Best Tips to Winterize a Vacant House

Though occupied homes can also benefit from a quick winterization, vacant houses are particularly prone to damage during extended periods of freezing temperatures. By winterizing a vacant house, you are protecting your investment, and keeping it in good condition so it can be sold, rented or otherwise inhabited at a moment’s notice without worry of unforeseen issues. If you own property in a cold climate that’s prone to long winters, here are a few suggestions that will help you in winterizing it.

Winterizing with Utilities

First of all, it is advisable to leave the heat on very low. Though it might seem like a waste of money or energy at first glance, a minimal heating bill will be less expensive than the cost of potential repairs if everything were to freeze up. There are many systems and components in a house that are meant to be kept at or near room temperature. By using your furnace or boiler at a low level, you are keeping these things secure.
Most people know that a big part of winterizing is dealing with pipes and plumbing. If you have turned off the water, hopefully that means the house was plumbed on a downgrade so you were able to drain all the pipes completely and eliminate the chance of water expanding inside them and breaking the pipes. If not, it usually is advisable to leave some water running through the pipes by turning on the fixture closest to where water enters the house and at the farthest point indoors, say in an upstairs bathroom. It needs to trickle constantly to keep water flowing.
It is also advisable to wrap insulation around the water heater, the pipes leading to and from it and insulate any pipes exposed outdoors, in a crawl space under the house, etc. If the pilot light is left on, it is not necessary to drain the water heater, but if not, then it probably should be drained and turned off. You might call a local plumbing company in your area to discuss whether you should turn the water back on or not.
It is not a bad idea to put some antifreeze in both the tank and bowl of each toilet. If the heat goes out and water inside the toilets freezes, it could crack the china fixtures.

Other Winterizing Techniques

Winterizing your plumbing and water systems might be the most important aspect of winterizing in general, but coming in pretty close is inspecting your roof and cleaning out your gutters. The roof and attic of a vacant house might be left alone for very long periods of time, so getting a roof inspection for about $500 before cold weather hits is a fantastic idea, and could end up saving you some serious money in the long run. Gutters, like plumbing, can develop real problems if ice is allowed to build up in them. Having your gutters cleaned before winter begins will reduce the risk of too much ice forming inside them.
Finally, make sure someone checks on the house every week or two, if at all possible. Though you can certainly take precautions such as winterizing whatever you can in and around the house, unexpected situations can still occur. A quick look around done periodically for as long as the house is empty (even during warmer weather) can mean the difference between a problem being caught early enough to be fixed before any damage is done, and a problem that’s left unchecked long enough to cause hundreds or even thousands of dollars in damage.

Greg Hammond  Eagle Thirteen Properties We Buy Houses Louisville

Why You Should Sell Your House in the Fall and How To Be Ready

The warm-weather housing market might be coming to a close, but don’t worry – there’s still a chance to find a buyer before the end of the year. In fact, you could be coming in at exactly the right time. Here are some benefits of selling your house in the fall, and why it might be a smart strategy.
Reason #1: A more serious buyer pool
Yes, the spring housing market is sure to bring out buyers, but plenty of folks may hold off on making an offer. With more homes to choose from, they can afford to be picky, and that could extend their search by months. Come September, though, serious buyers will be feeling the pressure to make their move before the holiday season or bad weather hits. That’s where you come in.

• · How to prepare: Step up the curb appeal. Curb appeal is one of the biggest things people forget about when selling in the fall. Fix up the front porch, rake the leaves, and please – don’t forget to clean the gutters! With everything well maintained, you’ll be ready when the buyers are.

Reason #2: Less competition
Post-summer home buyers not only have the stress of the holiday season looming overhead, but their options are shrinking. Many sellers rush to close by September, so fortunately you’ll be competing in a much smaller market. That can be a powerful bargaining chip to help you close before the end of the year.

• · How to prepare: Make your home listing stand out. Fall and winter photos run the risk of looking drab, but well-timed summer photos are bright, clean, warm – really everything you need to stand out to serious buyers. So take advantage of the season’s best days and include those photos in the listing when you go to sell in the fall.

Reason #3: Different buyer demographics
While families are more likely to make their move in the spring, millennials and empty-nesters usually swoop in a bit later in the year. They’re not the only ones, either: to avoid higher “on season” real estate rates, employers who need to relocate their workers often wait for the fall, when the market tends to cool down. These out-of-towners will probably need to get through the process quickly, too, which could mean a relatively speedy closing.

• · How to prepare: Stage the space. Empty-nesters aren’t necessarily looking for three bedrooms, but they might want a workspace, exercise room or guest bedroom. On the other hand, a millennial couple might want space for a nursery or playroom. Let each buyer see how the house can fit their needs.

Reason #4: More flexibility for improvements
Depending on where you live, spring and summer can be a much-needed break from a harsh winter, and your house could probably use a little TLC. So give yourself those warmer months for some home improvements.

• · How to prepare: Schedule repairs and final touches. In between weekend getaways and beach days, sneak in repairs and even small renovations if you need to. Make sure your heating system is in tip-top shape before the temperatures drop. You don’t want to show your home on the first cold day of the year, only to find the heat doesn’t work.

You may feel like you’re behind the curve, but in many ways, now’s a great time to sell. All it takes is a little bit of prep work, some smart planning and the right tools to get ahead.

Greg Hammond  Eagle Thirteen Properties, LLC

Housing Outlook For Summer 2018 (Tough if you're looking to buy a home!)

The summer is shaping up to be a miserable season for many house-hunters.
Home values across the U.S. spiked almost 9 percent last month, marking that fastest pace since the height of the housing bubble in June 2006.
Despite the sharply higher prices, demand from buyers remains strong, thanks to a combination of demographic changes, rising wages and the new tax cut, creating what real estate data site Zillow describes as "a perfect storm." On top of that, new construction has been sluggish, leading to tight inventory.
The median home price in the U.S. rose 8.7 percent to $215,600 in April compared with a year earlier, Zillow found.
Higher mortgage rates add to the challenge of finding an affordable home, and some buyers may be rushing to make a purchase before the Federal Reserve potentially boosts rates again later this year. Fixed rates for 30-year mortgages are now at about 4.66 percent, their highest level since May 2011, Freddie Mac reported on Thursday.
There may be a good news/bad news situation in the months ahead, according to Zillow senior economist Aaron Terrazas.

