These 3 Successful Habits Will Transform Your Business

When you’re new to house flipping, it can be easy to get overwhelmed by all there is to learn about the industry. As you see other experienced house flippers make huge profits, you may be wondering how to get there yourself. Here are three successful habits that can transform your business more than anything else. By following these tips, you’re sure to be climbing the ladder of success in no time. 

Successful Habit 1: Be Authentic

Authenticity will be invaluable to you as a house flipper. The nature of your business leads people to distrust you from the outset, but being authentic will help you sell your flip—and bring you good karma for future flips, too.

For example, if you are authentically interested in a potential buyer, you will get to know their family, learn their names, ask them questions about their lives, and more. This will benefit you because you’ll then be able to point out ways the house might suit their lifestyle, and you’ll come off as warm and inviting.

When people trust that you have their best interest in mind, they’ll be more interested in buying a house from you. Even if they don’t buy that particular house, they may lead other buyers to your flip, or they may be interested in one of your future house flips.

Successful Habit 2: Stay Positive

Positivity is an important trait with anything in life. A positive attitude will help you focus on the good and bring even more positivity into your life. Because whatever you’re focused on is what will come to be.

If you’re always noticing things going wrong with your flip or zoning in on the bad aspects of your job, you’ll come to dread flipping houses. This would be a huge missed opportunity, as house flipping can be a very lucrative and rewarding business. Instead, see every mistake as an opportunity to learn something, and every missed sale as a process getting you one step closer to the actual buyer. 

Successful Habit 3: Follow the 80/20 Rule

The 80/20 Rule is the idea that 80 percent of your outcomes come from 20 percent of your input. In other words, if you have a to-do list with 10 things on it, there will be 2 items on the list that will have a far greater effect and influence than any of the other 8 items on the list.

By following the

80/20 Rule in your house flipping business, you’ll become more productive than ever before. You’ll start training yourself to identify the absolute most important things to do in a day, and letting go of the rest. No longer will you have days full of busy work, yet feel like you didn’t accomplish anything.

Learn More Today

If you’re looking for even more tips on how to find success in house flipping, sign up for a Real Estate Elevated course near you. We’ll teach you all the best practices to take your real estate investment business to the next level. Reserve your spot today.

Hard Money Loans Explained

When it comes to house flipping, financing is often half the battle. With the difficulty of loan approval and the necessity for quick cash, hard money loans can be the best option. They make the impossible possible for those hoping to invest in real estate, but who are lacking in cash flow or credit score. 

Getting approved for a hard money loan is a much simpler process than that of traditional funding because it is not determined by the borrower’s creditworthiness or income. However, hard money also comes with steeper terms, loftier interest rates, and additional fees. In obtaining the funds to flip a house, it is crucial to consider hard money loans in this regard: how they work, why they work, their advantages over traditional financing, and their drawbacks.

What is Hard Money?

As opposed to conventional loans, hard money financing is provided by private individuals or companies, and based solely on the value of the property. A hard money loan is essentially a short-term bridge loan, lasting anywhere from one to five years.

In determining the loan amount, lenders focus on what the property will be worth once renovations are complete, otherwise known as the ARV, or “after repair value.” Where traditional lenders require a good credit score and available income to pay back the loan, hard money lenders are more concerned with the value of the collateral.

The property itself serves as protection if the borrower defaults on the loan. Due to the high risk that the lender takes in offering the funds, hard money loans are typically more expensive for the borrower than what is available through mainstream financial institutions.

Why Use Hard Money? 

The high cost of hard money loans comes as a tradeoff for convenience. Hard money loans allow you to not only bypass a time-consuming application and verification process, but they also allow you to close on a loan and receive funding within a matter of weeks.

Unrestricted by stringent policy or standard underwriting procedures, lenders can assess hard money deals individually, leaving room for flexible term negotiations. Some may even allow the use of personal assets to secure the loan.

When Does It Make Sense?

Hard money is a tool used most effectively by investors interested in renovating and reselling real estate with a quick turnaround time. The ideal hard money user will increase the value of their property, sell it, and then repay the loan within about a year.

