppliers. To help you avoid that trap, here are 11 secrets that can slash your cash outlays and boost your bottom line.\r\n<div class=\"imageBlock\" style=\"width: 500px;\">\r\n\r\n[caption id=\"\" align=\"alignnone\" width=\"500\"]<img src=\"https://www.dummies.com/wp-content/uploads/479673.image0.jpg\" alt=\"\" width=\"500\" height=\"332\" /> © iStockphoto.com/brett_land[/caption]\r\n\r\n</div>\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\"><b>Get free advice and planning tools.</b> You don't have to hire a professional interior designer to draw up plans for remodeling a kitchen or bathroom. Most home-improvement stores have their own designers on staff to assist you. If you purchase the materials from the store, the store frequently throws in the design consultation for free. And who can say no to free?</p>\r\n<p class=\"child-para Tip\">You can often find additional planning tools and calculators online. Large home-improvement stores and manufacturers typically feature cost estimators, material lists, and installation instructions and tips on their websites. For some excellent online resources for planning your projects, check out <a href=\"http://www.lowes.com/\" target=\"_blank\" rel=\"noopener\">Lowe's</a>, <a href=\"http://www.homedepot.com/\" target=\"_blank\" rel=\"noopener\">Home Depot</a>, and <a href=\"http://www.bobvila.com/DesignTools/\" target=\"_blank\" rel=\"noopener\">Bob Vila Design Tools</a>.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Hire moonlighters.</b> Large construction companies often have large overhead costs, so they have to charge more for their work. A roofing company, for example, needs to purchase and maintain its trucks, pay rent on office space, and cover payroll expenses and insurance for its workers. To earn an extra buck on the side, the employees of many of these companies <i>moonlight,</i> which means they provide the same high-quality service on the side for a fraction of the cost.</p>\r\n<p class=\"child-para\">You can often locate prospective moonlighters by visiting worksites in your neighborhood. Ask to see the boss, and if he's not around, pitch your proposal to the workers. If the boss is around, you can ask him for an estimate without blowing your cover.</p>\r\n<p class=\"child-para Warning\">Hiring moonlighters is a great idea, but make sure they have health insurance with accident coverage. If your workers don't have proper insurance and one of them gets hurt working on your house, your cost savings could quickly be sapped away by losses. If the moonlighters don't have insurance, buy an insurance policy that includes accident coverage for workers.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Hire students over the summer.</b> When school's out, college and high-school students flock to area businesses to secure summer employment, and they're often turned away because so many people are looking for jobs. That's where you come in. Post an ad in the local newspaper or contact high schools and colleges in your area to let them know you're looking for summer laborers.</p>\r\n<p class=\"child-para\">Students are eager and well-qualified to perform the following renovation chores:</p>\r\n\r\n<ul class=\"level-two\">\r\n \t<li>\r\n<p class=\"first-para\">Mowing, weeding, trimming bushes and trees, and planting flowers</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Patching and sealing driveways and walks</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">De-cluttering garages, basements, and attics</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Vacuuming, window washing, and other cleaning</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Demolishing old storage sheds</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Tearing out old carpeting</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Patching and painting inside and out</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Refinishing decks</p>\r\n</li>\r\n</ul>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy overstocked or discontinued building materials.</b> When you wander the aisles at your local hardware or building-supply store, find what you want and then ask about any overstocked or discontinued materials that are similar in appearance. Talk to the manager, who most likely wants to clear the old, overstocked items from inventory to make room for the new merchandise that's in greater demand. You can often purchase overstocked or discontinued merchandise for a fraction of the cost.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy builder's-grade materials.</b> When shopping for building materials, ask the salesperson to direct you to the builder's-grade materials — the more affordable options, such as prefab cabinets and low-grade carpeting. If installed and maintained properly, these materials are perfectly suitable for most markets. If you're flipping on the ritzy side of town, however, you may need to buy the good stuff.</p>\r\n<p class=\"child-para Tip\">Gauge your selection of materials by the visibility and importance of the rooms. Consider using higher-quality materials for the kitchen, main bathroom, and master bedroom and a lesser quality for the other bedrooms and the second and third bathrooms.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Use remnant material to trim your costs.</b> Carpeting stores, countertop manufacturers, and other suppliers often have remnants in the back that may be sufficient for completing small jobs. Picky customers often return items that have tiny scratches or dents as well as materials that they cut a little too short. These gently used materials may be just what you need, and you can pick them up for pennies on the dollar.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy time-saving power tools.</b> When you hire a contractor, you indirectly pay for the tools that make the job much easier. When you rent a tool, you have to return it. When you buy your own tools, however, you have them for as long as they work, and you can spread the cost over several flips. If you're a do-it-yourselfer, buy the tools that make it easier for you to do a professional job.</p>\r\n<p class=\"child-para\">In addition to the standard hammers, pliers, wrenches, screwdrivers, tape measures, paint scrapers, and paintbrushes, almost every house flipper can simplify do-it-yourself jobs with the following power tools:</p>\r\n\r\n<ul class=\"level-two\">\r\n \t<li>\r\n<p class=\"first-para\"><b>Heat gun</b> for stripping wallpaper and paint</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Power washer</b> to clean everything from decks to siding</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Power roller</b> for painting inside walls and ceilings</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Cordless drill</b> with a well-stocked drill-bit case</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Screw gun</b> with Phillips and flat-head screw bits</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Circular saw</b> for decks and other woodworking projects</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Reciprocating saw</b> for cutting anything you can't cut with a circular saw</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Nail gun</b> for quick and easy single-handed nail driving</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Vibrating sander,</b> or belt sander, for sanding out scratches and gouges in wood surfaces</p>\r\n</li>\r\n</ul>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Charge purchases on a rewards-back credit card.</b> Credit-card companies offer some pretty sweet deals to reward customers for using their cards, and as long as you pay the balance in full when you receive the bill, you're not socked with high interest charges. If your building supplier offers its own credit card, you may get a discount on all purchases. If not, shop around for other cards. Companies offer everything from cash-back deals to frequent-flyer miles, free merchandise, free groceries, 0 percent interest for a specific period of time, and other attractive benefits. Take full advantage of these perks.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Schedule work off-season. </b>During the off-season, larger companies have to keep their employees busy in order to pay them and finance their benefits. Use this as a bargaining chip when negotiating the cost of repairs and renovations. However, don't delay a project that needs to be done just to save a few bucks — holding costs (the cost of maintaining a flip) can outstrip any savings.</p>\r\n<p class=\"child-para Tip\">You reap two additional benefits by scheduling work off-season. The contractor is more likely to complete the job on schedule and is generally more responsive when you need her services in season.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Pool your projects.</b> Most skilled laborers charge a minimum for just showing up. You pay for their time and travel expenses no matter how small the job. To save money, pool your projects. You can draw up a list of projects for the plumber, a list for the carpenter, and another list for the electrician. Have them complete all the projects in one trip. Better yet, if you have several houses going at one time, ask the contractor whether she'll consider giving you a discount if you guarantee that she can work on all your properties. Talk with your neighbors. If they're having the same work done on their homes, you may be able to negotiate a better price for multiple jobs.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Rent a large Dumpster (a.k.a. skip) for all the tear-out and construction debris so all your contractors have one place to dump rubbish from your flip.</b> By supplying the Dumpster, you can tell your contractors to remove the cost of waste removal from their estimates.</p>\r\n</li>\r\n</ul>","description":"When renovating a property that you intend to flip, don't get carried away. Some home flippers hire top-of-the-scale contractors and insist on the highest-quality building materials from the nearest suppliers. To help you avoid that trap, here are 11 secrets that can slash your cash outlays and boost your bottom line.\r\n<div class=\"imageBlock\" style=\"width: 500px;\">\r\n\r\n[caption id=\"\" align=\"alignnone\" width=\"500\"]<img src=\"https://www.dummies.com/wp-content/uploads/479673.image0.jpg\" alt=\"\" width=\"500\" height=\"332\" /> © iStockphoto.com/brett_land[/caption]\r\n\r\n</div>\r\n<ul class=\"level-one\">\r\n \t<li>\r\n<p class=\"first-para\"><b>Get free advice and planning tools.</b> You don't have to hire a professional interior designer to draw up plans for remodeling a kitchen or bathroom. Most home-improvement stores have their own designers on staff to assist you. If you purchase the materials from the store, the store frequently throws in the design consultation for free. And who can say no to free?</p>\r\n<p class=\"child-para Tip\">You can often find additional planning tools and calculators online. Large home-improvement stores and manufacturers typically feature cost estimators, material lists, and installation instructions and tips on their websites. For some excellent online resources for planning your projects, check out <a href=\"http://www.lowes.com/\" target=\"_blank\" rel=\"noopener\">Lowe's</a>, <a href=\"http://www.homedepot.com/\" target=\"_blank\" rel=\"noopener\">Home Depot</a>, and <a href=\"http://www.bobvila.com/DesignTools/\" target=\"_blank\" rel=\"noopener\">Bob Vila Design Tools</a>.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Hire moonlighters.</b> Large construction companies often have large overhead costs, so they have to charge more for their work. A roofing company, for example, needs to purchase and maintain its trucks, pay rent on office space, and cover payroll expenses and insurance for its workers. To earn an extra buck on the side, the employees of many of these companies <i>moonlight,</i> which means they provide the same high-quality service on the side for a fraction of the cost.</p>\r\n<p class=\"child-para\">You can often locate prospective moonlighters by visiting worksites in your neighborhood. Ask to see the boss, and if he's not around, pitch your proposal to the workers. If the boss is around, you can ask him for an estimate without blowing your cover.</p>\r\n<p class=\"child-para Warning\">Hiring moonlighters is a great idea, but make sure they have health insurance with accident coverage. If your workers don't have proper insurance and one of them gets hurt working on your house, your cost savings could quickly be sapped away by losses. If the moonlighters don't have insurance, buy an insurance policy that includes accident coverage for workers.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Hire students over the summer.</b> When school's out, college and high-school students flock to area businesses to secure summer employment, and they're often turned away because so many people are looking for jobs. That's where you come in. Post an ad in the local newspaper or contact high schools and colleges in your area to let them know you're looking for summer laborers.</p>\r\n<p class=\"child-para\">Students are eager and well-qualified to perform the following renovation chores:</p>\r\n\r\n<ul class=\"level-two\">\r\n \t<li>\r\n<p class=\"first-para\">Mowing, weeding, trimming bushes and trees, and planting flowers</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Patching and sealing driveways and walks</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">De-cluttering garages, basements, and attics</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Vacuuming, window washing, and other cleaning</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Demolishing old storage sheds</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Tearing out old carpeting</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Patching and painting inside and out</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\">Refinishing decks</p>\r\n</li>\r\n</ul>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy overstocked or discontinued building materials.</b> When you wander the aisles at your local hardware or building-supply store, find what you want and then ask about any overstocked or discontinued materials that are similar in appearance. Talk to the manager, who most likely wants to clear the old, overstocked items from inventory to make room for the new merchandise that's in greater demand. You can often purchase overstocked or discontinued merchandise for a fraction of the cost.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy builder's-grade materials.</b> When shopping for building materials, ask the salesperson to direct you to the builder's-grade materials — the more affordable options, such as prefab cabinets and low-grade carpeting. If installed and maintained properly, these materials are perfectly suitable for most markets. If you're flipping on the ritzy side of town, however, you may need to buy the good stuff.</p>\r\n<p class=\"child-para Tip\">Gauge your selection of materials by the visibility and importance of the rooms. Consider using higher-quality materials for the kitchen, main bathroom, and master bedroom and a lesser quality for the other bedrooms and the second and third bathrooms.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Use remnant material to trim your costs.</b> Carpeting stores, countertop manufacturers, and other suppliers often have remnants in the back that may be sufficient for completing small jobs. Picky customers often return items that have tiny scratches or dents as well as materials that they cut a little too short. These gently used materials may be just what you need, and you can pick them up for pennies on the dollar.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Buy time-saving power tools.</b> When you hire a contractor, you indirectly pay for the tools that make the job much easier. When you rent a tool, you have to return it. When you buy your own tools, however, you have them for as long as they work, and you can spread the cost over several flips. If you're a do-it-yourselfer, buy the tools that make it easier for you to do a professional job.</p>\r\n<p class=\"child-para\">In addition to the standard hammers, pliers, wrenches, screwdrivers, tape measures, paint scrapers, and paintbrushes, almost every house flipper can simplify do-it-yourself jobs with the following power tools:</p>\r\n\r\n<ul class=\"level-two\">\r\n \t<li>\r\n<p class=\"first-para\"><b>Heat gun</b> for stripping wallpaper and paint</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Power washer</b> to clean everything from decks to siding</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Power roller</b> for painting inside walls and ceilings</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Cordless drill</b> with a well-stocked drill-bit case</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Screw gun</b> with Phillips and flat-head screw bits</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Circular saw</b> for decks and other woodworking projects</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Reciprocating saw</b> for cutting anything you can't cut with a circular saw</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Nail gun</b> for quick and easy single-handed nail driving</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Vibrating sander,</b> or belt sander, for sanding out scratches and gouges in wood surfaces</p>\r\n</li>\r\n</ul>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Charge purchases on a rewards-back credit card.</b> Credit-card companies offer some pretty sweet deals to reward customers for using their cards, and as long as you pay the balance in full when you receive the bill, you're not socked with high interest charges. If your building supplier offers its own credit card, you may get a discount on all purchases. If not, shop around for other cards. Companies offer everything from cash-back deals to frequent-flyer miles, free merchandise, free groceries, 0 percent interest for a specific period of time, and other attractive benefits. Take full advantage of these perks.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Schedule work off-season. </b>During the off-season, larger companies have to keep their employees busy in order to pay them and finance their benefits. Use this as a bargaining chip when negotiating the cost of repairs and renovations. However, don't delay a project that needs to be done just to save a few bucks — holding costs (the cost of maintaining a flip) can outstrip any savings.</p>\r\n<p class=\"child-para Tip\">You reap two additional benefits by scheduling work off-season. The contractor is more likely to complete the job on schedule and is generally more responsive when you need her services in season.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Pool your projects.