The housing market may slow later this year as it hits headwinds such as the impact of rising mortgage rates, he said. That may provide a breather for buyers, but may disappoint some home sellers.
"Once mortgage rates get beyond 5.5 percent and closer to 6 percent, there will be a more meantingful headwind to home appreciation," he told CBS MoneyWatch.
In the meantime, prospective buyers should get their finances in order, including boosting their credit scores before securing a mortgage, he said.
"If you can get as high a credit score as possible in the year before you buy, it'll save you a lot of money," he noted.
Research from Zillow found that homebuyers with a "fair" credit score -- or between 640 to 680 -- could pay up to $21,000 more than a buyer with an excellent credit score over the life of the mortgage. Buyers with higher credit scores are rewarded with lower interest rates.
Below are 5 things to know about the housing market.

Home values are appreciating fastest in these cities

Some locations are witnessing faster appreciation than others, Zillow found. The cities experiencing breakneck price gains include San Jose, where home values rose 26 percent in April to a median $1.26 million. Other pricey locations include Las Vegas and Seattle, where home values rose 16.5 percent and 13.6 percent, respectively, last month.

Waiting until late 2018 or 2019 may pay off

Home prices may moderate later this year and in 2019, according to Freddie Mac. The government mortgage finance company said it predicts home prices will rise 7 percent in 2018, but will only increase 3.1 percent next year.

Not all millennials are living at home

The size of the millennial generation -- some 83 million people under age 35 -- guarantees built-in demand for housing, even if their household formation is slower than in previous generations. About one-third of millennials still live with adult relatives -- but that still leaves millions who are on the hunt for their own places.
About 1 million new households will form each year for the next few years, creating pent-up demand for housing, according to Freddie Mac.

Construction isn't keeping up

The single-family housing market isn't keeping up with new homes, according to Freddie Mac. Labor shortages and development costs are to blame for the shortfall, although construction started to pick up late last year, it added.

Existing home buyers are hesitant to sell 

Because there's not enough inventory to meet demand, some home owners are opting to stay put rather than to put their homes on the market. The fear is that they might sell their home quickly, but be unable to find new home to buy. That's stoking a vicious cycle of low inventory, according to Freddie Mac.

Eagle Thirteen Properties/ We Buy Houses Louisville

Is House Flipping finally on the Decline?

House flipping hits decade high, but returns are shrinking

• More and more people are flipping houses, but they are reaping smaller rewards.
• Just more than 207,000 homes were flipped in 2017, the highest in a decade.
• The number of people or companies flipping homes also hit a decade high.

More and more people are flipping houses — the most in 10 years – but they are reaping smaller rewards. High home prices, hot competition and very, very few available homes to buy are combining to make this popular trade ever more risky.
Just more than 207,000 homes were flipped in 2017, according to a new report from Attom Data Solutions, which defines a flip as a property bought and sold in the same 12-month period. That is the highest number of flips in a decade. The number of people or companies flipping homes, 138,410, also jumped to a decade high.
Today's flippers, however, are nothing like those of a decade ago, who used cheap and easy money to finance their trades.

Source: Taylor Denchfield

Taylor Denchfield has been flipping homes since he was 17.

"The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping frenzy that we witnessed a little more than a decade ago," said Daren Blomquist, senior vice president at Attom Data Solutions. "While financing for flippers has become more readily available in recent years, 65 percent of flippers still used cash to buy homes flipped in 2017, nearly the reverse of 2004 to 2006, when 63 percent of flippers were leveraging financing to buy."
Today's flippers are seeing bigger gross flipping returns in dollar figures because they're dealing with much higher home prices and margins, but they are also putting more money into the projects, making the net return lower. The average gross flipping return on investment last year was 49.8 percent, down from 51.9 percent in 2016.
Taylor Denchfield has been flipping homes in Maryland since he was 17. At 25, he's a veteran with a strict strategy for profit. His net returns are about 30 percent per project.
"I'm a real estate agent so I'm able to both buy and sell the deals myself saving on the listing commission. I'm a builder, so I do have all the contractors and staff in-house to complete everything from start to finish. And I do have contacts to source off-market deals. Three of those things combined is really what permits me to be more profitable than some others," he said.
Denchfield purchased a small home in Silver Spring, Maryland, a suburb of Washington, last September. He put about $80,000 worth of work into it, and the bet paid off. He sold the property in two weeks and expects to make a net profit of about $100,000.
"You have to be able to get in for a low enough price, it has to be a hot enough neighborhood and you have to know exactly what the build is going to entail," he said.
Denchfield does use leverage for some of his deals, and private lending for house flipping is now a growing trade. While Fannie Mae will back as many as 10 investor loans per flipper, it is still very strict with underwriting, so flippers are increasingly going to private lenders.
"There is more capital available now," said Bobby Montagne, CEO of Walnut Street Finance, a Virginia-based private lender specializing in investor loans. "People are seeing others making profits in this space, so more people are going to join the party."

Above: A new deck added to a flipped house.
Interest rates on these loans, however, are significantly higher than the average rate for regular owner-occupant buyers. Investors can expect to pay 10 to 12 percent rates to private lenders, compared with the average 30-year fixed rate of 4.6 percent for conventional home loans.
"So that's just another thing that really tightens up the margins," said Denchfield.
The popularity of house flipping has been fueled by popular TV shows that make the process look both dramatic and fruitful at the same time. Denchfield warns that is the exception, not the rule.
Today's housing market is increasingly expensive, and there are historically few distressed homes for sale, unlike during the foreclosure crisis at the start of this decade. Seasoned flippers who can find properties that haven't been listed yet will fare better. Some go through wholesalers, others through real estate agent contacts.
There is also a supply crisis, especially on the lower end of the market where flippers usually make their best returns. There are more million-dollar homes available, but the risks there are even higher, given the high investment price.
Flipping returns vary by city. The highest average gross returns last year were Scranton, Pennsylvania (168.2 percent); Pittsburgh (145.5 percent); Baton Rouge, Louisiana (122.9 percent); and Philadelphia (115.7 percent). Cleveland, Baltimore and Buffalo, New York, were also above average.
Flipping rates were highest in Memphis, Tennessee; Las Vegas; Tampa, Florida; Birmingham, Alabama; and Phoenix.