For borrowers with insufficient credit who have equity in their property, it makes the most sense to use hard money loans as short-term financing, especially considering the high-interest payments required by most.

What are the Drawbacks? 

Hard money may be a simple solution, but it is not always a perfect or profitable one. Hard money loans have their drawbacks, including high interest rates and low loan-to-value (LTV) ratios. Hard money often entails double-digit interest rates of up to 15%, as opposed to the prime interest rate of 5.5%. Because the property is used as collateral, hard money loans typically yield an LTV ratio between 50-70%, while the LTV ratio for a standard mortgage is around 80%.

Real estate training programs offered through Real Estate Elevated explore numerous other options for project financing that might prove more beneficial than hard money loans.

Is a Hard Money Loan Right for Me?

For many house flippers and real estate investors in the search for fast funding, the pros of hard money loans can certainly outweigh the cons. By enabling you to get your work done without the hassle of conventional bank financing, hard money may be the right solution for you.

Are you looking to get a loan to flip your next house? There are several ways to get funding. To learn more, sign up for a free Real Estate Elevated Seminar.

House Flipping: A How to Guide for Beginners

House flipping has become increasingly popular over the years. Done right, it’s a sure way to grow your money and gain financial freedom. The market has seen a recent uptick in the return of house flipping, and now is a great time to dive in. But if you’re new to real estate investment, you’ll want to do your research before you get started. Keep reading for 4 important tips on how to flip a house.

1. Invest in Your Curb Appeal

If you’re a new investor, make sure to give the outside of the house as much love as the inside. Curb appeal is everything when you’re flipping a house. The best real estate investors can take a drab, unattractive home and turn it into the most alluring house on the block with just a few quick updates. These fixes don’t need to break the bank, but showing some attention to detail on the front of the house will go a long way to attract buyers and increase the value of the home. Replace siding, add a fresh coat of paint, or upgrade the front porch. Add fresh flowers, trees, and gravel pathways to create an inviting home.

2. Know Your Neighborhood

One of the biggest mistakes new house flippers make is not knowing the neighborhood before they make an investment. Make sure you know what you’re getting into before taking the risk. Know the amenities the area has to offer. Learn about the nearby schools, look for parks and trails, and find out how far away the house is from stores, gyms, libraries, etc. A small, simple house in a great neighborhood is sure to sell faster than an amazing house in a less desirable area.

3. Do Renovations Right 

Some house flippers are known for slapping together some renovations to make a quick buck. But the most successful investors take the time necessary to do renovations right. Pay attention to details and use quality materials to make the greatest profit. No need to go all out with making the most expensive renovations, but don’t try to cut corners. Choose broadly appealing finishes and enlist the help of a reliable contractor. Your efforts will pay off when it comes time to sell the house.

4. Make Minor Upgrades for Major Impact

Even if you don’t have a huge budget for remodels, remember that the most minor upgrades can make a major difference in the eyes of future buyers. Learn to spot quick fixes that can totally change the look of the home. Add a fresh coat of paint, switch out door handles, and replace cabinet hardware. Install new faucets and light fixtures. Replace the backsplash and add new shower heads. All of these touches will go a long way to wow the next homeowners.

Learn More from Real Estate Elevated

These 4 tips will set you on the path to success with your next house flipping project. And if you’re looking for even more advice on house flipping and remodel projects, register for a Real Estate Elevated class today. Our expert real estate investors are eager to help house flippers of all levels of experience. Learn more about how we can help your business thrive today.

Real Estate Elevated Review: 4 Mistakes to Avoid When Flipping a Home

The most successful real estate investors are able to buy a home at the right price, flip the home quickly and affordably, and then sell it at a great profit. It seems easy enough, but there are many things that can go wrong in each step of the process. Avoid making painful mistakes by doing your homework ahead of time. Here are 4 mistakes to avoid when flipping houses.

1. Not Having a Budget

A budget is crucial to ensuring you maximize your profits in the sale of the property. If you’re not carefully watching your expenses, you’ll soon eat up all of the profit you could have made on the house. Or worse, you could end up putting in more than you’re able to sell the house for. Stick to a strict budget during the remodeling process, and leave room for unexpected expenses.

