Flipping Houses for Dummies.

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Getting Started with House Flipping
	Chapter 1 Brushing Up on the Basics
		Grasping the Concept of Flipping
			Spotting distressed properties
			Doing your homework
			Making a few minor (or major) alterations
			Reselling your rehabbed property
		Flipping Legally and Ethically
			Flipping illegally
			Flipping legally: Buy, fix, sell
		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
			Planning repairs and renovations
			Applying makeup
			Making a good first impression
			Focusing on kitchens and bathrooms
			Making moderate changes
			Tackling structural enhancements
		Profiting from Your Venture
	Chapter 2 Devising an Effective Flipping Strategy
		Deciding on the Role You Want to Play
		Surveying Different Strategies
			Buy into a hot market
			Buy low, do nothing, sell quick
			Buy low, apply makeup, sell quick
			Buy low, renovate, sell high
			Buy low, move in, renovate, sell high
			Buy, hold, lease
			Invest in new construction
			Focus on a niche market
			Flip contracts (or do it all on paper)
			Cook up your own strategy
		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
			Recognizing the value of an agent
			Picking an agent with the right stuff
		Recruiting Moneymen (and Women)
			Finding financiers
			Hiring an accountant
			Obtaining sound investment advice
		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
			Shaking your piggy bank
			Unleashing the equity of your current home
			Cracking open your retirement nest egg
		Leveraging the Power of Other People’s Money
			Persuading a bank to finance your flips
			Passing the hat among friends and family
			Borrowing from a private (hard money) lender
			Making up the difference with a gap loan
			Partnering with an investor
		Using Conventional Financing (for Longer-Term Real Estate Deals)
			Determining what you’re worth in dollars and cents: Net worth
			Checking and correcting your credit report
			Avoiding mistakes that can sabotage your loan approval
			Comparing loans
			Finding lenders online and off
			Borrowing for purchase and renovations with a renovation loan
Part 2 House Hunting with an Eye for Flipping
	Chapter 5 Scoping Out a Fertile Neighborhood
		Pinpointing House Flipping Hot Spots
			Tracking migratory patterns
			Tagging promising neighborhoods
			Finding your focus
			Identifying areas in your price range
		Sizing Up the Local Real Estate Market
			Tracking the appreciation rate
			Noting how many homes are currently for sale
			Discovering how long houses stay on the market
		Comparing Neighborhoods
			Spotting the signs of a good neighborhood
			Telling when a neighborhood is in decline
		Considering Other Neighborhood Factors
			Grading local schools
			Digging up crime statistics
			Exploring the business climate
			Getting the lowdown on planned neighborhood improvements
	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
			Searching listings with the help of your real estate agent
			Scanning the classifieds for keywords
			Skimming real estate magazines
			Scoping out For Sale By Owner properties (FSBOs)
		Mining Special Markets for Dontwanners
			Cruising the neighborhood for dontwanners
			Tapping into special markets
		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
			Procedural stuff
			Different types of foreclosures
			Taxes
		Picking Your Point of Entry into the Foreclosure Process
			Pre-foreclosure
			Foreclosure
			Post-foreclosure
		Purchasing Foreclosure Properties, Step by Step
			Step 1: Find a property
			Step 2: Follow the paper trail
			Step 3: Inspect the property
			Step 4: Bid on a property (when buying at an auction)
			Step 5: Survive the redemption period
	Chapter 8 Scoping Out Properties in Special Markets
		Acquiring Properties in Probate
			Finding probate properties
			Digging up a death certificate for more info
			Finding out who can sell the property
			Contacting the next of kin
			Keeping tabs on overbids
		Scooping Up Bargains in Bankruptcy
			Brushing up on bankruptcy laws
			Knowing when to purchase
			Tracking down houses in bankruptcy
			Digging up additional info
			Dealing with the gatekeepers
			Planning for delays
		Finding Government Owned Properties
		Buying Properties at Tax Sales
Part 3 Evaluating Properties and Crunching Numbers
	Chapter 9 Researching Distressed Properties
		Creating a Property Dossier
		Checking Out the Property
			Doing a drive-by, walk-around inspection
			Snapping photos
		Following the Paper Trail
			Honing your title acquisition and reading skills
			Picking details off a foreclosure notice
			Digging up details at the Register of Deeds office
