Should I Become A House Flipper?

We've all seen a home improvement show on TV that features a charming couple or set of friends that buy a run down home, turn it into a spectacle, and sell it for a profit. While this type of reality TV provides us with a glance into the life of a house flipper, these hour-long episodes, unfortunately, do not paint the entire picture of what it takes to be successful at house flipping. If you have thought about becoming a house flipper, but you are unsure if it is for you, continue reading. This article will provide you with a few things to think about before deciding to flip houses, as well as some tips for success if you do decide to venture down this path. 

Things To Consider Before Becoming A House Flipper

1.       It Isn’t As Easy As It Looks

Flipping a house is no easy task. You will need a group of friends or a trusted group of contractors to help you flip a house in a timely and cost-effective manner. In addition to partnering with trusted contractors, you will need to have an established relationship with a home inspector who can point out things that need to be fixed, as well as a relationship with a local realtor who can negotiate the best price for you. Remember, when it comes to flipping a house, you are only one piece of the puzzle. Being a jack of all trades is impossible.

2.       It’s All About The Buying Price

To make a profit flipping houses, you will need to know what the house will sell for once it has been fixed up. Only then will you know how much you can offer the seller.

3.       Cash Is King

Dabbling in real estate is expensive. While you can get financing for investment properties, you will pay more as an investor. Even if you have A+ credit, your interest rates will be a couple of percentage points over the best mortgage rates available on the market. Also, some lenders will only finance 65% of the home if they know it is an investment property. Thus, the most successful home flippers use cash to purchase the homes they plan to flip.

4.       Flipping Is Time Consuming

One mistake many people make when getting into house flipping is under-estimating the amount of time it will take to flip a house. Due to this, many new flippers get in over their heads and end up losing money. Before you decide to flip houses, you must understand that flipping a home can take months to complete. Thus, if you do not have a secondary source of income, you may run into issues when trying to keep up with your other financial obligations.

5.       Flipping Houses Requires Patience

Home Improvement shows often leave out many of the struggles a flipper deals with on a regular basis. It takes time to wait for the right property to flip. Common problems many new house flippers run into is rushing into purchasing a house or hiring the wrong contractor. Making a profit on flipping a home requires a tremendous amount of patience for all of the pieces to come together. 

6..       You Need The Right Knowledge

Becoming a successful house flipper requires more than a basic understanding of real estate. To be successful at flipping houses, you need to be able to locate properties in the right neighborhood and at the right price. Not being educated could result in significant profit loss.

Tips To Being A Successful House Flipper

So, you've decided that flipping houses are something you want to pursue? We've got some tips to help you be successful!

1.       Don’t do the work yourself. Remember, work smarter not harder.

2.       Never skimp out on an inspection. Failing to inspect before purchasing a house could result in a substantial monetary loss.

3.       Don't over-improve. Make sure the improvements you are making on a property are in-line with the property value and features of other homes in the neighborhood.

4.       Add special touches that don't break the bank. Some of the most successful house flippers utilize materials from the demolition to create unique and chic features.

Can you make money with the traditional real estate transaction model?

Working as a real estate agent is a daily struggle balance between income-producing activities, lead generation, and administrative tasks. There is an undeniable load of paperwork, managing the details of current transactions, catering to the whims of buyers and sellers, continuing education, showings, and watching of national and local market trends. With so much time invested between closings, it is essential to know what you are actually earning and if it is the best way for you to make money.

 Earnings in a Traditional Model

There is a wide variety of brokerages all with different service and fee structures that impact how agents earn money. In a traditional setup, a full-service brokerage will garner a 6 percent commission from a sale to be split between agents for the buyer and seller. For example, six percent on a $500,000 home sale will fetch a $30,000 commission to be divided (equally for the sake of math) between the listing agent and buyer’s agent at $15,000 each.

Brokerages split the commission with the agent but usually pocket a larger share for services such as marketing, desk fees, and training. Some brokerages lure agents with the promise of a higher split of the commission, such as 90 or 100 percent. However, brokerages have to make money somehow, and they do that by providing services that agents must pay to access.  In our example, a $15,000 commission at 100 percent sounds impressive. However, once you factor in desk fees, marketing, advertising, travel, insurance, MLS fees, taxes and collateral such as signs, business cards, and brochures, that 100 percent commission drops to 30-40 percent or less than $6,000 on a $500,000 home.