Getting Your House Ready to Sell for the Spring Market

If you're a prospective home seller, here are five things you can do now to get ready for a spring sale. If you don't want to do these things, call us we will buy AS IS!

 Greg Hammond  We Buy Houses Louisville/ Eagle Thirteen Properties, LLC

Start packing

It may sound crazy to start packing months in advance of your move, but since you'll eventually need to do this anyway, you might as well get organized now. We're not suggesting you pack up your kitchen and eat off paper plates, but you can sort through your storage closets, attic, basement or garage to determine what you want to keep, what to give away and what to sell. Boxing up items will make your space look larger and neater when it's time to show your home. You can also get an idea of whether you need to rent a storage facility while your home is on the market.

Clear away the clutter

If you visit model homes or open houses of homes that have been staged, you'll never see a stack of unread magazines, children's artwork loosely hanging on the refrigerator, or a cluster of unpaid bills on a table. While everyone has clutter, buyers want to see a fantasy version of your house, in which they can envision living. Once your home is on the market you'll need to keep it as neat as possible. One way to make that easier is to reduce the amount of clutter you have on your shelves and surfaces. Put away items that are regularly on your kitchen sink and pack away the family photos that gather dust.

Improve your home

While you don't necessarily want to do a major, expensive renovation project before you sell, you can make minor repairs and improvements that will make your home look fresher to buyers. Try things such as replacing the caulk and grout in your bathroom, updating old or rusted ceiling fans and light fixtures, and changing switch plates, doorknobs and other hardware for a clean and neat appearance. Consider painting your front door and trim even if your rooms don't need new paint.

Interview real estate agents

Your choice of a listing agent will make a big difference in how quickly your home sells and how much of a profit you'll realize. Get recommendations from friends and interview several listing agents to see which ones have the right experience with similar homes in your price range and area. A real estate agent with a great marketing plan and deep local knowledge is extremely important. Don't just go with the one who tells you they can sell for the highest price; choose someone who can present you with a detailed market analysis.

Research your market

If you plan to buy another home, an important decision to make is whether to sell your home first or make an offer on a new home before putting yours on the market. A knowledgeable real estate agent can help you evaluate how fast homes are selling in your market and help you estimate how long it will take you to find a home. This decision also depends on your financing, so you may want to consult with a lender to see how you can finance the transition from one home to another if you choose not to sell your home first.
If you spend the winter months preparing for spring, you'll find yourself ready to move fast when buyers come out of hibernation.

Top benefits of selling your house to a home flipping company

 

Eagle Thirteen Properties, LLC

Top benefits of selling your house to a home flipping company

1. It’s fast and easy

This has to be the most notable benefit of selling your home to a home flipping company. Selling a home is usually a time-consuming process especially when you are relying on traditional methods i.e. putting up a ’For Sale’’ sign on your yard or interviewing and hiring a real estate agent. The process is usually difficult when you want to sell your home at the best price possible. House flipping companies take away the difficult and time-consuming process of putting up a house for sale and waiting for potential buyers. 
When you use a house flipping company/investor, you don’t have to prepare your home for sale i.e. renovate, landscape, etc or market. The companies buy the house as it is and the sale is completed in record time. As long as there are no title issues, these companies typically take 7-10 days to complete the transaction. If you are in dire need of cash, a house flipping company is your best bet. It’s simply about deciding if you want to go ahead with the sale or not after getting an offer, and most house flipping companies pay in cash.

2. You are guaranteed of selling your house regardless of the state or condition

House flipping companies or investors who buy old and/or ugly houses don’t really care about the state or condition of your home. These companies specialize in buying such homes, so you are almost assured of selling your home when you choose such companies as opposed to selling your home conventionally. If your home has deteriorated over time, but you want to sell fast without having to do any renovations/repairs, house flipping companies are your best option. 
House flipping companies are in the business of buying old/dilapidated/ugly homes. The companies renovate such homes and resell them at a profit. The companies also target lots where homes sit on in cases where it doesn’t make financial sense to renovate. The Arlington and Vienna areas of Northern Virginia have become hubs for real estate investors mainly interested in purchasing homes for their lots. While typical home buyers look for perfect homes to buy, home flipping companies are looking for old, ugly and/or dilapidated homes to buy. In fact, most house flippers will say the uglier, the better. You are therefore assured of a sale even if you won’t get the best deal.

3. You avoid hiring a real estate agent

The process of finding the right real estate agent to sell your home can be a difficult and time consuming process. It might take talking to and interviewing numerous agents before you find a real estate agent that you are comfortable with.

4. You avoid ”for sale by owner.”

Trying to sell your home on your own is usually a daunting task. Although some homeowners prefer this option to save on real estate commissions, it takes a lot of effort, time and skill to sell your own home. For instance, you need to have good marketing skills to market your home online and offline. Putting up a ”For Sale” sign isn’t enough to draw potential buyers. You need to take perfect photographs of your home and post them in real estate listings online relevant to your area. You also need to avail yourself for showings, negotiate effectively with potential buyers, represent yourself during critical stages of the entire process i.e. buyer’s home inspections, etc.

In a nutshell, you need a variety of skills to sell your own home without the help of a real estate agent. In most cases, it isn’t worth the effort trying to sell your own home without any help especially if your home is old or in poor condition. When you sell your ugly home to a ‘we buy ugly houses’ flipping company or investor, you avoid all the stresses and requirements associated with selling a home without help from an agent.

      Just like anything else you need to do your homework before selling your house. There are good and bad "We Buy Houses" companies out there just like any other business. Here at Eagle Thirteen Properties we are in it to make a small profit but not by hurting anyone in the process.  If we can't make you happy, we simply will not do the deal. We are a family owned and operated business who prides ourselves into helping homeowners out of difficult situations. If you need help selling your home, give us a call. it's a free opportunity to review all your options and absolutely NO PRESSURE. Thanks and have a Blessed day!

Greg Hammond President of Eagle Thirteen Properties LLC

Housing Market Forecast for 2018

Real Estate and Housing Forecast 2018 to 2020

Mar 1, 2018.  Buying or Selling a house or condo in 2018 or 2019? How do you feel right now about the 2018 housing market? Is the recent pessimism justified?

