How to Successfully Flip a House for a Profit

How good is your knowledge of Property Management in Worcester County?

For years, the real estate market has been one of the most popular places for individuals and companies alike to invest their capital. Indeed, if you know what you are doing, investing in real estate can offer some fantastic returns. However, it is not always easy to know what the right moves are. This is especially true if you are trying to flip a weathered and dated old house into a profitable, modern home. With so many choices to make and potential pitfalls to avoid, it can be tricky to know how to proceed at times. Luckily, there are a few key pointers that you can follow in order to maximize your chances of success.

HGTV stars Terek and Christina make the Flip process seem easy and lucrative.

Understand Your Local Market

The first step to financial success in flipping houses is understanding your local market. Understand the types of houses that are popular in each neighborhood and learn about their typical selling prices. Trying to sell a $300,000 flip in a neighborhood where the average home sells for just $125,000 is a great way to lose money fast.

Meticulously Plan Your Financing

Create a plan for how you will access and use your financing. There are a number of financial vehicles and programs out there that offer very low interest rates on home purchases and renovation projects. By planning everything in advance, you will be able to avoid putting an unexpectedly large sum of money on your credit card, which likely has a much, much higher interest rate. Managing your interest charges can potentially save you hundreds or even thousands of dollars across the life of a project. A financing option to consider is a Hard Money Loan. Though this loan carries higher rates, it is backed by the value of the property and not the credit worthiness of the borrower. Traditional lenders, such as banks do not make hard loans. Lenders are often private individuals that see value in this type of potentially risky venture.

Learn How To Estimate

Understanding the art of estimating goes hand in hand with planning your financing. Before you ever close on a house that you want to flip, you should already have an accurate estimate for how much it will cost to renovate it. If you purchase a home for $100,000 and believe that it can sell for $175,000 when it has been renovated, you need to be sure that you can fully renovate it for less than (for example) $30,000 if you want to turn a decent profit. If your estimates say that the renovation will actually cost closer to $80,000, then it is probably a good idea to walk away.

Always Negotiate

Flipping a house successfully is all about managing your margins. One of the best ways to increase your margins is by negotiating. Don’t just negotiate on the initial purchase price of the house. You can also negotiate the cost of tiles for the bathrooms, insulation for the walls, and appliances for the kitchen. Getting the best deal on all aspects of the flip is a great way to maximize your profits.

There is no guaranteed pathway to success in house flipping. There will always be some element of luck or random chance for every project. However, by following the tips contained in this article, you will be giving yourself the best possible chance for success in the real estate market.

The Trappist Monks of St Joseph’s Abbey in Spencer Ma. Keep Beer Making Tradition Alive

I have sold many homes and manage several properties in Central Mass, and have found there are pluses and minuses in every community. A buyer or seller should think about their goals and enlist the counsel of a Real Estate Agent with experience if they want to purchase or sell. The Worcester County Ma. Real Estate market offers geographic surprises to those not familiar with the area. Rustic towns and charming Inns dot the New England landscape.

A place I find very appealing, because of its quiet rolling hills, is the Spencer Abbey so I thought I would devote this blog to the wonderful art of brewing beer.

Spencer Ma Real Estate. St. Joseph's Abbey in Spencer Ma — St. Joseph’s Abbey in Spencer Ma.

Trappist monks belong to the Roman Catholic “Order of Cistercians of the Strict Observance” and when they are not performing Gregorian chants, or following strict rules of behavior laid out by St. Benedict concerning obedience, stability, and dedication to the monastic way of life, a few of the monks can be found in their brew-house making some of the finest beer in the world.

“Beer? Are monks really allowed to make beer?” you may be wondering. Fortunately for beer drinkers, Trappist monks are not required to abstain from alcohol. Hence eight Trappist monasteries in the world make and sell alcoholic beverages for their own consumption and for sale to the general public (six are located in Belgium, the other in the Netherlands and one is right in our backyard). The names of the abbeys where Trappists make beer are: Westmalle, Orval, Chimay, Rochefort, Westvleteren, Achel, LaTrappe and St. Joseph’s in Spencer Ma.

