Ralph R. Roberts - Flipping Houses For Dummies

Flipping Houses For Dummies®, 4th Edition

Published by: John Wiley & Sons, Inc.,111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2022 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions .

Trademarks:Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc., and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc., is not associated with any product or vendor mentioned in this book.

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: WHILE THE PUBLISHER AND AUTHORS HAVE USED THEIR BEST EFFORTS IN PREPARING THIS WORK, THEY MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES REPRESENTATIVES, WRITTEN SALES MATERIALS OR PROMOTIONAL STATEMENTS FOR THIS WORK. THE FACT THAT AN ORGANIZATION, WEBSITE, OR PRODUCT IS REFERRED TO IN THIS WORK AS A CITATION AND/OR POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE PUBLISHER AND AUTHORS ENDORSE THE INFORMATION OR SERVICES THE ORGANIZATION, WEBSITE, OR PRODUCT MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING PROFESSIONAL SERVICES. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR YOUR SITUATION. YOU SHOULD CONSULT WITH A SPECIALIST WHERE APPROPRIATE. FURTHER, READERS SHOULD BE AWARE THAT WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ. NEITHER THE PUBLISHER NOR AUTHORS SHALL BE LIABLE FOR ANY LOSS OF PROFIT OR ANY OTHER COMMERCIAL DAMAGES, INCLUDING BUT NOT LIMITED TO SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES.

For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit https://hub.wiley.com/community/support/dummies .

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com . For more information about Wiley products, visit www.wiley.com .

Library of Congress Control Number: 2022931228

ISBN: 978-1-119-86101-0; ISBN: 978-1-119-86102-7 (ebk); ISBN: 978-1-119-86103-4 (ebk)

1 Cover

2 Title Page

3 Copyright

4 Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here

5 Part 1: Getting Started with House Flipping Chapter 1: Brushing Up on the Basics Grasping the Concept of Flipping Flipping Legally and Ethically Determining Whether You Have What It Takes to Flip Devising a Reliable Flipping Strategy Building an All-Star Team Finding and Buying a Flippable House Rehabbing Your Fixer-Upper Profiting from Your Venture Chapter 2: Devising an Effective Flipping Strategy Deciding on the Role You Want to Play Surveying Different Strategies Drawing Up a Detailed Plan in Advance Plan B: Surviving a Flip That Flops Chapter 3: Building Your Dream Team Teaming Up with a Quality Real Estate Agent Recruiting Moneymen (and Women) Covering Your Back with Title and Homeowner’s Insurance Locating an Experienced Appraiser Adding a Real Estate Lawyer to the Roster Lining Up a Home Inspector Calling In Your Rehab Team Chapter 4: Securing the Funds to Fuel Your Flips Recognizing the Importance of Being a Cash Buyer Tapping Your Own Resources for Cash Leveraging the Power of Other People’s Money Using Conventional Financing (for Longer-Term Real Estate Deals)

6 Part 2: House Hunting with an Eye for Flipping Chapter 5: Scoping Out a Fertile Neighborhood Pinpointing House Flipping Hot Spots Sizing Up the Local Real Estate Market Comparing Neighborhoods Considering Other Neighborhood Factors Chapter 6: Hunting for Houses in Your Target Area Developing a List of Criteria to Guide Your Search Focusing Your Search on Affordability Digging through Property Listings, Ads, and Publications Mining Special Markets for Dontwanners Advertising to Generate More Leads Chapter 7: Closing In on Foreclosure Properties Getting Up to Speed on the Foreclosure Process Brushing Up on Local Rules and Regulations Picking Your Point of Entry into the Foreclosure Process Purchasing Foreclosure Properties, Step by Step Chapter 8: Scoping Out Properties in Special Markets Acquiring Properties in Probate Scooping Up Bargains in Bankruptcy Finding Government Owned Properties Buying Properties at Tax Sales

7 Part 3: Evaluating Properties and Crunching Numbers Chapter 9: Researching Distressed Properties Creating a Property Dossier Checking Out the Property Following the Paper Trail Chapter 10: Inspecting the Property and Estimating Rehab Costs Packing for Your Inspection Mission Finding the Perfect Candidate for a Quick Makeover Assessing Potential Curbside Appeal Taking a Big Whiff, Inside and Out Inspecting the House for Big-Ticket Items Discovering Some Promising Features Arriving at a Ballpark Figure for Repair and Renovation Costs Chapter 11: Calculating Your Profit and Best Offer Doing the Math to Ensure a Profitable Flip Estimating a Realistic Resale Value Accounting for Expenses Chapter 12: The Art of Haggling: Negotiating a Price and Terms Planting the Seeds of Successful Negotiation Making an Offer They Can Refuse (But Will Consider) Tending to the Details: Inspections, Appraisals, and Walk-Throughs Closing the Deal

8 Part 4: Fixing Up Your Fixer-Upper Chapter 13: Building and Managing Your Rehab Team Identifying the Expertise You Need Finding and Recruiting a General Contractor or Subcontractors Adding a Handyperson and Other General Help to Your Crew Structuring Financial Agreements Contracting with Your Contractors Managing Your Rehab and Your Team Chapter 14: Prioritizing and Planning Your Renovations Developing an Eye for Home Improvements Prioritizing Your Projects Delegating Duties Drawing Up a Tentative Budget Coming Up with a Game Plan Chapter 15: Giving Your Property a Quick Makeover Sprucing Up the Yard Freshening the Façade Touching Up the Interior Chapter 16: Perking Up the Curb Appeal Revitalizing the Landscape Tidying Up the Driveway and Walkways Making Entryways More Inviting Refreshing the Outside Shell of the House Glamming Up the Garage Chapter 17: Dazzling the Crowds with Updated Kitchens and Baths Giving a Facelift to Kitchen Cabinets, Countertops, and Sinks Modernizing Kitchen Appliances Updating the Bathrooms Chapter 18: Tackling Moderate Makeovers Installing Replacement Windows Replacing Drab, Weathered Doors Putting on Your Own Floor Show Chapter 19: Reconfiguring Spaces and Other Structural Overhauls Attending to Essential Structure and Infrastructure Repairs Fiddling with the Floor Plan — or Not Identifying Load-Bearing Walls Maximizing the Use of Existing Space Building New Rooms from Scratch Adding a Deck or Patio