2. Not Doing Thorough Market Research

Housing markets vary from city to city. Even within that city, the market can change quickly from month to month. In order to be successful at flipping houses, you’ll need to do thorough market research before you buy a property. Compare homes of similar sizes and with similar amenities to make sure you’re getting a reasonable deal. After you’ve made a purchase, you’ll want to continue to keep a pulse on trends.

3. Making Renovations Without the Buyer in Mind

Flipping houses is a very different process than a personal home renovation project. If this were a home you were going to live in, you might make unique design choices to reflect your personal style. But the most successful house flippers strike a perfect balance of making renovations that are on trend, universally appealing, and affordable. Be sure to keep the buyer in mind when making renovation decisions, or you may end up with a house very few people are interested in seeing.

4. Overpricing Your Flip

After all your hard work, it’s natural to feel like your property may be worth more than it actually is. Overpricing your flip will mean it sits on the market longer than other more affordable homes. Since time is money in the real estate industry, you want to avoid this issue and set the price right from the start. Do your homework and set a realistic selling price.

Learn More from Real Estate Elevated

By following these tips, you’ll be able to avoid many of the brutal lessons other real estate investors have to learn the hard way. Real Estate Elevated offers tons of other helpful advice from experts in the industry. If you’re an aspiring real estate investor or a seasoned pro looking to take your business to the next level, sign up for our free course today.

Real Estate Elevated Review: Why You Should Bundle Your Rental Properties

As a new real estate investor, you want to make sure you’re getting started on the right foot. One real estate blunder could cause you to lose a lot of money, so save yourself the pain and learn from the mistakes of other real estate investors who have gone before you. One of the biggest tips any experienced investor would tell you is to start out by bundling your rental properties in one or two states. This will save you a great deal of time, money, and effort as you learn the ropes and build your capital. Here are four important benefits to bundling your rental properties.

1. Simplify Taxes

Tax returns need to be filed by state, so if you have properties in five or more markets, you’ll also be doing taxes in five or more states. If you’re like the rest of the world, you probably want to make your tax filing process as simple as possible. Avoid the headache and stick to just 2-3 markets so you’re not wanting to pull your hair out during tax season.

2. Save Money on Travel

Good real estate investors take time to check in on their rental properties every now and then. Even if you have a property management company, you’ll need to visit in person occasionally to make sure things are going well. If you have rental properties in the same state, you’ll be able to more efficiently and affordably travel to check in. Bundling rental properties will also save you money on other expenses associated with registering an LLC.

3. Streamline Management

Rental property managers are an excellent way to delegate the day-to-day work of running a rental property. But many rental property management companies are locally owned and operated, meaning you’ll have to work with a handful of different companies if you have properties scattered across the country. Save time and simplify processes by having one or two management companies run properties in the same general area.

4. Learn the Ins and Outs of the Market

Markets are changing all the time, and it can be hard to keep a pulse on the trends if you’re trying to divide your attention between many different properties. Thoroughly learn the ins and outs of one specific market by bundling your properties in the same place. You’ll be a more successful investor once you’ve gotten to know the intimate details of real estate investment in one region.

Get More Tips from Real Estate Elevated

By bundling your rental properties, you’ll be following an important best practice and set yourself up for success in the real estate industry. If you’re looking for even more ways to take your real estate investment career to the next level, Real Estate Elevated can help. We offer free courses all over the country, where new, aspiring, and experienced investors alike come together to learn from the pros. Sign up for one of our courses today in a city near you.

Real Estate Elevated Review: The Importance of a Great Property Manager

If you’re a real estate investor with renters, you should highly consider hiring a property management company to run the day-to-day business of your property. Following contracts, collecting rent, and dealing with household repairs isn’t for everyone, and a property manager can help significantly reduce your workload.

You may think a property manager is not worth the investment, but you’ll be able to maximize your time and efforts by delegating daily tasks to someone who specializes in property management. With a shortened to-do list and less stress, you have more freedom to invest in other properties and earn more profits.

But how do you know what to look for in a property manager--one that will be a beneficial addition to your real estate investing strategies? Keep reading for 5 signs that ensure you’ll have your rental properties in the hands of a reliable person.