“Our place is to cultivate silence, to exert ourselves in fasts, vigils, prayers, manual work and, above all, to keep that ‘more excellent way’ which is the way of charity; and furthermore, to advance day by day in these things, and to persevere in them until the last day!” wrote St. Bernard of Clairvaux. As you may guess from this quote, Trappists have a strong work ethic and believe their monasteries should be self-supporting, thus they brew beer (and make other products) for use by their communities and to raise money for good causes that they support. The Trappists began making beer hundreds of years ago after certain noblemen gave them plots of land to farm. The monks grew wheat and barley and gradually began to make “liquid bread” to drink during their periods of fasting. The Trappists were dedicated workers who strove for absolute perfection in their brewing and also focused on small quantities which greatly improved the quality of their beer. Time passed and the Trappists became so skilled at making beer (known as the “champagne of Belgium”) that other companies tried to capitalize on the “Trappist” name. Therefore the abbeys formed the International Trappist Association that adheres to certain rules which allows the legitimate Trappist brewers to use the label: “Authentic Trappist Product.”

Few people are actually permitted inside the abbeys, even though numerous beer connoisseurs have shown great interest in learning from the Trappist brew masters. Occasionally a few tasting sessions are granted to various outsiders, but usually women are not permitted in the inner part of the abbeys and brew-houses.

Trappist monks follow very strict rules of conduct that were established in the sixth century by St. Benedict, a few of which are: following an austere diet, regular exercises of penitence, daily Gregorian chanting, and speaking as little as possible. For some time it was thought Trappists went so far as to take complete vows of silence, but this is not correct. Only casual chatting is forbidden and monks are encouraged to speak only when necessary. St. Benedict believed casual talk disturbs a monk’s duty for being receptive to others and leads to increasing the individual will over sublimating one’s will to God. Furthermore the Trappists believe small jokes and humor at the expense of others is evil. But they are allowed to drink alcohol; and Trappist monks consume the weakest varieties of beer they make, mainly during holidays and other celebrations.

A few qualities of Trappist brew are: an abundance of bright hops, a yeasty breadiness, fruity esters, sustained sweetness, complexity of taste, herbal aromatics, and bold strength. The Trappist brewers also add extra sugar and “living yeast” to each bottle, which helps improve the quality of the beer as it ages. Most Trappist beers follow strength designations of Enkel (single), Dubbel (double), and Tripel (triple), thought to be named after the “Holy Trinity,” although later a few abbeys developed stronger ales with the designation of Quadrupel (quadruple).

So what are you waiting for? Rush out to your nearest liquor store right now and buy a bottle of Koningshoeven Dubbel or better yet try some of the Spencer Abbeys classics and taste for yourself just how well Trappist brewers can make beer. Cheers!

Apartment Rental Management

Apartment Rental Management in Worcester County Ma.

Find out why S & R Properties is one of the leading apartment rental agencies in Worcester County Ma.

Remodeling a rental property in Worcester County Ma may seem similar to remodeling a personal residence in many regards, but there are key differences that should be taken into account with your design decisions. This is a property that may be used by kids, pets and more, so durability as well as style are key to making thoughtful design decisions.

Flooring

When remodeling your rental property, you likely will replace the floors. At first glance, you may opt to put in affordable carpeting, and some landlords do plan to replace the carpeting with renter’s grade materials every year or two. Another idea that may be more cost-effective in the long run is to use vinyl adhesive tiles or even ceramic or porcelain tiles. If the ceramic or porcelain tiles become chipped, you only have to replace the broken ones rather than the entire floor. Choose darker grout, and seal the floor for the best results.

Paint Options

The paint colors and type that you select should also be taken into consideration. Most homes use a flat paint color on the walls, but this is hard to keep clean. Eggshell or semi-gloss on the walls is easier to wipe dirt off with. Choose a taupe, beige or other neutral color for the best results as these will hide some of the dirt and are appealing to most prospective renters.

