HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

January 17, 2010 by · Leave a Comment 

The HUD Secretary announced Friday afternoon a temporary lift on the 90 day FHA seasoning rule.

This is HUGE!!!

In an effort to speed sales of distressed properties and homes
that have been rehabbed by investors buying and selling for a profit,
FHA will no longer require that the property be owned by the seller for 90 days!

This rule waiver is scheduled for one year and designed to “stabilize
home values and improve conditions in communities where
foreclosure activity is high”, according to the announcement.

This is going to reduce hold times for investors and increase investor activity. It also
means FHA will insure REO’s for buyers!! Did I mention how BIG this is? This will definitely
stimulate some sales!!

Here’s why this is so great….

For investor resales, FHA is the only way to go right now because they
require only 3.5% down and the seller can contribute up to 6% to
the buyers closing costs, getting them in very, very light when
necessary. Problem was, FHA wouldn’t underwrite any home being
sold within 90 days of the purchase. This rule has squelched many
investors activities and kept them from buying, because they were
being forced to hold the properties longer, increasing their expenses.

Orlando Home Flipping Updates

Orlando Home Flipping Updates

December 17, 2009 by · Leave a Comment 

The 2013 Lake Dr home I purchased for $114,000 back on June 12 2009 has sold! This was a fun rehab that took just over 30 days to complete. We just sold it on 11/12/2009 for $212,500, exactly 5 months. Huge profit!!

Lake Dr Home - Orlando Flip Update

Here is the 31 Areca home in Azalea Park. MFIP sold this home to another investor back on 6/22/2009 for $52,000. This home recently sold on 11/13/2009 for $122,900. The investor made a huge profit.

Azalea Park Home Flip - Orlando

7751 Boreas is another future success story. This home was also purchased from Mid Florida Investment Properties (MFIP) by another real estate investor. The home was purchased on 9/22/2009 fo $75,000 and is now pending at $130,000. The closing date is set for 12/21/2009. We received an offer right away on this home and we are closing right after the 90 day seasoning. Another huge profit!

Orlando Home Flip Update

Here is another home purchased from MFIP. The investor bought it from MFIP for $49,900 back on 10/15/2009 and it is now pending at $100,000. For this home, we have a conventional buyer and can close before the 90 day seasoning period.

Future Orlando Home Flip

5110 Old Cheney Highway Video

November 8, 2009 by · Leave a Comment 

The Maitland Flip

The Maitland Flip

September 25, 2009 by · Leave a Comment 

The Maitland house is now finished and it turned out better than I ever imagined. Randy, the owner of this flip used his custom home building skills to turn this dated home into a beautiful master piece. This home had a lot of quirky areas that Randy had to get creative with. This Maitland home was purchased from Mid Florida Investment Properties for $130,000 and is now currently on the market at $259,900.

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Here are some of the repairs.

The roof was replaced by Randy, some helpers and a contractor. To keep down the costs Randy and his helpers tore off the roof and covered the roof. Randy rented the dumpster himself and bought the materials that were delivered to the home. Randy then had his licensed roofer install the new roof. I have done roofs like this in the past and saved money. These days I flip multiple properties at a time and hire a licensed roofer to handle the whole job. Most of the homes I rehab are in the 1500 sqft range and usually run around $5000. My last roof cost me around $8000 and the home was just over 2500 gross sqft.

Miguel’s Azalea Park Flip (part 2)

Miguel’s Azalea Park Flip (part 2)

September 10, 2009 by · 2 Comments 

Miguel has completed his flip that he purchased from Mid Florida Investment Properties about 3 month’s ago. Miguel listed his property with my broker Sand Dollar Realty Group and we have a full price offer after 2 day’s on the market. I actually had 3 offers on this listing in 2 days and Miguel will be earning  a nice payday at closing. Miguel will net a profit  in the $45,000 range on this flip and this is the 3rd successful flip this year Miguel has bought from MFIP. I had several investors pass on this property because they said the price was too high. Miguel has proved that this property was a good investment if you consider $45,000 a good profit on a flip. Investors that can make quick decisions and move on properties before it’s too late are cleaning up right now.

Here are the three most common mistakes that stop investors from being successful in today’s market:

Why Buy From Wholesalers?

August 20, 2009 by · 1 Comment 

Wholesaling is finding properties, getting them under contract and selling them to other investors or buyers. I wholesale because I find several homes and can only fix up so many at a time. This is another reason I actively search for cash investors to partner up with. You can check out our Real Estate Consulting Services for more info on working with me.

