The People You Need to Hire for House Flipping

r20A few years ago, house flipping became a big business. It became so big that there had been more than five reality shows about house flipping and these shows rated high on viewership. In 2015, house flipping is still a very profitable real estate business, which you can get into if you have enough capital. House flipping is basically buying an abandoned house, renovating it then selling it at a good price. If you are interested in getting into the house flipping business, you need to know the people you should hire in order to help you from start to finish.

1. A reliable architect

Architects may be well-known as house designers, but they are also good in checking the state of a building-whether it is well-built, strong and whether you can change some parts of the house without sacrificing stability. Having an architect in your team is an advantage to your flipping business because some of your competitors may not have their own architects. Choose an architect who has a good record and who is willing to do the job based on your budget.

2. A good interior designer and decorator

It’s hard to sell a house if the interior is not well-designed. That is why you definitely should hire an interior designer. Interior designers are artists whose canvas is the interior of buildings. They will help you find the best color to paint the walls, placement of the furnishings and the decorations to make the house attractive to prospective buyers. In order to avoid conflicts about the look of the home interior, make sure the interior designer you choose is someone you feel comfortable with and has the same taste as you when it comes to decorations.

3. A fast renovation company

When choosing a renovation company to do the actual repair and remodeling of the house you are flipping, you have to ensure that they have enough qualified workers who can work fast so you can get your investment back fast. Remember, you have competitors in this business too and if they finish their house faster than you do, they may steal away your potential client. However, don’t sacrifice quality for speed too or else no one will trust you again. Remember, a renovation company with high-quality and efficient builders is what you want.

4. Real estate broker

Having a real estate broker is optional, but is advised. Real estate brokers have the necessary knowledge about finding possible buyers as well as connections that can help them find people looking for homes. The real estate broker you choose should be someone you can trust, and this person should have no past or present involvements in any disputes. You can check on your city for list of real estate brokers who are licensed for this job.

Comparative Market Analysis or Commercial Value Analysis for Real Estate Buyers and Sellers

r19Using a third-party source to understand the value of a real estate property is strongly recommended for most real estate purchases and sales, but appraisals can be costly and often time-consuming. The element of time is important when others are making offers for a property you wish to purchase; or when it’s important for you to list a property for sale in a timely manner and at the right price. Obtaining a clear understanding of the value of a specific property prior to ordering an appraisal is, therefore, a key for the successful sale or purchase of real estate. This will enable you to make a well-informed and intelligent decision concerning the property.

Consider the source! While it is helpful to obtain an estimate of value from the listing broker or agent, it is strongly advisable to obtain an estimate from a third-party entity that is not related in any way to the proposed transaction or the property, for obvious reasons. An unbiased opinion of value can be fast, professional, very affordable (less than $20 in many cases), and can help you establish the right price to list your property or to purchase a property effectively.

For residential properties, the comparative market analysis (CMA) report assesses comparable properties within the immediate market to obtain the value of the subject property. The commercial value analysis (CVA) examines the income, expenses, taxes, vacancy rate, capitalization rate and other financial information of income-producing properties to obtain the market value of the property as an investment or performing asset. Both approaches can be extremely accurate methods of real estate property valuation if performed correctly. They are also much more affordable and are typically obtained much faster than appraisals.

While both of the above approaches can be performed by the consumer, non real estate professionals, the buyer, or the seller themselves; it is always advisable to obtain a report of value from a third-party, unbiased, real estate professional because a third-party report can be a much more effective tool for financing, listing, purchase price negotiations, prospecting, development planning, etc. There are a number of free online sources that can assist in assessing comparable properties in your market that are currently for sale and/or have recently sold; However, a professional, third-party CMA or CVA can help establish a clearer understanding of the actual value of the subject property within its specific market. A third-party valuation report is advisable for comparing the value provided by the seller, listing broker or your own real estate agent. It is also useful when establishing a price to sell your property, and when considering any purchase, sale, investment, or development planning for any and all real estate properties.

The Power of Real Estate Signs

r18Over the ages of professional real estate signage has played an important part. Passersby are attracted by signs and people who are looking for the houses can find them easier. People frequently go out on the weekends to look at houses with for sale signs hanging in front of them. While that is happening less and less the real estate sign still holds power and very few companies have changed them over the years.