Cabinetry

If you have decided to redo your cabinetry as part of your remodel, you may be wondering if veneer or real wood is a better option. A veneer or laminate material may seem better at first glance because of the price as well as the easy cleaning requirements. However, if these get wet, the wood will warp, and they generally will fall apart much faster. More durable options, such as hardwoods are a better solution even though they are more costly. These can also be wiped clean and may be more resistant to water damage, dents and dings.

Counter Tops

Laminate is the most affordable counter top solution, but it can burn, scratch and dent. If you want your counter tops to continue to look amazing in the space, granite may be a better option. This is because granite will not scratch, dent or burn. It is susceptible to damage from acidic items and harsh chemical cleansers, however. Because of this, you will need to educate your renters about how to care for the granite counter tops.

When remodeling a rental property, you may be inclined to choose cheaper features because you know that renters will be hard on the property and the features will need to be replaced quickly. However, some of the upgraded options are far more durable and may be a better option for a rental property.

5 Tips for Preparing Your Home for Sale in Worcester County Ma.

Despite the fact that a home is usually one of the most expensive things anyone will ever buy, first impressions still play a crucial part in influencing home buyers. To ensure you get a quick sale at or near your asking price, you’ll need to take a few extra steps to make your real estate more appealing to potential home buyers. Consider the following tips to give your home a better chance to sell in the highly competitive market in the Worcester Ma area.

Carry Out Any Repairs

Addressing any defects on your home will help to satisfy the watchful eyes of home inspectors who buyers often hire when looking at property. In fact, property defects discovered by home inspectors account the vast majority of failed sales. You might even want to consider hiring a home inspector yourself to get some professional advice on any repairs or modifications that need to be carried out.

Brighten It Up

Maximizing the amount of natural light in your home has a major impact on its livability, but it doesn’t always have to be a complicated or expensive process. You can brighten up your home in just a day by making sure all of the windows are clean and any overhanging branches are trimmed back. A fresh coat of paint and some clean curtains can also make a huge difference.

Make It Less Personalized

While it’s important not to make your home completely sterile, it’s just as essential not to make it too ‘lived in’. Potential buyers will want to be able to imagine their own things in the home, so getting rid of any unconventional customizations can make it easier to sell. Most buyers lack the vision to be able to see past your own design tastes, so consider giving the home a more neutral appearance.

Invest in Professional Cleaning

A dirty or untidy home will almost certainly not command a good price or even be possible to sale. Consider having your carpets professionally cleaned as well to freshen up the place. Likewise, cut the grass and patch up any unkempt areas of the garden. You may also want to keep any pets out of the way when you have viewings lined up, since not everyone is a big fan of having animals in the house.

Don’t Neglect Storage Space

While cleaning your home in preparation for potential buyers, consider removing clutter from any storage areas. Storage space is a key concern for many homebuyers, and a lot of people will snoop around during viewing to take a closer look at the details. Be sure to keep any storage rooms and closets as tidy and as empty as possible. The less clutter you have in your home, the bigger it will look.

Final Words

When selling a home, the first impression is often the only one that counts, and many potential buyers will judge the property the moment they enter the door. Make sure the entryway is as presentable as possible, and ensure all rooms (particularly kitchens and bathrooms) are spotlessly clean. The better the first impression people have of your home, the more likely you’ll get your asking price.

The 2 Most Important Questions When Considering a Fixer-Upper in Worcester County Ma.

Sound Real Estate Management tips by S & R Properties

The concept of buying a house that needs work below market value and fixing it up is nothing new. Whether it’s done to re-sell the property or gain immediate equity in real estate you will keep, buying a fixer-upper can represent significant value for a home buyer. And folks have been doing it for a long time. Worcester and its surrounding communities have always presented great opportunities to investors and families looking to settle here.

Of course, reality TV has helped forge opinions of fixer-uppers. You can watch cable TV networks and see dozens of examples of house flips, nightmare rehabs, and beat-up houses becoming dream homes. There’s enough of this stuff on television, in fact, to make potential home buyers confused over whether a fixer-upper is a good idea.