			Gathering tax information at the assessor’s office
			Getting your hands on the property worksheet
	Chapter 10 Inspecting the Property and Estimating Rehab Costs
		Packing for Your Inspection Mission
		Finding the Perfect Candidate for a Quick Makeover
			Poor-but-promising curb appeal
			Cosmetically challenged, inside and out
			A second-rate showing
		Assessing Potential Curbside Appeal
		Taking a Big Whiff, Inside and Out
		Inspecting the House for Big-Ticket Items
			Focusing on the foundation
			Checking out walls and floors
			Examining the siding
			Giving the roof and gutters the once-over
			Glancing at the windows, inside and out
			Evaluating the plumbing
			Exploring the electrical system
			Checking out the furnace and air conditioner
			Adjusting your eyes to the lighting
		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
			Adjusting for market conditions
			Crunching the numbers
		Estimating a Realistic Resale Value
		Accounting for Expenses
			Unpaid property taxes and water bill
			Closing costs
			Cost of repairs and renovations
			Holding costs
			Marketing and selling costs
			Income tax
	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)
			Calculating a price
			Proving you’re earnest: Money talks
			Dangling additional enticements
			Protecting your posterior with weasel clauses
		Tending to the Details: Inspections, Appraisals, and Walk-Throughs
			Inspecting the house from the ground up
			Ordering an appraisal
			Taking one final walk-through
		Closing the Deal
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
			Drawing up a punch list
			Assigning projects
			Scheduling the work
			Managing your team
	Chapter 14 Prioritizing and Planning Your Renovations
		Developing an Eye for Home Improvements
		Prioritizing Your Projects
			Tackling essential repairs
			Gauging renovations to get the most bang for your buck
			Adding inexpensive, last-minute touches
		Delegating Duties
			Identifying do-it-yourself projects
			Getting a little help from your friends
			Flagging jobs that require professional expertise
		Drawing Up a Tentative Budget
		Coming Up with a Game Plan
			Switching on utilities and ordering materials and a dumpster
			Tackling underlying problems first
			Working from the top down
			Working from the outside in, or vice versa
			Allotting sufficient time for your projects
	Chapter 15 Giving Your Property a Quick Makeover
		Sprucing Up the Yard
		Freshening the Façade
		Touching Up the Interior
			Revitalizing the entire interior
			Updating the kitchen
			Spending quality time in the bathrooms
			Modernizing the bedrooms
			Making the basement look livable
			Attending to the furnace and hot water heater
	Chapter 16 Perking Up the Curb Appeal
		Revitalizing the Landscape
			Doing the bare minimum
			Revitalizing a tired lawn
			Designing an adequate landscape
			Prepping areas for planting
			Positioning and planting your greenery
			Adding the final touch: Fresh mulch
			Maintaining the landscape
		Tidying Up the Driveway and Walkways
			Asphalt driveways
			Concrete driveways and walkways
			Stone or brick walkways
		Making Entryways More Inviting
			Refinishing the front door
			Refurbishing the front porch
			Adding some finishing touches
		Refreshing the Outside Shell of the House
			Laying a new roof
			Repairing or replacing gutters
			Retooling the siding
		Glamming Up the Garage
	Chapter 17 Dazzling the Crowds with Updated Kitchens and Baths
		Giving a Facelift to Kitchen Cabinets, Countertops, and Sinks
			Refinishing or replacing cabinets
			Updating hardware: A cosmetic fix
			Resurfacing or replacing countertops
			Installing a new sink and faucet
		Modernizing Kitchen Appliances
			Deciding whether to install appliances
			Adding or replacing the dishwasher
			Roaming the range, oven, and cooktop
			Installing a space-saving microwave
			Keeping, removing, or replacing the refrigerator
		Updating the Bathrooms
			Repairing bathroom walls and floors
			Refinishing or replacing tubs and showers
			Dealing with la toilette
			Updating the sink and medicine cabinet
			Adding or improving ventilation
	Chapter 18 Tackling Moderate Makeovers
		Installing Replacement Windows
			Knowing your window options
			Trimming the cost of new windows
		Replacing Drab, Weathered Doors
			Making the quick fix with a new storm door
			Replacing an entry door
			Repairing or replacing sliding glass doors
			Installing new interior doors
		Putting on Your Own Floor Show
			Laying vinyl or linoleum flooring
			Refinishing hardwood floors
			Updating the hardwood floors
			Laying ceramic tile for a touch of class
	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
			What is a load-bearing wall?
