Plumbing can be a flipper’s nightmare, because leaky or corroded pipes can cause problems that are not readily apparent to the eye, but become all to obvious when you start making modifications to the home. You can think you’re replacing some old tile, or redoing some drywall, and encounter a nightmare of leaky pipes, water damage, mildew and wet rot that was invisible when you inspected the property.
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Read more about Avoiding a House With Plumbing Problems
Last July, I warned that policymakers in Washington, increasingly desperate for revenue, were beginning to look hungrily at the home mortgage interest deduction. Indeed, I specifically pointed out to readers that Representative Dave Camp, (R-Michigan), and the chairman of the House Ways and Means Committee, was holding hearings collecting testimony designed to undermine the case for the home mortgage interest deduction. Camp is making his move.
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Read more about The Tax Reform Act of 2014
Don’t look now, but the federal government seems to have developed a website that actually works! The Consumer Financial Protection Bureau – the federal watchdog agency created under the Dodd-Frank financial reforms of 2010, has created a site that aggregates mortgage data nationwide and collects it in a series of well-executed infographics.
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Read more about The New Mortgage Data Website
You can make money flipping to hipsters and millennials – but not to just any hipster or millennial. The key is to get in front of a specific subset of them known as urban Bohemians, or the type of educated, affluent knowledge or creative worker that author David Brooks identified back in 2000 as bourgeois bohemians, or “bobos.”
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Read more about Flipping to Hipsters
Hard as it seems to believe, struggling homeowners have had it easy for the last seven years in at least one way: The Mortgage Debt Forgiveness Relief Act gave anyone who got foreclosed on or short-sold their home a substantial tax break. Prior to 2007, the IRS considered forgiven debt as ordinary income to the debtor. The benefit of tax forgiveness was considered to be substantially the same as a cash benefit, and therefore the debtor was charged income tax
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Read more about The Expired Mortgage Debt Forgiveness Act
When most people think of borrowing to buy real estate, they think of mortgage debt, naturally – and particularly of Fannie Mae, Freddie Mac, and of course the VA and FHA options. Are there other lines of credit available? Where else can you raise capital for a house-flipping venture? Here are some ideas – and we’ll take a closer look at some or all of them in future installments of the Flippin’ Insider.
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Read more about Financing for Flippers
It may be a little bit tougher now for more marginal borrowers to qualify for home mortgages than it was just a few weeks ago. That’s because a series of new rules became effective on Jan. 10 that require lenders to take greater care that their borrowers can actually afford to pay back their qualified mortgages. In a nutshell, the new 800-page regulation defines the following requirements for qualified mortgages
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Read more about New Rules for Qualified Mortgages
A new rule, effective Jan. 18, makes the appraisal and loan underwriting process substantially more transparent for the average borrower. Specifically, an amendment to Regulation B, one of the regulatory provisions pursuant to the implementation of the Equal Credit Opportunity Act, forces lenders to disclose to borrowers, in writing, that they are entitled to a copy of “any and all appraisals and other written valuations developed in
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Read more about New Rules for Appraisals
Now, for most veteran stock investors, Warren Buffett needs no introduction. He is the chairperson of a holding company called Berkshire Hathaway, and is arguably the most successful investor alive. He doesn’t owe his fortune to a great invention or a single great product. People can get lucky with that. Rather, Buffett built his fortune the same way you can: by accurately identifying undervalued investable assets, buying them for
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Read more about How to Flip Like Warren Buffett
It was tough for a while. In the four years following the 2008 near-collapse of the banking system under the strain of the mortgage crisis, bankers were so wary of getting stung again that it was tough to get a loan at all. Why would lenders lend? They could buy equities dirt cheap in 2009, for example, while returns available on long-term real estate loans were headed to the cellar.
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Read more about Private Mortgage Insurance