But whether it’s a good idea perhaps isn’t exactly the right question. That question is more like “Is it a good idea for me?” A good idea for one person isn’t necessarily a good idea for the next person. That’s the case in many areas of real estate.

The good news is that you can pretty much get to the answer of whether it’s a good idea for you by instead asking two other simple questions:

How much work am I capable of doing myself?
How willing am I to do this work myself?

These are two areas that are frequent stumbling blocks for buyers of fixer-uppers. They see a home in need of repair and realize that if it’s fixed up, it could be worth a whole lot more. The dollar signs flash in front of their eyes, which can blind them to a major reality: The real value lies in how much money you can save by doing the work yourself. And (see the two questions above) they either can’t or won’t do what’s necessary.

Are you willing or able to paint an entire house yourself? If you’re going to pay painters a thousand dollars or more to move a roller across a wall, you’re not getting maximum value on your fixer-upper. Can you change out a defective light fixture or switch? Electricians charge upwards of $50 an hour. So do plumbers. So can you fix a running toilet?

Are you willing to tackle time-consuming, sometimes nasty chores? Tearing down wallpaper is no fun. Renting a drain snake and clearing clogged pipes isn’t, either. And usually, the less savory the job is, the more expensive it costs for someone else to do it. And every dollar you pay a professional to do a job you can do yourself is one less dollar in equity you have in your new house.

A fixer-upper can often represent a great deal. It can make an otherwise unattainable house more affordable. It can be the means to profit on a resale. It can mean immediate equity for a homeowner who wants to live in a rejuvenated house.

But how great a deal depends in large part on the buyer. If you pay others to do all the work required, it might not be that great a deal after all. That’s why it’s vital to ask these two simple questions and answer them honestly.

The Pros and Cons of Buying an Investment Property

Property Management Strategies for New Homeowners

The popularity of investing in real estate in Worcester County Ma has increased as people move away from the volatility of other investment strategies. Buying an investment property for long term financial savings can have its rewards, but like any investment, there are advantages and disadvantages. What should you consider before buying an investment property?

Pros:

Buying real estate is a good long term investment. Property value rarely declines and is a good option to help fund retirement. Many investors who are intimidated by investing in equities will feel more comfortable with investing in brick and mortar.

Tax benefits can be claimed on your tax return. Any work carried out on the property such as maintenance or repairs can be claimed as tax deductions. If the cost of running the investment property exceeds the income derived from it, the difference can be claimed as a tax deduction. The interest paid on your loan to cover the cost of the investment property can also be claimed.

Tenants provide a regular income. One main attraction of owning an investment property is that tenants help to pay off your investment. A common lease arrangement in some areas includes a clause for rent to increase as per inflation. This factor is appealing, because as time goes on, your loan will be decreasing, but your rental income will be increasing.

You can increase the value of your investment. Unlike other forms of investments such as stocks and bonds, an investment property can be constantly changed to help increase its value. Changes to a property such as painting, landscaping, repairing a roof, replacing fixtures and fittings will all add value to a house. An investor can be more hands on in controlling the way the property is managed, therefore helping to maintain the value of their investment.

Cons:

Not all tenants are responsible. Unfortunately, we have all heard of horror stories with bad tenants. If you are unlucky to have a tenant that causes problems on your property, the consequences can be costly. They can damage your property, be late in paying rent or not pay at all. Disputes such as these can take months to negotiate. That’s why it is so important to screen out poor risks. You want to find good tenants that are responsible. What’s often not mentioned is good tenants also want good landlords. It is a two way street.

A vacant property means no income. There may be times when you are unable to secure a tenant. Mortgage repayments will still need to be met; therefore any shortfall needs to be paid from your own savings.

Maintenance can be time consuming. As with any house, maintenance is required to keep the property in order and stop it from declining in value.

Real estate is a non-liquid asset. An investment property is a long term financial plan. Unlike shares, they cannot be quickly converted to cash. There is always the uncertainty of how long it will take to convert your investment into cash.

The most important rule with any type of investment is to do your homework. Research the market trends in the location you plan to buy an investment property and work out your potential rate of return. Investing in real estate can be a valuable part of a balanced portfolio to help your financial security in retirement.