			How are conventional and truss roofs different?
			Is this wall load-bearing?
		Maximizing the Use of Existing Space
			Knocking out walls
			Raising the ceiling
			Designing a whole new kitchen
			Adding a bathroom
			Spreading out to an attached garage
			Transforming a porch into a room
			Creating a room in the attic
			Deciding whether to finish a basement
		Building New Rooms from Scratch
		Adding a Deck or Patio
Part 5 Cashing In: Realizing Your Profit
	Chapter 20 Considering Your Options: Cash or Cash Flow?
		Setting a Goal: Cash or Cash Flow
		Cashing Out: Selling the Property
			The buy-fix-sell approach: Listing the property for sale
			The buy-sell strategy: Selling to another investor
		Exploring Cash Flow Possibilities
			Refinancing to cash out the equity
			Reselling a foreclosure property to the previous owners — or their family
			Leasing the property to the previous owners
			Offering a lease-option agreement
			Assigning your position to a junior lienholder
	Chapter 21 Marketing Your Home
		Harnessing the Power of a Real Estate Agent to Market and Sell Your House
			Knowing why you should hire a seller’s agent
			Negotiating with an agent during the selling process
			Taking advantage of your agent’s access to the MLS
		Setting an Attractive Asking Price
			Don’t be greedy
			Understand the current market
			Know the price you need to make the profit you want
		Staging a Successful Showing
			Recognizing the value of staging
			Making your staging checklist
		Offering to Help Secure Attractive Financing
		Becoming a Real Estate Marketing Maven
			Choosing a method of contact
			Planting a For Sale sign on your lawn
			Listing your home online
			Designing, printing, and distributing flashy flyers
			Advertising your home in the classifieds
			Hosting an open house to build word-of-mouth buzz
	Chapter 22 Negotiating the Sale to Maximize Your Profit
		Comparing Seemingly Similar Offers
			Does the buyer have financing?
			How “earnest” is the buyer?
			What else is the buyer asking for?
			What conditions has the buyer included?
			How soon does the buyer want to close?
		Mastering the Art of Counteroffers
			Submitting a counteroffer
			Leveraging the power of multiple offers
		Shuffling Papers and Other Legal Stuff at Closing
			Having the right folks represent you
			Prepping for closing
			Sealing the deal with paperwork
	Chapter 23 Trudging through Some Taxing Issues
		Estimating the Tax Collector’s Take from Your Flipping Profits
		Maximizing Tax Savings from the Sale of Your Principal Residence
			Proving “principal residence”
			Qualifying for the two-out-of-five-years rule
			Taking the ownership test
			Splitting hairs: Special circumstances
		Slashing Your Capital Gains through Careful Deductions
		Deferring Taxes: Rolling Your Gains into Your Next Purchase
		Selling Your Home at a Loss (Ouch!)
		Paying Income Tax: When Flipping Houses Becomes Your Occupation
Part 6 The Part of Tens
	Chapter 24 Ten Ways to Find Dontwanners
		Cruising the Neighborhood
		Teaming Up with a Qualified Real Estate Agent
		Checking Classified Ads and Online Listings
		Skimming Foreclosure Notices
		Monitoring Tax Sales
		Scoping Out Bank-Owned Properties
		Probing Probate Properties
		Digging Up Houses in Bankruptcy
		Sifting through the Government’s Stash
		Networking and Advertising for Leads
	Chapter 25 Ten Signs of a Great House Flipping Opportunity
		The Location Is an Obvious Hot Spot
		Nobody’s Home
		The “For Sale By Owner” Ad Is Shrinking
		The Seller Is Highly Motivated to Be Freed from the Burden of Ownership
		The House Is Ugly Outside
		The House Is Ugly Inside
		The Decor Is Outdated
		The House Has Character
		The House Has Undeveloped Living Space
		The Property Backs Up to Nothing
	Chapter 26 Ten House Flipping Blunders
		Falling for a Scam
		Speculating on the Housing Market
		Waffling on an Obviously Good Deal
		Backing Yourself into a Contractual Corner
		Failing to Inspect the Property before Closing on It
		Assuming That the Title Is Clear
		Underestimating the Cost of Repairs and Renovations
		Doing Shoddy Work to Save Money
		Over-Improving a Property
		Forgetting to Pay the Taxes
Index
EULA