Sherry Smith writes:

Subject: Manager / MRI

I would like to know how she purchased a house from HUD with no money down. I am presently checking into a reposed HUD home and the banks require 20% down and HUD is just selling the property not financing it?

Jeanette Fisher writes:

Subject: How to Buy a HUD Home with No Money Down

You can buy any home, not just a HUD home, for no money down if you have the right lender. Home buyers with good credit can get a loan from their bank. Home buyers with credit scores over 580 can get a loan from a motrgage broker or a hard-money lender.

Our family and friends have purchased HUD homes with little or no money down since 1984. The last HUD we purchased was in 2002. Our son bought a home with only $500 down last year. And he got money at COE to fix the home.

Talk to a loan officer or email me directly for more information.

Have fun investing in real estate!

Jeanette

Rose Van Dyck writes:

Subject: what do you mean by Design Psychology?

In your article you say to outshine the competition by using Design Psychology. Forgive my igorance but what do you mean by that?

Thank you

Jeanette Joy Fisher writes:

Subject: Design Psychology

We use Design Psychology to select decorating details such as paint colors, window covering fabrics, hardware, carpeting, and improvements to the house. Before we make any changes to a house, we profile our target buyer and plan changes to the home based on that buyers' preferences. Design Psychology, based on scientific research, helps us create a buyer's "dream home." Instead of spray painting everything white and throwing in boring beige carpeting, we use interior design to make our houses more appealing. For more information on interior design psychology, see http://www.designpsych.com

Michelle Martin writes:

Subject: No money down

How can I buy a home for no money down? What qualifications do I need?

kristy writes:

Subject: bad credit

you talked about getting loans but that pretty much only works if you have good credit, or at least decent credit. what would you suggest for someone with poor credit?

Jeanette Joy Fisher writes:

Subject: No Money, No Credit

Most loan officers say you need ONE of the following to get a mortgage:

1. Good credit 2. Good down payment 3. Good income

In other words, the better your credit score, the less money you need. In fact, my husband purchased an investment home with no money down and no income. (He retired from teaching school early.)

If you have poor credit, no money, and low income, you need to work on fixing one or more of those issues. The best way to do that is to buy a bargain fixer home as your primary residence. Primary home mortgages are the easiest loans to qualify for. After you fix the house up, sell it for full market value. Then, you have money to clear up your credit and money to put down on a home so you can get a better mortgage. If you buy a second bargain fixer, you can repeat the process and buy two homes the next time: one to live in and one to rehab to sell.

You can download a free ebook on the six mortgage qualifications at http://worryfreecredit.com .

JOSE writes:

Subject: NEGATIVES

Ok, I know about the positives of the business but can you give me a list of the potential downfalls or losses you can suffer while trying to make this business work?

What can you tell me about capital gains tax?

Anymore helpful websites to visit to get started?

Jeanette Joy Fisher writes:

Subject: Potential Downfalls or Losses You Can Suffer Flipping Houses, Taxes, Get Started

1. Paying too much for a house that needs too many costly repairs can strip away any and all profits. You must know how much the property will sell for and how much the repairs will cost. Plus, you must be prepared for surprises that come up like a broken pipe flooding the house. This happened to us once. The new carpet had to be raised up and dried but it didn't mildew. (Our daughter ended up buying the house and she's had no problems with the carpeting.)

2. Buying a house in a bad neighborhood can cost profits. One investor lost all of his tools when someone broke in. If you're unsure about the neighborhood, install an alarm. Add this cost into your estimate of expenses before you make an offer to purchase. Make friends with the neighbors so they watch over your property.

3. Understand that it may be difficult to get insurance on a vacant house for longer than one month. We often allow a single college student to stay in our houses. They get the use of one room at a time. They can use the kitchen and other rooms but not keep any personal possessions in those areas.

4. Keep insurance that protects you from frivolous lawsuits. Monitor any day laborers so they don't make a foolish mistake and get hurt.

5. Watch your back and don't show the house to unverified buyers. Some real estate agents have been killed showing houses.

