Category Archives: Buying

Information on buying property and land in Lucerne Valley and the High Desert.

House Flipper Image

House Flipping Mistakes

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Falling in love with the property like you’re going to live there

A true flipper can never fall in love with a flip property. Unlike your own home where you will raise a family, make memories, and suit your needs — flips must appeal to the widest possible market. This means choosing designs and colors that appeal to most, not to you.
When you are designing your flip, take yourself out of it. You may love blues and greens, but stick to whites and neutrals when you pick paint colors. Research current design trends, visit open houses of new construction, and talk with local real estate agents to find out what’s selling and what’s not. If you don’t create an attractive property with mass appeal, your flip may linger on the market costing you money every passing day.
Remember to not get attached to the house, because you’re not going to live there.

Not getting a home inspection

This is the worst! Even if you plan on making major changes to the house, you still need an inspection. House flipping usually involves making cosmetic changes and maybe opening a wall or remodeling a bathroom. It’s a makeover but not a complete rebuild. So, you need to get it checked out before you buy and to know exactly what you are buying. Not getting a home inspection can cause a great financial loss when a large unexpected repair arises…and it usually does.
Inspections can turn up all kinds of problems. Some things are minor and won’t matter if you’re planning to rip out and replace those items. Others things like a cracked foundation or complete roof replacement can cost you greatly – and cost you a large amount of your profits.
At the very least, an inspection can identify problems you can use to negotiate down the price. Every dollar counts toward your bottom line.

Overestimating your skills

Every dollar saved is a dollar earned when you flip a house. However, all too often flippers think they’re better carpenters, plumbers, and electricians than they really are. This ends up being a major drain of time and money because you end up redoing work.
Consult competent workers and/or contractors before undertaking any major project and make sure to ask for an estimate in writing. This will help you estimate correctly what it will cost to correct the issues and make the house attractive to buyers.

Underestimating total costs

Inexperienced flippers often add the purchase price to renovation costs and figure the expense of materials only and forget the cost of equipment like tile saws, table saws, etc.
Other costs rookies do not take into account are state and federal taxes on profits, real estate costs, inspections, and a bunch of other fees that show up at closing when you buy, and again when you sell your property. Learn what these costs will be ahead of time to truly understand the total cost of your project. Don’t forget permit fees too.

“For Sale” too soon

Some flippers are tempted to put up a “For Sale” sign too soon before the renovations are complete, hoping a buyer will be able to envision how great the house will ultimately look. That’s a big NO-NO! Most people do not have that kind of vision and can’t really see how things will look once they’re done.  Don’t list the project until it’s move-in ready. It will save time and make you more money in the long run.

Picture of a dollar sign

Seven Ways to Stay Patient While Saving up for a Down Payment

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1) Make a (realistic) timeline

Figure out how much you can save per month, determine how long it’ll take you to get to your down payment goal, then work your plan.

2) Try to look at the big picture

When you take a step back and look at your goals in terms of years instead of days, you start to understand that good things take time

3) Stay off all the real estate listing websites on your browser

Don’t drive yourself crazy while you’re saving. Block out the triggers and distractions and keep your eyes on the prize.

4) Keep track of your progress

If you check your progress every month or every few weeks, you’ll see that you’re actually making progress and getting closer to your goals.

5) Get a side hustle

Not only can finding a side gig help you reach your savings goals faster, but it can also keep you busy and your mind occupied while you work toward your goals.

6) Cancel your HGTV cable channel subscription and any non-essentials

Seeing the joys of homeownership crammed into beautiful thirty-minute segments isn’t helpful to those trying to be patient, so make sure you cut the cord.

7) Remember the goal – stay focused!!

Keep going with your goal in mind, and whenever the going gets tough, remember why you’re being patient. If you can tie your efforts to the outcome, then the journey won’t seem quite as bad.

 

Key in lock in door

Benefits of Homeownership (That People Often Forget About)

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The true benefits of homeownership that many first-time homebuyers enjoy:

1. Locked-in monthly expenses

Renting and hopping around from place to place can be exhausting—not only because of the constant upheaval but also because rents keep rising. Buying a home fixes your costs in place (save for increases in taxes and insurance) and allows you the peace of mind of knowing your mortgage payment will be the same next year as it is this year. This might not seem so dramatic when you look at it in the short term, but if you’re thinking ten, fifteen years out, it’s a big deal.

2. Building a nest egg

In addition to fixing your monthly costs, you’re also buying an asset for yourself instead of spending money to pay off someone else’s. The majority of Americans have a significant portion of their net worth in their home’s equity, and it’s long been a reliable way to accumulate wealth over time. Many homebuyers are sick of throwing their hard-earned money towards rent and love the idea of using a home, sort of like a savings account, especially when residential real estate has consistently appreciated over time. While it might not be the get-rich-quick scheme many people dream of if you’re going to pay for a place to live anyway, why not be the primary beneficiary of your own hard work?

3. The joys of personalization

Sure, you can decorate an apartment or a rented house, but you can never make those intrinsic changes that make a place truly feel like it represents you. Spend enough time in a home, and you’ll know exactly what you want to change to make it perfect. And decorating and remodeling can (and should) be fun. Your home is your castle, and you should make yourself feel as comfortable as possible. That’s why most people choose a home that has just the right amount of stuff they love, whether it be location, kitchen, or layout, and then change the rest of it themselves to truly make it their own.

Ten ways to spruce up a hom

Inexpensive Ways to Spruce Up Your Home

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It’s easy to fix up your home if you have unlimited cash. How-ever, if you need to keep your repairs to a minimum and want to stay on budget. There are some basic improvements you can do other than carpet and paint. Here are some inexpensive ways to improve your property with very little cash: […]

Land

The Dirt On Land

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All Land is NOT the Same in Lucerne Valley. The most important things to consider when planning a land purchase are the following: Is the land intended as a long term investment or for recreational use? With recreational use land you may not have immediate plans to build on it. In that case, adjacent utilities […]