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Millennials still hopeful to buy a home in 2018

Take another look at prices, GDP, wages, jobs, and other key data below on the US Economy for the next 6 years and you may see a surprisingly positive picture, far from the dread of the recent stock market correction.
This completely updated EPIC United States Housing Report has market updates and predictions for 2018 to 2020, and other data to 2026.

IN this post, you’ll discover the hottest city markets, zip codes, get economic, employment, finance, and housing projections to understand the key fundamentals driving rental investment, home construction and the real estate markets in 2018/2019 to 2026.
What’s the story for winter 2018? It has to be Texas and Michigan, however the overall picture is of a very good spring for the housing market nationwide and going forward to 2026. Population growth in San Francisco, Denver, Houston, Seattle, and Phoenix. The western migration is strong, as will those housing markets will be.

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Las Vegas leading the way with 8.7% economic growth, 6.9% price growth and 4.9 sales growth. Infographic Courtesy of Realtor.com

The Complete Picture for 2018

Ready to choose your realtor and buy a house or condo this year? The outlook is really rosy! And how about investing in a rental income property for sustained passive income? This current lull might make the next 3 months the best time to buy. The outlook is as positive as could be for buyers. Lock in your mortgage rate.

Overall, predictions and outlook for the US housing market are positive. That’s because the US economy is on its strongest roll ever, bolstered by lower taxes, improved trading agreements, growing American confidence, happiness, comfort, freedom and the American dream has been kindled again.
Take a look at more detailed reports of major US city markets: Latest Posts:  San Francisco Housing Market | | Boston Real Estate Market 2018 | Florida Housing Forecast 2018 | Miami Housing Market |  Los Angeles Real Estate Forecast | New York Real Estate Predictions | Houston Market Forecast  | Houston Real Estate Forecast | Seattle Housing Forecast
This graphic courtesy of Trading Economics shows the top sign that the real estate market will be healthy for some time, and that buying a home is a wise investment (Trading economics is a very informative site, have a visit afterward).

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Increased government spending, low but slowly rising interest rates, and the repatriation of business and corporate funds back to the US means it’s a healthy, safe market for everyone.
Foreign investment has been strong because the world knows, the US is the place to be. American’s have always had a great attitude toward risk and business growth. Now the economy and business markets are allowing that spirit an opportunity to pay off.

NAR/Realtor Outlook on the Housing Market

Housing Indicator	Realtor.com® 2018 Forecast
Home price appreciation	3.2% increase
Mortgage rate	Average 4.6% mortage rates in 2018 to 5.0% (30 year fixed) by year end
Existing home sales	2.5% growth, low inventory problem easing
Housing starts	3% growth in home building 7% growth in houses
New home sales	Growth of 7%
Home ownership rate	Stabilizing at 63.9% nationally

Despite the market correction, experts feel this bull market could continue as long as business keeps coming back to the US. That’s a long process of repatriation. In the meantime, the jobs picture, wage growth, investment, and profit growth are giving real estate participants a lot of optimism.
The resistance to housing development is slowing. Conservatives are giving up amidst intense pressure by those facing outrageous housing shortages and skyrocketing rental prices.

Housing Shortages Won’t Ease

Although January’s sales were disappointing, it’s due to the severe shortage of housing. Demand is there and you’ll be competing against a hoard of buyers in 2018.  Corelogic expects 2018’s home prices will grow 4.3% by next December.  NAR and Realtors® expect only a 3% growth in prices this year. Nevada, Texas, Washington, and Florida are the states with the best outlook, and perhaps the best places to buy homes or rental properties.
The Bay Area, Portland, and Seattle areas saw the highest growth in prices last year while LA’s tumbled. Listings fell dramatically in cental California, Oregon, Washington, and New York.
Consumer mood was not so good in July of last year, mostly due to government problems. Yet the market came flying back. These challenges overcome mean more Americans will have more confidence in their personal situation.

The US Economy 2018/2019

These stats from Trading Economics show positive fundamentals that will drive growth in the housing market, and in turn will bolster the economy, since new household consumer spending and housing investment is a key driver of the economy.

The tax cuts should help although the Fed is counteracting that growth with a questionable raising of interest rates which seems to have sparked the sudden stock market volatility.  Although some disincentives are present for home buying in certain price ranges, that will help keep the market balanced for 2018.
Home prices should begin rising again this late spring in Florida, New York , Boston, San Diego, Houston, Miami, Seattle, Bay Area and the rest of  overheated California.
Buyers and sellers will enjoy the market trends, stats, threats, and the key factors including housing construction starts described below. Enjoy the big picture!

We Buy Houses Louisville/ Eagle Thirteen Properties

6 great funding ideas for flipping houses even with less than perfect credit

Starting a fix and flip business can be a great way to profit in real estate. It is a high-risk and high-reward venture, though.
Buying and fixing properties to sell can be an expensive and unpredictable process. There are so many costs involved for one. You need to buy the property, renovate, and get permits. Project sponsors also pay broker fees and holding costs if the property isn’t sold right away.
Getting funding is the number one obstacle for investors who are new to flipping houses. Good candidates generally have at least one successful fix and flip under their belt. They also have a credit score of at least 650 and no recent bankruptcies, foreclosures, or tax liens.
If you don’t fall into that category, that’s okay. This post covers a few ways to get funding for a fix and flip, with options for both experienced and inexperienced investors:

1. RealtyShares

Types of projects: debt and equity
Loan term: 3 – 18 months
Rate: as low as 9%
Closing time: 10 days
Loan to cost: up to 85%
RealtyShares, a leading real estate crowdfunding platform, has helped investors finance over 550 projects. Overall, the platform has raised $300 million from 92,000 registered investors. Project sponsors can get financing for their fix and flip projects in as little as 10 days and choose whether they want their financing to be debt or equity.
The online application takes minutes and project sponsors can be pre-qualified in 24 hours. For debt investments, RealtyShares looks for sponsors with a FICO credit score of at least 600, a loan to cost of less than 80%, and an estimated loan to after repair value of less than 65%. Companies in consideration go through a thorough background and credit check before being approved by RealtyShares. Approximately 5% of proposals on the platform are approved for funding.
The next step once you are pre-qualified is to submit documents for underwriting. As part of their service, RealtyShares underwrites, approves, and funds the project. Once the project is funded they manage the investor relations and payouts.
RealtyShares and other real estate crowdfunding platforms offer experienced investors the opportunity to get fast funding for their fix and flip projects. Real estate crowdfunding is possible because of the JOBS Act and is now available in most states across the US. Even so, the majority of fix and flips tend to happen in certain states, according to RealtyShares CEO, Nev Anthwal, quoted in the Attom Data Solutions September 2016 Housing News Report:
“We’re a national platform, but most of our short-term loans are in six or seven states, including California, Texas, Illinois, New Jersey and Florida.” 
This relatively new way of funding real estate investments is fast, affordable, and uses the power of the ‘crowd’. Depending on the platform, project sponsors can raise money from groups of accredited and sometimes unaccredited investors. The platforms act as mediators between sponsors and investors.