Coldwell Banker uses a white background sign with a blue logo that is easy to distinguish from most other signs. Over the years little has changed about this sign. A new 3D sign was released not too long ago but only the effect of the design is changed, the core elements remain the same. The only major real estate company that you could confuse a Coldwell Banker sign with is Windermere. Windermere signs also use a white background but the text is also displayed on that white background. What makes it easy to confuse for a Coldwell Banker sign is the blue backgrounded for sale label that runs across the top of the sign.

Sotheby’s sign is relatively close to both Coldwell Banker and Windermere’s sign but just in the fact that it uses white and blue. The Sotheby’s sign is blue with white text. In complete contrast Keller Williams uses an almost completely red background for some of its signs. Depending on the usage of the real estate sign it may also contain a partially white or black background. No other major reality companies use the distinctive red backgrounds but a few smaller ones do.

Century 21 signs have a black background and are the only major real estate company in the United States to do so. The design is finished off with a yellow house logo and white text. A few smaller companies such as Platinum Realty, Reece Nichols, and Semonin Realtors use black signs but they all lack the distinctive yellow house shape.

Each one of these signs you were probably able to recall in your head because chances are you have seen them before. All of these companies have created a brand image that allow someone to instantly identify who is selling a house. Realtors get a sense of authority from their signs, people know who they are and who they work for based off the real estate for sale sign sitting guard in the yard.

How to Hire a Contractor to Do Work in Your Home

r17An important aspect of hiring a contractor to do work in your home is to understand what permits, special requirements or licensure are required for each job. Once that’s understood, you can know whether it’s best to hire a licensed contractor or a handyman.

REFERRALS
Be sure to ask for referrals and references and know the relationship of those referring parties to the contractor. Ask for pictures of installations on similar jobs that have been performed for others and give those referring parties a call or visit to ask how the work was performed, the attitude during the job, coming in on budget and wrapping up on time. Discover if there are any negative remarks online or with the BBB. Be sure he or she is qualified to handle the scope and type of work needed, especially with regard to special conditions such as lead based paint, asbestos, mold, etc.

IDENTITY
If the home is occupied, if personal items are stored there or is otherwise notid_verified vacant, be sure to qualify your contractor if he’s unknown to you through online services such as mysmartmove.com or others. Get a copy of the contractors driver’s license and have him sign a w-9 to include his social security number. If you’re an investor and renovations are common for you, you may want to investigate the Verify Photo ID app recommended by Inman News.

CONTRACT
Next, execute an Independent Contractor Agreement with your contractor. Be certain it has no verbiage or requirements to suggest the contractor is an employee of yours.

PHASES
Now is the time to outline and understand the three phases of the renovation. The initial Phase One is paid on day 1 of the job. The subsequent draws for Phases Two and Three should be paid by the week, on a Monday or Tuesday. In constructing the phases, the contractor should budget for each item and any overages or misquote is the responsibility of the contractor, not the homeowner. Make sure your agreement covers things such as milestones, and outlines the scope and sequence of the work to be completed. The contract should include the description of all work, and condition of Customer Satisfaction such as all items completed in a workman like manner, job site left clean and tidy daily, and no items incomplete.

MATERIALS
Ideally the home owner should have chosen paint colors, sheens, types for each space, cabinets, granite and whatever materials will be used in the project at the source. Have your Independent Contractor pay for those materials and have that provider deliver the materials to the job site, then reimburse the contractor immediately – this strategy avoids any appearance of establishing an employee/employer relationship. Do not pay for routine tools and supplies the contractor uses in his everyday business such as paint brushes, ladders, tarps, etc.

UPDATES
If you’re not the owner occupant at the job site, require the contractor to provide daily pictures and videos of each phase when complete before scheduling a personal inspection and before payment on that phase is released. An investor can use this in the future or marketing.

COMPLETION
In exchange for the final payment the homeowner should sign off that he is satisfied with the job, and the independent contractor should sign that he is releasing all liens in exchange for final payment.