1. Fair Pricing

Some people may think that the most expensive property management company is the best, but cost doesn’t always correlate with quality. A fair property manager will charge about 10 percent of gross rents. Anyone charging more than this should have strong reason for doing so. If you don’t notice anything exceptional about the property manager, move on to another option.

2. Organized Processes

Property managers have a lot on their plate. They’re responsible for collecting rent on time, screening potential renters, handing maintenance requests, dealing with evictions, and much more. Inquire about the property manager’s processes and make sure they have it all together before you hire them to take care of your investments.

3. Attentive to Tenants

Tenants are sure to get frustrated if the property manager doesn’t respond to their requests and questions in a timely manner. If they get frustrated enough, they may just move out and find a new place to live, and a high turnover rate will only cost you more money in the long run. Make sure the property manager has a habit of quickly responding to tenants’ needs and visiting the property regularly to make sure everything is going smoothly.

4. Experienced

No matter how much you like a property manager, it’s best to choose someone with experience. All kinds of things can go wrong with managing a property, and the more experienced managers will know how to handle anything that comes their way.

5. Good Communication Skills

 If you’re living out of state or don’t have time to stop by the property management office, good communication skills will be crucial to ensuring things go well at your rental property. Look for someone who knows how to write clear emails, answers their phone, and responds promptly. You also want a property manager who will be an effective communicator with tenants. Those who are hard to talk to or unlikeable will drive tenants away.

Sign Up for Real Estate Elevated Free Courses

If you’re looking for even more ideas on how to be a successful real estate investor, check out Real Estate Elevated. Our free courses have helped people all over the country ramp up their real estate investment career and increase profits. Sign up for a free course today.

How To Become A Wholesalers Top Buyer

Wholesalers are a house flipper’s best friend. They are your key ally when it comes to generating leads and finding a great deal on an investment property. That’s because they snatch up houses that would make great flips and sell them to real estate investors like you. While you specialize in flipping and selling a house, their game is to find and turn around good investments. They are motivated to find a quick buyer, and notify flippers and investors in their network when they have a property to sell.

So how do you become one of these lead-generator’s top buyers? The Tarek & Christina Seminars by Real Estate Elevated reveal two steps for making the most of your relationship with wholesalers.

1. Tell Wholesalers What You’re Looking For

The most unhelpful thing you can say to a wholesaler is, “I’ll buy anything! Send any lead my way.” They hear that all the time. Many flippers assume that a request like this will benefit them by casting a wide net and letting wholesalers know you are interested in a variety of different properties.

But what this statement actually does is ensure you are forgotten. You want a wholesaler to look at an investment opportunity and think, “I know exactly who would be interested in this!” If you are vague about what you are looking for, the wholesaler won’t always think to take a property to you. Besides, the truth is that you don’t want just any property—some may need repairs too extensive for your budget, or may be in a style or neighborhood you simply aren’t interested in. If a wholesaler brings you a property you don’t like, chances are they won’t be back with another.

Instead, tell wholesalers exactly what you are looking for. Size, location, condition, and pricepoint preferences are all helpful details. That way, when the wholesaler finds something that meets your criteria, they will call you first.

2. Stay in Touch

Check in regularly with the wholesalers in your network. This includes both the ones you have bought properties from already and those you just exchanged contact information with at a networking event. The goal isn’t to be pushy or overly annoying, but to stay on their network. Give them a call every few months or so to touch base, remind them what you’re looking for, and ask if they’ve seen anything lately that fits your criteria.

If the wholesaler doesn’t have anything for you, ask what other properties they have. They may or may not have one you might be interested in considering after all. Even if they don’t have any leads, your phone call will reinforce your contact and relationship and remind them that you are still looking for houses to flip. Stay in touch with more than one wholesaler—they are your best bet for finding investment properties fast.

When you stay in touch with a wholesaler and are clear about what you are looking for, you’re more likely to find a great property. And the more you buy from a wholesaler, the more likely the wholesaler is to come back with another lead. Real Estate Elevated knows that it pays to cultivate these relationships. Get even more advice about real estate flipping from Tarek and Christina’s Seminars.