DC Fawcett - House Flipping In Real Estate

DC  Fawcett Real Estate Tips

Money earned by means of real estate flipping houses drastically changes everyone’s lives. For some, it is their profession and for others, it is a hobby. However, if you are making your career in this endeavor, it is the surest way of earning a steady income. A person can earn without going anywhere near the office or industrial park. Even if a person works for the entire month, their income does not match with real estate income. DC Fawcett warns against the bad investment or money invested in wrong areas which results in huge losses.

Mistakes made when flipping a house

1.       Paying more than actual price–The purpose for doing house flipping business is to make profits. However, when you pay more than the actual price and fail to negotiate, at the time of buying it, the profit reduces when you sell them. To turn it into real profit, one needs to study the real estate market. A lot of research has to be made before buying the property such as comparing at what price your neighbor had brought.

2.       Excess Investment 

     Another common misstate is investing too much money for personal finances. Even if the property is purchased at the said price, you lose out on your savings. Instead of that if you go for loans, there person need not repay the entire amount in one go.

3.       Incorrect cost estimation

      After getting financial assistance, make sure that project lasts long as you would need a good budget to cover for the renovations and little left over for contingencies.

4.       Leaving important upgrades 

     There is a saying that one should be shrewd with respect to money matters. However, keeping this thing in mind, people tend to go in for cheaper options, though certain upgrades cannot be ignored. The buyers focus on kitchen, bathroom and master suite. At the most, you can reduce the cost on stops on these rooms.

5.       Neighborhood Ignorance

     Neighborhood awareness plays a very important role in house flipping. If your house is surrounded with ugly houses & surroundings, flipping becomes difficult.

6.       Getting into the deal without house flipping team 

     Though, it is possible to do it independently, having a team is even better to guide you when you are new in this line. You can trust

a.       Real estate attorneys

b.      Certified public accountants

c.       General Contractors

d.      Real estate agents

e.      Lenders

7.       Fear due to bad experiences in this endeavor

      Many fear to go from house flipping either due to bad experience because of becoming a scam victim or getting nervous at the time of purchase. However, one should overcome the fear and change their mindset.

8.       Poor planning

     Though you get innovative things in your mind, you need to chalk out the plan and get ideas about different types of renovations, budget and schedule. Lack of planning postpones the renovation which makes you lose more money.

There are many more mistakes that are being committed which when mentioned becomes a long essay.

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DC Fawcett’s Gem – The 7 steps to make a successful real estate deal

In spite of commercial real estate values dropping down during crisis, there has been a steady increase in the number of investors planning to invest in commercial real estate. So here are 7 steps for you to find a good commercial real estate deal as reviewed by DC Fawcett. 

Step 1: Research thoroughly

Know the ins and outs of the commercial real estate industry. Commercial real estate industry calls for more incoming of money. The inflow of cash resulting from office spaces, retail spaces, it parks, malls, shopping complexes, hotels and multi residential complexes is obviously enormous as compared to single residential complexes. Also leases for commercial complexes are longer than for residential homes. Multi residential homes often have leases for one year and office and retail spaces for a period of 5 years. You need to have some good hot cash to lay down before you buy a commercial property.

 Step 2: Set parameters

You need to have a plan. Chalk a plan comprising of answers to questions like how much can I pay? How much will I profit? How to maintain a balance between obtaining maximum rent and keeping the vacancies and tenant turnover minimum? And so on. Commercial real estate agencies can help you to come up with a fine plan as they often advise on these lines. Their specialized knowledge on commercial real estate which varies from city to city, state to state and suburb to suburb can come in handy.

Step 3: Keep yourself sharp to identify the most lucrative deals

You must keep yourself informed and updated about various real estate commercial strategies which will ensure to get you the best or at least a safe deal. You must assess the various risks involved like damages that can occur, cost of repairs and also make sure that the deal meets your financial targets. Know to

Step 4: Learn about commercial real estate metrics

Some of the metrics are

·         Net operating income : the gross operating income for first year minus operating expenses for the first year

·         Cap Rate – to find the value of income producing properties

·         Cash on cash : formula which  helps investors to decide their principal investment based on the comparison of first year performance of rival properties

Step 5: Target sellers who will let you make the best of the deal

Aim at finding sellers who are willing to negotiate the property prices. They must be ready to sell below the market value.

