Pages

Wednesday, April 6, 2016

Top Tips & Tricks for Renovating a House

Top Tips & Tricks for Renovating a House

Many auctioned homes are sold to individuals or small businesses who want to renovate a home, wishing to bring change and renewal to an otherwise struggling area of their city. These home are also sold well below their actual assessed value, and need a lot of work before they can become a suitable place for a family to live. As a real estate investor, you will spend a lot of time and money on each property, but you will be rewarded with a significant profit because you were able to buy the homes for such a low price on Bid4Assets.

If you are just beginning in the business of renovating homes, there is plenty you need to know. Small mistakes can cost you a lot of money, and wise decisions will increase the stability of your business. This will allow you to continue work you are passionate about, while contributing to the well-being of the neighborhoods in your city





Don’t get started until you have the cash

Remodeling houses requires a good amount of cash, and this is above and beyond what was spent to purchase the homes. In order to make improvements to each home, you must be able to afford supplies and labor out of pocket. If you don’t have the cash to pay for these expenses upfront, consider partnering with someone who is able to help you fund each project.

Create a well-researched budget

In order to make a profit on the homes you are buying and renovating, be sure you are investing less than the potential resale price. Carefully research the area where you have bought your homes, looking into the average selling price of similar properties. Use the information you have gathered to create a strict budget and make all of your remodeling decisions based on the limits your budget creates.

Build strong connections with professionals you can trust

Even if you plan to do a lot of the work on your own, you must have skilled professionals available to help you with projects that are beyond your skill set or to simply lend a hand when you have too much going on. Begin connecting with contractors, other real estate agents, and vendors who you can trust to give you the best price, and the best work.

Move quickly


The more quickly you move forward with a house remodeling project, the more profit you will make in the long term. This is especially true if you use financing to purchase your homes, since you will be making payments as long a you own the home. When you move quickly, you avoid investing excess money into the home and you make more money in the long run.

Brag about your hard work


When you are ready to sell a house, don’t keep quiet about the time, money, and work you have invested. Advertise every major improvement you have made, making sure potential buyers know about the new HVAC system, the new roof, or the aesthetic upgrade made to the house.


When it comes down to it, remodeling a home is an involved process and it requires a lot of education and research to get started. At Modernize, we encourage homeowners and real estate investors alike to consider the energy efficiency of each home improvement they are making as well. If you are willing to invest in efficient systems, you can use the improvements as a selling point and increase the profits you will make on each home.

This article was written by a third-party company who is not affiliated with Bid4Assets, Inc.  Bid4Assets has not evaluated or endorsed the content in this article. To get more great home tips from Modernize click the link below.





Wednesday, February 3, 2016

Knowing When to DIY and When to Hire a Pro For Home Improvement Projects


Knowing When to DIY and When to Hire a Pro For Home Improvement Projects

By Katherine Oakes




There are many home improvement projects that any devoted and crafty homeowner can tackle on their own without the help of a professional. Small updates can certainly go a long way, but at Modernize, we also know that the lure of tackling a bigger and better DIY project can distract us from the inherent risks or dangers that come along with it. So before you go making those changes and get your serious DIY game face on, consider these few things first to ensure you are the right person for the job. In order to help you get started safely, we’ve outlined a few key things to consider so that you know whether or not to DIY.



When to DIY



You have the time: We know how hard of a weekend warrior you are, but there is only so much that can get done within those 48 hours. Go through all of the necessary steps beforehand so that you don’t find yourself stressed and strapped for time in the middle of your project. For instance, replacing all the cabinets in your kitchen probably won’t get done by Sunday night if you’ve only ever screwed in a lightbulb. So be realistic and set yourself up for success by laying out a timeline for your DIY project first.

You have the resources: For the times when a professional really comes in handy is when they are already sufficiently equipped with the appropriate tools and maybe even a team—no matter how small—to help them get the job done. Face it, wouldn’t it be a whole heckuva lot better not to have to run to the store when you realize you’re missing a set of drill bits that might never be used again? The answer is yes—it would.



You have the knowledge and skills: No matter how expertly you’ve installed curtain rods or even put up that stunning beadboard in the bathroom, it’s important to know whether or not you have the right kind of knowledge and skills to do a more complicated home improvement job. Weigh out the pros and cons of the project before getting started and be honest with yourself about whether or not this a challenge you can handle or if you should reach for the phone instead.