</b> Most skilled laborers charge a minimum for just showing up. You pay for their time and travel expenses no matter how small the job. To save money, pool your projects. You can draw up a list of projects for the plumber, a list for the carpenter, and another list for the electrician. Have them complete all the projects in one trip. Better yet, if you have several houses going at one time, ask the contractor whether she'll consider giving you a discount if you guarantee that she can work on all your properties. Talk with your neighbors. If they're having the same work done on their homes, you may be able to negotiate a better price for multiple jobs.</p>\r\n</li>\r\n \t<li>\r\n<p class=\"first-para\"><b>Rent a large Dumpster (a.k.a. skip) for all the tear-out and construction debris so all your contractors have one place to dump rubbish from your flip.</b> By supplying the Dumpster, you can tell your contractors to remove the cost of waste removal from their estimates.</p>\r\n</li>\r\n</ul>","blurb":"","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}}],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}],"fromCategory":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282203,"slug":"flipping-houses-for-dummies","isbn":"9781119861010","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"amazon":{"default":"https://www.amazon.com/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119861012-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/flipping-houses-203x255.jpg","width":203,"height":255},"title":"Flipping Houses For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><B><b data-author-id=\"9133\">Ralph R. Roberts</b></b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p>","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}},{"authorId":34819,"name":"Kyle Roberts","slug":"kyle-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34819"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[{"title":"Rent, Rehab, and More","slug":"rent-rehab-and-more","collectionId":291883}],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34f32e4\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34f3b94\"></div></div>"},"articleType":{"articleType":"Articles","articleList":null,"content":null,"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-03-30T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":142895},{"headers":{"creationTime":"2016-03-27T16:48:30+00:00","modifiedTime":"2022-03-30T19:28:51+00:00","timestamp":"2022-09-14T18:19:32+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"Flipping Houses For Dummies Cheat Sheet","strippedTitle":"flipping houses for dummies cheat sheet","slug":"flipping-houses-for-dummies-cheat-sheet","canonicalUrl":"","seo":{"metaDescription":"Flipping a house isn't as simple as it sounds. Read up on info on how to find suitable houses, financing, and how to make a profit.","noIndex":0,"noFollow":0},"content":"\"Flipping houses\" sounds as easy as 1-2-3: 1) Buy a house significantly below market value, 2) fix it up, and 3) sell it. However, when you actually try to flip a house, you soon realize that it's tougher than it sounds. The beginner faces several hurdles, not the least of which is tracking down properties with potential and buying them for cheap.\r\n\r\nThis Cheat Sheet brings you up to speed in a hurry on house flipping basics and helps you clear the most common hurdles.","description":"\"Flipping houses\" sounds as easy as 1-2-3: 1) Buy a house significantly below market value, 2) fix it up, and 3) sell it. However, when you actually try to flip a house, you soon realize that it's tougher than it sounds. The beginner faces several hurdles, not the least of which is tracking down properties with potential and buying them for cheap.\r\n\r\nThis Cheat Sheet brings you up to speed in a hurry on house flipping basics and helps you clear the most common hurdles.","blurb":"","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}}],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}],"fromCategory":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282203,"slug":"flipping-houses-for-dummies","isbn":"9781119861010","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"amazon":{"default":"https://www.amazon.com/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119861012-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/flipping-houses-203x255.jpg","width":203,"height":255},"title":"Flipping Houses For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><B><b data-author-id=\"9133\">Ralph R. Roberts</b></b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p>","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}},{"authorId":34819,"name":"Kyle Roberts","slug":"kyle-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34819"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[{"title":"Rent, Rehab, and More","slug":"rent-rehab-and-more","collectionId":291883}],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34d221a\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34d2c28\"></div></div>"},"articleType":{"articleType":"Cheat Sheet","articleList":[{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":158723,"title":"Financing Your House Flips","slug":"financing-your-house-flips","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/158723"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}}],"content":[{"title":"Finding houses to flip","thumb":null,"image":null,"content":"<p>The first step in the house-flipping process is the most crucial — finding a property with profit potential:</p>\n<ul>\n<li>Look for <em>dontwanners</em> in your neighborhood — vacant, unkempt homes the owners “don’t want.”</li>\n<li>Search on <a href=\"https://www.auction.com/\" target=\"_blank\" rel=\"noopener\">Auction.com</a>.</li>\n<li>Read local foreclosure notices, available through your county’s sheriff’s office or register of deeds.</li>\n<li>Contact banks to find out about real estate owned (REO) properties.</li>\n<li>Network with probate, bankruptcy, and divorce attorneys.</li>\n<li>Search <a href=\"https://www.hudhomestore.gov/Home/Index.aspx\" target=\"_blank\" rel=\"noopener\">www.HudHomeStore.gov</a>.</li>\n<li>Team up with a Realtor.</li>\n</ul>\n"},{"title":"Making a profit when you buy a house to flip","thumb":null,"image":null,"content":"<p>When you invest in real estate, you make your profit when you buy a property, and you realize that profit when you sell it. The goal is to find a property you know you can sell for significantly more than it costs you to buy it, fix it up, and sell it. Here’s how you achieve that goal:</p>\n<ol>\n<li>Estimate the market value of the property after it’s all fixed up. Estimates are typically based on the market value of comparable properties in the same area that have sold recently, the asking prices of comparable homes currently listed in the area, and the direction the market is headed — whether property values are increasing or decreasing and how fast.</li>\n<li>Subtract your total estimated costs, which will probably include\n<ol>\n<li>Purchase price</li>\n<li>Cost of repairs and renovations</li>\n<li>Any back taxes due on the property</li>\n<li>Holding costs (property taxes, utilities, insurance, interest payments, homeowner association fees, and so on for the time you expect it will take to buy, fix, and sell the house)</li>\n<li>Any agent commissions and closing costs when selling the house</li>\n</ol>\n</li>\n<li>Decide whether your projected profit is worth it to you. Is it worth the time, effort, and risk?</li>\n</ol>\n<p class=\"article-tips tip\">Generally, when you’re first getting started, aim to earn at least a 20 percent profit after subtracting all costs. A 20 percent projected profit gives you a good buffer to protect against unexpected costs.</p>\n"},{"title":"Financing your flips","thumb":null,"image":null,"content":"<p>Where do you find the money to finance your flips? Here are a few sources to consider:</p>\n<ul>\n<li>Your own savings</li>\n<li>Home equity loan or line of credit (on your current home)</li>\n<li>Bank loan (you’ll need cash for a down payment)</li>\n<li>Personal loans (from friends or family members)</li>\n<li>Government loan (if you’re buying from a government program)</li>\n<li>Hard money loans (from investors)</li>\n</ul>\n<p>Whenever possible, use other people’s money (OPM) and put up the investment property as collateral to secure the loan. This approach gives you more leverage to invest in properties you otherwise couldn’t afford, and it helps to shield your assets (such as the home you live in and your retirement savings) from loss.</p>\n<p class=\"article-tips tip\">After you purchase a property, you may be able to finance the repairs and renovations by refinancing to pull the equity out of the property.</p>\n"},{"title":"Start with a relatively easy project","thumb":null,"image":null,"content":"<p>When you’re just getting started, it&#8217;s best to pick an easy property to flip — a great house that’s cosmetically challenged. Then, make the following improvements (also referred to as <em>white-boxing</em>):</p>\n<ul>\n<li>Fix or replace whatever’s broken</li>\n<li>Clean everything thoroughly</li>\n<li>Repaint the interior walls, all white</li>\n<li>Install new wall-to-wall carpeting where it makes sense to carpet</li>\n<li>Replace all light switch and outlet covers</li>\n<li>Replace all register covers if they look worn</li>\n<li>Spruce up the landscaping</li>\n</ul>\n<p>The idea is to freshen up the house to give it a nice, clean, manicured appearance. You want the house to be in “move-in condition” and up to market standards.</p>\n<p class=\"article-tips warning\">Don’t waste money over-improving a property — a common mistake. Invest only enough money to bring the property up to market standards. Investing $100,000 in a property where homes sell for $150,000 won’t make that property worth any more than $150,000. Homebuyers who are in the market for a half-million-dollar home will shop in areas where homes are selling for a half million dollars or more.</p>\n"},{"title":"How to read a property listing with flipping in mind","thumb":null,"image":null,"content":"<p>A property listing typically contains a ton of details, all of which can be very helpful in your search for a flippable house. Some of these details, however, are more useful than others. Focus your search on the following golden nuggets:</p>\n<ul>\n<li><strong>List price:</strong> Limit your search to listings of only those homes in your price range. Examine the list price and compare it to that of other comparable houses in the same area. An inordinately low price can signal a buying opportunity, or it can raise a red flag, making you (and others) wonder, “What’s wrong with this one?” As a house flipper, these are the properties you’re looking for.</li>\n<li><strong>List date or time on the market:</strong> How long has the home been on the market? You typically find your best opportunities in homes that have recently been listed (in the past couple of days) or in homes that have been on the market for a couple of months. A home that’s not selling may be overpriced for the current market.</li>\n</ul>\n<p class=\"article-tips remember\">In many cases, the longer the seller holds out, the harder the home is to sell, and the more desperate the seller becomes. This cycle can signal a buying opportunity now or in the near future. Your agent can tell you the average time a home is on the market in any given neighborhood so you can properly gauge what’s considered “a long time.”</p>\n<ul>\n<li><strong>Remarks:</strong> Near the bottom of every multiple listing service (MLS) listing is a Remarks or Property Description section that offers additional bits of information. Look for key terms, such as “sold as is,” “handyman’s special,” “in need of a little TLC,” or “needs work.” These phrases translate to “You’ll get the house for less because the current owner doesn’t want to clean, paint, or re-carpet.”\n<p>Agents may also be able to download the seller’s residential disclosure, which contains additional details on what works and what doesn’t, whether the property has ever had biological contaminates (such as mold), how old the roof is, and so forth.</li>\n</ul>\n"},{"title":"10 common house-flipping blunders","thumb":null,"image":null,"content":"<p>Many eager, ill-informed investors become overenthusiastic about the big picture and lose sight of the critical details that can make or break a deal. They pay too much for a property, underestimate the cost of repairs and renovations, fail to inspect a property or research the title, or enter into contracts they don’t fully understand.</p>\n<p>Check out these ten common house-flipping blunders to help you avoid costly mistakes and maximize your profits from the start.</p>\n<h3><a name=\"_Toc91687160\"></a>Falling for a scam</h3>\n<p>Money attracts entrepreneurs, but it also attracts thieves. When you flip a house, you stand to earn tens of thousands of dollars on a single transaction. But being successful requires determination, diligence, and hard work ― don’t let anyone convince you otherwise. Don’t be a sucker. Be on guard for the following threats:</p>\n<ul>\n<li>Get-rich-quick schemes, cash-back-at-closing schemes, no-money-down deals, and anything else that sounds too good to be true</li>\n<li>Partnerships, especially those that require you to take on all the risk, supply most of the money, or do most of the work</li>\n<li>Anyone who offers to “take care of everything for you”</li>\n</ul>\n<h3><a name=\"_Toc91687161\"></a>Speculating on the housing market</h3>\n<p>Like the stock market, the housing market has its ups and downs. In a hot market, investors often become infected with irrational exuberance — the belief that current appreciation rates are an accurate representation of future rates. They overpay for properties, expecting them to appreciate, and when the market flattens or takes a dive, they’re stuck with a property they need to sell at a price no buyer is willing to pay.</p>\n<p>Don’t bank on double-digit increases in housing values, and be prepared with a Plan B, such as holding a property and leasing it out to tenants until the market recovers.</p>\n<h3><a name=\"_Toc91687162\"></a>Waffling on an obviously good deal</h3>\n<p>Some investors experience <em>paralysis by analysis:</em> They overanalyze a great deal and can even talk themselves out of it, or else they waffle until another investor shows interest — and then it’s often too late.</p>\n<p>When you see a good deal, act quickly. You don’t necessarily need to buy the property right away, but by making an offer on the property, you can tie it up for several days so that you can research the title and inspect the property.</p>\n<h3><a name=\"_Toc91687163\"></a>Backing yourself into a contractual corner</h3>\n<p>Rarely do people hand you contracts to sign that protect <em>your</em> rights or interests. Instead, they hand you contracts that protect <em>their</em> rights and interests. Before you sign a contract or purchase agreement, read it carefully and make sure that it has a <em>weasel clause</em> — a legal back door through which you can make a graceful exit.</p>\n<h3><a name=\"_Toc91687164\"></a>Failing to inspect the property before closing on it</h3>\n<p>Don’t rely on the seller’s claims and disclosures. The real estate community has a saying: “Buyers are liars, and sellers are worse, and sellers by owner eat their young.” Have the house inspected.</p>\n<p>A city inspection is best because it provides you with an inspection team consisting of a professional plumber, an electrician, a heating and air-conditioning specialist, and a builder (for structural features). In some areas, however, city inspections are unavailable or are performed only on new construction; if that’s the case, have a trusted contractor inspect the property with you.</p>\n<p>If you’re buying a house at a foreclosure sale, obtaining a thorough home inspection before handing over the cash may not be an option, but you should inspect the home yourself as thoroughly as possible. Drive by the house, inspect the outside, and do what you can to get inside to take a look around. The less you know about a property, the higher you should set your margin to cover unexpected costs.</p>\n<p class=\"article-tips tip\">Complete a final walk-through a half-hour before closing to make sure the house is still in the same condition as when you last saw it and that whatever you’re expecting to be included in the sale is still on the property. I’ve walked through homes before closing to discover that the seller took all the appliances when those items were supposed to remain in the house. Work to resolve any issues before you close — you have no recourse after that.</p>\n<h3><a name=\"_Toc91687165\"></a>Assuming that the title is clear</h3>\n<p>Anyone can sell a property. Even people who don’t own a property can sell it. Some con artists wait until the owner takes an extended vacation. They move into the house, pose as the owner, print out a fake title, and sell it to an eager but clueless buyer. Sometimes, they sell the house to several buyers!</p>\n<p>Another possibility is that a homeowner may try to sell you a house without telling you that the property has multiple liens against it. Unless you research the title and have the title company perform a title search, you can’t be sure the title is clear or even valid or that the person selling the house legally owns it. And, if you’re not 100 percent certain, don’t buy the property.</p>\n<h3><a name=\"_Toc91687166\"></a>Underestimating the cost of repairs and renovations</h3>\n<p>Beginning investors often experience sticker shock when they hire contractors to perform repairs and renovations. Just make sure you have your sticker shock <em>before</em> you buy a property, not after you own it — when it’s too late to do anything about it.</p>\n<p>For necessary repairs and renovations, you should have an accurate estimate of all costs before you buy a property. You can jot down notes while you’re inspecting it and then consult repair and renovation services to obtain estimates.</p>\n<h3><a name=\"_Toc91687167\"></a>Doing shoddy work to save money</h3>\n<p>Sellers have all sorts of tactics to cover defects in a home. They may carpet over a floor that has extensive water or termite damage, pump out a septic tank that’s gone bad so that the toilets keep flushing for a couple more months, or install wood paneling in the basement to hide defects in the foundation.</p>\n<p class=\"article-tips remember\">As an investor who wants to remain in business, you should treat these tactics as taboo. Don’t sell your soul for a few thousand dollars.