Step 6: Make a thorough study of the demographics of your neighborhood 

Do this to estimate the price of commercial real estate and its demand in that area. Factors such as age, race, gender, vacancies, migration, population etc comprise the demographics of an area. They can influence real estate crucially.

Step 7: Be open to sources of information

Browse the web, read classified ads and use real estate agents to keep your information bureau updated. Real estate agents often give you the best of information about deals. You could plan strategically to hit the best deal.

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Virtual Wholesaling! Reality or myth? With DC Fawcett

There are quite a few reasons why you should start out with wholesaling when it comes to real estate . The foremost thing about this concept is the easiness tagged to it, meaning it is very simple and easy to start. Requiring no cash in your bank account, you don’t need to have a good credit score neither, money for repairs on a property, you don’t even have to be concerned about getting wedged with a property, or worrying about dealing with financial institutions and getting the approval of short sales. The best part about virtual real estate wholesaling is that the investor can broaden his/her efforts across multiple markets, which will capitalize on their potential return on investment. The virtual wholesaling real estate strategy includes Short sales, REOs, Commercial and several another type of real estate as well. 

Quite a few reasons can be listed as of why an investor would choose for virtual wholesaling of real estate, but better markets, less competition, and diversification are a few to mention. Let us look in detail given by DC Fawcett. The local market might be profoundly saturated, while the other markets may present better scope for real estate wholesaling. When compared with competitive analysis, lucrative markets create a center of attention to many investors and speculators. With that said, other areas may be undiscovered & undervalued; this helps in offering better possibilities and less competition. Allocating capital in a way that trims downs the revelation to any one particular asset or risk; certain areas might offer more of one type of real estate, preventing diversification. You might have buyers attracted in mobile home parks, if the local vicinity does not present a lot of opportunities, mounting into other markets might be the best way out.

In view of the fact that, different markets have different up & down swings, it is the supply and demand that decides things irrespective of the market types, and it is for this reason why every investor needs to be informed and be clued up on the different markets. With that said, the same scenario in your local market may not apply elsewhere; hence it is wise to good knowledge about the market. Virtual Wholesaling of real estate allows the savvy investor, to invest, where they can take delivery of the highest return on their investment.

If you wanted to get the most out of virtual wholesaling then you should consider inculcating DC Fawcett Virtual Wholesaling strategies. Following are some of the advantages you will discover:

•        An effective yet simple method for generating a deal-hungry buyer list in 7 days or less

•        Finding hidden deals in a competitive market that others can’t find

•        The easiest method to get hold of instant properties to sell to your buyers

•        Generate more leads than you can handle, ultimately resulting in more income.

•        The secret purchaser nature all wholesalers are neglecting that shell out more than all other buyers and much more…

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What is Virtual Wholesaling? - DC Fawcett

Virtual Wholesaling is art of making money from flipping properties without ever owning them. Most of the time, these are ugly properties we refer to as wholesale properties. Wholesale properties don’t need to be ugly properties. Many times we wholesale pretty properties that need little to zero work.

The virtual aspect of virtual wholesaling comes into play because you can do this business from home or wherever you want. Maybe you like to sit by the pool, or at the beach, or on vacation with your family. You never need to physically touch or visit the property you work with. Everything is done on your computer over the Internet.

You never need to put any money at risk or use your credit. Your credit score and the amount of capital you have does NOT matter. You don’t need any special licenses or even a real estate license. This makes Virtual Wholesaling the Easiest way for new investors to get started in real estate investing by virtually flipping wholesale properties

We have many members that were dead broke with terrible credit and were able to be successful with virtual wholesaling using the Virtual Wholesaling Cheat Sheet along with the training and tools we provide to help you get started with Virtual Wholesaling and also know about the House Flipping .

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