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OK, Apparently not Everyone is Getting it?
2007-08-30 16:50:00
What am I talking about?  How mortgage interest rates are driven.  I continue to see so-called experts, politicians, etc. stating that a Fed rate cut will help adjustable rate holders.  That is not the reality.What drives mortgage rates are Mortgage Backed Securities (MBS).  These are the bonds that are a "package" of home loans that are sold on the secondary market.  Just as regular bonds trade, MBS trade on an open market and are subject to market forces, not what the Fed does with their rate.  In fact, many times mortgage rates move in the opposite direction as the Feds!So, reality is very simply that the Fed cutting rates will not have a direct effect on mortgage interest rates.That being said, some mortgage holders may benefit from a Fed rate cut.  If you hold a HELOC, that rate is typically tied to the Prime Rate, which is simply the Fed Funds Rate + 3 percent, you will see a small drop.  Also, anyone carrying a credi...
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Federal Bailout in the Works? Could Modified Option ARMs be the Savior?
2007-08-30 04:46:00
Ben Bernanke, our beloved Federal Reserve Chairman, wrote a letter to Senator Charles Schumer (D-NY) that was released today.  In the letter, Mr. Bernanke wrote that the private sector and Congress should create new, affordable mortgage products that would help some homeowners refinance their mortgages and keep their homes.  Sounds like a bailout is in the works to me.The letter really doesn't add anything new to the markets, but rather reemphasizes what the Fed has been thinking since their statement after the August 17th cut in the discount rate.  The letter is being toughted as a "bullish" letter by bond strategists and shows Bernanke being sympathetic to concerns expressed strongly in the financial markets.  Mr. Bernanke is scheduled to speak on housing and housing finance on Friday, the same day the Fed's favorite measure of inflation (Core Personal Consumption Expenditures or PCE) is released.  Coincidence?  Maybe, maybe not.&nbs...
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Are McMansions in Danger of Losing Their Tax Benefits?
2007-08-28 19:41:00
Leave it to a Democrat, and one named Dingell for that matter, to screw up the economy even more.  Yes, this dude wants to draft a bill that would eliminate the mortgage interest deduction on homes over 3,000 square feet (my own home will get a new survey of 2,999 if this happens).  The Michigan Democrat (Rep. John D. Dingell) who heads the Energy and Commerce Committee expects to introduce comprehensive climate change reform legislation once the House returns next month.  He stated that the bill will week to "remove the mortgage interest deduction on McMans ions - homes over 3,000 square feet."  He is also seeking to impose hefty new federal taxes on gasoline.He believes that the controversial proposals are essential to achieving the environmental goal of reducing carbon emissions by 60-80% by the year 2050.  "In order to address the issue of climate change, we must address the issue of consumption...We do that by making consumption more expen...
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Is Countrywide's Leader Trying to Persuade the Feds?
2007-08-23 19:32:00
In an exclusive interview on CNBC today, Countrywide 's CEO Angelo Mozilo mentioned a few things that may have been intended to help persuade the Federal Reserve to cut rates.Mozilo mentioned that he thought the US economy was headed into recession and that more liquidity was needed to stabilize the markets.  Two things that clearly are aimed at the decision the Federal Reserve needs to make about further cuts in the Discount Rate and even a cut in the Federal Funds Rate at their meeting next month.So, let's analyze why he made these comments and is he afraid that Countrywide is still in danger even with the B of A investment of $2B.  The comment he made about the economy going into recession may not be that far from a reality down the road, but why did he mention it?  More than likely, he wants the Feds to cut rates no later than their next meeting, preferably earlier, and help further bailout Countrywide.  The reason is that that Fed's goals are to r...
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Did the Feds Already Bailout Countrywide?
2007-08-22 06:48:00
Interestingly enough, the Federal Reserve Board cut the Discount Rate last Friday in an effort to increase liquidity in the crumbling financial markets.  This rate has no effect on mortgages, but it allows banks, including lending institutions, access to "borrowed" money.  Additionally, the Feds extended the borrowing period of these funds to thirty days.While that helped the markets overall, the most interesting part is the potential hidden reasoning behind that move.  As I have said before, I highly doubt the Feds would let Countrywide go under, though a bankruptcy trip would not be out the question.  The reasoning is that the mass panic and media frenzy that would ensue would destroy the markets, no matter how healthy they may be still.So, did the Fed cut the Discount rate to bailout Countrywide?  While they would never come right out and say that, it may be a more likely scenario than you think.  Richard Bove, a well respected analyst...