</p>\n<h3><a name=\"_Toc91687168\"></a>Over-improving a property</h3>\n<p>Transforming a bungalow into the Taj Mahal may be a noble vision, but it ultimately lands you in the poorhouse. Know the housing market in your area, and routinely visit open houses to remain abreast of current trends and market demands. Gauge repairs and renovations to meet or slightly exceed what’s currently selling in your area. Your renovated home should be more appealing than comparable homes in the area, but not excessively more appealing.</p>\n<h3><a name=\"_Toc91687169\"></a>Forgetting to pay the taxes</h3>\n<p>In the flurry of flipping, taxes are easy to overlook, especially property taxes. Forgetting to pay your taxes, however, can further complicate your flipping operation, and back taxes and penalties can take a big chunk of your future profits.</p>\n<p>Set aside a certain percentage of your profit from each flip in a separate account, and pay your taxes out of that account. This separate account reduces the temptation to spend the money owed to the government. If you fall behind on taxes, catching up can be tough.</p>\n<p>&nbsp;</p>\n"}],"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-02-04T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":207782},{"headers":{"creationTime":"2016-03-26T22:47:14+00:00","modifiedTime":"2022-03-30T19:22:45+00:00","timestamp":"2022-09-14T18:19:32+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"Flipping Strategy: Buying into a Hot Market","strippedTitle":"flipping strategy: buying into a hot market","slug":"flipping-strategy-buying-into-a-hot-market","canonicalUrl":"","seo":{"metaDescription":"There's more to flipping houses than buying cheap, fixing it up, and selling high. Learn the right questions to ask and risks to consider.","noIndex":0,"noFollow":0},"content":"When most people think of flipping houses, they immediately envision a process of buying a ramshackle house on the cheap, fixing it up, and then reselling it for more than they've invested in it. That's certainly the underlying theme, but the actual process of flipping houses spawns a tool shed full of choices and questions, including the following:\r\n<ul>\r\n \t<li>Are you going to live in the house while fixing it up?</li>\r\n</ul>\r\n<ul>\r\n \t<li>How long can you afford to hold the house before selling it?</li>\r\n</ul>\r\n<ul>\r\n \t<li>How extensive are the renovations you're willing and able to perform?</li>\r\n</ul>\r\nBefore you even consider making an offer on a house, know how you're going to profit from it. Are you going to buy it at a bargain and resell it immediately at market value, do a quick makeup job and resell it, perform some major renovations, or fix it up and use it as a rental? Each of these strategies has benefits and drawbacks, but each strategy is a perfectly legitimate way to turn a profit flipping property.\r\n\r\nWhen developing a game plan, you want to maximize your strengths, minimize your weaknesses, and fully exploit the opportunities that surround you. Many a flipper have already developed their own strategies that achieve those three goals. By becoming more aware of these existing strategies, you can choose the one that fits you best and perhaps even improvise to invent your own strategy.\r\n<p class=\"Remember\">Always buy low. If you can't get a house for 25 to 30 percent or more below what you estimate to be its market value, keep looking.</p>\r\nIn a sizzling real estate market, you can turn a profit fairly quickly by buying a house, moving in, and then sitting back and watching the real estate values soar. This approach works only if you have time on your hands, are speculative by nature, and have a knack for purchasing houses in a hot market at just the right time. This strategy offers several benefits:\r\n<ul>\r\n \t<li>If the market remains strong, your property value rises without your having to lift a finger.</li>\r\n</ul>\r\n<ul>\r\n \t<li>Your equity in the property rises, boosting your borrowing power for other investments.</li>\r\n</ul>\r\n<ul>\r\n \t<li>By living in the home for two years or more, up to $250,000 of your profit ($500,000 for a couple), is tax free, at least according to the tax laws as of late 2006.</li>\r\n</ul>\r\n<p class=\"Warning\">Buying into a hot market also carries some significant risks:</p>\r\n\r\n<ul>\r\n \t<li>In areas where property values are soaring, the housing bubble may burst, leaving you with a home that is worth less than what you paid for it.</li>\r\n</ul>\r\n<ul>\r\n \t<li>Stuff happens. You can have a great house at a great price in a hot market with the top agent working to sell it, and the house still may not sell. Prepare yourself for all possibilities.</li>\r\n</ul>\r\n<p class=\"Remember\">What goes up sometimes comes down — sometimes very quickly — but all markets can be good for investing as long as you recognize the conditions and opportunities and react appropriately.</p>","description":"When most people think of flipping houses, they immediately envision a process of buying a ramshackle house on the cheap, fixing it up, and then reselling it for more than they've invested in it. That's certainly the underlying theme, but the actual process of flipping houses spawns a tool shed full of choices and questions, including the following:\r\n<ul>\r\n \t<li>Are you going to live in the house while fixing it up?</li>\r\n</ul>\r\n<ul>\r\n \t<li>How long can you afford to hold the house before selling it?</li>\r\n</ul>\r\n<ul>\r\n \t<li>How extensive are the renovations you're willing and able to perform?</li>\r\n</ul>\r\nBefore you even consider making an offer on a house, know how you're going to profit from it. Are you going to buy it at a bargain and resell it immediately at market value, do a quick makeup job and resell it, perform some major renovations, or fix it up and use it as a rental? Each of these strategies has benefits and drawbacks, but each strategy is a perfectly legitimate way to turn a profit flipping property.\r\n\r\nWhen developing a game plan, you want to maximize your strengths, minimize your weaknesses, and fully exploit the opportunities that surround you. Many a flipper have already developed their own strategies that achieve those three goals. By becoming more aware of these existing strategies, you can choose the one that fits you best and perhaps even improvise to invent your own strategy.\r\n<p class=\"Remember\">Always buy low. If you can't get a house for 25 to 30 percent or more below what you estimate to be its market value, keep looking.</p>\r\nIn a sizzling real estate market, you can turn a profit fairly quickly by buying a house, moving in, and then sitting back and watching the real estate values soar. This approach works only if you have time on your hands, are speculative by nature, and have a knack for purchasing houses in a hot market at just the right time. This strategy offers several benefits:\r\n<ul>\r\n \t<li>If the market remains strong, your property value rises without your having to lift a finger.</li>\r\n</ul>\r\n<ul>\r\n \t<li>Your equity in the property rises, boosting your borrowing power for other investments.</li>\r\n</ul>\r\n<ul>\r\n \t<li>By living in the home for two years or more, up to $250,000 of your profit ($500,000 for a couple), is tax free, at least according to the tax laws as of late 2006.</li>\r\n</ul>\r\n<p class=\"Warning\">Buying into a hot market also carries some significant risks:</p>\r\n\r\n<ul>\r\n \t<li>In areas where property values are soaring, the housing bubble may burst, leaving you with a home that is worth less than what you paid for it.</li>\r\n</ul>\r\n<ul>\r\n \t<li>Stuff happens. You can have a great house at a great price in a hot market with the top agent working to sell it, and the house still may not sell. Prepare yourself for all possibilities.</li>\r\n</ul>\r\n<p class=\"Remember\">What goes up sometimes comes down — sometimes very quickly — but all markets can be good for investing as long as you recognize the conditions and opportunities and react appropriately.</p>","blurb":"","authors":[],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}],"fromCategory":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282203,"slug":"flipping-houses-for-dummies","isbn":"9781119861010","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"amazon":{"default":"https://www.amazon.com/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119861012-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/flipping-houses-203x255.jpg","width":203,"height":255},"title":"Flipping Houses For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><B><b data-author-id=\"9133\">Ralph R. Roberts</b></b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p>","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}},{"authorId":34819,"name":"Kyle Roberts","slug":"kyle-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34819"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[{"title":"Rent, Rehab, and More","slug":"rent-rehab-and-more","collectionId":291883}],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34c91fb\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221b34c9cbe\"></div></div>"},"articleType":{"articleType":"Articles","articleList":null,"content":null,"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-03-30T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":200088},{"headers":{"creationTime":"2016-03-27T16:50:06+00:00","modifiedTime":"2022-03-15T13:46:10+00:00","timestamp":"2022-09-14T18:19:25+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"General Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"},"slug":"general-real-estate-careers","categoryId":34270}],"title":"Property Management Kit For Dummies Cheat Sheet","strippedTitle":"property management kit for dummies cheat sheet","slug":"property-management-kit-for-dummies-cheat-sheet","canonicalUrl":"","seo":{"metaDescription":"This Cheat Sheet outlines some of the basics of being a property manager, including how to show units and collect rent effectively.","noIndex":0,"noFollow":0},"content":"Property management is a job of detail and preparation. You need to prepare empty units to show them to new tenants, be able to match potential tenants with the right unit, and, most important, be able to collect rents effectively.","description":"Property management is a job of detail and preparation. You need to prepare empty units to show them to new tenants, be able to match potential tenants with the right unit, and, most important, be able to collect rents effectively.","blurb":"","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}}],"primaryCategoryTaxonomy":{"categoryId":34270,"title":"General Real Estate Careers","slug":"general-real-estate-careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":170383,"title":"How to Determine a Prospective Tenant's Rental Needs","slug":"how-to-determine-a-prospective-tenants-rental-needs","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170383"}},{"articleId":170372,"title":"How to Collect Rent Effectively","slug":"how-to-collect-rent-effectively","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170372"}},{"articleId":170364,"title":"What to Do before Showing a Rental Unit","slug":"what-to-do-before-showing-a-rental-unit","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170364"}}],"fromCategory":[{"articleId":241649,"title":"Establish Awesome Service as a Real Estate Agent","slug":"establish-awesome-service-real-estate-agent","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241649"}},{"articleId":241645,"title":"Focus Your Real Estate Marketing Dollars Online","slug":"focus-real-estate-marketing-dollars-online","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241645"}},{"articleId":241641,"title":"Prepping a Home's Interior for Selling","slug":"prepping-homes-interior-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241641"}},{"articleId":241637,"title":"Qualifying Your Listing Prospects","slug":"qualifying-listing-prospects","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241637"}},{"articleId":241633,"title":"Tips for Setting Up for a Real Estate Open House","slug":"tips-setting-real-estate-open-house","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241633"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282512,"slug":"property-management-kit-for-dummies","isbn":"9781119835783","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"amazon":{"default":"https://www.amazon.com/gp/product/111983578X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/111983578X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/111983578X-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/111983578X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/111983578X/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/9781119835783-203x255.jpg","width":203,"height":255},"title":"Property Management Kit For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b><b data-author-id=\"9293\">Robert S. Griswold</b>, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","authors":[{"authorId":9293,"name":"Robert S. Griswold","slug":"robert-s-griswold","description":" <p><b>Laurence C. Harmon, JD,</b> is the CEO of HARMON<i>LAW</i> LLC, specializing in apartment-related legal and property management consulting.</p> <p><b>Robert S. Griswold, MBA, MSBA,</b> is a successful real estate investor and property manager with a large portfolio of residential and commercial rental properties.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9293"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119835783&quot;]}]\" id=\"du-slot-63221b2d57a30\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119835783&quot;]}]\" id=\"du-slot-63221b2d583d6\"></div></div>"},"articleType":{"articleType":"Cheat Sheet","articleList":[{"articleId":170364,"title":"What to Do before Showing a Rental Unit","slug":"what-to-do-before-showing-a-rental-unit","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170364"}},{"articleId":170383,"title":"How to Determine a Prospective Tenant's Rental Needs","slug":"how-to-determine-a-prospective-tenants-rental-needs","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170383"}},{"articleId":170372,"title":"How to Collect Rent Effectively","slug":"how-to-collect-rent-effectively","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/170372"}}],"content":[{"title":"What to do before showing a rental unit","thumb":null,"image":null,"content":"<p>As a property manager, you&#8217;re always showing prospective tenants empty rental units. The following list can help you develop your pre-showing routine of tasks to take care of so that each unit shows its best side:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\"><b>Remove all the prior tenants&#8217; personal possessions and trash after you have legal possession of the unit.</b> If the unit was abandoned with furniture, clothing, or personal belongings, you must abide by any applicable state statute for removal.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check all plumbing (toilets, faucets, and pipes) for proper operation.</b> The faucets should have the proper pressure, and the sinks and toilets should drain adequately. Make sure that nothing leaks, including no moisture or drips under the sink. Change out old angle stops and install leak-resistant supply lines. If you&#8217;re paying the water bill, this is a good time to change the ball cock assembly in the toilet tank; doing so may cut your costs by as much as 50 percent.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Test all appliances for proper operation.</b> Try out all the appliances and run the dishwasher through a full cycle. Verify that the oven&#8217;s drip pan, broiler pan, and racks are there. If you have a free-standing range, check that the anti-tip bracket is properly in place.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Examine all hardware.</b> Confirm that the locks have been changed or rekeyed and are operational. Pay attention to all latches and catches, doorknobs and pulls, doorstops, and sliding doors.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Test all windows, insect screens, and window coverings.</b> They should be clean, unbroken, weatherproof, secure, and properly operational. All window locks should work as well.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check all walls, ceilings, and baseboards.</b> The paint and/or wall coverings should provide proper coverage, without holes, cuts, scratches, nails, or bad seams. Look for signs of water intrusion and investigate and correct the cause of any such conditions.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Inspect all floor coverings.</b> They should be clean and in good condition. The flooring should be properly installed, with no bad seams.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check bathrooms.</b> Thoroughly clean the toilet, tub, shower, sink, mirrors, and cabinets. Make sure the toilet paper holder and towel bars are clean and secure. Put a paper sanitary ring around each toilet seat and a new roll of toilet paper in each bathroom. Look under sinks for moisture and address any noted problems.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Inspect all closets and storage areas.</b> Rods, closet dowels, hooks, shelves, lights, floors, and walls should be clean.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check all counters, cabinets, doors, molding, thresholds, and metal strips.</b> They should be clean and fully operational, presenting no hazards.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Test each smoke detector and carbon monoxide detector and check all lighting and electrical outlets, including GFCIs and circuit breakers, for proper operation.</b></p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check all patios, balconies, and entryways.</b> They should be clean and physically sound. Railings should also be secure.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Test the heating and air conditioning for proper operation.</b> Be sure the thermostat, filters, vents, and registers are all in working order. Contact your natural gas supplier if you have any concerns about a gas appliance or heater.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Check the unit&#8217;s curb appeal, including the exterior landscaping, driveways, and walkways.</b> Keep them as tidy as possible.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Perform a final walk-through of the entire unit for appearance and cleanliness.</b> Recheck the unit every few days it sits vacant.</p>\n</li>\n</ul>\n"},{"title":"How to determine a prospective tenant's rental needs","thumb":null,"image":null,"content":"<p>In property management, one of the best ways to screen prospective tenants is to figure out what they need in a rental unit, and gear your sales pitch accordingly. Here are some questions to ask over the phone or during the tour to help you assess their needs:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\">When do you need to move in?</p>\n</li>\n<li>\n<p class=\"first-para\">How many bedrooms do you need?