Capital Gains Tax http://ezinearticles.com/?Investing-in-Real-Estate,-Flipping-Houses,-and-Income-Taxes&id=97364

Get started with our free real estate investing teleseminars: http://doghousetodollhouse.com/free_real_estate_teleseminars.htm

Jennifer B writes:

Subject: Flipping TV shows

For anyone wanting more information about flipping, there are good TV shows on TLC called "Property Ladder" and "Flip that House". Property Ladder is on Saturdays at 5pm, and the website for more info on the show is here: http://tlc.discovery.com//fansites/propertyladder/propertyladder.html?clik=tlc_leftnav. Flip that House is on Saturdays at 6pm and 9pm and the website is here: http://tlc.discovery.com/fansites/flipthathouse/flipthathouse.html?clik=tlc_leftnav. There are other shows not directly related to flipping but more about remodeling that have good info on both TLC and HGTV. DIY also has good shows like Sweat Equity and Bathroom and Kitchen Renovations. They are at www.diynetwork.com. Also check out www.hgtvpro.com. One show I would NOT recommend is Flip this House on A&E (as opposed to Flip that house on HGTV). The show is not informative at all, and most of the time you watch the people argue and complain about each other. They spend too much time goofing off instead of working which I don't care to watch, plus they repeatedly make stupid mistakes like doing major demolition work without a permit, thinking that an inspector won't come by, and of course he does. This is an actual company that has flipped many houses and they try to take shortcuts where they can, and they make it seem like its okay for others watching the show to do this too. Therefore, I definitely do not recommend this show, there are better ones out there like those mentioned above.

I hope all this information helps. Check out the websites of TLC, HGTV, and DIY for more programs!

Jeanette Fisher writes:

Subject: Flip That House

Thank you Jennifer for clearing the confusion about "Flip That House" and "Flip this House." I didn't even know about Flip THIS House until we agreed to be on Flip THAT House. Did you see the press release or just happen to post this today? http://pressexposure.com/Its_a_Family_Tradition:_Flip_That_House!-622.html

Oliver Roldan writes:

Subject: im only a college kid

hey Jeanette

i know it is very possible to flip property and it very much exists. what would you say to a person like me whos only 20, makes 10k a year part time, and goes to school full time? im just a beginner and i dont know where to start, so where would you say i should get started first?

Jeanette Fisher writes:

Subject: How to Get Started Flipping Houses

Hi Oliver,

Each real estate market has unique possibilities and limitations. In other words, your location makes a huge difference. Investors in Ohio flip $100k houses and investors in California flip $400k - $1m houses. Securing a contact on a $100k house is easier than the more expensive properties.

Also, your support team makes a difference. Do you have anyone to help you? My son bought his first house near his college and rented rooms out to pay the mortgage. However, even though he did this in his own name, his father and sister helped him with all the work to fix the place up. Plus, we help him with expenses.

Here are some steps to get started:

1. Get your credit in order. You only need two major credit cards like Visa or MasterCard. Don't apply for a lot of credit. Pay most of your bill off each month, but let a little roll over. Keep balances low compared to the credit limit. You need a score over 680 to get the best financing--over 720 is even better.

2. Start with the basic flip. Find an investor who wants to fix and flip or build an investment portfolio. Then find a motivated seller, get a bargain sales price on the house, and get a contract that allows you to sell the contract to the investor. This takes work and a good understanding of your market. See if you have an investment club near you. Many investors, too busy to find properties, will pay you to locate houses. Also, this experience will educate you in the real estate investing business.

3. After you have flipped a few contracts, you will have money to work with to buy your own flip. However, you will need more income to qualify for a mortgage in most areas. Talk to a loan officer about your possibilities.

Make yourself a financial plan. Joe Lukino worked four years after graduating college. He's been flipping houses for the past four years full time in Ohio. He owned 50 house before he reached thirty.

Chad Grissom writes:

Subject: How do I get money for renovations?

