Sunrise Homes & Renovations, Inc.

How To Turn A Profit Flipping Land Into Residential Property

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How To Turn A Profit Flipping Land Into Residential PropertyReality TV shows have inspired people to flip houses for profit. They make it look fun, easy and the type of business anyone with some capital can get into.

Every once in a while, house-flipping episodes show an underperforming sale and a financial loss. That is why people in the flipping business need a cushion in case things don’t pan out.

This brings us to a slightly different approach. Some speculators start out flipping land. Yes, that’s right. Land.

Flipping Land Can Be Less Risky Than Homes

Rough land can be far less expensive to invest in than blighted homes. There are also fewer unknowns in terms of flipping. Investors won’t need to worry about replacing an electric box, mold behind walls or failing a building inspection. Land flippers can also start with a modest out-of-pocket investment and work their way up to short-term lending to finance endeavors.

The Basic Considerations

There are a few things to keep in mind when selecting a parcel. Property that abuts a street with sewer and water are preferable to scrub land in areas without services. It is not uncommon to run into difficulty drilling an artesian well or getting a permit for a septic system. Developers know this and will jump at street-ready parcels first.

Make certain the parcel qualifies as a buildable lot with the town or city. Then, hire an excavation team or clear the brush and trees yourself. The goal will be to create an open area where a home can be built while leaving suitable greenery.

The next step is to call a real estate agent and list the property. Quick land turnovers can earn several thousand dollars in profit with minimal effort. Remember to factor in hidden costs such as taxes, interest, and recording fees, among others.   

Upping The Ante To Spec Homes

After gaining experience in the land flipping business, take that knowledge and apply it to homes. Rather than scoop up a dilapidated structure, employ that land development acumen and take the next step.

Select a parcel that is in a prime residential location. What a surprise it would be to find a wooded lot at the end of a desirable neighborhood that can be developed.

Create A Budget and Obtain Financing

Work closely with a real estate agent to understand the types of homes that are trending and the average sale prices. With that information in hand, come to an agreement with a general contractor who can oversee the spec house project.

Decide on a design and calculate the total costs. Don’t forget to add 15 percent for overruns. Take that number to the bank for a building loan and put the team to work.

Get The Listing On The Market

Spec home projects can be listed with real estate agents even before the first nail is driven into a 2X4. A savvy real estate agent can get a property up online with design information, an artful rendition of the finished home and key selling points. In a perfect world, a new home buyer may be found before construction begins.

It’s important to realize that it doesn’t require significant wealth to get into the home buying and selling industry. By starting with modest, low-risk land deals and working up to spec homes, a solid living can be earned in the real estate industry. If this idea intrigues you, contact your trusted real estate agent to help you find just the right piece of land for inspiration.

How Do You Tell If A Neighborhood Is The Right One To Settle In?

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How Do You Tell If A Neighborhood Is The Right One To Settle In?Choosing the perfect home to settle in can be a tough decision. You have to weigh in on many factors including price, size, features and amenities, number of bedrooms and baths, design, and so on. However, all these factors are not enough to give you a great home ownership experience if you fall into the wrong neighborhood.

Picking the right neighborhood not only guarantees you happiness and comfort, but also helps with home appreciation for the sake of future re-sale value. In most cases, though, it can be tougher to find the perfect neighborhood than it is to find the right house.

Here are some factors that can help you find the right neighborhood:

Schools

If you have kids and the quality of their education is a priority, consider a neighborhood with a reputable school district. Even if you don’t have kids, such a neighborhood will most likely boost your home’s appreciation. You may also find it easier to find a buyer if you decide to move away from the neighborhood.

Crime Rate

No one wants to live in a neighborhood with high crime rates. This is one of the basic factors that you must consider when searching for a new neighborhood. Check the area’s crime statistics from the local authorities, search online, or ask your potential neighbors.

Transport

This is also a key factor to consider. How far do you have to drive to work from the new neighborhood? How much traffic will you encounter in the area?

If you don’t drive, are there adequate public transportation networks in place? How will your kids travel to school? Make sure that the new neighborhood meets all your transportation needs.

Basic Amenities

Is the neighborhood close to basic amenities that you are used to or that you rely on? Such amenities may include a nearby hospital, pharmacy, grocery store, bank or ATM, and law enforcement center. 

Recreational Amenities and Activities

Does the neighborhood have a park where you can go for a picnic with your partner or where your kids can play and make friends? Are there cultural attractions such as concerts, art exhibits and film shows?

Are there bars, movie theatres and restaurants close by? Are there malls or stores where you can go shopping during the weekends? What about a library, gym or community swimming pool?

If you are fun-loving person, make sure your neighborhood can provide as much fun as possible. You don’t want to start having regrets about a boring neighborhood in less than a year after settling in.