Is this Working in your Favor?

With countless hours (and dollars) spent on non-income producing activities, the traditional model is an inefficient way to earn money. And the harsh reality is, most agents will sell six or fewer homes a year[i] meaning the six-figure salary you desire is going to top producers, while the lowest-paid agents earn approximately $22,230[ii] a year.

Making money in real estate comes down to a steady base of clients and a rock-solid reputation – two things that take time to build. This is when picking the right broker is essential to success. While it may be tempting to shop for agencies with the highest commission splits, you may miss out on valuable mentor programs, training, and advertising that is essential to success.

The good news is that there is change on the horizon in the form of technology-powered agencies that provide a different approach to real estate on all sides of the transaction.

 Alternative Models

Billions of dollars in real estate technology investments[iii] over the past ten years have given rise to a second-generation of companies like Home61 that are determined to turn the traditional model of real estate on its head. These second-generation real estate companies are different in three ways.

First, these second-generation real estate agencies differ by offering alternative fee structures and incentives on both the seller and agent side that save the seller money, and create a situation where the size of the transaction is not the primary focus for agents.

Second, these technology-driven real estate agencies place a significant value on rating systems (think Yelp or Trip Advisor). Home61 go beyond the agency rating and place additional emphasis on publicly displayed agent ratings.

The third distinguishing characteristic of the second-generation real estate model is the ability to harness the power of technology for lead generation, and transaction management. The online capabilities eliminate delays, shore up communication, deliver a steady stream of leads, and ease the burden of paperwork - making customer service the number one silo.

What does all this mean for you? The new tools provided by second-generation real estate brokerages provide income transparency, lead generation, marketing, advertising and training allowing agents to focus on income-producing activities – rendering the commission split meaningless and a paving a quicker path toward six-figure earnings.

 Home61[viii] shows that their agents are making more than double than in those in traditional models. Average earnings at $80,000 or more, and a frictionless and stress-free transaction for the homebuyer - isn't that what it's all about?

 If you’re a realtor in the Miami area and looking to relaunch your real estate career, join Home61. Our tech-powered brokerage is expanding and looking for new and experienced agents alike to join its team. Learn more about working with Home61. 

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 [i] How Much Do Real Estate Agents Make? https://www.thebalance.com/how-much-do-real-estate-agents-make-1798888

[ii] U.S. News Best Jobs Rankings https://money.usnews.com/careers/best-jobs/real-estate-agent/salary

[iii] Can good come from our next housing crisis? https://www.inman.com/2018/06/20/can-good-come-from-our-next-housing-crisis/

[iv] Home61 https://www.home61.com/real-estate

10 Reasons Feng Shui Is Legit

If you are like most people, the term Feng Shui may not have much meaning to you. However, the concept of Feng Shui could provide you with many numerous benefits. This article will give you an understanding of what Feng Shui is, as well as ten reasons you should implement it in your life.

What Is Feng Shui

Feng Shui is an art of living based on a philosophy that is firmly rooted in ancient Chinese history. Essentially, Feng Shui is a practice that is based on the idea that your home is a mirror of what is happening inside of you. The entire purpose of Feng Shui is to get your home and environment in alignment with who you are, and where you want to be. Essentially, Feng Shui will harmonize your energy with that of your home's energy.

10 Reasons You Should Try Feng Shui

1.       Feng Shui Can Promote Good Luck

According to many practitioners, Feng Shui can bring good luck to those who practice it. Feng Shui practitioners believe that incorporating instruments into your home that are designed to bring good luck, such as a Buddha statue or bamboo tree, can reverse bad luck and help you achieve your life goals. 

2.       Feng Shui Can Improve Your Health

There are theories out there that promote the idea that Feng Shui can improve health. Since there is scientific proof that our surroundings have a direct impact on our health, it is easy to see why this theory has so much support. Feng Shui practitioners believe that living in a house with negative energy can make a person ill. Thus, changing the simple layout of your house according to Feng Shui principles may promote positive qi into your home. 

3.       Feng Shui Can Help You Advance Your Career

According to Feng Shui principles, the north side of your home symbolizes your career. Thus, the north area of your home should be clear from any negative Qi or Xa, and should not be lacking in regards to the surface area and free space. For instance according to Feng Shui principle, if your office desk is currently blocking your lucky direction, it could be hindering your opportunity to receive a promotion. 

