Flipping A House: Real Estate Strategy

1242 words - 5 pages

When working within the realm of real estate, flipping houses is one of the most lucrative projects one can undertake. The premise of this idea is buying a home in need of repair, renovating it, and selling it at its newly appraised value. In high school, I worked alongside my mother to renovate a home in our small town of Trinidad, Colorado. The invaluable lessons I learned throughout this business venture gave me insights into the inner workings of house flipping. What I gained from this experience will lead to better decision making if I choose to take on another project. With a $150,000 budget, the most important aspects to focus on in a renovation would include updating appliances, applying fresh paint, installing proper flooring, and revamping the exterior. Assuming that the home being foreclosed on costs $110,000, I would allocate $20,000 of my budget for renovation expenses. This leaves a $20,000 buffer to be used as an emergency fund.
First and foremost, it’s essential that the appliances are addressed. Appliances are the “age spots” of a house. As a result of planned obsolescence, products such as refrigerators and dishwashers are meant to be replaced every ten to fifteen years. This leads to the innovation of new ideas during product manufacturing. For example, when manufacturers released stainless steel refrigerators, the once-popular white models with the convenient ice distributer quickly became outdated. This illustrates a simple rule: investing in new appliances is one of the quickest ways to make a home feel as though the builders recently made the finishing touches and packed up their tools. They instantly modernize the house. This is the reason new appliances weigh so heavily in a buyer’s decision when choosing a home. It should be the first category considered when budgeting for a house flip. I would budget $5,000 for new appliances. This estimate includes a new refrigerator, dishwasher, microwave, wall oven, and a washer and dryer duo. Staying away from the most expensive options while still buying something of quality will help one stay under budget. After these purchases, the remainder of my budget would be $15,000.
The next item on the checklist is paint. Changing the wall color of a room can instantly change its atmosphere. It can be a tricky matter, however, because everyone has his or her own color preferences. To prevent catering exclusively to a demographic of people who want red on every wall, it’s best to use a standard color palette. The keyword is “neutral.” Neutral colors provide a blank slate for those interested in the house to make the space their own. With this in mind, I’d choose no more than three different shades of a warm cream color for the walls. I’d allot $700 to purchase the paint needed for the interior walls of the house, buying roughly 20 gallons of Behr paint that serves as both paint and primer. After these purchases, there’s room for $14,300 for my remaining purchases....

Find Another Essay On Flipping A House: Real Estate Strategy

Education and Training to Become a Real Estate Broker or Agent

1736 words - 7 pages Education & Training Currently, there are no educational barriers to becoming a real estate broker or agent. Although, it is recommended that one at least have a high school diploma or equivalent. In recent years, there are a growing number of young brokers entering the field, about 70%, have obtained bachelor’s degrees or have some college education. Although no formal higher education is required, having a college education in a

Getting Excited About Real Estate Again

814 words - 4 pages , don’t neglect to treat prospective real estate agents as job applicants, due for thorough investigation before hire. Consult personal networks to obtain referrals, which usually produce successful agents. Schedule a business lunch to sort through details that lead to better negotiations, and don’t neglect the importance of compatibility when it comes to personal interaction. Look Before You Leap Reality shows depict house flipping as all the

Real Estate

2347 words - 9 pages the number of in-house staff on payroll and benefits is kept to a minimum. This makes team building especially reliant upon motivational leadership and performance incentives. All of these relationships must be worked out contractually between management and the team members. Sinderman (1994) reports that many real estate firms accomplish this sort of service through strategic alliances with a variety of businesses in response to downsizing

Real State Investment Strategy

1167 words - 5 pages Real Estate Investment Strategy Investing in real estate today can be very challenging as many factors come into play. It can be quite different than when considering purchasing your own home. For both properties in Stockton, California and in Chapel Hill, North Carolina, I have organized my paper in the following three strategies: flip, rent and hold. After carefully evaluating both properties I strongly believe that the rental strategy on

California Housing Market

1021 words - 4 pages than investors believe these investments will continue to rise in value and subsequently be sold at even higher prices. There have been many debates for the past few years as to whether a bubble exists in the real estate market or if the market simply exhibits strong fundamentals. There have been countless books published on how to make money by investing in real estate and flipping properties, with only one published on "How to Profit from the

Unique Solution To The Foreclosure Problem

995 words - 4 pages – which can be appropriately called the Real Estate Investment Revitalization Program. Although interest rates remain at historical lows, levels have been ineffective in promoting such a buy-lend approach. By additionally offering low-interest or even zero-interest secondary loans, however, REIRP would entice investors to take a buy-and-hold investment strategy since the risk of further depreciation would be partially offset by a reduced total

Real Estate Bubble? Does it exist and what does it mean?