2. Hard Money or Private Loans

Types of projects: debt
Loan term: around 12 months, can occasionally extend to 2 – 5 years
Rate: around 10 – 18% with points from 2-6%, depending on the loan terms
Closing time: about a week
Loan to cost: up to 75%
Hard money and private loans are good options for investors who are new to fix and flips or who have tarnished credit. For these investors, the borrower’s credit score is less important. In these cases, collateral can be more important than a FICO score.
Some hard money lenders will provide a higher percentage of financing based on the property’s expected after repair value.
Hard money and private loans are one of the primary forms of financing for first-time fix and flips, especially since they may finance a property in bad shape that a bank would have to turn down for a loan. Hard money and private lenders are typically found online, through word of mouth, or at local real estate meetups.
Networking is important when it comes to creating relationships with hard money and private lenders because they are based on personal relationships and trust. These lenders are also taking on high stakes and they want to earn their expected return.
This is another reason why they usually want investors to put some of their own money into the deal, so that they are sharing the risk.

3. Bank Financing a Fix and Flip

Types of projects: debt
Loan term: can be longer than other funding sources
Rate: approximately 5 – 6%
Closing time: 1 – 3 months
Loan to cost: usually up to 65%
Bank financing is a good option for investors who have about 2 years of proven experience fixing and flipping properties, a great credit score (700+), and existing capital. To qualify for bank financing, investors must have a registered fix and flip business and be willing to put in a down payment.
Bank financing for a fix and flip takes longer to attain but does come with a few benefits. Rather than a lump-sum loan, bank financing usually means opening a line of credit. This is good because borrowers only pay interest on the money they spend rather than the full amount of a loan. The rates are also a lot lower compared to hard money lenders.
When looking to bank finance a fix and flip, make sure that you compare rates and terms at different banks. Going with your personal bank without considering the alternatives means you might miss out on a better deal.
Bank financing for fix and flips can be harder to find because their typically shorter terms mean that banks make less profit.
To improve your chances of fast approval, make sure that you accurately report your income, provide verified income and asset statements, employment history, and provide any other documentations that the bank requests in a timely manner.

4. Online Mortgage Lenders

Types of projects: debt
Loan term: usually longer than other options, 15 – 30 year options for investment properties
Average rate: as low as 3.96%
Closing time: as fast as 30 days
Loan to cost: n/a
Online mortgage lenders like Guaranteed Rate, Lending Tree, and Quicken Loans make it easy for fix and flip investors with a little experience get more funding for their next project.
Unlike real estate crowdfunding, this is more of a traditional mortgage that they manage online rather than a loan that a group of people invests in.
The benefit of online mortgage lenders is the way that they use technology to make the process of applying convenient and automated. For people who want to go with more experienced companies, a lot of traditional lenders are also offering online mortgage services.
Approval from online mortgage lenders takes a little bit longer than a real estate crowdfunding platform, but typically a little bit less long than a bank.
The perk to this type of funding for a fix and flip loan is the significantly lower rate. The downside is that these loans take longer to repay, although some online mortgage lenders offer shorter term options.

5. Home Equity Loan

Types of projects: debt
Loan term: typically, 5 – 15 years
Average rate: 5%
Closing time: 2 – 3 weeks
Loan to cost: n/a
Another option that is available to those looking to fund a fix and flip is a home equity loan. If you have built up equity in your home, you can essentially take out a second mortgage and make monthly payments to get the funding needed to fix and flip one or many properties.
The problem with this method is that your house becomes collateral, which means that you can lose it if you don’t make money on the fix and flip. This option is good for those with a proven track record and a solid plan but it isn’t an option that we recommend for people doing their first fix and flip.
Real estate investors can also take out equity loans on their rental properties to finance more real estate investments. These investments are long term but the rates can be low depending on the terms. A line of credit will be more affordable and more short-term than a refinance loan.

6. Friends and Family

Types of projects: debt or equity
Loan term: typically, 12 to 24 months
Average rate: 6 – 20%
Closing time: 2 – 3 weeks
Loan to cost: up to 65%
Friends and family are other last-resort sources of funding for a fix and flip. This isn’t always a good idea unless the sponsor’s friends and family understand the real estate industry and the risks involved.
Not only are you risking disappointing investors in this situation. You are also risking damaging personal relationships if the investment doesn’t work out.
One perk of this option is that the interest rates set with friends and family are generally lower than other funding options, like hard money lenders. If you do choose to go down this road, make sure that your investors understand the project and the risks. Put the deal in writing so that the terms of the loan are clear to everyone involved.

Conclusion

It is important to prepare and do some research before you seek out funding for a fix and flip. Investors should know about the local real estate market that they plan to invest in. This includes information about the neighborhood and what reliable contractors operate in the area. Lenders are looking for investors with experience and a solid plan, not just good credit.
If you are ready to start your next project, there are many funding options available. Online mortgage lenders and real estate crowdfunding platforms make it easier than ever to get funding for real estate projects. Traditional funding sources can take longer and have higher rates, but they also have benefits for some borrowers.

Greg Hammond We Buy Houses Louisville / Eagle Thirteen Properties

Trying to avoid the flu? Try these tips

 

 

 Fighting the flu

It happens all the time: One family member gets the flu, and before you know it, everyone else has it too. Flu germs can spread even before symptoms appear, and you can infect others up to a week after you first become sick. By practicing a few simple rules at home, you can help keep your family healthy and prevent the flu from spreading.