4.       Feng Shui Can Increase Your Financial Well-Being

In Asian countries, Feng Shui is most often used to promote financial wealth. For instance, the direction of the main door of a business or room, the positioning of the furniture, and the presence of water-related items like fish tanks can all impact one’s financial well-being. Setting up your home office or small business in accordance with Feng Shui principles can help you achieve financial success.

5.       Feng Shui Will Help You Stay Organized

The practice of Feng Shui promotes the idea that a cluttered home obstructs positive energy from flowing through a house. Hence, most Feng Shui experts suggest that unused or damaged items should be removed from the home. Eliminating clutter will promote the flow of energy through your home and into your life.

6.       Feng Shui Will Bring You Peace

Feng Shui promotes the idea of handling our living spaces to an optimal effect. Thus, merely rearranging the objects around your home can increase harmony in your home and life. For example, reorganizing the direction of your bed according to Feng Shui principles could bring positive qi in your bedroom, which will result in better sleep.

7.       Feng Shui Increases Energy and Motivation

Keeping the prosperity areas of your home clean and organized according to Feng Shui principles will help increase your energy and motivation. Another way to increase your energy and motivation according to Feng Shui is to strategically place big plants in the Eastern area of your home.

8.       Feng Shui Can Boost Learning

Every home has a Wen Chang area based on the direction of their home. The Weng Chang areas of your home can influence your learning capabilities. One way to influence your learning capabilities according to Feng Shui is to place four straight lucky bamboos in the Weng Chang area of your home. This guide can help you get started.

9.       Feng Shui Promotes Position Emotional and Mental Health

Feng Shui can help to boost your mental health through nature. Inviting nature into your life is thus very important if you choose to invite Feng Shui into your life. An excellent way to improve your emotional and mental health according to Feng Shui is to invite indoor plants into your home. This guide will provide you with information about Feng Shui-friendly indoor plants.

10.   Feng Shui Can Help You Find Love

Another primary reason many people use Feng Shui is to improve their love life. Here are some ways you can use Feng Shui to enhance your love life. 

Conclusion

While Miami gets all of the claims to fame, there are many surrounding suburbs that are not only quaint but also some of the best places to live in South Florida. 

Palmetto Bay is a prime example of a wholesome suburb just South of Miami. This small city may be less than 10 square miles, but it boasts homes valued at nearly three quarters of millions of dollars in addition to have a median household income twice the national average. 

Learn more about Palmetto Bay:

The Fourth of July is an excellent opportunity to spend quality time with family, enjoy delicious food, and celebrate the independence of our great nation with a private fireworks display. With the Fourth of July just around the corner, now is an excellent time to review Fourth of July safety tips. This article will help you ensure that your Fourth of July is memorable for all the right reasons. Let’s dive in.

Firework Safety Tips

According to an article by the New York Times, in the month around July 4, an average of 230 people per day end up in emergency rooms across the U.S. with fireworks-related injuries. The majority of injuries sustained from fireworks are burns, (50% of reported injuries), to the hands, fingers, head, face, eyes, and ears.  The most injured body parts include: hands and fingers (36%); eyes (19%); heads, face and ears (19%); abdomen (11%); legs (10%); and arms 5%. The good news is, there are precautions you can take to protect yourself and your family members from firework-related injuries. Here are some suggestions.

1.       Do not disassemble pre-assembled fireworks, attempt to make your own fireworks, or combine fireworks products.

2.       Make sure your fireworks are stored in a cool and dark place, and in accordance with the packaged instructions.

3.       Only light fireworks on the flat ground away from flammable materials, and only in a dry and fire-resistant area.

4.       Do not light multiple fireworks at the same time.

5.       Do not point fireworks at yourself or others while you light them.

6.       Ensure the person lighting the fireworks is equipped with safety glasses and is sober.

7.       Keep all spectators at a safe distance from fireworks being lit.

8.       Do not allow young children to handle or light fireworks. Always have an adult supervise firework activities.

9.       Keep a fire extinguisher nearby, along with a hose or bucket in case of a fire or malfunction.

10.   If a firework malfunctions, do not relight it. Instead, soak it in water and dispose of it.

Grilling Safety Tips

Grilling and the Fourth of July come hand-in-hand. That being said, the most common insurance claim on the Fourth of July is from cooking fires. According to the U.S. Fire Administration, more fires are reported on July 4 than any other day of the year. Here are some tips to keep your home and family members safe while grilling out this holiday.