Community Engagement

Are you looking for a neighborhood with a sense of anonymity or a sense of belonging? In some neighborhoods, neighbors hardly know each other while in others, block parties and community events are a common thing. Which one would you prefer?

It is not easy to find everything you want in one place, but you can definitely get most of it in a certain neighborhood if you search well enough. Create your wish list and contact your trusted real estate professional so that they can help you find your dream house in the best neighborhood for you. 

The Basic Facts About Short Sales

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The Basic Facts About Short SalesAs a potential home buyer, you are probably familiar with what a typical sale looks like. You probably also have a basic understanding of what a foreclosure is and how it works. Another type of sale that may be less understood is called a short sale.

These sales are not as popular in the market, but you may come across a few. You may even fall in love with a home that is listed as a short sale. What does this mean for you as the buyer? These are the basic facts that you need to know about these homes and the process for purchase. 

What Is A Short Sale?

A short sale is negotiated when the lender for the current homeowner’s mortgage agrees to list the house for a smaller mortgage payoff amount. This means that they will be taking in less money than what is owed on the property in order for it to sell quickly on the market.

This usually happens when the current owner of the property, the seller, is in a distressed financial state. There are many reasons why a seller may have lost the ability to pay their mortgage, such as losing income or unexpected expenses. Maybe the owners are going through a complicated divorce and need to unload the property. Regardless of the reason, the lender has an incentive to remedy this situation.

How Does It Work For The Buyer?

When it comes to purchasing a short sale property, the process is not much different than purchasing any other home on the market. The lender will want to make sure that you will be able to complete the purchase, especially under these circumstances, so you will likely need to be preapproved or prequalified before your offer can be accepted. 

One major difference is that the process is typically more drawn out than if you were making a traditional home purchase. Even though it is called a short sale, it is not something that happens very quickly. In fact, it can take an average of 2 to 4 months for a short sale to be approved and for the actual closing to take place. 

Now that you understand the basics of a short sale and how it works, you can decide if it is something that may fit into your criteria and timeline. If so, and you do find a home you love, you should not let something like a short sale stop you from getting it. Your real estate agent can help navigate you through the process to make it as simple as possible. 

Thinking About Buying A Fixer-Upper? Know These Top Resources To Make The Most Profit

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Thinking About Buying A Fixer-Upper? Know These Top Resources To Make The Most ProfitIf your financial situation is limited, yet you’re handy with a hammer and nails, then purchasing a fixer-upper home can be an attractive option. Fixer-uppers typically require a bevy of updates and repairs to bring the home up to current market conditions. Because of this, the listing price is often considerably less than a move-in ready home.  Your trusted real estate professional can help you find the best projects to buy and sell.

Getting Started

Fixer-uppers aren’t for everyone, but there are plenty of resources available if you plan to do most of the repair and upgrades yourself. Let’s take a look at a few top resources to tap into if you’re in the market for a fixer-upper or if you’ve already purchased one and you are ready to get started.

  • At Home: A Blog by Joanna Gaines: Chip and Joanna Gaines are well known HGTV personalities who’ve made it their mission to fix up homes. A visit to Joanna Gaines’ blog is a gateway to renovation and decorating tips, products and real-time photos of projects in action. It’s a great place to go for inspiration.
  • Hands-On Workshops: If there’s a Home Depot near your home, chances are you frequent it for many of your hardware needs. There’s another reason you should stop in: Hands-On Workshops. If you want guidance on things like installing bath vanities, tile backsplashes, hanging ceiling fans, or measuring and installing flooring, there’s likely an upcoming workshop at the store that can give you the know-how and confidence necessary to do it yourself.
  • Jeff Patterson’s Home Repair Tutor: This YouTube channel boasts almost 120,000 subscribers and its how-to videos have racked up more than 30.5 million views. Videos include everything from how to tile a shower floor to installing a motion sensor light switch. If you need detailed step-by-step instructions on how to perform a particular job, chances are good this channel has it.
  • The Craftsman Blog: Written by DIY fixer-upper and author Scott Sidler, this blog is packed with how-to advice for home improvement and restoration projects as well as general tips and information about repairs like painting, plastering and restoring windows. This is a blog for a DIY fixer-upper written by a DIY fixer-upper. 
  • Your local hardware store: The big box hardware stores are great for finding just about any sort of tool you’ll need and for hosting how-to workshops. Generally, however, it’s your local, smaller hardware store that can really give you some great one-on-one advice as it pertains to your projects. These stores are typically family owned, and part of the reason they’re able to stay in business is because of their high level of customer service. This often includes guiding you on certain projects.

A fixer-upper can seem like a daunting project when you are getting started. Knowing where to look for the right resources can make a big difference.  Your trusted real estate professional is available to assist you and offer additional advice on your new endeavor.