Get vaccinated

1. Get vaccinated

Health experts say getting vaccinated is the single most important thing you can do to prevent the flu. There are now four main types of seasonal flu vaccine. The Centers for Disease Control and Prevention (CDC) recommends that everyone 6 months and older who hasn’t had a previous bad reaction or doesn’t have egg or mercury allergies get a flu vaccination.
The Food and Drug Administration (FDA) has recommended the specific types of flu shots for the following people:
Standard flu shot: This is recommended for everyone 6 months and older.
Intradermal flu shot: The intradermal flu shot is administered into the skin, rather than the muscle. It uses a smaller needle and less antigen. The FDA recommends it for adults aged 18-64.
High-dose flu shot: Our immune system responses weaken with age. This vaccine may help improve immune response and increase prevention of the flu. A clinical trial of 31,000 older adults reported by the U.S. National Institutes of Health showed approximately 25 percent fewer cases of the flu in those who received the high-dose flu shot, compared to those who had the standard flu shot.
Nasal spray vaccine: There is some debate over the nasal spray vaccine for the 2016-2017 flu season. The CDC recommended against it, saying the nasal spray is less effective than the flu shot. However, it was still approved by the FDA, which says its benefits outweigh any risks. The FDA recommends the vaccine for people aged 2-49.

Are there any side effects from the flu vaccine?

The flu vaccine in any form does not cause the flu virus. However, some people may experience mild symptoms after receiving the flu shot, such as:

• fever
• headache
• chills
• soreness at the injection site

These symptoms are usually mild and go away within one to two days. Talk to your doctor before receiving the vaccine if you’re severely allergic to eggs or mercury, or if you’ve had a negative reaction to a vaccine in the past.
It’s best to schedule your family’s vaccinations in the fall before the start of flu season, preferably in October or November. But it’s never too late to get the flu shot. Flu shots are now administered in many local grocery stores and pharmacies with no appointment required.

Cover coughs

2. Cover coughs and sneezes

Flu germs are believed to spread through droplets from the mouth and nose. Use a tissue to cover your mouth and nose when you cough or sneeze. Make sure to throw the tissue away immediately and wash your hands straight away. If there’s no tissue handy, cough or sneeze into the crook of your elbow.
It can be tough to get kids to practice these habits as well. The Boston Children’s Museum recommends a cute way to turn this into a game for kids: Turn a sock into a “Germ Eating Monster” by cutting off the rounded toe part of the sock and decorating the tube that’s left. Slide the decorated tube onto their arm and have them “feed” the germ-loving monster by coughing into its face.

No touching

3. Avoid touching your eyes, nose, and mouth

According to the CDC, flu germs can live for two to eight hours on hard surfaces. That’s why it’s so easy to pick up flu germs without knowing it. You can get infected if you touch an infected doorknob or light switch and then rub your eyes or bite your nails. Learning to keep your hands away from your face can be tough, especially for children. Remind them often, as well as yourself.

Wash hands

4. Wash your hands often

All hand washing is not equal. For it to be effective, make sure you and your family follow these steps:

1. Run warm water over your hands.
2. Add soap.
3. Scrub for at least 20 seconds.
4. Rinse and dry.

You can stock up on alcohol-based hand sanitizers for areas where sinks aren’t available or when you’re out and about. Store them out of the reach of young children and ensure children have adult supervision when using them. Make sure your hand sanitizers are at least 60 percent alcohol, and remember that they’re not a replacement for washing your hands with soap and warm water — they don’t tackle all germs, and don’t work on visibly dirty hands.
You’ll need to remind kids to wash up:

• each time they use the bathroom
• before they eat
• after they come home from school or a play date

You can print out hand washing reminders to put up by your sinks as visual reminders for children (and forgetful adults). It can also help to set up a hand sanitizer station by your door, as a first line of defense against outside germs.

Keep your distance

5. Limit contact with family members who are ill

If someone in your family does get the flu, take these steps to prevent the flu from spreading:

• Keep the sick person at home.
• Limit close contact between the sick person and other family members as much as you can while they’re contagious. In general, this is up to a week after they show symptoms.
• Change sleeping arrangements, if possible.

You should also avoid sharing the following items from the sick person:

• washcloths
• towels
• dishes
• toys
• utensils

Housecleaning

6. Clean your home

Flu germs and viruses love to lurk on items you touch every day. Here are some hot spots for germs:

• kitchen sponges
• dishcloths
• cutting boards
• home desks
• floors
• sinks
• toilets

Clean and disinfect these hot spots regularly. You can microwave your kitchen sponge for one minute on a high setting to zap germs. Better yet, throw it out.
If someone in your household has the flu, take special care when washing their things. Wash dishes and silverware thoroughly by hand or in the dishwasher. You don’t have to do a sick person’s laundry separately, but try to avoid scooping up an armload of items and holding them close before washing them. Use laundry soap and dry on a hot setting. Always wash your hands immediately after handling dirty laundry.

Healthy habits

7. Practice healthy habits

Don’t forget the power of a healthy lifestyle to fight off sickness. The following tips can go far in keeping your immune system healthy and your family well this flu season.

• Get plenty of sleep.
• Eat well, with lots of vegetables and fruits.
• Drink lots of fluids.
• Exercise regularly.
• Manage your stress.

Takeaway

The takeaway

Vaccination is the single most important thing you can do to keep the flu from spreading. Healthy personal hygiene habits and frequent housecleaning also go a long way to help keep the flu away. If someone in your household does get the flu, keep the person at home, disinfect and clean your home well, and limit close contact with that person whenever possible.

One of the most common New Years Resolutions in America is to make more money. People get sick and tired of being broke after the holidays. They use the New Year as an opportunity for a fresh start. They vow to manage their money better, earn more, and save more. If you want 2018 to be a year of prosperity and wealth, you have to have a plan. You could pledge to work more hours and not spend so much on coffee, but what if you didn’t have to make such significant sacrifices? If you got involved in house flipping in 2018, you wouldn’t have to.

What Exactly Is House Flipping?

