WHAT IS THE DIFFERENCE BETWEEN WHOLESALING AND HOUSE FLIPPING?

When you first get started in the world of real estate, many people will tell you to become a wholesaler. This might actually seem like a good idea at first glance. Wholesaling is similar to filling houses. The difference is that you don't have to do any rehab work to get the house back in shape. All that you need to do is strike a deal with a seller and find another investor interested in buying the property. 

While wholesale deals don't generate as much profit as house flipping, they also don't require as much effort on your part. As you're never actually taking possession of the house, you're just buying a contract, then moving on to sell it immediately. But just as we say in our Tarek & Christina Seminars, real estate wholesaling isn't as simple as it looks like. Some people may find it an ideal way to get started, but it's not a perfect solution for everyone. You need to take a closer look at everything that's involved so that you can make a more informed decision. 

Learning Is Highly Important 

Some people believe that wholesaling gives them the opportunity to skip the entire learning curve that is associated with real estate investing. They may think they can get started right away instead of taking time at the beginning to learn about how the real estate world works, house rehab and marketing strategies. Thinking that you can learn as you go along and skipping the initial learning face will often prove to be a costly mistake. 

On the other hand, if you've attended Tarek & Christina Seminars and have taken the time needed to learn what you should know about flipping, yet are still hesitant to go that route, wholesaling can be a good option. If you know how things work, how to obtain funding and how to spot motivated sellers, you can get started with wholesaling. 

However, you should know that it's still possible to get in over your head. For example, if you haven't looked into how to find investors willing to take over a property when you were researching house flipping. 

Many people see wholesaling as easy, as it's a more "hands-off" process. But once you've made a deal, you'll need to take action quickly to flip the house if you're hoping to make a profit. In order to achieve this, you'll need to have a list of flippers who you can contact to buy the property. But when you're the one flipping the homes, you don't have to build a list of investors, as all that you need to do is to find some leads, rehab the properties you've found and sold them on to interested buyers. 

Figuring Out the Values of Your Properties Can Be Challenging 

If you're skilled in marketing and networking, building a solid list of buyers may not be that hard. But there's another part in the wholesale equation that can be just as difficult: figuring out how much your wholesales are worth. 

Whether you'll be the one rehabbing and flipping the property or you just want to quickly wholesale it, you'll need to obtain an estimate of the rehab costs and the property's after-repair value (ARV). Some real estate experts believe that those interested in flipping houses should get started by wholesaling, as it allows them to gain experience in estimating these numbers without the potential of actually going over a rehab budget like during a flip. 

No matter what kind of real estate investor you become, you'll end up acquiring some useful skills while on the job. You should think of the differences between flipping and wholesaling, do your research and then get into the type of investing that you think is most suitable for you. Wholesaling doesn't make the same kind of money that flipping houses does, but it can nonetheless be a good choice for some investors.

5 REASONS WHY I LOVE UGLY HOUSES

We've all seen the "Ugly House" billboards that shout to the world, "We Buy Ugly Homes." There is a reason this business continues to profit all over the country. There is money to be made in ugly houses. 

The popularity of the house flipping business opportunity has encouraged numerous TV shows and other learning opportunities such as Tarek & Christina Seminars. The enthusiasm surrounding this business opportunity is palpable. Investors should be forewarned though. Without a good business plan, you can lose a lot of money. 

Real estate investment success relies on an investor's ability to buy low and sell high. As the old adage states, the devil is definitely in the details. Many real estate investors claim that the money is made based on the price of the initial purchase. Identifying and selecting the best homes to flip based on attractive margins is critical. That's why ugly houses offer a viable buying option for hungry investors in search of their next deal. 

Below are the reasons investors love ugly houses. 

1. There is less buyer competition. 

While there may be some competition from investors for ugly homes, there won't be too much competition from retail homebuyers looking for their next home. This fact automatically drives the price down as house flippers drive the prices down from a retail price point to wholesale pricing. There is no denying the fact that investors seek profits as their main motivation, but scheduling issues, preferred zip codes and other factors guide investor decisions too. 

2. The price of an ugly house is often depressed for identifiable reasons. 

A common scenario responsible for the ugly house phenomenon is that a home is older and has not been updated like other homes in the neighborhood. This keeps the price down since most homebuyers don't want to spend the money and time required to update the home. This means the price will be much less than a similar home that has new appliances and upgraded finishes. 