Steps To Take To Prepare Your Home For Sale

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Steps To Take To Prepare Your Home For SaleOnce you have decided that you want to put your home up for sale, you should start taking the steps necessary to get it ready to go on the market. While some homes may be almost picture perfect and ready for a showing, there are others that may need some work.

It is always a good idea to evaluate the condition of your home as soon as you know you will be selling. Use these steps to not only determine what you need to do but to also guide you through your home sale preparation. 

Tips To Prepare Your Home For Sale

 

  • Have a home inspection done. Many things can be identified that are cosmetic in nature just by taking a walk around the inside and outside of your home. Often times, the best way to detect underlying problems that you will need to fix before selling your home is to rely on a professional home inspector. This is a great way to know exactly what needs to be improved and to avoid uncovering any surprising, and potentially costly, repairs during the commission of the sale. 
  • Make all necessary repairs. Once you know what needs to be done around the home, you should start prioritizing and making the necessary repairs. Some of the repairs may be costly so creating a budget and a plan of action can help you stay organized and efficient as you make these necessary improvements. 
  • Clean up the yard. If your home has a yard, it should look clean and tidy. You do not need to have the whole yard professionally landscaped but mowing the lawn and removing any unsightly tree limbs or shrubbery will help with the curb appeal and first impression of your property.
  • Clean up the exterior and interior of the home. It is essential that your home is clean and tidy as well so that your real estate agent can take quality pictures that will appeal to the most buyers and for your home to be ready for showings. If you are residing in the property, you should remove any personal effects, such as photos. This can make it easier for potential buyers to imagine this space as their own. You will also want to make sure to avoid clutter including dirty dishes or laundry. The home should not look lived in because you want the viewers to be able to see themselves living in the property. 
  • Consider adding new paint. It is amazing how much of a difference a new coat of paint can do for a property. You may want to consider painting all of the interior rooms as well as the exterior of the home. Fresh paint is an easy way to present a clean, fresh face-lift for your property. Keep in mind that neutral tones in paint color will appeal to the most buyers. 

As you can see, there are quite a few things that need to happen before a property is ready to go on the market. Your trusted Real Estate Professional can guide you through this process and offer additional tips to help you achieve a successful home sale in your area. 

Solar Roof Panels: A Mainstream Option For Homeowners?

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Solar Roof Panels A Mainstream Option For HomeownersDo rooftop solar panels add value to a home, and are they cost-effective in terms of energy savings? The short answer is yes, say the experts. Although more than a million U.S. homes boasted solar panels in 2016, the percentage of solar-equipped households is still miniscule. 

That may change, however, as domestic prices for solar installations continue to decrease and property values rise.

The Pros And Cons Of Solar

While there is global agreement on the need to encourage cost-effective, non-polluting renewable energy sources, it is also acknowledged that solar effectiveness is not equal in all locations or situations. 

Several Southwestern states boast abundant sunshine, a high percentage of roofs that face in the proper direction for solar capture, and high consumption of electricity, including the the need for air conditioning. Experts predict that California could supply 74 percent of its total electrical needs if its roofs were clothed in solar panels.

On the other hand, Nevada, with a much smaller population and a different climate, only has the ability to supply 14 percent of its total need. The truth is that solar is not equally beneficial in all locations.

Solar Costs On Par With Grid Electricity

Even so, according to information provided by the Union of Concerned Scientists, more than half of U.S. states have reached or are close to the point where rooftop solar costs are on par with grid costs for electricity. In areas where utility companies offer net metering, solar producers can return excess energy for credit, which results, in the best of cases, in a monthly electricity bill that is extremely low, perhaps even zero.

Before committing to rooftop solar panels, homeowners should ask some pertinent questions. An investment in solar is still pricey, even though installation costs have dropped by about 50 percent over the past decade. With government incentives of various kinds, the total cost may dip to $10,000 or below for an average size home.

On average, the payback on that initial investment will be long-term, even though monthly savings on electrical bills can be immediate. Panel leasing is a popular option, with no initial down payment required, although the lease term may extend for 10 or even 20 years. Another option in some areas is to invest in a solar farm or cooperative.

Important Questions For Homeowners

Pertinent questions include personal motivation: Are solar panels simply a way to save money or do they demonstrate eco-consciousness and a concern for quality of life? Owners should also consider how long they plan to own a specific home before investing in rooftop panels.

Current data suggests that buyers will pay a premium for solar-equipped homes. A study by Energy Sage confirms that buyers in some states are more “pro-Solar” than other U.S. residents, but notes that the national value boost is around $15,000 for an average solar home, and higher in select locales. That equates to between $3 and $4 per kilowatt of solar power generated.  

Even though the added value is not uniform throughout the country, it is obvious that rooftop solar panels are emerging as mainstream home amenities.