What is rehabbing and how do I make money doing it.

Why is Rehabbing becoming so lucrative. It is truly a rinse and repeat business.

This topic is a bit of a stretch for me. I must say right upfront that when it comes to real estate make sure you do your homework. There is a lot to know.

I believe in evaluating several criteria before considering any real estate:

1. Is it in a good location? The most famous three words in real estate are location, location, location. If the area sucks and there is nothing of value around the home then chances are it is selling crazy cheap for those reason's alone. Although there are probably others ;) Dig and find out why.

2. If the home is a fixer upper is it worth the time and money? In other words if I pick the home up for $100,000 grand and it needs $30,000 in repairs and upgrades, will I be able to flip it for a minimum of $180,000.

Side note: always add in closing costs, taxes, all of your material and labor, etc, then tack on how much you want to pay yourself and that gives you the starting bid (at least that's my formula).

3. This one is tricky. I personally try to find homes that only need "cosmetic" help. You know a little "plastic" surgery as it were. Trust me on this, it is a heck of a lot easier to buy a run down home that needs a few band aids. Meaning, rip down some dry wall and put up new dry wall and paint. Simple cosmetics.

When you start finding mold everywhere and damages to the foundation etc, it becomes a headache. Don't get me wrong, they are still flippable....just a little longer process to fix up.

4. Final thing I try to find is repo's. I love repo's. It's funny how in my area there are lots....oddly enough no one knows how to find them. So, in Canada, at least here up Northern Ontario way, here are a few ways to find repo's. First off, the dead ringer is the little white paper in the window that says this house is under surveillance. Bang. Repo. Another way is to look at the realtor name, seriously, if it is a realtor from Toronto or B.C. it is definitely a repo. and the third, most obvious way that is always overlooked. Go to your local mortgage center and ask. These guys want the properties sold fast and usually at a great deal, it's only after the banks grab them that they go way up in price. A friend of mine got a $176,000 home through the local mortgage center for $12,000! He paid the back taxes and walked away, he asked when the bank was going to take over the home and was told in less than a week at which point the home would have went up on market for a minimum of $190,000. Bankers are the biggest crooks on the planet, in my opinion. Hey that's why the world needed a bail out.....off topic, sorry.

5. Okay, sorry....final, final item. More of a personal note. Before you flip or rehab, get some education first. Make sure you take an accredited course locally. Don't get one of those "Learn to flip...." crap things online. Useless junk.

With the economy the way it is people are looking for safety, safety for retirement plans. Planning ahead. This is the exact reason that rehabbing is still thriving and attracting investors. If you get in the right market, right now, you may very well be positioning yourself for becoming very wealthy in ten to fifteen years. It is a very real possibility.

If you don't have the start up money and your credit is gone or less than good enough then figure out a way to come up with some start up capital. A great formula is called "Gun to the head".

It is one of the oldest ways to make money, it is a great motivator, and it works.

"Gun to the head" is just that. You are given 24 hours to come up with $1,000 cash. You must do this legally, ethically and honestly or the gun (metaphorically)goes off.

It is amazing what you can do when your life is on the line. Pretend you are in that exact scenario. "Gun to the head" and you will definitely find a way.

The time really is now since property prices are still down. For smart investors, this means a chance to buy more properties with less cash. It's a chance to save on the capital. So, to quote ING. Go ahead...Save your Money.

If you are one of my American reader's and need some help check out my friend Kristi's page "Cirtwill Investments, Inc." She has been flipping for a few years now and is incredibly knowledgeable on the subject.

For my Canadian reader's send me an email and I will get you in touch with a friend of mine who doesn't believe in websites but makes mad cash flipping.

Please retweet or stumble this post, I would appreciate it.

Garret


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