3. Ugly homes are easy to identify as possible deals. 

As mentioned earlier, finding a good deal is about identifying the best opportunities. Ugly homes stand out. These undesirable properties often sit on the market for awhile as sellers try and sell their home for higher prices than the market will support. Sometimes it takes unrealistic sellers some time to realize that their home is indeed an ugly home and will not command a retail price comparable to other homes in the area. 

At that point, sellers start considering their options. This timeframe is when sellers are open to negotiating with investors 

4. Inexpensive cosmetic changes can bolster profit margins significantly. 

The good news for investors is that many of the best investment properties only need cosmetic repairs to transform them from an eyesore to a desirable family dream house. Learning what to look for as an investor is extremely important. Tarek & Christina Seminars can teach anyone about how to evaluate properties. Simple fixes such as landscaping, new kitchen cabinets and a paint job can sometimes turn an ugly duckling into home sweet home. 

5. There are well-built, ugly houses available in popular zip code areas. 

Location is everything in real estate. Ugly homes are often located in highly desirable neighborhoods. Some of the best profit margins can be found in these locales. Since ugly homes often come on the market as the result of an older couple needing to sell, many of these homes are in great neighborhoods and are only considered subpar because they have not been updated. Large margins found in popular neighborhoods can be gold for investors. 

Ugly homes turn profits for astute investors who know how to transform them into sweet properties. Identifying these diamonds in the rough is crucial for investor success. There are undeniable reasons for tapping into this profitable market.

Do You Want To Sell Your Flip Faster? Work On Curb Appeal | Real Estate Elevated Reviews

No two ways about it: You want to flip your home as quickly as you can and make a profit. There is one easy way to help you complete this task: work on curb appeal. To see what other people are saying about how our events have helped improve their flipping, read our Real Estate Elevated Reviews.

There’s no exact science to flipping a home quickly and making a substantial profit around it. There are too many factors that can affect the way your home sells, but there are plenty of things that are in your control to help you sell your flip faster.

The real secrets to getting the best and quickest results on your flip aren’t complicated and in fact, flipping quickly with good results is a lot simpler than you’d expect. What’s the secret?

Try a Little Curb Appeal

Curb appeal is everything when trying to flip a home. Financially, it’s one of the least expensive ways to showcase your home in the most effective and aesthetically pleasing way. 

Think about your own home-search experience: You probably don’t even give any time or thought to homes that look unattended to on the outside. Untrimmed lawns and overgrown hedges push people away—they aren’t welcoming! And generally, the outside indicates the condition inside a home. 

Marketing your home includes giving it the proper attention on the outside just as much as the inside. Present your home the right way and give it some stellar curb appeal. 

Keep Up the Lawn and Shrubbery

You aren’t trying to sell a home that would fit in with Halloween. Houses that look like they’re abandoned aren’t going to turn a profit. Just because the inside is up-to-date and clean doesn’t mean people know that just from looking at it.

Make your flip look like someone has been taking care of it. Even if you’re the first owner in decades, take the time and money to get the lawn in order. Mow the grass and trim the hedges. Take care of any fallen trees or potential fallen trees that look like they could damage the home, the fence, or other property. Cut down dead trees as well.

Most external things you can do yourself. Put in that sweat equity and get your landscape looking like the king of the block. 

More Than Just Landscaping

Once you’re done with cleaning up the lawn and fixing the landscaping, it’s time to assess what else the outside of the home needs. You aren’t quite ready to put up a “For Sale” sign but you’re getting there.

Examining the physical exterior of the house is also essential to helping your house achieve better curb appeal. Consider things like the roofing. More often than not, old homeowners won’t replace the roof, which can cause long-term damage if not fixed. Is there mold or debris that needs cleaning? Never trust that previous owners cleaned and maintained the way you would. That’s a recipe for disaster.

You should also consider updating the paint on the outside, especially if it’s cracking. And with the new paint job, plan to hang attractive curtains, easily seen from the street. Putting these improvements into your rehab budget can help you flip your home quicker when the time comes. 