1.       Keep a three-foot safe zone around your grill. This means keeping your grill at least three feet away from your deck, home, landscaping, or outdoor equipment that could catch fire quickly.

2.       If you have a gas grill, check the grill hose for cracks, holes, and leaks before using it.

3.       Never grill indoors, in the garage, or in an enclosed area.

4.       Keep children and pets away from your grill.

5.       Avoid loose clothing that can catch fire while cooking on the grill.

6.       Open your gas grill before you light it.

7.       Remove grease and fat buildup on a regular basis so it cannot be ignited.

Pool Safety Tips

Watersports are a very popular past-time on the Fourth of July; however, they have been linked to numerous deaths and injuries each year. The below tips will help you stay safe and keep your loved ones safe while enjoying water activities this July 4.

1.       Monitor young children closely. Never assume someone else is watching the children.

2.       Do not allow children to enter the water without proper flotation devices.

3.       Set water safety rules for your family.

4.       Keep a first aid kit near on your pool deck.

5.       Never swim alone.

6.       Swim sober. Research has shown that alcohol consumption increases the risk of accidental drowning.

7.       Apply sunscreen frequently to avoid painful sunburn, sunstroke, and heatstroke.

8.       Remember to drink plenty of water to avoid dehydration.

Additional Safety Tips

Some other tips to help you experience a safe and memorable Fourth of July include:

·         Wear insect repellant to avoid irritating bites and even sickness.

·         Check you and your family members' prescriptions to make sure you will not have a sun-sensitizing drug reaction.

·         Cover your food and beverages while outdoors to prevent bees and wasps from being swallowed.

·         Use alcohol responsibly.

·         Report any illegal explosives to your local police department.

·         Don’t leave your pets unattended outside, in a car by themselves, and avoid taking them to public firework displays.

·         Use good judgment when boating and always look up water and weather conditions before leaving.

Davie may not be as well known as Miami or Fort Lauderdale, however, it is still a city with nearly 100,000 residents calling it home. David is considerd one of America’s largest cities (top 350), but yet there is very little known about this city just 25 miles north of Miami. 

Here is everything you never knew about Davie, Florida:

If you’re planning to put your house up for sale, your main priority is to sell it as soon as possible, and get close to your asking price. According to the National Association of REALTORS® “2015 Profile of Home Staging”, 71% of sellers’ agents state that a well-staged home increases the dollar value buyers are willing to offer. Even though the vast majority of agents understand the importance of staging a home, only 38% of agents stage all homes before putting them on the market. The low percentage of agents that stage homes display the need for you to understand how to stage your home on your own. This article will provide you with professional staging tips you can use to attract the most interested buyers.

Three General Staging Principles

1.       Improve Curb Appeal

The first impression a potential buyer will get of your home is based on its outer appearance. Also, most people who think about touring your home will do a drive by first to determine if the house is worth an in-person tour. Thus, it's essential to make the outside of your home as attractive as possible. To get the outside of your house in tip-top shape consider:

·         Power washing the driveway and sidewalks

·         Mow your lawn and re-sod barren patches

·         Wash your windows to get them sparkling clean

·         Plant fresh flowers and fresh greenery

·         Remove trash, toys, and clutter from the yard

 2.       Remove Clutter

If you’re serious about selling your home fast, all clutter must go. This may prove to be a difficult task but is essential to getting your house sold fast and at asking price. If you do not have room to store your belongings, consider renting an offsite storage garage. Remember, clean and bright living spaces increase the visible size of your home in the eyes of buyers.

3.       Deep Clean

Before you place your house on the market, it’s critical to clean it from top to bottom. You want to make sure your floors are shining, your windows are sparkling, and your countertops and furniture are spotless. Having a clean home is the surest way to attract serious buyers and get your asking price.

Room-Specific Staging Tips

Tips For Decorating Your Living Room

The National Association of REALTORS® “2015 Profile of Home Staging” found that 51% of buyers’ agents state that staging the living room is the most important. Here are some professional living room staging tips you can implement with little effort:

·         Aim for symmetry in all accent pieces, lamps, etc.

·         Utilize lamps to bring in the added light.

·         Remove a few pieces of furniture in your living room to make the area look larger.

·         Include items such as board games or books on the coffee table to help buyers imagine their life in your home.