When the house gets financed will there be money for renovation to the house I want to flip in the financing or will I need to get seperate financing for remodeling? How will I get all the money needed in fliping houses for the purchase, repairs, and remodel of the house to be flip.

jeaneil writes:

Subject: Where do I get a list of free hud repoded houses in my area

Hi, thank you for this web site. Where can I find a list or web site of FREE hud repoded homes in my state. I have searched the web but everything I find you have to pay for it and Im not sure it the site is legitamit.

Pete writes:

Subject: Banker

Hi, thanks for all the good infor. I just wanted to know where to go to find foreclosed properties that I can finance. Almost everything Ive checked out requires you to pay the full amount, what can I do?

Jeanette Fisher writes:

Subject: Answers about funding, HUD repos, and REOs

RE: How do I get money for renovations? - When the house gets financed will there be money for renovation to the house I want to flip in the financing or will I need to get separate financing for remodeling?

Answer: You can finance separately or get what's known as a "rehab loan." Check with several loan officers to see which option suits your financing needs. Rehab loans cost more in origination fees and interest. We usually pay for rehab expenses with business credit cards and pay them off at sale.

RE: Where do I get a list of free HUD repos?

Answer: Don't pay for HUD lists because they usually are out of date by the time you receive them. This information is free from the government: http://www.hud.gov/homes/homesforsale.cfm

RE: Foreclosed properties and price - I just wanted to know where to go to find foreclosed properties that I can finance. Almost everything Ive checked out requires you to pay the full amount, what can I do?

Answer: Without knowing your location, this question is difficult. You should arrange your own financing first and cash out the bank. Many banks will not refinance the property after foreclosure. Most banks list REOs (real estate owned) at full price to see what happens. Ignore listed prices and make many offers based on what you feel comfortable with. Calculate your expected expenses; add a cushion for surprises and your profit margin.

See http://ezinearticles.com/?Real-Estate-Investing-in-REOs-Guide-for-Beginners&id=212729

Don't limit your property search to foreclosures. Out of more than forty properties, we've never purchased a REO and have only won five HUD bids and one VA. There are no longer government-owned houses in our area. We make many offers on listed houses and get calls from motivated sellers and agents who know we act quickly.

Read about finding fixers: http://ezinearticles.com/?Real-Estate-Investing:-How-to-Buy-Fixers---Look-for-Triple-Ds&id=219142

Caroline writes:

Subject: Where to find?

Hi, I am interested in finding preforclosure or foreclosed homes, but most of the websites offereing listings require a monthly membership...is there a way to find this homes without signing up on a website?

Jennell writes:

Subject: hud homes

I heard that you have to keep a hud home for at least 1 yr after you buy it. How did your friend sell that quick with a hud home?

Jeanette Joy Fisher writes:

Subject: Hud Home Regulations

HUD rules and regulations differ for investment houses versus homes for buyer-occupant. Often, you see bids open to buyer-occupant for the first week and if no acceptable bids are submitted, the property is made available for investors.

lia writes:

Subject: learning to flip houses

i do not have any experience in this flipping house but i truely want to learn.. can you please help direct me in a direction that need be. will it be easy to do?

Jeanette Joy Fisher writes:

Subject: Learning how to flip houses

Learning how to flip houses is easier than the actual work. I can tell you how to do it but you must be truly motivated to do the work. If you take the flipping process one step at a time, like any other successful endeavor, you make the job easier. See our detailed step-by step free articles on http://doghousetodollhouse.com.

Some houses flip themselves with ease and others bring a new set of nightmares to deal with. You must learn how to evaluate property accurately--both the physical condition of the structures and the marketability of the finished product. See some of our current before pictures including surprises like grass growing under carpeting: http://flipthathousewithfaux.com/before.html

Maria writes:

Subject: Real Estate License

Your article is fantastic!

I'm a 20 yr old, college grad from Canada. My dad and I are thinking of getting into business together; flipping houses that is.

He's insisting that I get my real estate license first. Do you think it's beneficial/required to flip houses? Do you know of any Canadian websites that can help..with regulations, etc?

Thanks !

Jeanette Joy Fisher writes:

Subject: Real Estate License

Thank you Maria.

I don't know anything about Canadian websites.