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Will the Mortgage Industry Follow the Likes of the Airline Industry?
2007-08-17 20:00:00
With all of the lenders falling apart right now and the troubles that have shown their ugly head at Countrywide, I fall back to my first career as an airline pilot for guidance.  Yes, troubles have been nothing new to either industry and the cycle of turmoil that affected airlines over the last two decades have similarities to that of the mortgage market meltdown.Since the late 1980s, airlines had been both down, up, and down again with them now returning an upward trend.  During this time frame, multiple "big name" airlines, as well as smaller air carriers, have gone under or merged into other airlines.  Names like Pan Am and Eastern disappeared from the airways.  Others like TWA and USAirways have been bought out and merged into other airlines.  A few, like United, Northwest and Delta have gone through the bankruptcy process, reorganizing into smaller, more competitive carriers. To continue, read Will the Mort gage Industry Follow the Likes o...
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Will Countrywide be the Next Victim of the Mortgage Market Meltdown?
2007-08-16 22:19:00
The big question of the day is where will Countrywide , the nation's current leader in mortgage originations, be at the end of the year.  A bigger question may even be...will they exist at all?That's right, as I have mentioned before (on at least one of my blog's), Countrywide may end up facing the same fate as American Home Mort gage (was the #10 lender) did a couple of weeks ago.  When AHM went down for the count, the media went into a frenzy (I was even quoted in a Market watch article).  Imagine what will if Countrywide goes belly up.Today, CW took out their last $11.5B of available loans from a group of about 40 banks.  With their access to money drying up, their own bonds are quickly facing "junk" status and are have already been downgraded to Baa3 from A3, placing its bonds in the lowest investment grade status.  Moody's stated that those are in danger of falling into junk status at any moment.So, how does that translate to...
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Dilbert and the Mortgage Market: Can You Relate?
2007-08-13 23:07:00
This Sunday's paper had a Dilbert cartoon strip that caught my attention and related directly to how mortgages are being offered in the name of "competition".  The Dilbert cartoon was about the boss asking Dilbert to prepare a proposal that is full of lies and which if they were to win, they would have to add "unexpected" changes that would eventually drive the costs up.  Dilbert points out that they didn't have the right products nor the expertise to handle the customer's needs.  The boss then says to say they do and they will figure it out later.  Then Dilbert points out that they would still be the most expensive bidder to which the boss says to bid low and they will make it up in changes and unexpected essential upgrades.Click here to continue
More About: Market , Mortgage , Mort

Mortgage Market Meltdown: Is the World Really Coming to an End?
2007-08-11 19:44:00
It is hard to turn on the TV or radio and not hear about the turmoil happening in the mortgage markets and real estate these days.  But, is what you are hearing really blowing it out of proportions?Down here in Florida, particularly in South Florida, it may have more of an effect.  Why?  We seem to have a larger than normal portion of non-conforming loans.  However, there is still no cause for panic as they are still the majority of the overall market.So, let's put things into a little perspective.  How bad is it really, especially when we consider how things are in other countries and markets.  Take a look at our reactions to gas prices as an example.When screamed and reeled when gas crossed over the $3.00 per gallon level, believing the government needed to step in and save us.  Gas prices eventually dropped back down, going in a cyclical pattern.  Gas prices last week in our area were around $2.84 per gallon.  While it is off their...
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Fannie Mae Unable to Assist Mortgage Market's Problems
2007-08-11 17:34:00
Late yesterday, The Office of Federal Housing Enterprise Oversight denied Fannie Mae 's (FNMA) request to increase its portfolio beyond the $727 billion limit currently in place (as of May 2006).  This was despite arguments from senior Democrats and the company stating that the change would provide much needed stability in the mortgage market.Several major mortgage companies have complained about the inability of selling loans to investors (the secondary market) and FNMA said it could pump liquidity into this area.  President Bush said that any changes to FNMA or Freddie Mac (FHLMC) should come about after Congress completes a reform package.The announcement came after FNMA's chief executive commented that a modest increase in FNMA's portfolio was appropriate given the market conditions.  He went on to say that the increase combined with actions taken by the Federal Reserve and others would help alleviate the ongoing credit crunch and bring forth an additon...