Retailing is what you see on TV shows like “Flip This House” and “Property Ladder”. Retailing homes is where the bigger profits are made and it takes more time and effort. Right now the average day on the market is around 100 days. This limits the average flipper to around 4 properties per year if they’re using their own cash. Flippers using hard money are able to flip more homes and make more money.

Hard money is a high interest loan from a private investor. The interest rate usually runs between 12%-16% and the points can vary from 1 to 9 depending on the size of the loan. I use www.barksdalefinancial.instantlender.com and they charge 1.5 points with a 1 year 16% interest only mortgage. I recommend getting your money lined up first before you start looking at properties.

Understanding REO Properties

August 13, 2009 by · 5 Comments 

Real estate owned properties (REOs) are foreclosed properties that are owned by a bank. Why are these properties owned by banks? 1) Because the homeowner was unable to pay off the mortgage. 2) Because the property failed to sell at a foreclosure auction.

Central Florida REOs are attractive to for several reasons. One of the most important advantages is that all of the home’s liens (property-related debts) are removed once it becomes an REO, and all of the property’s taxes are paid in full.

Some Wonderful Advantages to Buying an REO

•    REOs can and should be inspected prior to signing a contract.
•    The lending bank will always restore the REO to at least stable condition.
•    The bank lender will often offer an allowance for certain repairs to the home.
•    Most REOs will include appliances.

All REOs will either be sold by the bank itself or through an established broker. As a result, buying an REO requires a specific body of knowledge and expertise. Make sure you find a real estate agent with REO experience.

Since REOs have been passed up at a foreclosure auction, and they are typically in need of some repair, they may be purchased at an extremely low price.

Miguel’s Azalea park flip

Miguel’s Azalea park flip

July 17, 2009 by · 1 Comment 

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Miguel bought this property from Mid Florida Investment Properties for $47,000 and plans to sell it for $115,000 -$120,000.  This property is a 3 bedroom, 1 bathroom home and 1600sf with the garage converted. Miguel plans on turning the garage conversion back into a garage again. This home also has a large laundry room that will be used for a master bath and smaller laundry area. Miguel is a seasoned flipper and will turn this dated home into a gem within a month. I will keep you updated on this property through the whole process.

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Here is a nice before shot of this stylish country kitchen. The wallpaper on the wall was the first rolls of wallpaper ever created.

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It looks like the wallpaper lives to see another day. The rest of the kitchen is another story.

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Jose hard at work.

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Here is a before shot of the only bathroom.

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Here is what is left of the bathroom. I have personally partnered up with Miguel on flips before and this has to be the first time he has left the toilet. Good job, no more workers running to the store for bathroom breaks.

Mike Calvert on Flipping Homes

Mike Calvert on Flipping Homes

June 30, 2009 by · 3 Comments 

The front

The front

Here is the front of my flip. I picked this lake front gem up for $114,500 and tried to wholesale it for $125,000. After nearly a month with no success I decided to rehab this home myself. This is something I do all the time and I do it because I won’t try to wholesale anything that I wouldn’t rehab myself. I have proven this time and time again. In fact most of the homes I rehab are those homes nobody wanted. So here I go again with the home that no one wanted. I plan on spending $40,000 on the rehab and selling it for $250,000. My goal is to net $75,000 and I will keep those that are interested updated throughout the process.

The first thing I wanted to do was replace the roof to protect future repairs on the inside.

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The next project on the front was to demo the garage and prep for a new garage door. This home was a 5 bedroom, 4 bath home with 2282 sqft under air when purchased. When complete the home will have a 2 car garage with 3 full baths, 3 bedrooms with a 4th bedroom option and around 1900 sqft. This home really needed a garage for parking and storage. The last thing you would want to do is obstruct the lake view out back with a storage shed.

Make Money Flipping Homes in Florida

June 30, 2009 by · 1 Comment 

If you are wondering whether you can still make money flipping homes in today’s economy; the answer is yes. Making money on any investment deal is just a matter of doing your homework, calculating the potential risk against the possible gains and making the decision that you are going to make it work for yourself.

In today’s market there may be different variables then there were several years ago, but there is always an opportunity for the smart investor to profit. The key is to develop your own house flipping strategy and stick to what works for you.

Flipping a home, basically means that a property is purchased, renovated or fixed up in some way and then put back on the market as quickly as possible at an attractive enough price to make a quick sale. According to real estate statistics, the market has already picked up. In fact, there has been a 37% increase in sales in the Orlando area when compared to last year’s figures for the same month. This is good news. Prices are still at an all time low and the market is saturated with inventory. Home buyers have a lot to choose from right now. As a home flipper, this should give you some direct insights and ideas to make your own investments as lucrative as possible. Here are some solid tips that will help you make money flipping homes in today’s economy:

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