First Time Homebuyers & The Mortgage Pre-Approval Process

Most new buyers might be a little intimidated when they begin a property search. Words like escrow, PMI (Private Mortgage Insurance), and pre-approval sometimes can overwhelm an already stressed out buyer.

A mortgage pre-approval is something that you get from a lender that simply says you are approved for a mortgage before you have selected a specific property. The process of pre-approval starts with you filling out a loan application and providing a lender with some income documentation. The lender will run a credit report and look at your rating, but many times lower ratings will not disqualify you, especially if you are a first time buyer.

The bank’s procedures are the same in the preapproval process as they are with a traditional mortgage application. They will then notify you that you are pre-approved for a mortgage, and they will tell you the amount of money that you can borrow. A good realtor generally has lenders they work with that can navigate difficult lending circumstances.

The advantages of pre-approval

One of the big advantages of going through the pre-approval process is you understand your budget and what you can afford. An additional and more important benefit in pre-approval is realtors need that information to help you meet your goals. An experienced realtor will always refer you to a lender before a home search begins so that you are not looking at properties that you cannot afford.

More Negotiating Power

A pre-approval gives you, the buyer, advantages in negotiations. Without pre-approval sellers only see uncertainty and ambiguity and are usually not willing to discuss any offers.

With a pre-approval in hand, a seller knows that your offer is backed by the lender, and that makes you more valuable. Being pre-approved is automatically going to give your offers a lot more weight when it comes to negotiating with sellers. Therefore, your odds of getting the house that you want are going to improve.

First Time Home Buyers, We can help you!

CALL S & R PROPERTIES NOW 508-892-7596

If you’re thinking about buying your first home, you probably have a lot of questions – we’re here to help.

So you want to buy a house but you don’t have a ton of money saved up.

There are a ton of programs out there, both locally and nationally, to help first-time home buyers get a foothold in the housing market. Massachusetts, in particular, has one of the best first-time home buyer programs in the nation.

Benefits of a first-time home buyer program

Low down payments: In general, the biggest advantage of these programs is that they allow first-timers to buy a house with a lower down payment — such as 3%, or even as low as 0% of the home’s purchase price.

Flexibility: Other benefits include slightly looser or more flexible lending criteria — meaning you could qualify for a mortgage with a lower credit score or higher debt levels than traditional lenders might accept.

Real Estate Property Management for Retirement Investment

Real Estate Property Management has it’s own challenges. How Can You Make an Excellent Investment for Your Retirement.

The good news is that most people are living longer and healthier lives than at any time in history. The less welcome side of this is that putting an adequate pension plan in place is more important than ever yet harder to achieve as the number of years it needs to cover increases. Traditional investments such as the 401K still have their place, of course, but it’s always sound advice to build a mixed portfolio. A prime candidate for long-term investment is property, but with that ownership comes real estate property management considerations. Here are seven compelling reasons to consider property as part of your pension planning.

Better Returns for the Risk

If history is any guide at all, nothing beats real estate for dependable appreciation over the long term. Although there is a cycle of property price rises and falls (and currently prices in many areas remain depressed), the underlying value has always increased with time. Historically, well-managed real estate shows an excellent balance of risk and return, compared to investing in stocks, for example.

Tangible Assets

Few pension plans offer anything of real, solid value outside the intangible realms of paper money. Financially based investments can go down as well as up, sometimes dramatically so, and although there are products available which guarantee at least some return, the price paid for this security is lower performance. In contrast, real estate retains an integral value which isn’t quite so subject to the whims of the financial markets. People will always need somewhere to live, and a well-chosen property will hold its value across anything but the worst financial turmoil.

Continuous Income

Even if you’re buying property primarily as a pension investment, there is the opportunity to earn income from it during the meantime. By renting out the property, you can use the resulting rental income to pay its mortgage, invest elsewhere, or simply to make your life more comfortable. Either way, property offers the prospect of earning continuous income while building a valuable asset for the future.