More About: Mortgage , Problems , Assist , Mort

Money Merge Accounts: Are You Dealing With a Professional?
2007-08-08 03:35:00
OK, I was not going to post anything tonight as I need to get some sleep, but this just had me cracking up.  Many of you know that I like this type of product (not a big fan of the seller of the Money Merge Account itself, rather utilizing similar products).  The reason I started posting "case studies" was to show how these things are being marketed in a very biased and misleading fashion, without comparing it to other possible solutions.  Please keep in mind that there is no "magic pill" nor is there any "one size fits all" mortgage program, not even the 30 year fixed.Now, where is this post going?  It really isn't even about the program, just about the simple fact that you are obviously not dealing with professionals if they are dumb enough to send me this....You've received a contact message from your Contact Form on the ActiveRain network.Message details: From: XXXXXXXXXXEmail: mmasuccess@gmail.com Subject: Hi my name is ...
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Mortgage Topics: Week in Review July 21 - August 3, 2007
2007-08-05 20:06:00
David Podgursky asked if I could do the week in review this time and I thanked him for the opportunity.  First, I did not realize how much time it takes to read all of the posts that come in each week, but it was a good opportunity for me to check out the newbies as well as some the old hats I haven't read in a while.The time period started off with the "Carnival of Content" which, to my disappointment, only received a little over 20 entries.  I thought this was a great opportunity for all mortgage professionals on AR to write accept the challenge and write their best.  The subject was ARMs versus Fixed Rate Mortgage s, which is the best?Since Rich Jacobson hosted the Carnival and the judges rendered their decisions, I ask that you see Carnival of Content: Winners of Round Two for a list of winners and check out the lenders carnival group to see all of the entries.  Virtually every entry is worth reading in my opinion with many "n...
More About: Review , Topics , Week , July

Mortgage Market Meltdown - The Saga Continues
2007-08-04 02:55:00
No doubt you have been hearing a lot about the changes taking place in the mortgage market over the last 4 days involving every loan except conventional conforming ones.  My prevous post, Mort gage Market Meltdown - Will it be Subprime Only? (dated July 11th), talked about how the effects of the subprime market was going to spill over into the rest of the markets, including A-paper.  Well, that is what is happening right now.Call it what you will, liquidity crisis or whatever, the effects are easy to see.  As I was qouted in MarketWatch today, "If something is perceived as risky ... they're going to ask for a higher interest rate on that product".  I was sad to learn that American Home Mortgage and American Brokers Conduit in particular were closing shop and filing for Bankruptcy protection.  Rates on every type of "risky" loan, including A-Paper Jumbo Loans (non-conforming) are rising, despite Mortgage Backed Securites (Bonds which dr...
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Dangerous Curves Ahead? Understanding the Yield Curve
2007-08-02 15:52:00
You probably have heard a lot about the yield curve in the past; especially when it was inverted and Greenspan could not move it despite his best efforts.  But what is the yield curve and what does it mean to you, particularly investors?To give you a little background, bonds are the financial instruments that lending markets are based on.  They determine the interest rates you pay on cars, homes, boats and other loans.  They come in various lengths (maturities) and risk levels (credit quality).  These different types move in different ways, sometimes even opposite of each other.  Depending on the length of the term, they may have different names, such as T-Bills are up to one year, T-Notes up to 10 years and Treasury Bonds being the longer terms.  Mortgages are driven by Mortgage Backed Securities such as the FNMA Bonds.  Since time is money, the yield curve provides a visual representation of interest rates on similar credit quality bonds of varyi...
More About: Curve , Curves , Understand , Standing , Under

Florida Hurricane Victims Get an Additional Year to Sell Vacant Land
2007-08-01 18:51:00
The Internal Revenue Service is adding an additional year to the time limit within which victims of Hurricanes Katrina, Rita and Wilma have to sell vacant land that they had owned and used as part of their principal residence that was destroyed as a result of the hurricanes. Federal tax rules state that individuals have two years within which to sell the vacant land to be able to take advantage of the exclusion on gain from the sale of a principal residence.Given that the two-year anniversary is approaching for victims of the 2005 hurricanes, the IRS has decided to provide additional time to take advantage of the exclusion. The IRS is granting relief by declaring that these victims now have three years after the destruction of their principal residence as a result of the hurricanes to sell their vacant land that they had owned and used as part of the principal residence.With the current slump in many areas hit by these storms, this is welcome news, allowing more flexibility to ...