·         Arrange furniture in conversational groups.

·         Play a slideshow of beautiful photos on your television.

Tips For Staging Bedrooms

More than half, 51% of buyers’ agents surveyed in the "2015 Profile of Home Staging" stated that the master bedroom is the second most important room to focus on when staging a home. Some tips for staging the bedrooms in your home include:

·         Sticking with neutral colors in the master bedroom.

·         Packing away clothes to make your closets appear bigger.

·         Swapping out plastic hangers for classy wooden hangers.

·         Giving spare rooms a facelift by transforming them into an office, exercise room, or playroom.

·         Removing televisions from bedrooms to create a relaxed and serene atmosphere.

 4.       Tips  For Staging The Kitchen

The kitchen is also an essential room to focus on when staging your home. Some professional tips include:

·         Clearing away clutter from the countertops, leaving just a couple of decorative items.

·         Picking up all dishes and store them away.

·         Freshening up cabinets with a fresh coat of paint or stain.

·         Cleaning dirt and grime from all kitchen surfaces, including the walls and floor.

·         Cleaning out the inside of your cabinets. Believe it or not, buyers will open them.

·         Cleaning and organizing your pantry to make it appear bigger.

·         Emptying your trash and making sure your trash cans are out of sight.

·         Removing magnets from your refrigerator.

Tips For Staging The Bathroom

Tips to help you make your bathroom appealing to buyers include:

·         Scrubbing and sanitizing all bathroom surfaces to make them appear sparkling clean.

·         Spending extra time scrubbing grout, and re-caulk around your bathtub or shower if necessary.

·         Removing all clutter from the tub, toilet, and countertops. This means packing and storing all personal hygiene items as well as cleaners.

·         Displaying fluffy white towels, decorative baskets, candles, plants, a white shower curtain, and new bath mats to create a luxurious look.

·         Removing hard water stains from sink heads.

·         Cleaning out drains and your toilet.

·         Cleaning all mirrors leaving no dirt or smudges behind.

Final Thoughts

If you're like most homeowners in America, you probably have not thought twice about your mortgage since signing your paperwork at closing. You've probably been making your monthly mortgage payments without questioning if you could be paying too much or if you could get a better deal by refinancing your mortgage to a different lender. Did you know that merely reviewing your mortgage could result in thousands of dollars back in your pocket? We're about to uncover the top five reasons you need to consider reviewing your mortgage on a regular basis.

How Often Should You Review Your Mortgage

Chances are your life has changed since you got your mortgage. That means you could have a home loan that no longer fits your needs. In general, it’s a good idea to review your mortgage at least once per year to ensure it is still the right product for you. A mortgage review will require you to sit down with a mortgage specialist to look over your current monthly payment and loan term in detail to seek out opportunities for cost savings.

Reasons To Review Your Mortgage

1.       You Improved Your Credit Score

If you had poor to fair credit when you bought your home, you were probably issued a higher interest rate by your financial institution to protect them from any potential loss. If you have improved your credit score over the past year, there's a good chance that you could get a lower interest rate, which could save you thousands in interest charges.

2.       You Have Less Overall Debt

If you had an abundance of debt when you bought your house, you might have received a higher interest rate. If you have paid off other forms of debt such as student loans, credit cards, car loans, and personal loans, your debt-to-income ratio will have decreased. This means you should be able to get a lower interest rate.

3.       You Want To Shorten Your Loan Term

A common reason many people choose to review their mortgage is to shorten the term of their loan. Shortening the term of your mortgage may result in higher monthly payments, but doing so would reduce the amount of interest you pay on your loan and help you make strides towards living without a mortgage payment.

4.       You Want To Lower Your Mortgage Interest Rate

Many factors helped your financial institution determine what interest rate to charge you. If your financial situation has improved since you bought your home, you may be able to get a lower interest rate. Your mortgage interest rate should matter to you. The lower your interest rate, the less you pay for your home overall. A refinance calculator can help you determine how much you could save by lowering your interest rate.

5.       Remove Mortgage Insurance

If you put less than 20% down when you bought your home, you were probably forced to get private mortgage insurance or PMI. If you haven't reviewed your mortgage in years, there's a good chance that you forgot about PMI, as most lenders will include this fee in your monthly mortgage payment. Meeting with an experienced mortgage specialist could uncover details to help you eliminate PMI, which means money savings every month moving forward.

Final Thoughts