Dundee, IL

5 Things You Should Know Before You Flip A Property

by William Bronchick, Esq.

1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5 $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at the home, not the sell.

2. Get an inspection on the home - Get a complete inspection done on your property. By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. Foundation, Pest, Wood Rot, Etc... By, getting a full inspection you can rest assured that you know every thing that is wrong with the property before its to late. In the contact for the house you need to make sure that you have 7 days to have a inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to spend you can get out of the contract with no penalties.

3. Don't do the work yourself: - Get a contractor or several sub-contractors and have the work done quickly. You need to have you house flipped ASAP, so that you can get it on the market and get it sold. When I started flipping my brother and me did a house together, and we did all the construction. I had a construction background and figured it would save thousands, but it took us over 4 months to get the work done that a contractor could have had the work done in a month. But, we trying to save money on our flip did all the work on our time off and after work, and it just took to long. On our 2'nd flip we used contractors for almost everything and had the house completely flipped with a new roof, new air conditioning, new hardwood, and much more in only 3 weeks. We did not have to spend all our time working on the property and were able to spend that time looking for the next deal. This is how you get rich in real estate.

4. Place the property for Sale 1 to 2 percent below market value: If you are wanting to flip real estate and make money the object is to buy and sell the property as quickly as possible, so that you can move on to the next house. If you purchase a house and try to sell it at top dollar to make and extra couple of thousand dollars on your flip, and end up holding it for 6 months you are loosing money. Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions. On our second house the market for selling house went down do to the housing market as a whole, and the tightening of the loans across America. We were told that you could not sell a property in this market, but we went ahead anyway and flipped our house. After 3 weeks on the market we had 3 people wanting to buy the house. Why, because we offered it at such a great deal that people wanted to jump on it. That is what you have to do especially if the market is slow.

5. Use a real estate agent - Do not try to sell you house on your own. Harness the power of a real estate agent and the power of the MLS system. When you do a FSBO you are depending on people driving by your house and seeing you sign, with a real estate agent you have some one actively marketing you house to get it sold. Once again this will free up more time for you to look for more great deals. If you want to help the process I have found that craigslist and listing you house in google adwords help to, but I use these tools with the help of a agent to make sure I have all my bases covered.

I hope this article has been helpful with the basics needs of flipping a house. If you will study and learn you will make money. But, do your homework before you purchase a house, and make sure that you can pull a profit on your deal. Then, make it happen!C

Help Spread the Word . . . Administer Justice NEEDS Your Vote. This won't cost you a dime but will play a big role in helping the underserved in our community.

Vote For Us!

You can help by voting for us with Chase Bank who is giving away money to charities which receive significant votes. Click on the button below and e-mail your friends and encourage them to give the gift of justice this year!

Here is the Chase Voting link:

You must be a Facebook user to Vote.

"People need to understand that help is just a phone call away." Patricia, client.

Every year thousands of individuals find themselves in need of help.

Whether because of age, disability, language or economic status they are unable to access justice for basic human needs.

For many, Administer Justice's FREE professional help is only a phone call away thanks to the generous support of hundreds of donors and volunteers who make that possible.

Come Visit Us...

Administer Justice
1750 GRANDSTAND PLACE, ELGIN
Suite #15
Elgin, Illinois 60123

Monday to Friday: 8:30 AM to 5:30 PM
Saturday: 8:30 AM to 12:00 Noon

Click Here for a Goggle Map to our office.

Administer Justice is unique among legal service providers: Only Administer Justice combines legal services, educational services, conflict resolution services, and financial education services as part of a comprehensive community justice center.

Our Story

Equal justice under the law can only mean something when low-income individuals have access to justice for secure housing, safety from abuse, protection from fraud, security in child support payments, and preventive legal education. Administer Justice is a faith based 501(c)(3) not-for-profit organization established in 2000 by Executive Director Bruce Strom. Administer Justice is uniquely meeting the needs of our most vulnerable through a comprehensive program of educational outreach, legal assistance, financial counseling and conflict resolution services.

Attorney Bruce Strom was the senior partner of a very successful multi-office law practice. He had won several awards and been recognized for one of his cases that went before the U.S. Supreme Court. In 1998 he and his wife had just learned they were having twin sons... Read More

Our Mission

Our mission is to provide legal, educational, financial and conflict resolution services to those who are most in need in our local communities. While faith motivates our desire to serve, we are nonsectarian and in no way limit our services to any race, color, sex, age, national origin, religion or any other basis other than emphasizing services for the poor.

Most of our major programs - legal, financial, and conciliation - are free, except for very small and affordable administrative fees. This ensures that those who need our services can obtain them regardless of their ability to pay. More...

Our History

Administer Justice was incorporated on February 14, 2000; Gods valentine for those in need. We initially met in the classroom of a local church with eight volunteer attorneys who met with 23 individuals in need.

We began the dream serving people like Shelly, an abused single mom seeking financial help for her young daughter...Read More

Our Future

Administer Justice has a comprehensive strategic plan to continue to meet the needs of vulnerable low-income individuals.

The plan includes expanded access, workshops, volunteer involvement, services, staff and facilities. Read More...

Our Staff and Board of Directors

Administer Justice is governed by a Board of Directors who meet quarterly as a group and more frequently as committees.

The day to day operations are carried out by program and support staff who meet monthly to monitor objectives, calendar and programming.

Click HERE to meet our board and staff...

Our Seminars

Administer Justice believes in educating the community to help people improve the lives. Attorneys and counselors at Administer Justice take the time to educate clients in how to protect and defend themselves in the world of relationships, finances and matters of law.

By educating the client to help themselves as much as possible, clients are able to solve many of their own issues. They can improve their lives for their friends and families, avoid unnecessary conflicts and disputes, and prepare for a brighter future in the issues of faith, family and in the best interests of our society. More...