More About: Florida , Land , Vacant , Sell , Cane

Florida Mortgage Question: Adjustable or Fixed Rate: Which One Should You
2007-08-01 05:01:00
In my previous post, Adjust able or Fixed Rate : Which One Should You Choose?, I was rushed and the article did not flow well.  I have taken the time to rework it a little and make it more fluid for more clarity and to better serve the reader...With all of the media reports about how bad ARMs and exotic mortgages are, you would first jump to the conclusion that Fixed Rate Mortgage s (FRMs) are clearly the better deal.  I am sure you have seen the reports of the subprime woes and how many families have been forced into foreclosure due to these types of loans either resetting or recasting.  With all of the bad news out there, how could ARMs possibly be worthwhile?The answer may surprise you.  ARMs and exotic mortgages, including the Option ARMs (you know, the ones that everyone hate now), do have their benefits and they may be the best choice for you.  The bottom line is that the answer to the question truly depends on your unique situation.So, let's look at ...
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Were Americans Really Saving Less Last Year?
2007-07-31 18:42:00
You may have missed the report that came out this morning and do not realize there was a revision to last year's analysis.  The Bureau of Economic Analysis (BEA), which gives out accounts of personal savings rates, made several upward revision's in the personal savings rates for 2004,  2005 and 2006.In 2004, the revisions were not as dramatic as for 2005 and 2006, but were good to see nonetheless.  2004's revision showed a slight change in the savings rate to 2.1%, up from 2.0%.  More impressively, 2005's revision to the personal savings rate rose from negative .4% up to .5%.  However, the most impressive change was to last year's analysys.  The 2006 revision went from the negative 1% to a positive .4%!!!So, essentially, the BEA had been reporting a negative savings rate when in fact the rate was positive.  Today's report showed the current savings rate is .6%.  While this is all good news, it does not deny the nee...
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Florida Mortgage Market - Forecast for the Week
2007-07-30 16:01:00
Stock earnings reports will continue this week which could create some volatility as it has already.  Additionally, there are several big potential market movers on the economic calendar for this week.The fireworks will begin on Tuesday with the Fed's favorite inflation guage, the Personal Consumption Expenditure index (PCE) to be released along side the Employment Cost Index (ECI) at 8:30.  These reports will be quickly followed by the Chicago PMI at 9:45.  Wednesday will release the ISM Index, another typically heavy hitter for the markets.  Thursday will be relaively tame with only the Initial Jobless Claims, but Friday will end the week with the employment numbers, four major ones (Non-farm Payrolls, Unemployment Rate, Hourly Earnings, and Average Work Week ). There will be several other less impacting reports throughout the week, such as the Personal Income and Personal Spending reports due out on Tuesday.  As you can see, there will be plenty o...
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How to Borrow Money at 4.875% and Fairly Conservatively Earn up to 12.0%
2007-07-28 06:35:00
Opponents of proper equity management, as well as those who push mortgage acceleration programs, argue about the ability to earn even 6% tax-free in conservative investments.  I will show you how spreading your horizons and investing in CDs based on World Currencies can do that and more, with fairly little risk if you know what you are doing. I have talked a little about the Icelandic Krona and how a 3-month CD based on that currency is yielding over 12%.  Since CDs are about as conservative an investment as they come, I doubt many would argue about using this as a tool to invest in.  The major issue with using World Currencies are they are subject to the strength of the dollar, which right now gives them even more favor. So, by now you have guessed that you can borrow money as a mortgage and receive tax deductions (subject to limitations) on that interest yielding a net cost of 4.35%, basing it on a 25% tax bracket.  That tax bracket is probably on the low side ...
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Adjustable or Fixed Rate: Which One Should You Choose?
2007-07-27 22:24:00
With all of the media reports about how bad ARMs and exotic mortgages are, you would first jump to the conclusion that Fixed Rate Mortgages (FRMs) are clearly the better deal.  I am sure you have seen the reports of the subprime woes and how many families have been forced into foreclosure due to these types of loans either resetting or recasting.  With all of the bad news out there, how could ARMs possibly be worthwhile?The answer may surprise you.  ARMs and exotic mortgages, including the Option ARMs (you know, the ones that everyone hate now), do have their benefits and they may be the best choice for you.  The bottom line is that the answer to the question truly depends on your unique situation.So, let's look at some facts.  The average homeowner only keeps their mortgage for about 4 1/2 years and rarely stays in their home longer than 7 years these days.  This is where ARMs truly benefit the homeowner, offering lower interest rates that are fixe...
