Even 'dummies' can flip houses
Tuesday, December 19, 2006
By Robert J. Bruss
Inman News
In good markets or bad, real estate broker Ralph R. Roberts
reveals in "Flipping Houses for Dummies" how he acquires run-down
houses, fixes them up, and then either "flips" (sells) them for a
profit or holds for long-term investment. Roberts, a highly respected real
estate author, trainer and broker, shares his techniques along with advice on
how to minimize the tax bite on profits.
Every serious real estate investor who wants to earn large
profits needs to understand the methods Roberts uses because he has perfected
flipping houses almost to a science. He thoroughly understands and explains all
the critical aspects, including locating the properties to determining if they
are suitable, negotiating a successful purchase, supervising the fix-up work,
and making a profitable resale.
As a longtime real estate broker, Roberts knows all aspects
of the home brokerage business and he doesn't hesitate to share his insider
secrets. For example, he says, "Nothing on the MLS (multiple listing
service) is the gospel truth. Sellers and real estate agents alike often estimate
room sizes or make mistakes when entering details. Approach all prospects with
a discerning eye."
Even if you are not interested in "quick flip"
real estate profits, this is a great book to study because the author shares so
much of his real estate knowledge which he gained, starting at age 19, over
more than 30 years in the real estate business.
Maybe Roberts is getting a little "salty" in his
old age, but he exposes secrets most Realtors would never share with their
clients. Examples include how to obtain a "listing history" of a
property, how to determine what the seller paid, how long the property has been
on the market even with more than one listing, and if the property is difficult
to "unload."
This is a "fun read" book in the usual dummies
style, which includes features such as tips, warnings and even several sanity
checks. Along the way, Roberts shares many personal examples to illustrate the
topics, making the book extremely valuable so the readers don't make the same
mistakes he made.
Throughout the book there is heavy emphasis on what to look
for in a potential flipper house, how to locate them, how to acquire them, and
how to finance them. Roberts provides valuable insights about the importance of
borrowing funds. "As a real estate investor, good debt gives you
leverage," he advises, meaning you control the property with little of
your own cash.
Along the way, there are several excellent checklists such
as the "profit projector" and the "home inspection
checklist" so no important aspect is overlooked when evaluating a possible
flipper candidate.
Especially valuable is the chapter on "The Art of
Haggling: Negotiating a Price and Terms." Having sold thousands of homes
at his real estate brokerage, Roberts is a "pro" when it comes to
negotiation and putting sales together. His negotiation strategies are
priceless. I especially enjoyed the part about "digging up pertinent
information about the seller." If you are a serious real estate investor,
this chapter is a "must read."
Foreclosures receive extra attention because they offer
special flipper profit opportunities. Acquiring these properties can be tricky,
but Roberts simplifies the process as much as possible without getting bogged
down in details. Of course, it helps that he has a full-time associate who
specializes in acquiring these distress properties.
Chapter topics include "Wrapping Your Brain Around the
Idea of House Flipping"; "Building Your Dream Team";
"Guesstimating Your Potential Profit"; "Security in the Funds to
Fuel Your Flip"; "Trudging Through Some Taxing Issues";
"Hunting for Houses in Your Target Area"; "Inspecting the
Property with an Eye for Rehab"; "Prioritizing and Planning Your
Renovations"; "Perking Up the Curb Appeal"; "Dazzling the
Crowds with Updated Kitchens and Baths"; "Marketing Your Home";
and "Staging a Successful Showing."
This book is designed for realty investors who want to
profit from buying below market, making cosmetic improvements to add value, and
then quickly reselling. But real estate agents and home buyers should also
study it because of the valuable insights offered by a longtime, very
successful real estate broker. On my scale of one to 10, this superb book rates
an off-the-chart 12.
"Flipping Houses for Dummies," by Ralph R. Roberts
(Wiley Publishing Co., Hoboken, NJ), 2007, $21.99, 348 pages; available in
stock or by special order at local bookstores, public libraries, and www.Amazon.com.
(For more information on Bob Bruss publications, visit his
Real Estate Center).
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Copyright 2006 Inman News