1767 words - 7 pages these peaks a number of areas experienced a bust with a loss of 40 percent in value almost overnight. Another disparaging fact comes to light when looking at rental rates and prices. With the discrepancies suggesting that more houses are being bought for investment (flipping it) rather than for shelter or for rental income that they can provide (aier.org). One of the most significant valuation ratios measures the total value of real estate owned

A Credit to America

1264 words - 5 pages beginning payments, while the “balloon” type payment method took a slightly different approach by scheduling the large lump-sum payment on the mortgage at a future time, after a number of significantly smaller payments, allowing the individual time to refinance their house, assuming they earned a profit on their property, and possibly parlay the extra capital into a new house. Needless to say, the strength of the real estate market did not

The Sucess Of Results Real Estate, Inc

1457 words - 6 pages happen by this business opportunity only by chance. Many people do not realize when they make the choice to move, that by renting their house instead of selling it, they could earn extra income each month. The thought of renting houses petrifies many people, so this is where a property management company comes in to play. Results Real Estate handles all the aspects of renting a home, so the owner never has to deal with the hassle. Renting a home

Real Estate Industry In The Rental Market

2192 words - 9 pages into buying a house, or to rent and use the money that is not used to purchase to buy stocks or some other asset. People will purchase when it is relatively less costly then renting.” (Microeconomics 397) From speaking with a real estate investor who owns rental properties it appears that owning certain rental real estate is sometimes an immediate profit base or a long term investment base. Thomas Seeley explains, “Some properties that I own

Foreclosure.com Scholarship Essay

2348 words - 10 pages with beige color, while the rest of the home, the two front windows’ trim and railing around the small front porch, have been painted white. The modern, white door in the center of the front of the house looks brand new. The house is surrounded by grass that appears almost too perfect to be real. One small palm tree stands by itself in front of the home, and a large tree looms over the house from the backyard. Although no pictures are given of

Similar Essays

Becoming A Real Estate Agent Essay

1151 words - 5 pages Kayla Porupski Mrs. Conn Research Study Skills 2014 May 12 Career Paper: Real Estate Agent Everyone will experience buying a house at one point or another. Why not have a real estate agent help you and guide you through the process? I chose this occupation because it interests me for many different reasons. Wouldn’t you like a job where your schedule revolved around your life? Or

A Career As A Real Estate Agent

1926 words - 8 pages choosing a house, it is real estate agents who assist in make the final decisions of turning a regular house into a home. “Real estate is a year-round opportunity to help countless people realize the American dream” (“Why Real Estate”, 2012). Eighty-five percent of buyers believe that home purchases are good financial investments, and a majority of homebuyers and sellers rely on the services and expertise of real estate professionals to assist

The Real Estate Agent's Blackberry: A Mobile Assistant

2330 words - 9 pages The Real Estate Agent's Blackberry: A Mobile AssistantManagement Information Systems - 08223-SP07MGT 6352Toshira McCoyApril 22, 2007AbstractThe BlackBerry is considered to be one of the best mobile devices, for Real Estate professionals, since the laptop. According to the Porter's Competitive Forces model, an agent contends with a variety of external threats and opportunities. However, Porter's value chain model can also identify specific points

How To Receive Maximum Return On A Distressed Real Estate Purchase

1573 words - 6 pages predictability in the field. Although the current recession is not a one-day issue, the real estate sector has benefits for investing in both short- and long-term perspectives. The top efficiency of the distressed real estate purchase is described by the assigned scenario of $150.000 acquisition and detailed strategy of maximum investment return. First of all, let us be rational and consistent. It is the most unlikely that the amount devoted to