</p>\n</li>\n<li>\n<p class=\"first-para\">How many people, including minor children, will be living in the rental?</p>\n</li>\n<li>\n<p class=\"first-para\">What size rental unit are you looking for?</p>\n</li>\n<li>\n<p class=\"first-para\">Can you tell me how you found this property?</p>\n</li>\n<li>\n<p class=\"first-para\">The rent is $1,400 per month. Is that in your price range?</p>\n</li>\n<li>\n<p class=\"first-para\">May I ask your source of income?</p>\n</li>\n<li>\n<p class=\"first-para\">How long do you intend to live at this property?</p>\n</li>\n<li>\n<p class=\"first-para\">How much parking space do you require?</p>\n</li>\n<li>\n<p class=\"first-para\">Where are you living now?</p>\n</li>\n<li>\n<p class=\"first-para\">What, if anything, is wrong with your current rental property?</p>\n</li>\n<li>\n<p class=\"first-para\">Why have you decided to look for a new home?</p>\n</li>\n<li>\n<p class=\"first-para\">Do you currently live, work, or go to school in the area?</p>\n</li>\n<li>\n<p class=\"first-para\">What types of pets do you have?</p>\n</li>\n<li>\n<p class=\"first-para\">Do you need a property that allows smoking inside the unit?</p>\n</li>\n<li>\n<p class=\"first-para\">When can you drive by the property?</p>\n</li>\n<li>\n<p class=\"first-para\">How would you like me to contact you? Text? E-mail? Phone? What&#8217;s the best day and time to do so?</p>\n</li>\n</ul>\n"},{"title":"How to collect rent effectively","thumb":null,"image":null,"content":"<p>It&#8217;s your job as property manager to collect rent. You can make this routine task fairly straightforward by instituting some basic policies and following them for every tenant. Use these tips to devise and hold to your own rent-collection policy:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\">Have a written rent-collection policy and go over it with each adult tenant prior to move-in.</p>\n</li>\n<li>\n<p class=\"first-para\">Institute a firm policy that rent is due on or before the first of the month.</p>\n</li>\n<li>\n<p class=\"first-para\">Always follow your rent-collection policy, starting the first time a tenant&#8217;s rent is late.</p>\n</li>\n<li>\n<p class=\"first-para\">Provide tenants with electronic funds transfer info or with stamped, preaddressed or business reply envelopes to make it simple for them to pay the rent on time.</p>\n</li>\n<li>\n<p class=\"first-para\">Refuse partial rent payments. If you feel that you must accept a partial payment, have the tenant sign a partial rent payment agreement and personally serve new legal notices for nonpayment of rent.</p>\n</li>\n<li>\n<p class=\"first-para\">Accept only one check for the entire rent if more than one tenant lives in a rental unit. This strategy helps you collect the rent more efficiently and reinforces the fact that each of your tenants is legally responsible for paying the rent.</p>\n</li>\n<li>\n<p class=\"first-para\">Enforce and collect all charges for late and returned checks or dishonored electronic payments.</p>\n</li>\n<li>\n<p class=\"first-para\">Accept only cashier&#8217;s checks or money orders if a tenant has two returned checks or dishonored electronic payments.</p>\n</li>\n<li>\n<p class=\"first-para\">Consider incentives to encourage prompt rental payments. Be sure to offer all incentives to all residents equally.</p>\n</li>\n<li>\n<p class=\"first-para\">Promptly serve all legal notices to protect your legal options, even if you believe that your tenant will fulfill his promises.</p>\n</li>\n</ul>\n"}],"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2022-03-15T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":208072},{"headers":{"creationTime":"2016-03-27T16:48:47+00:00","modifiedTime":"2022-03-09T22:21:07+00:00","timestamp":"2022-09-14T18:19:22+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"General Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"},"slug":"general-real-estate-careers","categoryId":34270}],"title":"Success as a Real Estate Agent For Dummies Cheat Sheet","strippedTitle":"success as a real estate agent for dummies cheat sheet","slug":"success-as-a-real-estate-agent-for-dummies-cheat-sheet","canonicalUrl":"","seo":{"metaDescription":"You may not have your face on a park bench yet, but with these skills, it'll happen soon! Learn to convert lookers into real estate clients here.","noIndex":0,"noFollow":0},"content":"The real estate business is a dynamic market. And to be a successful real estate agent, it helps to have a few key skills at the ready. Being prepared to use your time wisely, creating an online presence, converting online lookers into clients, and prospecting for business are important tools that every successful agent should possess.","description":"The real estate business is a dynamic market. And to be a successful real estate agent, it helps to have a few key skills at the ready. Being prepared to use your time wisely, creating an online presence, converting online lookers into clients, and prospecting for business are important tools that every successful agent should possess.","blurb":"","authors":[{"authorId":9228,"name":"Dirk Zeller","slug":"dirk-zeller","description":" <p><b>Dirk Zeller</b> is recognized as the premier coach for the real estate industry. He has developed a system that takes &#34;regular&#34; agents and &#34;regular&#34; managers and transforms them into Champion Agents and Managers. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9228"}}],"primaryCategoryTaxonomy":{"categoryId":34270,"title":"General Real Estate Careers","slug":"general-real-estate-careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34270"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":241649,"title":"Establish Awesome Service as a Real Estate Agent","slug":"establish-awesome-service-real-estate-agent","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241649"}},{"articleId":241645,"title":"Focus Your Real Estate Marketing Dollars Online","slug":"focus-real-estate-marketing-dollars-online","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241645"}},{"articleId":241641,"title":"Prepping a Home's Interior for Selling","slug":"prepping-homes-interior-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241641"}},{"articleId":241637,"title":"Qualifying Your Listing Prospects","slug":"qualifying-listing-prospects","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241637"}},{"articleId":241633,"title":"Tips for Setting Up for a Real Estate Open House","slug":"tips-setting-real-estate-open-house","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241633"}}],"fromCategory":[{"articleId":241649,"title":"Establish Awesome Service as a Real Estate Agent","slug":"establish-awesome-service-real-estate-agent","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241649"}},{"articleId":241645,"title":"Focus Your Real Estate Marketing Dollars Online","slug":"focus-real-estate-marketing-dollars-online","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241645"}},{"articleId":241641,"title":"Prepping a Home's Interior for Selling","slug":"prepping-homes-interior-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241641"}},{"articleId":241637,"title":"Qualifying Your Listing Prospects","slug":"qualifying-listing-prospects","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241637"}},{"articleId":241633,"title":"Tips for Setting Up for a Real Estate Open House","slug":"tips-setting-real-estate-open-house","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/241633"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282618,"slug":"success-as-a-real-estate-agent-for-dummies-3rd-edition","isbn":"9781119371830","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"amazon":{"default":"https://www.amazon.com/gp/product/111937183X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/111937183X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/111937183X-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/111937183X/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/111937183X/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/success-as-a-real-estate-agent-for-dummies-3rd-edition-cover-9781119371830-203x255.jpg","width":203,"height":255},"title":"Success as a Real Estate Agent For Dummies","testBankPinActivationLink":"","bookOutOfPrint":false,"authorsInfo":"<p><b data-author-id=\"9228\">Dirk Zeller</b> is recognized as the premier coach for the real estate industry. He has developed a system that takes \"regular\" agents and \"regular\" managers and transforms them into Champion Agents and Managers. </p>","authors":[{"authorId":9228,"name":"Dirk Zeller","slug":"dirk-zeller","description":" <p><b>Dirk Zeller</b> is recognized as the premier coach for the real estate industry. He has developed a system that takes &#34;regular&#34; agents and &#34;regular&#34; managers and transforms them into Champion Agents and Managers. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9228"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119371830&quot;]}]\" id=\"du-slot-63221b2ae776f\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;general-real-estate-careers&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119371830&quot;]}]\" id=\"du-slot-63221b2ae84b3\"></div></div>"},"articleType":{"articleType":"Cheat Sheet","articleList":[{"articleId":162330,"title":"Time-Saving Techniques to Keep You Selling","slug":"time-saving-techniques-to-keep-you-selling","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/162330"}},{"articleId":162331,"title":"Creating Domain Names to Increase Real Estate Business","slug":"creating-domain-names-to-increase-real-estate-business","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/162331"}},{"articleId":162332,"title":"Turning Online Real Estate Lookers into Real Clients","slug":"turning-online-real-estate-lookers-into-real-clients","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/162332"}},{"articleId":162328,"title":"Keys to Prospecting for Real Estate Business","slug":"keys-to-prospecting-for-real-estate-business","categoryList":["business-careers-money","careers","real-estate-careers","general-real-estate-careers"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/162328"}}],"content":[{"title":"Time-saving techniques to keep you selling","thumb":null,"image":null,"content":"<p>Real estate agents spend an undue amount of time on production-supporting activities, or PSAs. These activities include all the steps necessary to support such direct income-producing activities as prospecting, lead follow-up, taking listings, and making sales. You can’t avoid the administrative functions that support your sales and customer service efforts, but you can and should handle them in the absolutely fewest number of hours possible. Here’s how:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\"><b>Chunk the time.</b> Handle PSA tasks in dedicated blocks of time so they don’t eat away at your whole day. Errands, MLS searches, MLS input, home flyer creation, filing, copying, faxing, meeting home inspectors or appraisers, getting feedback from showings, and purchasing supplies are only a sampling of the necessary tasks that support your production efforts. Keep a list, block time for all that needs to be done, and tackle the tasks as a consolidated effort rather than constant interruptions to your day.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Work the web.</b> Technology streamlines processes but also requires monitoring. Delegate certain days and times to go online for PSA duties. Checking websites like <a href=\"http://www.zillow.com\" target=\"_blank\" rel=\"noopener\">Zillow</a>, <a href=\"http://www.trulia.com\" target=\"_blank\" rel=\"noopener\">Trulia</a>, and <a href=\"http://www.realtor.com\" target=\"_blank\" rel=\"noopener\">Realtor.com</a> to make sure links and information have been uploaded properly are important parts of an agent’s work schedule. The key is to schedule these activities so you&#8217;re not over-spending time to complete these activities. Work within a pre-determined timeframe to get those administrative functions done so you can concentrate on other money-making tasks.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Delegate work.</b> Is there administrative help somewhere in your sales department? Can you find someone to lend a hand? Are there internship programs that might provide some eager business students who want to learn the business from the ground up? A talk with your sales manager may help.</p>\n</li>\n<li>\n<p class=\"first-para\"><b>Understand where PSAs rank.</b> Realize that PSA tasks produce little new revenue, so don’t let them take over your day or you’ll never get on to income-producing efforts. Agents can take a whole day or even a whole week of time to work on tasks that support a deal. Yes, deal, as in one! Get your support work done quickly so you can invest the bulk of your time to finding and working the next deal.</p>\n</li>\n</ul>\n"},{"title":"Creating domain names to increase real estate business","thumb":null,"image":null,"content":"<p>When real estate prospects are looking to buy or sell, their first stop is often the web. Your domain name is the key that drives traffic to your site. If you don&#8217;t already have a domain name, follow these steps to get one — or several — as quickly as possible:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\">The first domain name you need to register is your own name, as in www.yourname.com. Go to <a href=\"http://www.godaddy.com/\" target=\"_blank\" rel=\"noopener\">GoDaddy</a> to determine whether your name is available, and then register it as your domain name. The site is an easy and cost-effective resource, currently charging only $8.95 a year for your domain name and a lineup of other complimentary services.</p>\n</li>\n<li>\n<p class=\"first-para\">Consider registering a number of additional domain names that all lead to your website through a function called <i>URL forwarding, </i>which redirects multiple web address to one site. You could have 100 URLs that forward to just one site. At $10.99 per year, cost shouldn&#8217;t be a deterrent.</p>\n</li>\n<li>\n<p class=\"first-para\">In addition to your original domain name, you can create some names that describe your service area. For instance, you may want to register a domain name that features your hometown name followed by the words <i>real estate</i> or <i>homes for sale,</i> following these examples:</p>\n<ul class=\"level-two\">\n<li>\n<p class=\"first-para\">www.anywhereusarealestate.com/</p>\n</li>\n<li>\n<p class=\"first-para\">www.anywhereusahomesforsale.com/</p>\n</li>\n</ul>\n<p class=\"child-para Tip\">Or, you can put your own name in front of your hometown name, following this example:</p>\n<ul class=\"level-two\">\n<li>\n<p class=\"first-para\">www.dirksellsbend.com/</p>\n</li>\n</ul>\n</li>\n<li>\n<p class=\"first-para\">You can even register domain names that feature the names of specific real estate areas or neighborhoods in your market. For example, if you specialize in a hypothetical region called Perfectville, you may register:</p>\n<ul class=\"level-two\">\n<li>\n<p class=\"first-para\">www.perfectvillehomesforsale.com/</p>\n</li>\n<li>\n<p class=\"first-para\">www.movetoperfectville.com/</p>\n</li>\n<li>\n<p class=\"first-para\">www.perfectvillesubdivision.com/</p>\n</li>\n</ul>\n</li>\n</ul>\n<p>When you use a multiple domain name strategy, you invest in a single website that carries your primary domain name and then use a number of names to get people to your web space.</p>\n<p>When online real estate shoppers enter the name of your hometown or the name of a special neighborhood in your hometown, chances are good that one of your domain names will appear in their search results.</p>\n"},{"title":"Turning online real estate lookers into real clients","thumb":null,"image":null,"content":"<p>Using the web to view homes is common practice for real estate buyers. Buyers enjoy the anonymity of looking online before contacting an agent. A key for real estate agents to prospect and land new clients is to turn online lookers into solid leads and turn those leads into real clients.</p>\n<h2>Converting lookers to leads</h2>\n<p>Site visitors are known as <i>eyeballs.</i> The aim of your online strategy is to convert eyeballs to leads by creating and promoting a clear path they can follow from your web page to your business.</p>\n<p class=\"Tip\">You&#8217;ll never turn every online visitor to a lead, but you can increase your conversion rate dramatically by presenting an effective call to action. These calls to action can be in the form of a specific request for a free report, an offer to request additional property information, or an invitation to fill out a survey.</p>\n<p>After you present these calls to action, track the number of lookers you convert to leads. For example, if a thousand users visit your site and 150 request a free brochure titled &#8220;How to buy property in our market for 70 cents on the dollar,&#8221; your conversion rate is 15 percent. Not bad!</p>\n<h2>Converting leads to clients</h2>\n<p>After you capture a lead, you need to go into full court press to convert the name and contact information into a prospect for your business. For some reason, agents don&#8217;t follow up with Internet leads as aggressively as they do with ad call or sign call leads. I consider this a mistake because in today&#8217;s world you stand to generate more leads online than from any other source.</p>\n<p>To get a feel for the way online leads accrue to build your business, look at this example:</p>\n<ul class=\"level-one\">\n<li>\n<p class=\"first-para\">If your site draws 1,000 visitors and 150 of those visitors request your free report, you&#8217;ll have a 15 percent visitor-to-lead conversion ratio.</p>\n</li>\n<li>\n<p class=\"first-para\">If you convert 5 percent of the resulting 150 leads to buyer-consultation interviews, you&#8217;ll generate 7.5 interviews from the 1,000 site visitors, or a .75 percent site visitor-to-interview conversion rate.</p>\n</li>\n<li>\n<p class=\"first-para\">Based on your online conversion rates, you&#8217;ll have a base from which to work with as you adjust your marketing and conversion strategy. For instance, if you want to generate 15 instead of 7.5 interviews, you&#8217;ll have to either double the number of visitors to your site or double your conversion rate. It all boils down to the numbers.</p>\n</li>\n</ul>\n<p class=\"Tip\">To improve your web marketing, visit other agents&#8217; sites to see how they build, use, market, promote, and track responses. Most importantly, observe how the other agents prompt calls to action. You may even register and request a few offered items to see how they follow up on leads. Most use automatic responders, which send out messages via e-mail without the touch of a human hand, so they won&#8217;t even know that you, a competing agent, got their stuff.