If 2018 is your year to get serious flipping houses, you must first have a clear understanding of what it is. It’s not like those addicting home improvement shows. You can’t just find a dilapidated house, break down a wall with a sledgehammer, find a vintage couch at a garage sale and sell the home for 4x what you bought it for. It’s essential to have a realistic idea of how much time and work goes into a successful flip. On average, it takes about 3-6 months to flip a house. In that time, you have to find ways to upgrade the home to make it appealing to sellers without dumping a lot of money into it. Some homes require a full gut job, while others just need a little TLC. Your primary objective is to quickly rehab the house so that it can go on the market and bring you the highest return on investment (ROI)

Rising House Prices = Higher ROIs

The house-flipping trend died down following the housing crisis in 2008. But now, home prices are rising, and homeowners are jumping on the opportunity to make some significant cash. Recent reports have shown that there was a 3% increase in homes flipped last year, reaching a 10-year high. House flipping in the early 2000’s involved people buying a house and then sitting on it waiting for the price to rise. Now, however, house flippers are getting their hands dirty and doing major upgrades to increase the value of the home. This allows them to make more money and sell homes much faster than before. Even if the flip doesn’t work, buyers at least make a little money in the rising equity of the home.

Step 1: Do The Research

Before you jump into your New Years Resolution of making more money, there is some work you need to do. The first rule in House Flipping 101 is read everything you can get your hands on. Educate yourself about flipping houses and listen to podcasts. You could even take an experienced flipper out to lunch and pick their brain! Read articles and blogs about house flipping. The more you know, the more confident you’ll feel when you get started.

Step 2: Find The Right Location

Part of your research should involve finding the right neighborhood for your investment. Find out where people want to live and what kind of houses buyers are looking for in this area. Don’t settle for a sketchy area just because the house seems like it’s a good deal. Buying a home in a less than desirable area will cost you more in the long run. The longer it sits empty because buyers don’t like the neighborhood, the more you’re paying in monthly fees to maintain it. Be familiar with real estate market trends in your area. Don’t assume that the upgrades and marketing strategies that worked for real estate in your hometown of New Jersey will work the same for the South Tampa homes or the Miami investment property that you’re thinking about flipping. Each city, state, and neighborhood has a particular audience, and if you don’t give them what they’re looking for, you’ll waste a lot of time and money.

Step 3: Get Your Finances In Order

Once you know what you want to do, you have to get all of your financial ducks in a row. This means improving your credit score if it’s low and acquiring the cash required for a down payment. This way, once you find the perfect house, you can make an offer right away. Be realistic about how much house you can afford. The less money you put into buying the home, the more you have to spend on upgrades.

Step 4: Work Smarter, Not Harder

2018 could be the year things really change for you financially, and flipping houses could be the key to that success. Here are a few tricks to make 2018 a high performing year:
• Focus on reducing hold times- see how long it takes you to flip your first property and then aim to reduce that time for your next flip. As you gain more experience, you’ll be able to cut down on hold times and save money
• Negotiate Fees- if you really look at all the different little fees you end up paying when flipping houses, you’ll be surprised at how they add up. Negotiate deals with vendors; see what you can do to reduce the fees in aspects such as appraisers, insurance lenders, and contractors.
• Pay really close attention to your taxes- Or hire a professional to do it for you. Novice investors miss out on tens of thousands of dollars every year in real estate related tax breaks and deductions.
• Similar to striving to cut hold times; focus on setting a realistic budget and sticking with it. As you flip more houses, you’ll begin to learn tricks and tips to save money during a renovation. The smarter you can be with your money up front, the more of it will be returned to you after the home is sold.

Step 5: Build A Solid Team

While losing weight and learning to speak a language are new years resolutions that you can do on your own, being successful in real estate is not. You need a strong team of industry professionals to ensure your success. A real estate agent, licensed contractors, an insurance agent and an accountant, are all vital in making sure each flip is done correctly. Start building your team now so that once your offer has been accepted, everyone can get to work.
Starting January 1st, you have 365 days of potential in front of you. Whether you decide to pursue your dream of flipping houses or not, the days are going to come and go. You can either let another year go by where you let fear and uncertainty hold you hostage, or you can jump in, learn as you go, and experience the excitement that makes flipping houses such a draw for investors all over the world. 2018 could be the year you take a chance, do something that makes you nervous, and earn a steady stream of passive income that could change the course of your life. You decide.

Greg Hammond  We Buy Houses Louisville/ Eagle Thirteen Properties

House Flipping Property Acquistion Checklist

As a professional house flipper, one of the big requirements of my business is to scale to the point where — despite only making $15-30K per house — my company is able to sustain a significant annual income. To do this, I focus a lot of energy on creating systems and processes, and documenting those systems and processes so that anyone in the company can execute on them.
One of processes I have in place is the set of tasks required to get from putting a property under contract through due diligence and then through the final purchase of the property. Because the due diligence period for a typical purchase is only 5-10 days, there’s a lot to be accomplished in a small amount of time. If anything in the due diligence process is missed, it’s very easy to overlook key information that may ultimately hurt your project, and your profits. So, having a good process in place is not just about efficiency, it’s also about long-term success.
If you’re planning to do an investment purchase, I would recommend reviewing the Acquisition Checklist below; your list may vary a bit, but for the most part, these are the things you should probably be focused on accomplishing in the days/weeks between contract and closing…

PROPERTY ACQUISITION CHECKLIST

Upon Contract Acceptance

Ensure Access to Property:

• Make Copy of Property Key(s)
• Purchase New Lockbox
• Place Key(s) in Lockbox and Install at Property

If Certified Funds are Required for EM:

• Get Certified Funds for EM from Bank
• Submit Certified Funds to Agent

If Financing the Purchase:

• Send Contract to Loan Officer
• Provide Loan Officer Property Info
• Connect Loan Officer with RE Agent
• Have Loan Officer Schedule Appraisal
• Make sure Loan Officer Knows Anticipated Closing Date

Due Diligence

Inspections:

• Turn On Utilities for Inspection (water, gas, electric)
• Schedule Termite Inspection
• Schedule Property Inspection
• Attend Inspection and Take Notes for “Scope of Work”
• Get Final Inspection Report and Review for “Scope of Work”
• Get Termite Letter/Pest Inspection Report

Contractor Prep:

• Create Scope of Work
• Create Materials List
• Determine Which Contractors Are Needed:
• GC
• HVAC
• Roofer
• Electrician
• Plumber
• Pest/Termite Control
• Painter
• Landscaper
• Carpenter
• Schedule GC Walk-Through(s)
• Get Contractor Quotes