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The Asher Institute Report: Fact, Fiction, or Distorted Reality?
2007-07-23 18:43:00
Many of you may have heard about the report titled "Profiting from the Banking Industry's Biggest Secret" released by the Asher Institute for Consumers.  If you have, hopefully you saw through some of the so-called facts portrayed in this report and did not succumb to its fallacies.This report provides an ingenious mix of both fact and fiction to ultimately sell a product.  This report has been used by numerous Money Merge Account and other Mortgage Acceleration program agents as a way to get people to buy their products.  While there is some truth to it, which we will get into, people who use this report should be avoided at all costs.To read the remainder, please click here.
More About: Reality , Fiction , Report , Fact

Money Merge Accounts: Are They Really Worth It (Another Case)
2007-07-19 23:14:00
A UFF agent placed the following scenario of a client he was putting into a Money Merge Account on one of my blog posts...The client had just closed on a $244,000 mortgage at 6.875% Fixed for 30 years, which creates a $1,602.91 monthly payment since it is fully amortizing.  I wish I had talked with this client before he closed as I could have saved him thousands.  The client makes $4,616 per month, of which $1,000 is said to be discretionary.The UFF agent goes on to provide a fairly accurate representation of what the client could do on his own versus using an MMA or other mortgage acceleration product.  That is, if the client simply added $1,000 per month to his mortgage payment as added principal, the mortgage would be paid off in 11.17 years (August 2018).  He goes on to say that if the client uses the Money Merge Account the mortgage would be paid off in January 2017 instead, a full 1 year and 8 months earlier.Where I disagree and the facts the UFF agent ment...
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Bankruptcies Are No Help For Homeowners (Mostly)
2007-07-14 18:28:00
My intent is not to focus on the negativity surrounding the marketplace these days, God knows there has been enough of that going around.  But rather, I would like to highlight some little known (if at all) provisions of Chapter 13 Bankrupt cies.  Specifically, as they pertain to mortgages.We are seeing increases in foreclosures, that is a given.  More than likely there will be increased bankruptcy filings in the future as well.  Americans who do decide to work through the expensive and cumbersome requirements for filing Chapter 13 may not realize that there is a long standing provision that affects their mortgage.  The provision was not removed in the 2005 Bankruptcy reform.  That provision prohibits the ability to restructure the payment terms of most mortgages, namely those on primary homes.So, in essence, filing for Chapter 13 protection due to inability to repay your debts may not be as helpful as you may have thought.  The chances are great th...
More About: Meow , Owners , Homeowners , Homeowner

When Ben Stein Speaks, People, Well They Probably Should Listen
2007-07-14 16:44:00
Chances are you know who Ben Stein is, but in case you don't..."Bueller...Bueller" .  That's right, he played the Economics Teacher in Ferris Bueller's Day off.  He also ran a game show on Comedy Central called "Win Ben Stein's Money".You may remember these shows, but his background goes much deeper than  just his "humor side".  Things you may not know are that he is a lawyer, economist and commentator on finance.  He runs a bi-weekly column in the New York Times, has been a longtime contributor to Barron's, and a columnist and editorial writer for the Wall Street Journal.  He even has a few books on personal finance as well as articles that appeared in the New York magazine and Washington Post.  I think it is fair to say that he knows what he is talking about.Mr. Stein recently posted an article titled, "When Paying Off Doesn't Pay".  In this article, he answers the many letters t...
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The Tax Issue Nobody Seems to Talk About (Part II)
2007-07-14 03:47:00
If you did not read Part I, please go back and read it for a breakdown on the issue.  This post will highlight your options and possible solutions to the tax issue.I know, many of you are going to think I am going to head off on the Missed Fortune concept.  Actually, I am going to leave that route out in this post as I want to focus on strategies that do not get highlighted. Don't get me wrong, the Missed Fortune strategy is a good one.Now, I am going to make a suggestion that most of you will think I am nuts saying.  Stop investing in your 401(k)s.  Well, that is not exactly the best thing as some of you are getting company matches and you should take advantage of that since it is free money.  Beyond the company match though, I suggest you stop compounding your future tax problem by adding more to it.  Rather, you should be putting more money into your taxable accounts so you will be taxed at today's lower rate and then hope Congress doesn'...