</p>\n"},{"title":"Keys to prospecting for real estate business","thumb":null,"image":null,"content":"<p>Prospecting for real estate buyers requires positive expectations. It requires a positive-results mindset, in part to overcome the influences of all the other agents who don&#8217;t prospect, don&#8217;t value prospecting, and stand by to negatively influence your vision and expectation of success.</p>\n<p>Merriam-Webster defines prospecting as &#8220;seeking a potential customer; seeking with a vision of success.&#8221; Notice that nothing in that definition deals with waiting or hoping. Starting with the word &#8220;seeking,&#8221; the definition revolves around action being taken by the salesperson. In its most basic sense, prospecting involves finding people to do business with.</p>\n<p>Take a look at the following table to get an idea of which agent activities are considered prospecting and which aren&#8217;t.</p>\n<table>\n<tbody>\n<tr>\n<th>What Prospecting Is</th>\n<th>What Prospecting Isn&#8217;t</th>\n</tr>\n<tr>\n<td>Calling past clients</td>\n<td>Mailing magnets, calendars, and other trinkets</td>\n</tr>\n<tr>\n<td>Calling people in your sphere of influence</td>\n<td>Setting up a website</td>\n</tr>\n<tr>\n<td>Calling expired listings</td>\n<td>Joining service organizations</td>\n</tr>\n<tr>\n<td>Calling FSBOs</td>\n<td>Wearing your name badge</td>\n</tr>\n<tr>\n<td>Cold calling for listings and sales</td>\n<td>Placing magnetic signs on your car</td>\n</tr>\n<tr>\n<td>Knocking on doors</td>\n<td>Sponsoring a community sports team</td>\n</tr>\n<tr>\n<td>Hosting open houses</td>\n<td>Doing floor time</td>\n</tr>\n<tr>\n<td>Calling absentee owners</td>\n<td>Answering e-mails</td>\n</tr>\n<tr>\n<td>Cold calling from lists of names</td>\n<td>Pinning your business card on bulletin boards</td>\n</tr>\n</tbody>\n</table>\n"}],"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"One year","lifeExpectancySetFrom":"2022-03-09T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":207833},{"headers":{"creationTime":"2016-03-26T22:55:40+00:00","modifiedTime":"2021-08-27T17:11:57+00:00","timestamp":"2022-09-14T18:18:33+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"Flipping Houses: Making Money in Any Market","strippedTitle":"flipping houses: making money in any market","slug":"flipping-houses-making-money-in-any-market","canonicalUrl":"","seo":{"metaDescription":"Want a breakdown of how much you should be investing into your flip properties? This quick read gives you all the answers.","noIndex":0,"noFollow":0},"content":"The housing market, like the stock market, fluctuates. Home values can steam ahead, stay put, or spiral down out of control. You make your money when you buy a house at less than market value. By adjusting your purchase price based on market conditions, thus lowering your total investment in a property, you can make money in any market.\r\n\r\nThe following list offers some general guidelines for gauging your total investment in the three main types of housing markets:\r\n<ul>\r\n \t<li><b>Increasing:</b> When home values are rising, your total investment in the property, including the purchase price, closing costs, renovation costs, holding costs, and selling costs, shouldn't exceed 80 percent of its estimated resale value.</li>\r\n</ul>\r\n<ul>\r\n \t<li><b>Flat:</b> When home values are steady, limit your total investment in the property to 70 to 75 percent of the estimated resale value.</li>\r\n</ul>\r\n<ul>\r\n \t<li><b>Decreasing:</b> When homes in the area are decreasing in value, invest no more than 60 to 65 percent of the property's estimated resale value.</li>\r\n</ul>\r\nFor example, to flip a house you expect to sell for $200,000 in a flat market, you may buy the house for $120,000, spend $20,000 fixing it up, and use $10,000 for other expenses (such as mortgage payments, insurance, utilities, selling costs, and unexpected bills). Your total investment is $150,000, which is 75 percent of the estimated resale value. In an increasing market, you can invest a maximum of $160,000 (80 percent of $200,000) in the property. In a decreasing market, you can invest a maximum of only $130,000 (65 percent of $200,000) in the property.\r\n\r\nAfter you decide how much you can afford to invest overall, adjust the purchase price accordingly. Don't expect to make up the difference in your other expenses (including renovation and holding costs).\r\n\r\nOn the surface, these numbers suggest that you stand to make more in a declining market. You invest a maximum of $130,000 in the hopes of selling the house for $200,000, but in a declining market, you can't count on selling the house for $200,000. You may have to drop the price to $180,000 or less to price it competitively. By adjusting the total investment down in a down market, you simply reduce your exposure to risk.\r\n<p class=\"Remember\">In any market, you want to earn at least a 20 percent profit for your time and effort.</p>\r\nDon't let a slow market slow you down. If you see a gaggle of homes for sale with recently reduced asking prices, the market in that particular neighborhood may be starting to soften. This softening may signal a great buying opportunity, but you need to re-evaluate your resale estimate as well.","description":"The housing market, like the stock market, fluctuates. Home values can steam ahead, stay put, or spiral down out of control. You make your money when you buy a house at less than market value. By adjusting your purchase price based on market conditions, thus lowering your total investment in a property, you can make money in any market.\r\n\r\nThe following list offers some general guidelines for gauging your total investment in the three main types of housing markets:\r\n<ul>\r\n \t<li><b>Increasing:</b> When home values are rising, your total investment in the property, including the purchase price, closing costs, renovation costs, holding costs, and selling costs, shouldn't exceed 80 percent of its estimated resale value.</li>\r\n</ul>\r\n<ul>\r\n \t<li><b>Flat:</b> When home values are steady, limit your total investment in the property to 70 to 75 percent of the estimated resale value.</li>\r\n</ul>\r\n<ul>\r\n \t<li><b>Decreasing:</b> When homes in the area are decreasing in value, invest no more than 60 to 65 percent of the property's estimated resale value.</li>\r\n</ul>\r\nFor example, to flip a house you expect to sell for $200,000 in a flat market, you may buy the house for $120,000, spend $20,000 fixing it up, and use $10,000 for other expenses (such as mortgage payments, insurance, utilities, selling costs, and unexpected bills). Your total investment is $150,000, which is 75 percent of the estimated resale value. In an increasing market, you can invest a maximum of $160,000 (80 percent of $200,000) in the property. In a decreasing market, you can invest a maximum of only $130,000 (65 percent of $200,000) in the property.\r\n\r\nAfter you decide how much you can afford to invest overall, adjust the purchase price accordingly. Don't expect to make up the difference in your other expenses (including renovation and holding costs).\r\n\r\nOn the surface, these numbers suggest that you stand to make more in a declining market. You invest a maximum of $130,000 in the hopes of selling the house for $200,000, but in a declining market, you can't count on selling the house for $200,000. You may have to drop the price to $180,000 or less to price it competitively. By adjusting the total investment down in a down market, you simply reduce your exposure to risk.\r\n<p class=\"Remember\">In any market, you want to earn at least a 20 percent profit for your time and effort.</p>\r\nDon't let a slow market slow you down. If you see a gaggle of homes for sale with recently reduced asking prices, the market in that particular neighborhood may be starting to soften. This softening may signal a great buying opportunity, but you need to re-evaluate your resale estimate as well.","blurb":"","authors":[],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[],"fromCategory":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":0,"slug":null,"isbn":null,"categoryList":null,"amazon":null,"image":null,"title":null,"testBankPinActivationLink":null,"bookOutOfPrint":false,"authorsInfo":null,"authors":null,"_links":null},"collections":[{"title":"BYOB (Be Your Own Boss)","slug":"for-the-entry-level-entrepreneur","collectionId":287568}],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[null]}]\" id=\"du-slot-63221af962ac1\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[null]}]\" id=\"du-slot-63221af963549\"></div></div>"},"articleType":{"articleType":"Articles","articleList":null,"content":null,"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":"Two years","lifeExpectancySetFrom":"2021-08-24T00:00:00+00:00","dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":201278},{"headers":{"creationTime":"2018-08-22T02:59:31+00:00","modifiedTime":"2018-08-22T02:59:31+00:00","timestamp":"2022-09-14T18:16:44+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"How to Read a Property Listing with Flipping in Mind","strippedTitle":"how to read a property listing with flipping in mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","canonicalUrl":"","seo":{"metaDescription":"Each listing contains a deluge of details about the property, all of which can be very helpful in your search for a flippable property (see the a sample listing","noIndex":0,"noFollow":0},"content":"Each listing contains a deluge of details about the property, all of which can be very helpful in your search for a flippable property (see the a sample listing). Some of these details, however, are more useful than others. Focus your search on the following golden nuggets:\r\n<ul>\r\n \t<li><strong>List price:</strong> Now that you’re looking at listings of only those homes in your price range, examine the list price (found in the upper right corner) and compare it to that of other comparable houses in the same area. An inordinately low price can signal a buying opportunity, or it can raise a red flag, making you (and others) wonder, “What’s wrong with this one?”</li>\r\n \t<li><strong>List date or time on the market:</strong> How long has the home been on the market? You typically find your best opportunities in homes that have recently been listed (in the past couple of days) or in homes that have been on the market for a couple of months. A home that’s not selling may be overpriced for the current market. In many cases, the longer the seller holds out, the harder it is to sell, and the more desperate the seller becomes. This cycle can signal a buying opportunity now or in the near future. Your agent can tell you the average time a home is on the market in any given neighborhood so you can properly gauge what’s considered “a long time.”</li>\r\n \t<li><strong>Remarks:</strong> Near the bottom of every MLS listing is a Remarks or Property Description section that offers additional bits of information. Look for key terms, such as “sold as is,” “handyman’s special,” “in need of a little TLC,” or “needs a little work.” These phrases translate to “You’ll get the house for less because the current owner doesn’t want to clean, paint, or re-carpet.” Agents may also be able to download the seller’s residential disclosure, which contains additional details on what works and what doesn’t, whether the property has ever had biological contaminates (such as mold), how old the roof is, and so forth.</li>\r\n</ul>\r\n[caption id=\"attachment_255158\" align=\"alignnone\" width=\"443\"]<img class=\"size-full wp-image-255158\" src=\"https://www.dummies.com/wp-content/uploads/flipping-mls-listing.jpg\" alt=\"flipping-mls-listing\" width=\"443\" height=\"400\" /> Source: Ralph Roberts Realty<br /><br />A listing contains a lot of useful information.[/caption]\r\n<p class=\"article-tips warning\">Nothing on the MLS is the gospel truth. Sellers and real estate agents alike often estimate room sizes or make mistakes when entering details. Approach all prospects with a discerning eye.</p>","description":"Each listing contains a deluge of details about the property, all of which can be very helpful in your search for a flippable property (see the a sample listing). Some of these details, however, are more useful than others. Focus your search on the following golden nuggets:\r\n<ul>\r\n \t<li><strong>List price:</strong> Now that you’re looking at listings of only those homes in your price range, examine the list price (found in the upper right corner) and compare it to that of other comparable houses in the same area. An inordinately low price can signal a buying opportunity, or it can raise a red flag, making you (and others) wonder, “What’s wrong with this one?”</li>\r\n \t<li><strong>List date or time on the market:</strong> How long has the home been on the market? You typically find your best opportunities in homes that have recently been listed (in the past couple of days) or in homes that have been on the market for a couple of months. A home that’s not selling may be overpriced for the current market. In many cases, the longer the seller holds out, the harder it is to sell, and the more desperate the seller becomes. This cycle can signal a buying opportunity now or in the near future. Your agent can tell you the average time a home is on the market in any given neighborhood so you can properly gauge what’s considered “a long time.”</li>\r\n \t<li><strong>Remarks:</strong> Near the bottom of every MLS listing is a Remarks or Property Description section that offers additional bits of information. Look for key terms, such as “sold as is,” “handyman’s special,” “in need of a little TLC,” or “needs a little work.” These phrases translate to “You’ll get the house for less because the current owner doesn’t want to clean, paint, or re-carpet.” Agents may also be able to download the seller’s residential disclosure, which contains additional details on what works and what doesn’t, whether the property has ever had biological contaminates (such as mold), how old the roof is, and so forth.</li>\r\n</ul>\r\n[caption id=\"attachment_255158\" align=\"alignnone\" width=\"443\"]<img class=\"size-full wp-image-255158\" src=\"https://www.dummies.com/wp-content/uploads/flipping-mls-listing.jpg\" alt=\"flipping-mls-listing\" width=\"443\" height=\"400\" /> Source: Ralph Roberts Realty<br /><br />A listing contains a lot of useful information.[/caption]\r\n<p class=\"article-tips warning\">Nothing on the MLS is the gospel truth. Sellers and real estate agents alike often estimate room sizes or make mistakes when entering details. Approach all prospects with a discerning eye.</p>","blurb":"","authors":[{"authorId":11348,"name":"Ralph Roberts","slug":"ralph-roberts","description":"","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/11348"}},{"authorId":9017,"name":"Joe Kraynak","slug":"joe-kraynak","description":" <p><b>Candida Fink, MD</b> is a psychiatrist, board certified in child, adolescent, and adult psychiatry, who specializes in working with people of all ages&mdash;and their loved ones&mdash;to manage bipolar disorder.</p> <p><b>Joe Kraynak</b> is a professional writer who deals with bipolar in his family.</p>","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9017"}}],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[],"relatedArticles":{"fromBook":[{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}},{"articleId":207782,"title":"Flipping Houses For Dummies Cheat Sheet","slug":"flipping-houses-for-dummies-cheat-sheet","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/207782"}}],"fromCategory":[{"articleId":253699,"title":"10 House Flipping Blunders","slug":"10-house-flipping-blunders","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/253699"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}},{"articleId":207782,"title":"Flipping Houses For Dummies Cheat Sheet","slug":"flipping-houses-for-dummies-cheat-sheet","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/207782"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282203,"slug":"flipping-houses-for-dummies","isbn":"9781119861010","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"amazon":{"default":"https://www.amazon.com/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119861012-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/flipping-houses-203x255.jpg","width":203,"height":255},"title":"Flipping Houses For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><B><b data-author-id=\"9133\">Ralph R. Roberts</b></b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p>","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}},{"authorId":34819,"name":"Kyle Roberts","slug":"kyle-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34819"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221a8c6be6e\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221a8c6c70c\"></div></div>"},"articleType":{"articleType":"Articles","articleList":null,"content":null,"videoInfo":{"videoId":null,"name":null,"accountId":null,"playerId":null,"thumbnailUrl":null,"description":null,"uploadDate":null}},"sponsorship":{"sponsorshipPage":false,"backgroundImage":{"src":null,"width":0,"height":0},"brandingLine":"","brandingLink":"","brandingLogo":{"src":null,"width":0,"height":0},"sponsorAd":"","sponsorEbookTitle":"","sponsorEbookLink":"","sponsorEbookImage":{"src":null,"width":0,"height":0}},"primaryLearningPath":"Advance","lifeExpectancy":null,"lifeExpectancySetFrom":null,"dummiesForKids":"no","sponsoredContent":"no","adInfo":"","adPairKey":[]},"status":"publish","visibility":"public","articleId":255157},{"headers":{"creationTime":"2018-06-25T21:15:53+00:00","modifiedTime":"2018-06-25T21:15:53+00:00","timestamp":"2022-09-14T18:16:34+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34256"},"slug":"careers","categoryId":34256},{"name":"Real Estate Careers","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34268"},"slug":"real-estate-careers","categoryId":34268},{"name":"Flipping Houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"},"slug":"flipping-houses","categoryId":34269}],"title":"10 House Flipping Blunders","strippedTitle":"10 house flipping blunders","slug":"10-house-flipping-blunders","canonicalUrl":"","seo":{"metaDescription":"Many eager, ill-informed investors become overenthusiastic about the big picture and lose sight of the critical details that can make or break a deal. They pay ","noIndex":0,"noFollow":0},"content":"Many eager, ill-informed investors become overenthusiastic about the big picture and lose sight of the critical details that can make or break a deal. They pay too much for a property, underestimate the cost of repairs and renovations, fail to inspect a property or research the title, or sign contracts that they don’t fully understand. Here are ten common house flipping blunders to help you avoid costly mistakes and maximize your profits from the start.