If owning your own home is your goal, plan ahead.  There are steps you should take to speed up the process before your military relocation becomes a reality.

• Open a new house saving account.  Generally, lenders require a down payment of 5 to 20 percent.  The more you save for a down payment, the lower your loan payments will be.
• When you know where you are heading, research the Internet for information about the new community.  Find out the pros and cons of living in the community.  Compare locations within the community for convenience to the military base, schools and community resources.
• Get pre-approved for a home loan.  Your REALTOR® can recommend local financial institutions that offer pre-qualification.
• Order a copy of your credit report.  Many consumers are not aware of problems on their credit report that have a negative impact on credit approval.  If there are errors, fix them.  If there are unresolved credit issues, resolve them.
• Get organized.  Ask your REALTOR® what documentation you will need when applying for a mortgage.  Some information and documentation can only be requested after completing a mortgage application.  Other information and financial history can be researched and obtained prior to a credit application.
• Create and maintain a file with as much advance information as possible to avoid delaying the loan process.

Planning and preparation help reduce the stress of military relocation, finding a house, and moving your family to their new home.

To learn more, contact Infinity Realty Guam today. Our REALTORS® have extensive knowledge when it comes to PCS and will provide quality service you deserve. Click here.

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

When military relocation takes you to a new place where you have decided to live off base, you must decide whether to rent or buy a home.  There are benefits and drawbacks associated with both options.

Renting offers flexibility, but there may be drawbacks:

• If you rent, it is easier to pick up and move.
• There are no home maintenance expenses or responsibilities required. Just call the landlord.
• Like living with on-base rules and restrictions, there are rental contract rules and restrictions.
• Although leases are for a fixed period, rent increases are almost guaranteed at the end of the fixed period.
• Keep in mind that when you rent there are no tax advantages and no chance to build equity.

What about buying?

• You may be able to buy a bigger home than you can rent for the same monthly payment.
• You can decorate and remodel whenever and however you like with no one looking over your shoulder.
• There may be rules imposed by local subdivisions and neighborhood covenants, but these are generally less restrictive than base housing rules or rental requirements.
• If VA financing is available and you qualify, you may be eligible for a low down payment and other benefits.

Don’t forget the biggest financial advantages to buying a home – tax deductions (mortgage interest and property taxes) and the opportunity to build equity.

To learn more, contact Infinity Realty Guam today. Our REALTORS® have extensive knowledge when it comes to PCS and will provide quality service you deserve. Click here.

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

While many military families choose to live on base, many others like the opportunity to become part of the local community and school system. If you’ve decided to purchase a home at your next location, be sure you start the process with the answers to the following questions:

• Can we qualify for a mortgage loan to buy a home?
• Is VA financing available if we qualify?
• Do we have the money readily available for a down payment and closing costs?
• How long is this military relocation assignment?
• Will we keep the home when the next military relocation comes along?
• Is the local real estate climate positive? Do homes in the area resell quickly? Are real estate property values on the rise, the decline or stable?

To learn more, contact Infinity Realty Guam today. Our REALTORS® have extensive knowledge when it comes to PCS and will provide quality service you deserve.  Click here.

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

There are probably as many legal approaches to flipping as there are creative people involved in this aspect of the real estate business.  Here are some:

The Quick Buy-Fix-Flip is the most common and easiest type of real estate flip. It involves buying property that needs minimal work, sprucing it up a little, and reselling it as quickly as possible – at a profit.

The “As Is” or Wholesale Flip – no fixing up – works well when there is a high demand for housing in an active market.  You buy at a heavy discount, sell at a less heavy discount, and pocket the difference.

The Pre-Construction Flip is a strategy most commonly used with new condominium developments.  Put a sales contract on a pre-construction condo at a reduced price, secured with down payment/Letter of Credit.  If the market continues to appreciate, sell the property to another buyer for a profit when it is complete.  However, this is one of the most risky flipping strategies.  If the market turns and real estate values fall, you may be “stuck” with the property and end up losing money on your investment.

The Buy-Finance-Lease Flip looks a lot like a rental investment strategy.  Buy the bargain property, fix it up, and lease it to a tenant with the option to buy within a given time.  The time span is longer (typically one to three years) than the traditional real estate flip, but since the tenant’s rent covers the mortgage you have little lose.  If the tenant defaults, sell the property.  When the purchase option is exercised, take advantage of long-term capital gains or 1031 exchange it for another property.

The Option-to-Buy Flip involves finding a seller who will sell their property to you for a fixed amount within a set time frame (usually 60-90 days) in exchange for option money.  The option amount is negotiable; possibly as low as $1000.  The advantage for you is that you are given time to locate a buyer who will pay a higher price than what you agreed to.  The most you have to lose is your option money if the option period runs out before you find a buyer.

All of these flipping strategies are legal as long as the investor adheres to local real estate and tax laws.  Always consult with a qualified professional who can best explain your options when you sell.

Contact Infinity Realty today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

As you begin real estate flipping, the first rule is, don’t get greedy.  If repair costs are kept to a minimum and buy/sale transaction costs are reasonable, you should be able to also offer a potential buyer a discount of 5 to 10 percent and still turn a tidy profit.