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The Tax Issue Nobody Seems to Talk About (Part I)
2007-07-12 23:41:00
If you are like most Americans, you have been working hard, saving diligently,  and are looking forward to the day when you can retire and begin living off your hard earned savings.  You have done everything that the gurus and planners have told you to do, using the vehicles they suggested, invested in the products they recommended and have even taken advantage of every tax saving idea you read about.  You are going to be just fine, right?Maybe not!  Regardless if you are doing this or you have been planning to save for retirement as soon as you get that last bill paid off, it is high time you wake up to the tax problem that nobody seems to talk about.Let's take a look at the problem.  There are around 80 million Baby Boomers getting ready to retire.  According to the Congressional Budget Office, about 50% of them are on track to save enough money, but are unlikely to experience the kinds of returns their parents saw.  Additionally, there are n...
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Are You Responsible for the Subprime Mortgage Debacle?
2007-07-12 02:52:00
Every day, the media talks about the problems in the hosuing market.  Most of the talk centers around  the loss of homes due to "exotic mortgages", dishonest lenders, among others.  People who are marginal borrowers, those we call the subprime market, are often the subjects of the stories.  They will also likely be the ones most affected by the changes that have already occurred as well as those in the pipeline.  As is typical, the changes implemented most affect the ones who can least afford it.From the point of view of one who recommends using their home to build wealth, I would like to shed some light on the subject.  Despite what regulatory agencies do to try and solve the problems, there will always be abuse.  The real problem is that most of us are unwilling to accept responsibility for our actions.  If mortgage professionals were more responsible, they would do a better job screening their applicants and structuring ...
More About: Mortgage , Gage , Subprime , Prime , Rime

Mortgage Market Meltdown - Will it be Subprime Only?
2007-07-12 02:16:00
Not a day goes by that you do not hear about the Subprime Mortgage Market disaster and how many people have lost their homes due to bad loans, dishonest mortgage lenders, etc.  But will the effects only be felt in the Subprime Markets?  The answer may surprise you.First, let's talk about the real Subprime Market, you know, the ones with bad credit and riskier loans in general because of it.  These are the ones that are typically placed into 2 or 3 year ARMs with associated pre-payment penalties.  These clients carry higher interest rates, larger margins, etc. due to their lack of creditworthiness.  Since they likely cannot handle the larger payments when the loans do adjust, they end up in foreclosure, short sales, etc.Then we have the Alt-A type market.  These are still wrapped in the Subprime Market category as they are not "A-Paper" loans.  These consist of many of the so called "exotic" loans like the Pay Option ARM.&nbs...
More About: Gage , Prime

Heads or Tails: Is Flipping Houses Right for You? (Part 3 of 3)
2007-07-06 18:18:00
In the previous posts, we have discussed how you need to do your research before getting into flipping houses.  This part will continue to emphasize that fact, but also get into how you can get started and if it is really right for you.At the point you are ready for a purchase, you should have worked hard to find the perfect property and so it is time to get down to business.  One of the biggest mistakes that flippers tend to make is buying and renovating to their own personal needs or tastes.  As with any other investment, you need to keep your "emotions" out of it.By that, I mean that whatever you think is needed is not what everyone else thinks.  You need to prepare the home for resale in a fashion that will be attractive to as many people as possible, and more than likely, they do not have the same tastes as you.There are some specific ways you can prepare your home for resale.  Start off with defining your target buyer and what they would expe...
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Heads or Tails: Is Flipping Houses Right for You? (Part 2 of 3)
2007-07-03 21:48:00
OK, you decided you want to start flipping houses as a side career, or at least for fun.  Well, if you are interested, and you must be since you are reading this, there are a lot of things you need to take into consideration.Start by getting to know the neighborhood you are considering.  You need to research several things about the area, starting with price ranges of the homes.  Another consideration is how long the is the average a home stays on the market.  It also helps to know how the local market is like.If you are buying a fixer-upper, then make a list of everything that will need to be renovated or repaired and get estimates of the costs before you purchase the property.  Estimate on the high side since it is better to end up with more profits instead of a loss during the process.Plan a budget, again erring on the high side.  Don't just factor in the known costs like the renovations, but also the cost to "carry the house".  Th...
More About: Houses , Flipping , Part , Flipping Houses , Flip