My name is Bill Nickerson and I have been in the mortgage business since 1991. Since that time, I have had my share of investment properties, flipping homes as well renovations. I enjoy working with my hands. Today, I have seen too many clients chasing after that bank owned property or that home that has been neglected. I warn you, if you don't know how to swing a hammer or rewire a light switch, be prepared to spend a lot of money.
All too often I see the client or real estate broker come in a tell me they are going to make a lot of money on these short sales. One thing you have to remember, if a deal is so good, why didn't the local builder of contractor pick it up? Don't you think if a buck was to be made the builder would have picked it up. Nope, they didn't miss it or overlooked it. They passed on it for a good reason. They know that money can not be made on all of them.
I have experience in this, I have bought and sold several homes and completely renovated them, down to the stud, new electric, windows roofed, planted several dozen trees, learned how to use a back hoe. It still cost us a little over $40,000 in materials. I know EVERYONE in the industry and had every deal with every contractor. I continue to buy and sell even in this (what I call a perfect time to buy, prices are low and so are mortgage rates), market place.
So before you go out and think you are going to start flipping properties, ask yourself a few questions: Do I know how to hang a door? Can I install ceramic tile on a floor or bathroom? Do I know how to build a counter top from scratch as well as hang the cabinets? If you have to question any of these items, it means you are going to have to pay someone else to do the work. A basic kitchen with appliances will run you $20,000 installed, there goes your profit.
For more information on home renovations or what kind of properties you should be looking at, call me anytime.
Bill Nickerson has been in the mortgage banking for 18 years and has renovated several homes in his career. Currently Bill owns several investment properties in the area and is always on the look out for that bargain property.
Bill can be reached at Emerson Lending Company in Acton MA, 978-264-4803 or e-mail him at bill@emersonlending.net