Purchase Decision:

• Perform Final Financial Analysis Using Estimates/Quotes
• Perform Both Flip and Rental Analysis
• Make Go/No-Go Decision on Purchase

Upon Contingency Finalization

Final Purchase Prep:

• Get Closing Date from Lender/Agent
• Arrange Landlord Insurance Policy
• If Financing, Connect Insurance Agent with Loan Officer
• Follow-Up on Appraisal with Lender
• Get Pictures/Video
• Choose a General Contractor
• Choose Sub-Contractors (if no GC)
• Determine Exit Strategy
• Create Rehab Schedule (if no GC)
• Create Final Budget

Prior to Closing

Final Loan and Closing Prep:

• Obtain and Review HUD-1
• Obtain and Review GFE (if financing)
• Ensure Loan is Ready for Closing (if financing)
• Get Certified Funds for Closing
• Determine How to Hold Title
• Get Partnership Agreement Documents Signed (if partnering)

Upon Closing

Day of Closing:

• Get Keys
• Change Property Tax Records to Home Address
• Get GC and Sub Contracts/Docs Signed
• Arrange GC and Sub Start Dates

Greg Hammond Eagle Thirteen Properties/ We Buy Houses Louisville

7 Tips to Quickly Boost Your Credit Score

 

 

       Like it or not, your credit score dictates everything from whether you’re approved for a credit card to what rate you’re offered on a mortgage.
As the economy has recovered from the Great Recession, many Americans have managed to get on better footing, but nearly one-third still have “bad” credit scores (under 600), according to credit.com. If you are one of them, it’s time to give that baby a boost. Here are seven of the fastest ways to increase your credit score.

1. Clean up your credit report

Before you do anything else, go to AnnualCreditReport.com and request a free credit report from each of the big three credit reporting companies:

• TransUnion
• Experian
• Equifax

By law, you’re entitled to one free report each year, no matter what. When you request it, be ready to print or save it to your computer.
Once you have the report, examine everything. In particular, look for any accounts that show late payments or unpaid bills. If that information is inaccurate, the report should tell you where to send a dispute.
Keeping a clean credit report isn’t only important for your credit score; it can also make or affect your job prospects. Employers do and will pull credit reports before making hiring decisions.

2. Pay down your balance

According to myFICO, the consumer division of FICO, the company that calculates one of the most widely used credit scores, 30 percent of your score is based on the amount you owe.
However, it’s not simply how much you owe that’s important. It’s how much you owe compared with how much credit you have, a ratio known as your credit utilization. For example, if you have a $10,000 credit limit and a $5,000 balance, your credit utilization is 50 percent. If you’ve maxed out that $10,000 limit, your utilization is 100 percent.
There are many theories on what is the best credit utilization level, but on its website, Experian suggests it’s best to have a rate of no more than 30 percent. In other words, you should never have more than $3,000 charged at any time if you have a $10,000 limit.
If you owe more than that amount, paying down your balances is a quick way to boost your score. Live lean for a few months, hold a garage sale or pick up a temporary second job to find the cash needed to drop your credit card balances.

3. Pay twice a month

You might think you’re doing great because you pay off your card every month, even if it’s maxed out. The problem is that your creditors are only reporting balances to the credit bureaus once a month. If you run up a big balance each month, it could look like you’re overusing your credit.
For example, assume you have a credit card with a $1,000 limit. It’s a rewards card, so you use it for everything. In fact, every month, you hit your limit. The statement arrives, you owe $1,000, and you send in a check to pay it off. The problem is the credit card company is likely reporting the statement balance each month. So it looks like you have a $1,000 limit and a $1,000 balance. That’s a 100 percent credit utilization rate, and not a good thing as far as your score is concerned.
You can help alleviate the problem by breaking up your credit card payments. Go ahead and charge everything to get the rewards, but send in payments at least twice a month to keep your running balance lower. In addition, if you make a large purchase on your card and have the cash handy, pay it off immediately.

4. Increase your credit limit

Maybe you’re not in a position to pay down your balances. You could take a different approach to improving your credit utilization rate: Call your creditor and ask for a credit limit increase.
If you’ve maxed out your $1,000 card and get a limit increase to $2,000, you’ve instantly cut your credit utilization rate in half. The key is to not spend any of your new credit. It defeats the purpose of getting a limit increase if you immediately charge the card up to $2,000.

5. Open a new account

If your current credit card issuer balks at the idea of giving you a credit increase, apply for a card from a different issuer. It will still help your credit utilization rate, since your score lumps all your open lines of credit and balances together.
An individual with $10,000 in credit and a balance of $5,000 will have a 50 percent credit utilization rate regardless of whether her or she has all those amounts on one card or spread out over multiple cards.
Be aware, though, that opening multiple accounts at once is not good either. Too many new accounts can make you look like you desperately want to go on a spending spree. Don’t risk dinging your credit score — apply for only one or two new cards if you’re going to try this strategy.
You can compare credit card deals to find the best one for you at our Solutions Center.

6. Negotiate outstanding balances

Maybe your credit score took a dive because you have bills in debt collections. You can’t wipe out past mistakes from your credit report, but you can do some damage control by settling them.
Dummies.com has a short, easy-to-understand primer on how to negotiate your debt. The most important step is to get an agreement in writing.

7. Become an authorized user

Finally, if none of the above suggestions helps you, don’t despair. There is one final option, and that is to be added as an authorized user on someone else’s credit card.
Now, for this to work, you’ll need to find someone who loves you very much and who manages his or her money very well. Once you find this very special person who is going to do you a HUGE favor, you need to cross your heart and hope to die while explaining you have no intention of using their credit card. You just want to be added to their account as a way to build credit.
You see, when you’re an authorized user, the account will show up on your credit report so long as a card has been issued in your name. Then, your credit report will show all the cardholder’s on-time payments and (hopefully great) credit utilization rate. As a result, your credit score gets a boost, too.
While these seven strategies can raise your credit score fast, keep in mind that “fast” is a relative term. You won’t see results overnight; give it three months or so for the changes to begin affecting your score positively.

Greg Hammond Eagle Thirteen Properties/We Buy Houses Louisville