I do know that my 24 year old son has already bought and sold his first flip and my 20 year old son is taking his real estate license class. The class is a really good introduction to laws, which you need to know in any case. You can also be the first to find bargains with a license plus make money on comissions selling to your dad.

Cecilia writes:

Subject: Real Estate License in Hawaii

Is it necessary to go a Real Estate School and get your license to sell a home or rent a home? I'm looking at a program and it's price is about 500.00 and of course you can take this course online. Or do you offer a step by step book that we can follow. I really want to get into this business but I'm just to overwhelm with all sorts of books. All I want is to find the best qualified person to learn from. Please help me. Thank you

Johnny writes:

Subject: what's next?

My father and I have been trying for years to get into Real Estate, we have attended every seminar, read many books, and purchased many of the online membership services, and have been confused ever since.

I have finally saved a decent amount of money and have worked much on my contracting skils, and my dad is now has been real estate agent for the past 2 years. Here is the problem...whats next? I have been trying to find properties for the longest time, but I cannot find any that can be flipped for a minimal profit, I'm in Aurora,IL and I can't find anything remotely near by that can be done.

Darren writes:

Subject: legal business

Is it necessary to set up a legal business entity, such as an LLC etc.. to begin to flip houses or should this just be down as a individual?

dorothy writes:

Subject: qualifications

hi, I was wondering about qualifications if you had no income but want to start flipping homes do you still have a chance even if you still had bad credit?

Jeanette writes:

Subject: Business Entity and Flipping Houses with NO Money and No Credit

Legal Business Question: It is difficult to finance property in an LLC. My family buys in our name with financing and then transfers title into a revocable trust. Check your state laws.

NO Money, No Credit

All the infomercials and misleading slogans like "Nothing Down" give many people false hope. You can get started realistically by finding bargain houses, securing a contract, and selling that contract to an investor. Join your local real estate club to learn how this process works in your location.

Mike writes:

Subject: New FHA Regulations HUD Homes To Be Sold Back.

Hello Jeanette

I have learned that the Federal Housing Administration (FHA) has passed new regulations on flipping property, but I do not see this information posted on the FHA website. I have also learned that if a homebuyer purchase a HUD repo, and renovates the home before reselling it. The homeowner is required by this new regulation to sell the home back to FHA. It this true?

Jeanette writes:

Subject: New FHA Regulations HUD Homes To Be Sold Back

I haven't heard of HUD requiring remodeled houses back. That doesn't make sense.

Effective July 9, 2006, HUD changed their lending regulations for new FHA financing. To keep wholesalers from making a quick profit, only the actual owner of a home can sell a home with FHA, Federal Housing Administration, financing. To discourage house flipping, homes sold within 90 days of purchase won't be eligible for FHA financing, either. Additionally, houses selling for twice as much as the purchase price in the time period between 91 and 180 days after the last sale require additional valuation data in order to qualify for FHA financing.

The exemptions to this policy include HUD, Fannie Mae, Freddie Mac, lenders selling real estate owned (foreclosures), local or state housing agencies, nonprofits with HUD permission to purchase discounted real estate-owned properties, inherited properties, and dwellings located in presidentially declared disaster areas.

What does this mean for real estate investors who flip houses?

http://ezinearticles.com/?House-Flipping-Laws:-Are-Real-Estate-Investors-Guilty?&id=292010

HyperX writes:

Subject: House Fixers

Jeanette,

I work in Troy, MI. I'm shopping for my first-time buying of a home.

I wanted to take advantage the buyer's market in MI and get a foreclosure house for a very cheap price and fix it up for use as my primary residence.

I'm not experienced in the housing market in any way.

I want to know if there any companies which will help me determine the expenses involved in buying foreclosed properties and fix it up for a fee.

Thanks,

HyperX

Stanil Dobrev writes:

Subject: Great article!

Great article! The tip with "Design Psychology" is very good.. never thought of that when I'm dreaming I'm a house flipper. :-) This kind of business is really very profitable in Bulgaria, where I live. I have at least 10 friends doing that. It was a real estate boom in Bulgaria in the recent years, but now it is little harder with this crisis.