All this maintenance can also be done BEFORE you even start on the interior of the home. Why? Having a beautiful home on the outside will have people interested and calling about the flip. It won’t be ready, and that’s fine. Simply tell interested buyers you aren’t quite yet ready to show the home but you’ll be in touch when you are. 

Before you’re ready to show, you’ll have a list of potential buyers lined up at your (new) door.

Always Remember Curb Appeal

During the entire process of flipping your home, pay attention to the small details, especially on the outside. A small amount of planning and budgeting, in the beginning, can help you stay on task and keep a good timeline in the end. 

From roofing to painting and landscaping to a new mailbox, these are all things that enhance the curb appeal of your house. If you follow these tips, potential buyers will stop and look around, making it easier to sell your flip once you’re done. 

For more tips on flipping homes, register for one of our Real Estate Elevated events. To see how our events have benefited other investors, read Real Estate Elevated Reviews.

How to Invest in Real Estate When Your Credit Isn’t Stellar | Real Estate Elevated

Just because you have bad credit doesn’t mean you can’t invest in real estate. There are plenty of ways to secure a property and start turning a profit on flipping homes.

Whether you want to purchase your own home or invest in real estate as a main source of income, having bad credits hurts.

Since the 2008 recession, across the United States, people have fought to keep their jobs, keep their homes, and keep their credit up. If you don’t have stellar credit, it can be difficult to get a loan and invest in real estate. 

If you don’t have the capital for a large down payment on real estate, getting a loan is the next answer. But if you know you have credit issues, you may have already written off the idea of ever owning real estate. It can take up to seven years to start seeing real improvements on your credit score.

But don’t lose hope just yet.

There are people out there ready to help teach you how to invest in real estate property, even with bad credit. You’d be surprised what you can purchase these days. There are ways to get funds so you can invest in real estate and start flipping homes.

Personally Speak With Investors You Know

If there’s a piece of incredible property you have information on and you need money to make it happen, start talking with investors.

It’s part of your due diligence to put together a proposal for the property. This will take into consideration the market value of comps in the area, what kind of capital you will need for rehab and closing costs, and the after-repair value, or ARV. This will show investors you’re serious about making a deal and making a profit on the property. 

Even if it’s your first property, as you do your due diligence, there’s a chance you’ll find an investor ready to help.

Personally Partner With Another Investor

If you’re a real estate novice and don’t fully understand the process of getting funding, you might consider talking with someone who has more experience.

This process could start with attending Real Estate Elevated seminars in your area. It’s here you’ll get to know other people who have already flipped homes before. Build a relationship with them. Once you do, you can talk about partnering up. You’ll put in the sweat equity if they can take care of the majority of the funding. 

You might also consider talking with investors who are in your family, your circle of friends, or people you know professionally. Approaching more experienced house flippers you know is a great opportunity to not just work with someone you already know, but to work with someone who has experience in the field. If the potential is there for both of you to make money, they will see the property as a no-brainer. 

Look Into Hard Money Loans

Having a hard time finding investors? There are still ways to get money for your property, like hard money loans.

These aren’t like regular mortgage loans. Hard money loans look at the value of the property and its potential, not your credit score. The more success you see in flipping deals and building a stronger reputation in the industry, the easier time you’ll have convincing investors to trust you with their money.

As you gain experience, you’ll also have an easier time working with other flippers on large rehab projects as well as securing lower interest rates on your hard money and private loans.

If you’re serious about purchasing and flipping real estate but are stressed about credit, stop worrying and start taking action. Real Estate Elevated seminars are a great place to get started, especially if you want to gain insight from industry experts. The key to success is getting started, searching out investors, and putting in some sweat equity. 

Sure, you may have to take a higher interest rate and a smaller rate of return early on in the game. But as you progress in the business, successfully flip more homes, and study the industry, your profits may increase and people will trust you more. Hard work equals experience and experience brings in capital -- and future investors.

Real Estate Elevated Workshop Primer: Closing Checklist for House Flippers

Flipping a house isn’t for everyone. There are countless hours of renovations, negotiations, and sleepless nights that go into turning a junk house into a showpiece. After all that work, it would seem that the closing should be the easiest part; however, this process can be a little more complicated than many flippers think. But it doesn’t have to be! Real Estate Elevated is here to help you close the deal quickly and easily.