\r\n<h2 id=\"tab1\" >Falling for a Scam</h2>\r\n<p class=\"article-tips warning\">Money attracts entrepreneurs, but it also attracts thieves. When you flip a house, you stand to earn tens of thousands of dollars on a single transaction, but being successful requires determination, diligence, and hard work. Don’t let anyone convince you otherwise. Don’t be a sucker. Be on guard for the following threats:</p>\r\n\r\n<ul>\r\n \t<li>Get-rich-quick schemes, cash-back-at-closing schemes, no-money-down deals, and anything else that sounds too good to be true</li>\r\n \t<li>Partnerships, especially those that require you to take on all the risk, supply most of the money, or do most of the work</li>\r\n \t<li>Anyone who offers to take care of everything for you</li>\r\n</ul>\r\n<h2 id=\"tab2\" >Speculating on the Housing Market</h2>\r\nLike the stock market, the housing market has its ups and downs. In a hot market, investors often become infected with irrational exuberance — the belief that current appreciation rates are an accurate representation of future rates. They overpay for properties, expecting them to appreciate, and when the market flattens or takes a dive, they’re stuck with a property they need to sell at a price no buyer is willing to pay. Don’t bank on double-digit increases in housing values, and be prepared with plan B.\r\n<h2 id=\"tab3\" >Waffling on an Obviously Good Deal</h2>\r\nSome investors experience paralysis by analysis. They overanalyze a great deal and can actually talk themselves out of it, or they waffle until another investor shows interest, and then it’s often too late.\r\n\r\nWhen you see a good deal, act quickly. You don’t necessarily need to buy the property right away, but by making an offer on the property, you can tie it up for several days, so you can research the title and inspect the property.\r\n<h2 id=\"tab4\" >Backing Yourself into a Contractual Corner</h2>\r\nVery rarely do people hand you contracts to sign that protect your rights or interests. They hand you contracts that protect their rights and interests. Before you sign a contract or purchase agreement, read it carefully and make sure that it has a weasel clause — a legal back door through which you can make a graceful exit.\r\n<h2 id=\"tab5\" >Failing to Inspect the Property before Closing on It</h2>\r\n<p class=\"article-tips remember\">Don’t rely on the seller’s claims and disclosures. The real estate community has a saying: “Buyers are liars, and sellers are worse, and sellers by owner eat their young.” Have the house inspected. A city inspection is best because it provides you with an inspection team consisting of a professional plumber, an electrician, a heating and air conditioning specialist, and a builder (for structural features). In some areas, however, city inspections are unavailable or are performed only on new construction; if that’s the case, have a trusted contractor inspect the property with you.</p>\r\nIf you’re buying a house at a foreclosure sale, obtaining a thorough home inspection before handing over the cash may not be an option, but you should inspect the home yourself as thoroughly as possible. Drive by the house, inspect the outside, and do what you can to get inside to take a look around. The less you know about a property, the higher you should set your margin to cover unexpected costs.\r\n<p class=\"article-tips tip\">Do a final walk-through a half hour before closing to be sure that the house is still in the same condition you bought it in and that what you’re expecting to be included in the sale is still on the property. It’s better to resolve any issues before you close; you have no recourse after.</p>\r\n\r\n<h2 id=\"tab6\" >Assuming the Title Is Clear</h2>\r\nAnyone can sell a property. Even people who don’t own a property can sell it. Some con artists wait until the owner takes an extended vacation. They move into the house, pose as the owner, print out a fake title, and sell it to an eager but clueless buyer. Sometimes, they sell the house to several buyers!\r\n\r\nAnother possibility is that a homeowner may try to sell you a house without telling you that the property has multiple liens against it. Unless you research the title and have the title company perform a title search, you can’t be sure that the title is clear or even valid or that the person selling the house really owns it. And if you’re not 100 percent certain, don’t buy the property.\r\n<h2 id=\"tab7\" >Underestimating the Cost of Repairs and Renovations</h2>\r\nWhen a contractor tells a homeowner that a complete kitchen remodel costs about $30,000, the homeowner acts like one of those old geezers who grew up during the Great Depression, when you could buy a candy bar for a nickel. Beginning investors often experience that same sense of sticker shock when they hire contractors to perform repairs and renovations. Just make sure that you have your sticker shock <em>before</em> you buy a property, not after you own it — when it’s too late to do anything about it. For necessary repairs and renovations, you should have an accurate estimate of all costs before you buy a property. You can jot down notes while you’re inspecting a property and then consult repair and renovation services to obtain estimates.\r\n<h2 id=\"tab8\" >Doing Shoddy Work to Save Money</h2>\r\nSellers have all sorts of tactics to cover defects in a home. They may carpet over a floor that has extensive water or termite damage, pump out a septic tank that’s gone bad so the toilets keep flushing for a couple more months, or install wood paneling in the basement to hide defects in the foundation.\r\n<p class=\"article-tips remember\">As an investor who wants to remain in business, you should treat these tactics as taboo. Don’t sell your soul for a few thousand dollars.</p>\r\n\r\n<h2 id=\"tab9\" >Over-Improving a Property</h2>\r\nTransforming a bungalow into the Taj Mahal may be a noble vision, but it ultimately lands you in the poorhouse. Know the housing market in your area and routinely visit open houses to remain abreast of current trends and market demands. Gauge repairs and renovations to meet or slightly exceed what’s currently selling in your area. Your renovated home should be more appealing than comparable homes in the area, but not excessively more appealing.\r\n<h2 id=\"tab10\" >Forgetting to Pay the Taxes</h2>\r\nIn the flurry of flipping, taxes are easy to overlook, especially property taxes. Forgetting to pay your taxes, however, can further complicate your flipping operation, and back taxes and penalties can take a big chunk out of your future profits.\r\n<p class=\"article-tips tip\">Set aside a certain percentage of your profit from each flip in a separate account and pay your taxes out of that account. This separate account reduces the temptation to spend the money you owe to the government. If you fall behind on taxes, catching up can be tough.</p>","description":"Many eager, ill-informed investors become overenthusiastic about the big picture and lose sight of the critical details that can make or break a deal. They pay too much for a property, underestimate the cost of repairs and renovations, fail to inspect a property or research the title, or sign contracts that they don’t fully understand. Here are ten common house flipping blunders to help you avoid costly mistakes and maximize your profits from the start.\r\n<h2 id=\"tab1\" >Falling for a Scam</h2>\r\n<p class=\"article-tips warning\">Money attracts entrepreneurs, but it also attracts thieves. When you flip a house, you stand to earn tens of thousands of dollars on a single transaction, but being successful requires determination, diligence, and hard work. Don’t let anyone convince you otherwise. Don’t be a sucker. Be on guard for the following threats:</p>\r\n\r\n<ul>\r\n \t<li>Get-rich-quick schemes, cash-back-at-closing schemes, no-money-down deals, and anything else that sounds too good to be true</li>\r\n \t<li>Partnerships, especially those that require you to take on all the risk, supply most of the money, or do most of the work</li>\r\n \t<li>Anyone who offers to take care of everything for you</li>\r\n</ul>\r\n<h2 id=\"tab2\" >Speculating on the Housing Market</h2>\r\nLike the stock market, the housing market has its ups and downs. In a hot market, investors often become infected with irrational exuberance — the belief that current appreciation rates are an accurate representation of future rates. They overpay for properties, expecting them to appreciate, and when the market flattens or takes a dive, they’re stuck with a property they need to sell at a price no buyer is willing to pay. Don’t bank on double-digit increases in housing values, and be prepared with plan B.\r\n<h2 id=\"tab3\" >Waffling on an Obviously Good Deal</h2>\r\nSome investors experience paralysis by analysis. They overanalyze a great deal and can actually talk themselves out of it, or they waffle until another investor shows interest, and then it’s often too late.\r\n\r\nWhen you see a good deal, act quickly. You don’t necessarily need to buy the property right away, but by making an offer on the property, you can tie it up for several days, so you can research the title and inspect the property.\r\n<h2 id=\"tab4\" >Backing Yourself into a Contractual Corner</h2>\r\nVery rarely do people hand you contracts to sign that protect your rights or interests. They hand you contracts that protect their rights and interests. Before you sign a contract or purchase agreement, read it carefully and make sure that it has a weasel clause — a legal back door through which you can make a graceful exit.\r\n<h2 id=\"tab5\" >Failing to Inspect the Property before Closing on It</h2>\r\n<p class=\"article-tips remember\">Don’t rely on the seller’s claims and disclosures. The real estate community has a saying: “Buyers are liars, and sellers are worse, and sellers by owner eat their young.” Have the house inspected. A city inspection is best because it provides you with an inspection team consisting of a professional plumber, an electrician, a heating and air conditioning specialist, and a builder (for structural features). In some areas, however, city inspections are unavailable or are performed only on new construction; if that’s the case, have a trusted contractor inspect the property with you.</p>\r\nIf you’re buying a house at a foreclosure sale, obtaining a thorough home inspection before handing over the cash may not be an option, but you should inspect the home yourself as thoroughly as possible. Drive by the house, inspect the outside, and do what you can to get inside to take a look around. The less you know about a property, the higher you should set your margin to cover unexpected costs.\r\n<p class=\"article-tips tip\">Do a final walk-through a half hour before closing to be sure that the house is still in the same condition you bought it in and that what you’re expecting to be included in the sale is still on the property. It’s better to resolve any issues before you close; you have no recourse after.</p>\r\n\r\n<h2 id=\"tab6\" >Assuming the Title Is Clear</h2>\r\nAnyone can sell a property. Even people who don’t own a property can sell it. Some con artists wait until the owner takes an extended vacation. They move into the house, pose as the owner, print out a fake title, and sell it to an eager but clueless buyer. Sometimes, they sell the house to several buyers!\r\n\r\nAnother possibility is that a homeowner may try to sell you a house without telling you that the property has multiple liens against it. Unless you research the title and have the title company perform a title search, you can’t be sure that the title is clear or even valid or that the person selling the house really owns it. And if you’re not 100 percent certain, don’t buy the property.\r\n<h2 id=\"tab7\" >Underestimating the Cost of Repairs and Renovations</h2>\r\nWhen a contractor tells a homeowner that a complete kitchen remodel costs about $30,000, the homeowner acts like one of those old geezers who grew up during the Great Depression, when you could buy a candy bar for a nickel. Beginning investors often experience that same sense of sticker shock when they hire contractors to perform repairs and renovations. Just make sure that you have your sticker shock <em>before</em> you buy a property, not after you own it — when it’s too late to do anything about it. For necessary repairs and renovations, you should have an accurate estimate of all costs before you buy a property. You can jot down notes while you’re inspecting a property and then consult repair and renovation services to obtain estimates.\r\n<h2 id=\"tab8\" >Doing Shoddy Work to Save Money</h2>\r\nSellers have all sorts of tactics to cover defects in a home. They may carpet over a floor that has extensive water or termite damage, pump out a septic tank that’s gone bad so the toilets keep flushing for a couple more months, or install wood paneling in the basement to hide defects in the foundation.\r\n<p class=\"article-tips remember\">As an investor who wants to remain in business, you should treat these tactics as taboo. Don’t sell your soul for a few thousand dollars.</p>\r\n\r\n<h2 id=\"tab9\" >Over-Improving a Property</h2>\r\nTransforming a bungalow into the Taj Mahal may be a noble vision, but it ultimately lands you in the poorhouse. Know the housing market in your area and routinely visit open houses to remain abreast of current trends and market demands. Gauge repairs and renovations to meet or slightly exceed what’s currently selling in your area. Your renovated home should be more appealing than comparable homes in the area, but not excessively more appealing.\r\n<h2 id=\"tab10\" >Forgetting to Pay the Taxes</h2>\r\nIn the flurry of flipping, taxes are easy to overlook, especially property taxes. Forgetting to pay your taxes, however, can further complicate your flipping operation, and back taxes and penalties can take a big chunk out of your future profits.\r\n<p class=\"article-tips tip\">Set aside a certain percentage of your profit from each flip in a separate account and pay your taxes out of that account. This separate account reduces the temptation to spend the money you owe to the government. If you fall behind on taxes, catching up can be tough.</p>","blurb":"","authors":[],"primaryCategoryTaxonomy":{"categoryId":34269,"title":"Flipping Houses","slug":"flipping-houses","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34269"}},"secondaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"tertiaryCategoryTaxonomy":{"categoryId":0,"title":null,"slug":null,"_links":null},"trendingArticles":null,"inThisArticle":[{"label":"Falling for a Scam","target":"#tab1"},{"label":"Speculating on the Housing Market","target":"#tab2"},{"label":"Waffling on an Obviously Good Deal","target":"#tab3"},{"label":"Backing Yourself into a Contractual Corner","target":"#tab4"},{"label":"Failing to Inspect the Property before Closing on It","target":"#tab5"},{"label":"Assuming the Title Is Clear","target":"#tab6"},{"label":"Underestimating the Cost of Repairs and Renovations","target":"#tab7"},{"label":"Doing Shoddy Work to Save Money","target":"#tab8"},{"label":"Over-Improving a Property","target":"#tab9"},{"label":"Forgetting to Pay the Taxes","target":"#tab10"}],"relatedArticles":{"fromBook":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}},{"articleId":207782,"title":"Flipping Houses For Dummies Cheat Sheet","slug":"flipping-houses-for-dummies-cheat-sheet","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/207782"}}],"fromCategory":[{"articleId":255157,"title":"How to Read a Property Listing with Flipping in Mind","slug":"how-to-read-a-property-listing-with-flipping-in-mind","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/255157"}},{"articleId":235550,"title":"Doing a Quick House Flip","slug":"quick-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235550"}},{"articleId":235545,"title":"Deciding How Much to Pay for a House to Flip","slug":"deciding-much-pay-house-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235545"}},{"articleId":235542,"title":"Finding Houses to Flip","slug":"finding-houses-flip","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/235542"}},{"articleId":207782,"title":"Flipping Houses For Dummies Cheat Sheet","slug":"flipping-houses-for-dummies-cheat-sheet","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/207782"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282203,"slug":"flipping-houses-for-dummies","isbn":"9781119861010","categoryList":["business-careers-money","careers","real-estate-careers","flipping-houses"],"amazon":{"default":"https://www.amazon.com/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1119861012-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1119861012/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/flipping-houses-203x255.jpg","width":203,"height":255},"title":"Flipping Houses For Dummies","testBankPinActivationLink":"","bookOutOfPrint":true,"authorsInfo":"<p><B><b data-author-id=\"9133\">Ralph R. Roberts</b></b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p>","authors":[{"authorId":9133,"name":"Ralph R. Roberts","slug":"ralph-r-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9133"}},{"authorId":8993,"name":"Joseph Kraynak","slug":"joseph-kraynak","description":" <p><b>Kenneth W. Boyd</b> has 30 years of experience in accounting and financial services. He is a four&#45;time Dummies book author, a blogger, and a video host on accounting and finance topics. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8993"}},{"authorId":34819,"name":"Kyle Roberts","slug":"kyle-roberts","description":" <p><B>Ralph R. Roberts</b> has been investing in foreclosed properties for over 30 years. He knows every step of the process, from scouting properties to cashing out after the sale, from helping distressed homeowners keep their homes to buying those homes when the owners can no longer afford them. He also has assisted homeowners who have been taken advantage of by unscrupulous investors.</p> ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34819"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"<div class=\"du-ad-region row\" id=\"article_page_adhesion_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_adhesion_ad\" data-refreshed=\"false\" \r\n data-target = \"[{&quot;key&quot;:&quot;cat&quot;,&quot;values&quot;:[&quot;business-careers-money&quot;,&quot;careers&quot;,&quot;real-estate-careers&quot;,&quot;flipping-houses&quot;]},{&quot;key&quot;:&quot;isbn&quot;,&quot;values&quot;:[&quot;9781119861010&quot;]}]\" id=\"du-slot-63221a82cb69c\"></div></div>","rightAd":"<div class=\"du-ad-region row\" id=\"article_page_right_ad\"><div class=\"du-ad-unit col-md-12\" data-slot-id=\"article_page_right_ad\" data-refreshed=\"false\" \r\n data-target = 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BYOB (Be Your Own Boss)
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Real Estate Careers Articles

