The Unofficial Guide to Flipping Properties Book

About the Author     xv
Introduction     xvii
Initial Decisions     1
Establishing Your Goals     3
Should you flip?     4
Assessing profitability     4
Non-flip real estate investments     6
Calculating ROI     6
Using someone else's money     7
Just the facts     8
Doing Your Research     9
How's the market?     10
Economic considerations     10
Looking at demographics     11
Government information     12
Government activity     14
Investigate permits     15
Benefiting from disaster     17
Brain picking     18
Just the facts     20
Deciding What Type of Flip to Do     23
Personal concerns     24
The three types of flips     25
The cosmetic flip     26
The intermediate flip     27
The total gut     29
Which type of flip is right for you?     29
Flipping other properties     30
Just the facts     31
Conversations: Moving Forward     33
A conversation withyourself     34
Expanding the conversation     35
One last check of government activity     37
Make the decision     38
Just the facts     38
Setting Your Budget     41
Budgeting for your project     41
Cost considerations     43
Acquisition costs     43
Soft costs     45
Hard costs     55
Labor expense     57
Planning for the unexpected     57
Potential income tax savings     58
Profits: your "take-home"     60
Just the facts     60
Acquiring the Property     63
Locating the Right Property     65
Condition of the property     65
Design and size     67
The age factor     69
It's all about location     70
Timing is everything     72
Project timing     72
Market timing     74
Searching for properties     76
Using a Realtor     77
Doing it yourself     78
Just the facts     79
Buying the Property     81
Making the offer     81
Pay as little as possible     82
Factor in estimated costs     82
Condition of the market     83
Contingencies     84
Loan approval     84
Counteroffers     85
Due diligence     86
Seller's disclosures     86
Physical inspections     89
Discussions with permitting authorities     92
Just the facts     94
Financing Your Purchase     95
Institutional lenders     95
Financing terms     96
Cross-collaterization     97
Mortgage brokers     98
Which method is better?     99
Seller carry-back     100
Self-financing     101
Plan financing in advance     102
Just the facts     103
Paperwork and Closing     105
Taking title     106
Title insurance     107
Legal form of holding title     108
Cloud on the title     109
Easements     111
Hazard and liability insurance     112
Other closing documents     113
Other closing issues     114
Just the facts     115
Planning the Flip     117
Cosmetic Flips     119
A few words about permits     119
Finding materials     120
Paint and paper     120
Cabinet refacing     123
Appliances     124
Light and bright     124
Bring in more natural light     124
Add light fixtures     128
Tile and stone     129
Kitchen and bath     129
Fireplace and hearth     132
Curb appeal     133
Just the facts     134
Intermediate Flips     135
Kitchens     136
Countertops     137
Cabinets     139
Appliances     141
Sinks and fixtures     143
Vents     144
Floors     145
Bathroom     148
Family/great room     149
"Going light"     150
Just the facts     151
Total Gut and Remodels     153
Permits and entitlements     154
Public hearing     156
Consider the neighbors     156
Local regulations     158
Construction issues     160
Electrical      161
Plumbing     162
Structural     164
Interior design details     165
External additions     166
Recreational extras     168
Just the facts     169
Doing the Work     171
Picking Your Team     173
The professionals     174
Attorney     175
Accountant     176
Banker     177
Architect     178
Realtor     179
Escrow or title officer     179
Contractors     180
The role of the general contractor     180
Licensed and bonded     181
Why hire a general contractor?     182
Subcontractors     182
Paying the contractors     183
Working with a partner     184
Just the facts     185
Doing the Construction     187
Establish a work Schedule     187
Empty the house     188
Order materials and schedule subcontractor work     189
Cosmetic flip schedule     190
Intermediate flip schedule     193
Demolition     194
Basic structural work      195
Operating systems     197
Interior walls     199
Flooring and finishing     200
Outside the house     202
Total gut schedule     204
Demolition     204
Framing     205
Roofing     206
Finishing up     206
Yard and exterior     208
Lawn and garden     208
Irrigation systems     210
Trees     211
Hardscape     212
Unexpected problems     213
Progress inspections     215
Just the facts     216
Taking It to the Bank     217
Selling Your Gem     219
Pricing expertise     220
Absorption rate     221
CAMO     222
Market knowledge     222
Property marketing expertise     224
Electronic marketing     225
Virtual tours     227
Traditional marketing     228
Realtor's network     230
Disclosure     231
Just the facts     233
For Sale by Owner     235
Doing a FSBO     235
Getting the word out      239
Staging the property     240
Outside the house     242
Just the facts     243
It's Done! Final Considerations     246
Closing documents     245
Tax ramifications     247
"Thank you, sir! May I have another?"     249
Just the facts     249
Glossary     251
Resource Guide     257
Recommended Reading List     261
Words of Wisdom     263
Before and After     269
Index     273