Easy Management

For a reasonable fee, you can hire a real estate property management company to handle apartment rentals and the upkeep of your property in the years before you retire, making this an exceptionally hassle-free way of investing. You don’t need to keep an eagle eye on global markets while worrying about the performance of your individual investments.

Straightforward and Understandable

Annuities and other retirement plans can be arcane instruments, and in many cases, you’re relying on your pension adviser to make sense of it all. In contrast, property is a straightforward investment, and paying attention to average prices gives you a clear idea of where you stand at all times.

Easier Access to Your Capital

Even if you invest in property for the long term, you have the option of selling it at any time, whether or not you’ve reached retirement. Few investments offer such easy redemption before the expected maturity date — although of course you’ll need to find a buyer.

Inheritance Issues

Unlike an annuity, a property can be passed on to your family, either as a bequest or a gift. Everyone hopes for a long, happy, and healthy retirement, but it’s good to know that your family members will be the ones who benefit if the worst happens, rather than the coffers of an insurance company.

Given the importance of proper retirement planning, discussing your options with a fully qualified adviser is always the best option. Nonetheless, if until now you’ve only considered investing in traditional pension plans, maybe it’s time to take a closer look at the possibilities of property.

5 Tips For Finding a Great Tenant for Your Rental Property in Worcester County Ma

Property Management Rental Ownership Advice from S & R Properties

Owning rental property can jumpstart your financial goals and let you retire years early. It can also be a disaster. To avoid horrible tenants, damaged houses, and unpaid rent, you need to effectively screen prospective renters. Here are five tips to make sure you find the best tenants possible for your properties.

Take Great Pictures–and Video–of Your Rental Property

High-quality tenants want to see high-quality properties. Don’t post a few grainy exterior shots of your rental home and expect to get applicants knocking on the door. Take high-resolution pictures and a walk-through video of the entire unit. Even if your property has a few less-than-desirable features, it’s better to be upfront about it. If you try to hide anything, smart tenants will figure it out before signing a lease.

Evaluate Their Texts and Emails

Before you schedule an in-person look at the apartment, try to exchange a few emails or text messages with the applicant. They don’t need to use perfect grammar, but they should demonstrate basic business skills. If they’re already asking you to waive the security deposit, change the day rent is due, or allow pets in a no-pet unit, they likely won’t be model tenants. Save yourself the headache and wait for a different applicant.

In-Person Meetings

It’s inconvenient to meet individually with prospective tenants, but this is one of the best ways for you to get a sense of character from applicants. They should wear clean clothing, they should show up to the appointment on time, and they should not bring adults who will not be living in the apartment. If your applicant shows up with a romantic partner or family member, they may be planning to move that person into the unit without notifying you. You’ll have to use your intuition. If you get an odd vibe from the applicant, take that as a sign to move on to the next tenant. You could be stuck with this person living in your unit for years, so put in the effort to find a good match.

Run a Credit Score

The easiest way for you to learn about a stranger’s personal finance skills is to run their credit score. You want a tenant who is responsible enough to pay their rent every month. If they have a credit score of 600 or higher, you’ll know they’ve paid their bills in the past. A few late payments or a medical bill in collections aren’t going to lower a tenant’s credit score below 600; that takes a consistent pattern of skipping out on financial obligations. You should let tenants know in your initial online postings that you require a credit score of at least 600. That will lower the number of bad-fit applicants who contact you.

Ask About Criminal History and Conduct a Background Check

You’re not running a background check to eliminate any tenant with a criminal history. That might be illegal in your state, and it wouldn’t be a good business practice. Someone with a misdemeanor from college pranks or recent arrests from political activism can still be a reliable tenant. Let potential applicants know that you will run a state and federal background check but that you’re willing to work with them. If a tenant is honest about their history, has non-violent offenses, and demonstrates a current sense of financial reliability, move forward with their application.

Your job as a landlord is to get the best-quality tenant in your rental unit that you can. It may seem harsh to use these metrics to evaluate applicants, but you have limited options for screening people before giving them access to your expensive investment. By using these five tips and clearly communicating your standards to potential tenants, you can get great renters with a minimum of fuss.

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