It's all about location, location, location. And the right training. And expert wisdom. All are needed to succeed in real estate. Check out our articles to find out where you fit in this profitable industry.

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Flipping Houses

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General Real Estate Careers Landlord's Legal Kit For Dummies Cheat Sheet

Cheat Sheet / Updated 09-20-2022

Being a landlord certainly sounds easy. All you have to do is line up responsible residents, maintain the property, and count your money as the rent rolls in, right? Actually, no. Owning and leasing residential real estate requires that you comply with a host of federal, state, and local laws. Certain residents may complicate your life by taking legal action against you or forcing you to take legal action against them. This snapshot explains some important landlord legalities and helps you avoid the most common legal pitfalls of owning and leasing residential rental property.

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General Real Estate Careers Ways You Can Incorporate Your Business as a Landlord

Article / Updated 08-16-2022

How you choose to structure your business as the landlord depends in part upon your willingness to share its future and yours with others. Forming a corporation is a fairly complex legal endeavor that involves the following steps: Choose and register a name for your corporation that complies with state requirements. Write and file your articles of incorporation. Write bylaws to govern corporate operations. Issue stock certificates to your [email protected]’s owners and investors. Obtain any business licenses and permits required by your state and local governing bodies. You can take any of the following three approaches to form your corporation: Do it yourself. If you’re the sole owner of the business and don’t intend to add owners, seek outside capital, or do business in multiple locations, you may be able to incorporate without expert assistance. Use a third-party service. Hire a reputable, local attorney. Outsourcing to a business-formation service Numerous firms offer services to help you form a business entity. Three of the best known are Legal Zoom, Rocket Attorney, and The Company Corporation. Others include Inc Authority, and Directincorporation.com. Before using a service, check with others who’ve used it, and expand your search to include LinkedIn, Facebook, and Twitter. Find out how they’re regarded by the Better Business Bureau and local consumer protection organizations to determine whether any complaints have been filed against them. Keep in mind that these firms are ordinary retailers who tend to advertise low prices “Starting at …” for only a few of the services you need. Comparison shop. Find out what’s included and what’s not. Get a price quote from a reputable local attorney, as well, for comparison purposes. Make sure you get a price quote that covers everything you need to form your corporation. Hiring an attorney and accountant We recommend that you hire a reputable, local attorney to guide you through the process of incorporating your business and an accountant to manage the corporation’s payroll, taxes, and financial reporting for several reasons, including the following: Your attorney can help evaluate your specific needs for the area where you’re setting up shop and recommend the best business structure to meet those needs. Choosing the wrong business structure may imperil your personal assets and limit your tax benefits. Your attorney makes sure all documents are filed properly with the right government agencies and in a timely manner. Your attorney can refer you to experts in accounting, banking, financial planning, insurance, and web design. A good business attorney will have an ongoing professional interest in your success. Your accountant keeps the books and creates and files financial reports in compliance with federal, state, and local laws. Running your operation as a corporation As complicated as forming a corporation is, running it requires even more attention to detail. You must fulfill the obligations of corporate governance, which include: Paying yourself and other owners and investors salaries or distributions Holding at least one director and shareholder meeting annually Typing up and filing minutes from those meetings Updating the bylaws Practicing generally accepted accounting principles (GAAP) — standards and procedures for recording financial transactions and producing financial reports Producing and filing an annual report with your Secretary of State Preparing the corporation’s annual tax return

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Flipping Houses Flipping Homes: 11 Ways to Cut Renovation Costs

Article / Updated 03-30-2022

When renovating a property that you intend to flip, don't get carried away. Some home flippers hire top-of-the-scale contractors and insist on the highest-quality building materials from the nearest suppliers. To help you avoid that trap, here are 11 secrets that can slash your cash outlays and boost your bottom line. Get free advice and planning tools. You don't have to hire a professional interior designer to draw up plans for remodeling a kitchen or bathroom. Most home-improvement stores have their own designers on staff to assist you. If you purchase the materials from the store, the store frequently throws in the design consultation for free. And who can say no to free? You can often find additional planning tools and calculators online. Large home-improvement stores and manufacturers typically feature cost estimators, material lists, and installation instructions and tips on their websites. For some excellent online resources for planning your projects, check out Lowe's, Home Depot, and Bob Vila Design Tools. Hire moonlighters. Large construction companies often have large overhead costs, so they have to charge more for their work. A roofing company, for example, needs to purchase and maintain its trucks, pay rent on office space, and cover payroll expenses and insurance for its workers. To earn an extra buck on the side, the employees of many of these companies moonlight, which means they provide the same high-quality service on the side for a fraction of the cost. You can often locate prospective moonlighters by visiting worksites in your neighborhood. Ask to see the boss, and if he's not around, pitch your proposal to the workers. If the boss is around, you can ask him for an estimate without blowing your cover. Hiring moonlighters is a great idea, but make sure they have health insurance with accident coverage. If your workers don't have proper insurance and one of them gets hurt working on your house, your cost savings could quickly be sapped away by losses. If the moonlighters don't have insurance, buy an insurance policy that includes accident coverage for workers. Hire students over the summer. When school's out, college and high-school students flock to area businesses to secure summer employment, and they're often turned away because so many people are looking for jobs. That's where you come in. Post an ad in the local newspaper or contact high schools and colleges in your area to let them know you're looking for summer laborers. Students are eager and well-qualified to perform the following renovation chores: Mowing, weeding, trimming bushes and trees, and planting flowers Patching and sealing driveways and walks De-cluttering garages, basements, and attics Vacuuming, window washing, and other cleaning Demolishing old storage sheds Tearing out old carpeting Patching and painting inside and out Refinishing decks Buy overstocked or discontinued building materials. When you wander the aisles at your local hardware or building-supply store, find what you want and then ask about any overstocked or discontinued materials that are similar in appearance. Talk to the manager, who most likely wants to clear the old, overstocked items from inventory to make room for the new merchandise that's in greater demand. You can often purchase overstocked or discontinued merchandise for a fraction of the cost. Buy builder's-grade materials. When shopping for building materials, ask the salesperson to direct you to the builder's-grade materials — the more affordable options, such as prefab cabinets and low-grade carpeting. If installed and maintained properly, these materials are perfectly suitable for most markets. If you're flipping on the ritzy side of town, however, you may need to buy the good stuff. Gauge your selection of materials by the visibility and importance of the rooms. Consider using higher-quality materials for the kitchen, main bathroom, and master bedroom and a lesser quality for the other bedrooms and the second and third bathrooms. Use remnant material to trim your costs. Carpeting stores, countertop manufacturers, and other suppliers often have remnants in the back that may be sufficient for completing small jobs. Picky customers often return items that have tiny scratches or dents as well as materials that they cut a little too short. These gently used materials may be just what you need, and you can pick them up for pennies on the dollar. Buy time-saving power tools. When you hire a contractor, you indirectly pay for the tools that make the job much easier. When you rent a tool, you have to return it. When you buy your own tools, however, you have them for as long as they work, and you can spread the cost over several flips. If you're a do-it-yourselfer, buy the tools that make it easier for you to do a professional job. In addition to the standard hammers, pliers, wrenches, screwdrivers, tape measures, paint scrapers, and paintbrushes, almost every house flipper can simplify do-it-yourself jobs with the following power tools: Heat gun for stripping wallpaper and paint Power washer to clean everything from decks to siding Power roller for painting inside walls and ceilings Cordless drill with a well-stocked drill-bit case Screw gun with Phillips and flat-head screw bits Circular saw for decks and other woodworking projects Reciprocating saw for cutting anything you can't cut with a circular saw Nail gun for quick and easy single-handed nail driving Vibrating sander, or belt sander, for sanding out scratches and gouges in wood surfaces Charge purchases on a rewards-back credit card. Credit-card companies offer some pretty sweet deals to reward customers for using their cards, and as long as you pay the balance in full when you receive the bill, you're not socked with high interest charges. If your building supplier offers its own credit card, you may get a discount on all purchases. If not, shop around for other cards. Companies offer everything from cash-back deals to frequent-flyer miles, free merchandise, free groceries, 0 percent interest for a specific period of time, and other attractive benefits. Take full advantage of these perks. Schedule work off-season. During the off-season, larger companies have to keep their employees busy in order to pay them and finance their benefits. Use this as a bargaining chip when negotiating the cost of repairs and renovations. However, don't delay a project that needs to be done just to save a few bucks — holding costs (the cost of maintaining a flip) can outstrip any savings. You reap two additional benefits by scheduling work off-season. The contractor is more likely to complete the job on schedule and is generally more responsive when you need her services in season. Pool your projects. Most skilled laborers charge a minimum for just showing up. You pay for their time and travel expenses no matter how small the job. To save money, pool your projects. You can draw up a list of projects for the plumber, a list for the carpenter, and another list for the electrician. Have them complete all the projects in one trip. Better yet, if you have several houses going at one time, ask the contractor whether she'll consider giving you a discount if you guarantee that she can work on all your properties. Talk with your neighbors. If they're having the same work done on their homes, you may be able to negotiate a better price for multiple jobs. Rent a large Dumpster (a.k.a. skip) for all the tear-out and construction debris so all your contractors have one place to dump rubbish from your flip. By supplying the Dumpster, you can tell your contractors to remove the cost of waste removal from their estimates.