Here are a few more useful tips for the new real estate flipper:

• When searching for properties to flip, think location.  Look where housing demands are high and houses do not stay on the market long.
• Look for property that requires minimal expense to fix for resale and use a home inspector to avoid expensive surprises.  A home inspector’s report can also be useful as you negotiate the purchase price.
• Don’t over-repair or over-fix up.  The less money you spend fixing the property, the higher your profits are on resale.
• It is also helpful to look for properties that have rental potential in the event a resale takes more time than planned.
• Look for a motivated seller who is willing to take 15 to 20 percent less than the current market.

After your first successful deal, you can use the return from that resale for the next investment.  If you find that your flip didn’t provide adequate return, you should seriously think about how dedicated you are to this particular investment strategy – not everyone has the time or expertise to make it successful.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

The real estate market is always subject to change.  Sometimes the changes or corrections take a long time; sometimes the market changes faster than anticipated.  One of the major risks of flipping is buying property and not being able to sell it quickly at a profit that exceeds the costs of the purchase and repairs.  Every month the property does not sell impacts your profit margin.

Many successfully flipped properties are purchased at a bargain because repairs and cosmetic fix-ups are needed.  Sometimes a quick coat of paint on the outside increases the resale value.  Easy, right? However, if serious structural defects are missed when buying the property and surface during the renovation, profit evaporates.  On the same note, investors must weigh the cost saving versus time spent on DIY repairs over hiring a contractor to fix the property for resale.

Like any other investment, real estate flipping has tax and legal implications.  In most cases when property is bought and re-sold within 12 months, profits are taxed as ordinary income.  If you are in a high tax bracket, taxes could take quite a chunk out of your profits.  You should have a real estate broker, attorney, and tax consultant in your corner to be sure you can maximize the rewards and minimize the risks of flipping.

Never forget that the temptations of quick profit sometimes blind investors to the drawbacks and risks associated with flipping.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

A clear head and realistic view of what you’re doing are keys to success in the high-risk, high-reward field of flipping.

Here a few tips to keep in mind as you begin:

• Learn all you can about every aspect of flipping.  Attend seminars on real estate investing.  Read books by respected experts. Beware of accepting information from direct mail or Internet solicitations without verifying their accuracy.
• Create a solid business plan and stick to it.
• Keep a cushion of cash so you can move quickly on bargains or to take you through the lean times.
• Be prepared for the unexpected.  Develop worst case scenarios and a backup plan for every property you buy.
• Build a team of experts to guide you through every aspect of real estate investment.  This includes a REALTOR®, mortgage banker, contractors, tax accountant, and lawyer.  All have their role to play.
• Unless you are an expert in construction, always get a home inspection done to find hidden defects that could sabotage your investment.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

Successful real estate flipping requires experience and understanding of the current market.  People who are experienced in this specialty:

• …know the local real market inside and out.  They keep an ear to the ground for subtle fluctuations in market supply and demand, the economy, changing interest rates, tax changes, and zoning or annexation long-range plans.
• …can call on a wide and diverse professional network of REALTOR®, real estate attorneys, tax consultants, home inspectors, reliable and affordable contractor.
• …maintain cash or an easily accessible line of credit ready to move quickly on a sales contract as well as a cushion of cash for the lean times when property does not resell as quickly as anticipated – or costs of fixing the property exceed preliminary estimates.

Most of all, they have a knack for spotting potential “flippable” properties and a realistic view about the risks of flipping as well as the rewards.  This isn’t instinct – its experience, combined with an understanding of how to find a home that can be bought, improved, and quickly resold.  This isn’t a skill-set that can be “bought” from a late night infomercial, but one that can only be learned through experience.

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.

The common definition of real estate flipping is “the practice of acquiring property and reselling it in less than 12 months” – hopefully at a profit.

Real estate flipping has been a hot trend in real estate in recent years.  Flippers often boasted turning profits of thousands of dollars in only a few weeks.  Self-proclaimed experts have written articles on the internet, published books, and appeared on television talk shows praising the benefits of real estate flipping, telling consumers that “anyone can be a flipper” and teaching the tricks-of-the-trade.

Trust us, it isn’t always that easy. Before you get serious about flipping, you should talk with a REALTOR®.  You can learn more about the basics on flipping from a few articles (click below):

• Successful Real Estate Flippers
• How Do I Protect my Investment?
• Risks Involved for Flipping
• Finding Real Estate to Flip
• Strategies for Real Estate Flipping

Before you enter the high-stakes world of real estate flipping, do your homework.  Flipping real estate is not a get-rich-quick deal.  The key to making a profit in real estate flipping is in finding the right properties to flip, a hot real estate market with high buyer demand, and being able to sell the property at a profit including costs incurred in the transaction.

This is not a market for novice real estate investors.  There are many success stories about real estate flipping, but there are probably more horror stories of flipping gone wrong.  Be aware of both pros and cons associated with real estate flipping before testing the waters.

Contact Infinity Realty Guam today to learn more about quick sales (flipping) to be fully informed and see if this is something that you’re definitely interested in pursuing.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.