Buying and Selling Distressed Houses for Maximum Profit
Jeanette Joy Fisher
If you want to become a real estate investor, find a "fixer-upper" owned by an anxious seller. Finding distressed houses at bargain prices, fixing them up, and then selling them on a consistent basis can make you a millionaire.
Why Sellers Sell At a Discount
Homeowners problems often prevent them from staying on top of their homes upkeep, and factors such as job loss, divorce, serious illness, various addictions, or other personal problems quickly overwhelm them. These sellers cant make the needed repairs because of financial or physical limitations, and when that happens, their home becomes a low priority and sometimes will go into foreclosure.
Look for the "Triple D"
Home sellers with three problems give beginning investors a great opportunity. A "Triple D" is a Doghouse, involved in a Divorce, and in Default. The label "doghouse" comes from Southern California Realtors who used this term to describe the worst fixers. These houses maybe "tired" and need only cosmetic work in order to favorably compare with other homes in the area.
What to Look for in a Doghouse
The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who dont have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.
As you look through the classified ads or at realtor listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale words. Also have your agent use similar terms when scanning the Multiple Listing Service for your target area.
Once youve found a property that you can turn from doghouse to dollhouse, find out the sellers problem and then offer a solution. Distressed sellers frequently experience financial problems and need cash as soon as possible. Therefore, if youre ready to close quickly, youll be set to negotiate a lower sales price.
How to Close Quickly
Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers.
How to Know When "Bad" Is Good
When you first start out in the real estate "fixer" business, youll want to look for "ugly" houses needing only cosmetic work. Look for entry level fixers that just need some cleaning up, painting, and carpeting.
When youre new to the fixer game, always remember your limitations and use caution when considering houses needing structural repairs. My husband replaces structural beams, sub-flooring, walls, plumbing, and electrical systems, but he acquired those skills after years of experience.
If you find a house with structural problems, get estimates from reliable contractors to do the work. Experience teaches you how to do more over time. Until then, rely on experienced professionals to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.
The Easiest Houses to Sell
A dollhouse, located in a popular neighborhood, sells the quickest. For instance, we once sold a home we named "Orange Tree Cottage" in just three hours! To qualify as a dollhouse, a home must be in a location that buyers want and must offer the number of bedrooms, bathrooms, and amenities theyre seeking. Beyond the price, however, buyers purchase the house that meets both their basic requirements and their emotional needs.
Filling Buyers Emotional Needs
After many years of investment experience, weve found that using Design Psychology and Marketing Psychology techniques greatly increases our profits. Both concepts go far beyond "curb appeal."
For instance, we use colors that target our prospective buyers income level and match the selling season. Generally, buyers of higher-priced homes prefer complex colors, and using cool colors during hot weather and warm colors in cold seasons makes buyers feel more comfortable. We also paint the front door a happy color and entice buyers into the house by placing potted plants on the porch.
Over the years, weve bought and sold dozens of distressed properties. By using caution and common sense, as well as following a few simple rules and using Design Psychology strategies, you, too, can become a wealthy real estate investor!
c Copyright 2004, Jeanette J. Fisher. All rights reserved.
About The Author
Jeanette Fisher, Design Psychology Professor, is the author of Doghouse to Dollhouse for Dollars, Credit Help!, Joy to the Home, and other books. Jeanette teaches Real Estate Investing and Interior Design Psychology. For more articles, tips, reports, and newsletters, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm.
JeanetteJoy@gmail.com
10 Ways To Get More Profit From Your E-zine
Ken Hill
Publishing an e-zine will help you to strengthen your status as an expert in your field and convert more of your visitors into customers.
The following tips will provide you with ways to successfully increase the revenue you get from publishing your own e-zine:
1. Write your own articles.
Writing articles will help you to connect with your readers, share your knowledge, and promote your business through your resource box.
If you have an affiliate program, let your subscribers as well as your other affiliates reprint your articles with their affiliate URLs in your resource box.
Youll be able get more of your readers and visitors to join your affiliate program and successfully promote your business.
2. Include testimonials for your products or services within your e-zine.
Your testimonials will increase your readers confidence in your product. Include testimonials from your customers and also from other experts in your field.
3. Provide examples of how youve helped your clients.
For instance, if you design web sites you could provide examples of the web sites youve designed.
Your clients will enjoy the free promotion that you give them and youll be able to showcase your work.
4. Offer a free ebook as a bonus for subscribing.
Your ebook will help you to successfully promote your business and also help you to effectively promote affiliate programs youve joined to your new subscribers.
5. Sell advertising space.
Once your e-zine is of sufficient size, you can rake in more profits by selling ads to your subscribers and visitors.
Offer your readers special limited time offers to get more people to buy advertising for the first time and to get more repeat sales.
Also provide testimonials in your e-zine and on your site that share how advertising in your e-zine has paid off for your advertisers.
6. Write a product review.
Your product review will help you to successfully "soft sell" your affiliate programs product to your subscribers.
Focus your review on how their product will specifically benefit your readers, and share your positive experiences with the product.
Dont be afraid to point out some minor negative aspects about the product, and keep your review hype free.
You can also write reviews about products youve bought that disappointed you. Your subscribers will appreciate your honesty and youll be able to increase their trust in you.
7. Swap an ad for your business.
Youll be able to get your ad run at no cost in a targeted e-zine in exchange for running that publishers ad.
Track your swaps, and then swap your ads for longer runs with publishers whose e-zines gave you an excellent response.
8. Swap a recommendation with another e-zine publisher.
Recommend another publishers product in your e-zine in exchange for her recommending your product.
Youll be able to get more sales than you would from a paid e-zine ad because your product will be endorsed by a trusted source.
9. Use your thank you page to your advantage.
Your thank you page is a great place to offer a special sale, recommend one of your affiliate programs, and include your signature file.
In addition, you can get more new subscribers that would be interested in your products by swapping an ad or recommendation for your e-zine on this page.
10. Send out a special solo mailing to your subscribers.
You could announce a special promotion, a new teleclass, or a sale on advertising in your e-zine.
Keep your special mailings to one or two a month. Bombarding your readers with emails will decrease the effectiveness of your mailings and cause you to get more unsubscribe requests.
About The Author
Article by writer, Ken Hill. Do You Publish an E-zine Want more subscribers Put your e-zine promotion on autopilot with this must have e-zine promotional tool. Over 1600+ places to promote your e-zine. Learn more now at: http://www.scstats.com/r.cfmi=4604.