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Flipping Houses Flipping Houses For Dummies Cheat Sheet

Cheat Sheet / Updated 03-30-2022

"Flipping houses" sounds as easy as 1-2-3: 1) Buy a house significantly below market value, 2) fix it up, and 3) sell it. However, when you actually try to flip a house, you soon realize that it's tougher than it sounds. The beginner faces several hurdles, not the least of which is tracking down properties with potential and buying them for cheap. This Cheat Sheet brings you up to speed in a hurry on house flipping basics and helps you clear the most common hurdles.

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Flipping Houses Flipping Strategy: Buying into a Hot Market

Article / Updated 03-30-2022

When most people think of flipping houses, they immediately envision a process of buying a ramshackle house on the cheap, fixing it up, and then reselling it for more than they've invested in it. That's certainly the underlying theme, but the actual process of flipping houses spawns a tool shed full of choices and questions, including the following: Are you going to live in the house while fixing it up? How long can you afford to hold the house before selling it? How extensive are the renovations you're willing and able to perform? Before you even consider making an offer on a house, know how you're going to profit from it. Are you going to buy it at a bargain and resell it immediately at market value, do a quick makeup job and resell it, perform some major renovations, or fix it up and use it as a rental? Each of these strategies has benefits and drawbacks, but each strategy is a perfectly legitimate way to turn a profit flipping property. When developing a game plan, you want to maximize your strengths, minimize your weaknesses, and fully exploit the opportunities that surround you. Many a flipper have already developed their own strategies that achieve those three goals. By becoming more aware of these existing strategies, you can choose the one that fits you best and perhaps even improvise to invent your own strategy. Always buy low. If you can't get a house for 25 to 30 percent or more below what you estimate to be its market value, keep looking. In a sizzling real estate market, you can turn a profit fairly quickly by buying a house, moving in, and then sitting back and watching the real estate values soar. This approach works only if you have time on your hands, are speculative by nature, and have a knack for purchasing houses in a hot market at just the right time. This strategy offers several benefits: If the market remains strong, your property value rises without your having to lift a finger. Your equity in the property rises, boosting your borrowing power for other investments. By living in the home for two years or more, up to $250,000 of your profit ($500,000 for a couple), is tax free, at least according to the tax laws as of late 2006. Buying into a hot market also carries some significant risks: In areas where property values are soaring, the housing bubble may burst, leaving you with a home that is worth less than what you paid for it. Stuff happens. You can have a great house at a great price in a hot market with the top agent working to sell it, and the house still may not sell. Prepare yourself for all possibilities. What goes up sometimes comes down — sometimes very quickly — but all markets can be good for investing as long as you recognize the conditions and opportunities and react appropriately.

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General Real Estate Careers Property Management Kit For Dummies Cheat Sheet

Cheat Sheet / Updated 03-15-2022

Property management is a job of detail and preparation. You need to prepare empty units to show them to new tenants, be able to match potential tenants with the right unit, and, most important, be able to collect rents effectively.

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General Real Estate Careers Success as a Real Estate Agent For Dummies Cheat Sheet

Cheat Sheet / Updated 03-09-2022

The real estate business is a dynamic market. And to be a successful real estate agent, it helps to have a few key skills at the ready. Being prepared to use your time wisely, creating an online presence, converting online lookers into clients, and prospecting for business are important tools that every successful agent should possess.

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Flipping Houses Flipping Houses: Making Money in Any Market

Article / Updated 08-27-2021

The housing market, like the stock market, fluctuates. Home values can steam ahead, stay put, or spiral down out of control. You make your money when you buy a house at less than market value. By adjusting your purchase price based on market conditions, thus lowering your total investment in a property, you can make money in any market. The following list offers some general guidelines for gauging your total investment in the three main types of housing markets: Increasing: When home values are rising, your total investment in the property, including the purchase price, closing costs, renovation costs, holding costs, and selling costs, shouldn't exceed 80 percent of its estimated resale value. Flat: When home values are steady, limit your total investment in the property to 70 to 75 percent of the estimated resale value. Decreasing: When homes in the area are decreasing in value, invest no more than 60 to 65 percent of the property's estimated resale value. For example, to flip a house you expect to sell for $200,000 in a flat market, you may buy the house for $120,000, spend $20,000 fixing it up, and use $10,000 for other expenses (such as mortgage payments, insurance, utilities, selling costs, and unexpected bills). Your total investment is $150,000, which is 75 percent of the estimated resale value. In an increasing market, you can invest a maximum of $160,000 (80 percent of $200,000) in the property. In a decreasing market, you can invest a maximum of only $130,000 (65 percent of $200,000) in the property. After you decide how much you can afford to invest overall, adjust the purchase price accordingly. Don't expect to make up the difference in your other expenses (including renovation and holding costs). On the surface, these numbers suggest that you stand to make more in a declining market. You invest a maximum of $130,000 in the hopes of selling the house for $200,000, but in a declining market, you can't count on selling the house for $200,000. You may have to drop the price to $180,000 or less to price it competitively. By adjusting the total investment down in a down market, you simply reduce your exposure to risk. In any market, you want to earn at least a 20 percent profit for your time and effort. Don't let a slow market slow you down. If you see a gaggle of homes for sale with recently reduced asking prices, the market in that particular neighborhood may be starting to soften. This softening may signal a great buying opportunity, but you need to re-evaluate your resale estimate as well.

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Flipping Houses How to Read a Property Listing with Flipping in Mind

Article / Updated 08-22-2018

Each listing contains a deluge of details about the property, all of which can be very helpful in your search for a flippable property (see the a sample listing). Some of these details, however, are more useful than others. Focus your search on the following golden nuggets: List price: Now that you’re looking at listings of only those homes in your price range, examine the list price (found in the upper right corner) and compare it to that of other comparable houses in the same area. An inordinately low price can signal a buying opportunity, or it can raise a red flag, making you (and others) wonder, “What’s wrong with this one?” List date or time on the market: How long has the home been on the market? You typically find your best opportunities in homes that have recently been listed (in the past couple of days) or in homes that have been on the market for a couple of months. A home that’s not selling may be overpriced for the current market. In many cases, the longer the seller holds out, the harder it is to sell, and the more desperate the seller becomes. This cycle can signal a buying opportunity now or in the near future. Your agent can tell you the average time a home is on the market in any given neighborhood so you can properly gauge what’s considered “a long time.” Remarks: Near the bottom of every MLS listing is a Remarks or Property Description section that offers additional bits of information. Look for key terms, such as “sold as is,” “handyman’s special,” “in need of a little TLC,” or “needs a little work.” These phrases translate to “You’ll get the house for less because the current owner doesn’t want to clean, paint, or re-carpet.” Agents may also be able to download the seller’s residential disclosure, which contains additional details on what works and what doesn’t, whether the property has ever had biological contaminates (such as mold), how old the roof is, and so forth. Nothing on the MLS is the gospel truth. Sellers and real estate agents alike often estimate room sizes or make mistakes when entering details. Approach all prospects with a discerning eye.

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Flipping Houses 10 House Flipping Blunders

Article / Updated 06-25-2018

Many eager, ill-informed investors become overenthusiastic about the big picture and lose sight of the critical details that can make or break a deal. They pay too much for a property, underestimate the cost of repairs and renovations, fail to inspect a property or research the title, or sign contracts that they don’t fully understand. Here are ten common house flipping blunders to help you avoid costly mistakes and maximize your profits from the start. Falling for a Scam Money attracts entrepreneurs, but it also attracts thieves. When you flip a house, you stand to earn tens of thousands of dollars on a single transaction, but being successful requires determination, diligence, and hard work. Don’t let anyone convince you otherwise. Don’t be a sucker. Be on guard for the following threats: Get-rich-quick schemes, cash-back-at-closing schemes, no-money-down deals, and anything else that sounds too good to be true Partnerships, especially those that require you to take on all the risk, supply most of the money, or do most of the work Anyone who offers to take care of everything for you Speculating on the Housing Market Like the stock market, the housing market has its ups and downs. In a hot market, investors often become infected with irrational exuberance — the belief that current appreciation rates are an accurate representation of future rates. They overpay for properties, expecting them to appreciate, and when the market flattens or takes a dive, they’re stuck with a property they need to sell at a price no buyer is willing to pay. Don’t bank on double-digit increases in housing values, and be prepared with plan B. Waffling on an Obviously Good Deal Some investors experience paralysis by analysis. They overanalyze a great deal and can actually talk themselves out of it, or they waffle until another investor shows interest, and then it’s often too late. When you see a good deal, act quickly. You don’t necessarily need to buy the property right away, but by making an offer on the property, you can tie it up for several days, so you can research the title and inspect the property. Backing Yourself into a Contractual Corner Very rarely do people hand you contracts to sign that protect your rights or interests. They hand you contracts that protect their rights and interests. Before you sign a contract or purchase agreement, read it carefully and make sure that it has a weasel clause — a legal back door through which you can make a graceful exit. Failing to Inspect the Property before Closing on It Don’t rely on the seller’s claims and disclosures. The real estate community has a saying: “Buyers are liars, and sellers are worse, and sellers by owner eat their young.” Have the house inspected. A city inspection is best because it provides you with an inspection team consisting of a professional plumber, an electrician, a heating and air conditioning specialist, and a builder (for structural features). In some areas, however, city inspections are unavailable or are performed only on new construction; if that’s the case, have a trusted contractor inspect the property with you. If you’re buying a house at a foreclosure sale, obtaining a thorough home inspection before handing over the cash may not be an option, but you should inspect the home yourself as thoroughly as possible. Drive by the house, inspect the outside, and do what you can to get inside to take a look around. The less you know about a property, the higher you should set your margin to cover unexpected costs. Do a final walk-through a half hour before closing to be sure that the house is still in the same condition you bought it in and that what you’re expecting to be included in the sale is still on the property. It’s better to resolve any issues before you close; you have no recourse after. Assuming the Title Is Clear Anyone can sell a property. Even people who don’t own a property can sell it. Some con artists wait until the owner takes an extended vacation. They move into the house, pose as the owner, print out a fake title, and sell it to an eager but clueless buyer. Sometimes, they sell the house to several buyers! Another possibility is that a homeowner may try to sell you a house without telling you that the property has multiple liens against it. Unless you research the title and have the title company perform a title search, you can’t be sure that the title is clear or even valid or that the person selling the house really owns it. And if you’re not 100 percent certain, don’t buy the property. Underestimating the Cost of Repairs and Renovations When a contractor tells a homeowner that a complete kitchen remodel costs about $30,000, the homeowner acts like one of those old geezers who grew up during the Great Depression, when you could buy a candy bar for a nickel. Beginning investors often experience that same sense of sticker shock when they hire contractors to perform repairs and renovations. Just make sure that you have your sticker shock before you buy a property, not after you own it — when it’s too late to do anything about it. For necessary repairs and renovations, you should have an accurate estimate of all costs before you buy a property. You can jot down notes while you’re inspecting a property and then consult repair and renovation services to obtain estimates. Doing Shoddy Work to Save Money Sellers have all sorts of tactics to cover defects in a home. They may carpet over a floor that has extensive water or termite damage, pump out a septic tank that’s gone bad so the toilets keep flushing for a couple more months, or install wood paneling in the basement to hide defects in the foundation. As an investor who wants to remain in business, you should treat these tactics as taboo. Don’t sell your soul for a few thousand dollars. Over-Improving a Property Transforming a bungalow into the Taj Mahal may be a noble vision, but it ultimately lands you in the poorhouse. Know the housing market in your area and routinely visit open houses to remain abreast of current trends and market demands. Gauge repairs and renovations to meet or slightly exceed what’s currently selling in your area. Your renovated home should be more appealing than comparable homes in the area, but not excessively more appealing. Forgetting to Pay the Taxes In the flurry of flipping, taxes are easy to overlook, especially property taxes. Forgetting to pay your taxes, however, can further complicate your flipping operation, and back taxes and penalties can take a big chunk out of your future profits. Set aside a certain percentage of your profit from each flip in a separate account and pay your taxes out of that account. This separate account reduces the temptation to spend the money you owe to the government. If you fall behind on taxes, catching up can be tough.

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