If you’ve seen our Real Estate Elevated reviews, you will see how many have been helped by Real Estate Elevated workshops. We know our business and helping house flippers is what we do. We’ve compiled some helpful tips to help you complete the house flipping process and get started on your next flipping project.

Schedule Enough Time 
After all the hours you’ve put into your property, you don’t want to mess up the deal at the closing. Take a careful look at your schedule and make sure you allow enough time to work through the whole process. A busy day filled with appointments is not the day to schedule a closing. Not only will it add to your stress level, but it could leave your clients feeling undervalued, which could make them rethink the transaction. You can’t move onto the next project if you don’t close the deal on your current house flip.

Schedule for Everyone Involved
It isn’t just your schedule you need to be mindful of. As you get close to the closing date, make sure that all parties have an idea about what to expect, timewise. Life is busy and schedules can change quickly, so being flexible is a good thing. As the closing date approaches, be sure to confirm the date, time, and location of the closing to make sure everyone is still able to attend. By communicating with all the people involved, you have a better chance of a smooth transaction and getting top dollar for your flip.

Keep Things Positive
A successful real estate transaction maintains the delicate relationship between buyer and seller through mutual respect. By keeping the deal positive, both parties are likely to leave the table feeling satisfied. If you’re not prepared or have other appointments to get to, your client can feel unappreciated, which can cause problems at closing. The best compliment a client can pay you is through a referral. No matter what type of experience they have working with you, they are going to tell their friends and family about it. You might as well make it a good one.

Closing Costs
There is an old saying that goes, “Don’t let a nickel stand in the way of a dollar,” and this is definitely true in a real estate deal. This transaction is about more than just the purchase price. That’s why we suggest going in with a cashier’s check, prepared to cover the closing costs in full. Think of how attractive that is for the buyer. It can be a relatively small amount of money in the short-term but can have a big impact on the sale.

Have Everything the Buyer Needs
Walk through the house and figure out anything the new owner will need to work everything and feel at home. House keys are a given, but what about garage door opener remotes? Is there an alarm system that they’ll need codes for? If you put in new appliances, you should have the manuals and warranty information in an obvious spot so they’ll spot them when they walk through their new home.

Inspections, Verifications, Etc. 
Exactly what you need to have done before closing depends on your state, but usually you’ll need a deed to sign over, required inspection reports, proof of any repairs done as part of the sale, and home safety certifications for the installation of items like smoke detectors. A house is a major investment and many people are very cautious as they walk into this situation. If you don’t have something you should, it’s probably just an honest mistake, but if the buyer thinks you’re trying to get away with something, the sale could fall apart.

Cool, Prepared Confidence
You might notice that many of these items come down to you being prepared and in control. Give the buyer no reason to feel nervous. Walk into closing with a smile and a firm handshake and keep your head up high because you know what you’re doing and you’re ready for this. They can feel confident about this purchase because you have enough confidence for the whole room. It makes a difference. The real estate business can be a complicated process, especially when it comes to balancing your clients’ needs and your financial obligations. But you don’t have to go at it alone. Our Real Estate Elevated workshops are designed to help you master your business and be the best asset for your clients. Our programs can help you gain the tools you need to run a successful real estate business. 

You can learn more about our program by reading some of our Real Estate Elevated reviews or by contacting us.

3 Simple Tips to Make Closing Easier

You’d think that after everything else, finishing a real estate deal would be the easiest part of the job, but it can actually be the hardest. There are a lot of important considerations you should keep in mind during closing to avoid problems later on. With a few helpful planning tips, you can be prepared for closing and wrap up everything smoothly.

1. Make the Closing Your Sole Booking 
As the final step of negotiation for the property, you need to focus your full attention on the closing. The last thing you want is to suddenly remember that you had something else scheduled the same day. Trying to balance between multiple bookings and other events can make the individual bookings into much more stressful occasions.

Moreover, you need to keep in mind how the situation will look to the buyer or seller you are working with. The process of real estate arrangements depends on maintaining a positive relationship between buyer and seller, so you need to present yourself as someone sincerely engaged in the discussion. When you’re fumbling between multiple deals or tense about time, your client may feel hesitant about the situation, thus complicating the final arrangements.