When to Call a Pro



If it risks your safety or could be a health hazard: A tell tale sign that you are in waaay over your head is if your DIY risks your safety and well-being. Anything that involves major electrical lines or plumbing work, or potentially coming into contact with chemicals, substances, and materials like insulation or mold and asbestos should be avoided unless you know how to handle it. If you know how to do some basic electrical work but don’t have any clue about pipes and other plumbing issues, then steer clear and call for help. Knowing your limits could save your life or at least a few bucks in damage.



If your town has codes in place to protect you: If you are making changes to your home, like knocking down a wall or beam to open a room up, then you might find out you need a permit to do the work first. This is the most obvious sign that you need to hire a professional and that the work you’re doing is way too dangerous to do solo. It is often the case that certain elements are there for structural purposes or even hosts to a hotbed of electrical wires and major plumbing wires and the need for a permit is in place to protect you and your home. In this situation, call a contractor or handyman for help.



If the worst-case scenario is too severe: As well-intentioned as you are, there are certain scenarios in which the worst possible outcome involves unrepairable damage to either you or your home, or both, that are simply not worth doing. A kitchen or bathroom remodel, installing siding, roofing, or even windows are projects worth calling a professional to do so that you don’t have to spend more time and money fixing the newer and even worse issue down the road. 

What are some of your remodeling or home improvement stories? What kind of projects are you working on now? Let us know down below!



This article was written by a third-party company who is not affiliated with Bid4Assets, Inc.  Bid4Assets has not evaluated or endorsed the content in this article. To get more great home tips from Modernize click the link below.





Monday, January 11, 2016

The New Year

We want to thank all of the government agencies, banks, asset managers, and real estate investors who helped to make 2015 another great year to buy distressed real estate on Bid4Assets. We have some exciting new clients coming in 2016, so please stay tuned. Best wishes for a happy, healthy, and very prosperous new year!

Tuesday, February 26, 2013

5 Reasons Why You Should Participate in an Online Tax Sale Auction

This March, over 2,000 tax defaulted properties in eleven California counties are slated for online auction, which makes now the perfect time to start investing in tax sale property.

Interested in investing in tax foreclosures and seized property, but unsure of how to get started? The easiest way to start is through an online tax sale auction. Bid4Assets.com hosts online tax sales for over 50 counties throughout the United States.

Registration on Bid4Assets is free & easy and the only bidding requirement is a fully-refundable deposit, generally due a few days before the auction begins, and is either applied to your winning balance or promptly refunded by check.






Participate from the comfort of your home or office

  • Skip the drive to the crowded county courthouse or convention center. All you need to participate in an online tax sale is a computer or tablet and an internet connection.


More time to research the properties that you're interested in

  • Rather than placing blind bids on property at a live auction, the auction information for tax sales is generally available on the Bid4Assets website several weeks before the auctions start, allowing time to thoroughly research and make informed decisions about the homes and land being offered
  • Stay informed with tax sale email alerts, which notify Bid4Assets subscribers when an upcoming tax sale has been posted

Save thousands of dollars when you buy at online tax sale auction

  • In general, the minimum bid price on a property auction is set at the amount of delinquent taxes, fees and other expenses owed to the county by the previous owner
  • Therefore, property valued at thousands of dollars can be won at online tax sale for literally a fraction of the assessed value, or "pennies on the dollar"
  • In most cases, any existing back taxes or mortgages are wiped out when the property is transferred to the winning bidder

The online auction experience is fun and exciting!

  • Online auctions allow you to challenge yourself and exercise your competitive edge
  • Unlike other auction sites, Bid4Assets county tax sales have no reserve price that must be met. Popular and high value tax sale auctions often extend into periods of overtime bidding, which is extra competitive and exciting
  • Don't bid over your budget! buyers should be prepared to set a bid limit and be careful to not get carried away by the excitement of the online bidding process

Use the online auction model to maximize your return on investment (ROI)

  • Want to flip your tax sale property for profit? Use the Bid4Assets online auction platform to sell your newly acquired investment
  • Design your auction, set your minimum bid/reserve price and watch the bids roll in
  • Nearly 100,000 properties have been sold on Bid4Assets via the online real estate auction model

Tuesday, January 29, 2013

3 Risks Involved with Purchasing a Rental Property


Becoming a landlord is looking more and more attractive with rental property functioning as a long-term, stable source of income. Nearly 4 million families have become renters in the past year, with rent prices rising rapidly.