2. Check the Schedule Ahead of Time
Because it is so vital to have enough time to focus on the individual closing, you need to pay close attention to the scheduling. Not only should the closing be your sole booking, but you should make sure that your attorney and sellers also have their schedule(s) free to concentrate on the closing. Be prepared to adjust the date accordingly, since plans can change at the drop of a hat.

To ensure there is plenty of time for the closing, double-check your schedule and your client’s schedule a few days prior to the arranged date and make sure everything is still in order. Contact everyone involved to check that nothing unexpected has come up since you last spoke. If something new will interfere with the plan, change the schedule to a better time. The best plan is to have a flexible schedule in place from the beginning so you don’t need to reschedule – remember, any delay is extra time for either party to change their mind on the deal.

3. Be Prepared to Pay 
A closing deal can come to an abrupt standstill with just one common question: who’s paying? In addition to property price, there’s also closing costs that need to be paid. The buyer should come with enough money to account for all potential payments required, and the seller should make sure the buyer can actually pay before the closing.

To prevent issues over money, it’s best to straighten out who’s paying what and how much ahead of time. That way, both parties arrive at the final meeting with a solid understanding of what needs to be paid. If you are selling the house, it is sometimes helpful to offer a deal on the property’s value or cover some of the closing costs to help finalize the purchase.

Helping You Every Step of the Way
In the real estate business, where there are so many steps to ensure a positive client relationship, knowledge is power. With Real Estate Elevated and our professional real estate investment programs, you’ll find tons of useful advice on how to be successful with real estate management. Learn more about us, or check out some of the Real Estate Elevated reviews.

4 Ways to Recover from a Bad Investment

Sometimes real estate investments don’t go the way you wanted them to—but don’t give up. What matters is getting back on your feet and moving forward. At Real Estate Elevated we’ve learned that investment problems can be difficult to overcome, but not impossible. Here are four ways you can recover from a bad investment in real estate.

 1. Have an Exit Strategy 
When your investment turns sour, the first thing you should do is find a way to remove yourself from a sticky situation. If the investment has proven to be a bad idea, holding onto it will just make things worse for you, so get out of the investment as quickly as possible. It helps if you have planned a potential exit strategy when you first make the investment.

The exact form of the exit strategy can vary, depending on the context of the investment and your own preferences. For instance, you could sell the property at a lower cost than you originally had in mind. Hopefully, you can still break even or limit your overall loss, but the most important thing is to ensure the investment won’t continue to bog you down.

2. Stay Calm and Don’t Panic
Running into trouble with an investment you thought was good, can be very stressful and you might be furious with yourself for being a fool. Don’t let your mistake get to you. Continuing to get worked up about your failure only makes it harder to concentrate on overcoming the problem and doing better with future investments.

Rather than stay gloomy about your mistake, remain positive and think about how you can be more successful in the future. Use your previous mistakes constructively as examples of how to improve, and keep your eyes on your goal for positive future investments. Having an optimistic perspective can make a significant difference in investments, so don’t give up on your dream.

3. Analyze the Situation 
Now that you have calmed down and extricated yourself from the situation, it’s time to review the investment and determine why things went wrong for you. Look for any problems you hadn’t anticipated and anything you could have done differently. By applying your experiences to future investments, you can avoid those mistakes and have more success with real estate.

This, of course, requires you to be conscientious about your investment. Pay close attention throughout the investment process so you can look back on the experience and pinpoint key issues that should have been addressed, such as overpaying for the home initially, unexpected renovation costs, or poor marketing. Practice makes perfect, so treat your experience as a learning exercise that can be used to prevent future problems.

4. Move On to the Next Investment 
The most important thing is to not get discouraged with one bad investment. Instead, once you have a good idea of how to do better with investments, start looking for your next real estate deal. By using your past failures as a learning experience, you can have greater success with future investments. Good investments will help you recover from setbacks and expand past your failed investment. Take initiative to move from failure to success and keep looking for new opportunities.

 All the Investment Help You Need With the right steps, you can recover from bad investments, but it’s even better if you can avoid making real estate mistakes to begin with. To make sure you stay on top of things all the way, Real Estate Elevated provides high-quality investment programs that will guarantee your success in the marketplace. Check out Real Estate Elevated reviews to see what other people are saying about our programs.