However, there are several obstacles that explain why not everyone rushes to fix up and rent out properties in distressed markets. Here are some important risks to consider before starting a portfolio of rental property:

  1. Rental property requires initial investment and doesn’t guarantee a quick return

    • In addition to a down payment, monthly payment, mortgage interest and other purchase fees, considerable time and energy may be required to get your investment off the ground
    • Consider the total purchase price, maintenance costs, management fees, HOA fees, property taxes, as well as the monthly rental cash-flow, and always Calculate the ROI (Return on Investment) before signing any checks
    • Your rental property could quickly turn into a negative cash-flow “money pit” if payments and expenses exceed the monthly rent

  1. Maintenance may be required before the property is considered “rent ready”

    • Depending on the property age and location, your new single or multifamily home may not be in turnkey condition at the time of purchase
    • In distressed markets, such as Detroit, Cleveland & Chicago, where the unemployment rates are high and the incomes are lower, vacant properties may be stripped of appliances, copper pipes and plumbing.
    • Unless a property is completely turnkey at the time of purchase, necessary maintenance may range from light cleaning and dusting to heavy rehab
    • Even after you have secured tenants, regular maintenance must also be factored into the monthly overhead costs

  1. Employing a reliable property management company is essential to ROI

    • Will you have time for advertising and showing the property, screening tenants, collecting monthly rent payments, making simple repairs and, in general, keeping an eye on your investment?
    • Especially if you are purchasing a rental home out-of-state, employing a reliable property manager will give you peace of mind and reduce stress
    • Property managers offer a wide array of services and typically only charge 10-15% of the monthly rent

Monday, January 21, 2013

Why You Should Invest in Distressed Market Rental Property

In today’s real estate market, investing in residential rental properties has become extremely attractive.

·       In 2012, 36% of renters preferred single family homes as opposed to apartments, up 5% since 2006 (The Kiplinger Letter).

Top reasons to invest in rental property:
 
Passive income with positive monthly cash-flow

Current widespread increase in rental demand
·         Inventory is down due to a decline in residential building activity
·         Creditworthy homebuyers can’t secure financing for mortgages due to stricter underwriting and increased regulation

Having a sense of financial security
·         Sell off your cash-flowing fully rented property to an eager investor if you are ever in need of quick cash
·       
Rental Property in Distressed Markets, Cash-Flow & Monthly Mortgages:

Source
Location
Price
Rental Income
Mortgage Payment*
Sold on Bid4Assets
Cleveland, OH
$19,900
$700/month
$110/month
Sold on Bid4Assets
Fort Myers, FL
$48,250
$700/month
$267/month
Listed with Agent
Los Angeles, CA area
$320,000
$1,775/month
$1,770/month

*Based on 30 yr mortgage, 100% loan amount, 3.5% interest, 1.25% property tax, and .5% PMI

In highly distressed markets like Cleveland, Detroit, and Buffalo, you can buy a house for around $20,000 that will rent for $700/month. Financing will be difficult on a property like this, but if you were able to get a 30-year mortgage, the payment would be in the ballpark of $110/month. You can buy a home in mid-range market like Fort Myers for around $50,000, which may rent in the ballpark of $700-$800.  A mortgage payment on a house like this might be around $267/month.  In the more expensive Los Angeles market, an agent has a cash flowing duplex listed at $320,000, which generates $1,775. 

While the rental income is 2.5X that of the more distressed markets, the price is six to fifteen times higher.  In other words, you could buy around FIFTEEN cash flowing houses in highly distressed markets like Cleveland for the same price as a cash flowing duplex in parts of Los Angeles!!!

In summary, distressed markets have a massive gap between rental income and mortgage payments, while in stable, higher-priced markets rental rates tend to be close to mortgage payments.

Monday, November 26, 2012

Over 12,000 Properties Sold with $51.8M in Revenue for Wayne County, MI


I am proud to announce the completion of the most successful tax sale in Bid4Assets history!

The Wayne County, Michigan tax foreclosure sale, hosted on Bid4Assets this past October, grossed $51,814,456 in revenue for the Wayne County Treasurer’s Office.

With a 53.5% sell-through rate and 12,049 properties sold, this year’s tax sale has become the biggest online real estate auction in history!

To date, Bid4Assets has helped over 50 U.S. counties recoup over $433 million in revenue from unpaid back taxes.

I’d like to thank all of our participants for helping to make this such a successful sale. I wish you the best of luck with your investments!

Sincerely,
Matt Baker, CEO