10 mistakes to avoid in real estate in 2006

Well, here are some mistakes you always see the folks on Property Ladder making, but rarely the folk on Flip This House . . . Hmmm . . .novices vs. experts? I think there are two unnerving parts to this article. 1) It will take longer to sell your house than you think it will. (Why does Richard always go to his realtor and ask for the "rock bottom, sell it today" price? His business model requires that he sell fast and selling fast and earning top dollar are often not compatible.) 2) For most people it's better to rent for a month or two than carry two mortgages for a month or two . . . Yuck. 2 moves!!??? I had a hard enough time with one!

10 mistakes to avoid in real estate in 2006

Property Ladder marathon with Kirsten Kemp

Looks like TLC is showing a Property Ladder marathon, today, Christmas Eve. Of course the first show I noticed is the one with the high school counselor who blows his budget by something like $100,000 . . .but don't worry . . .it turns out fine . . . Of course everything I'm reading about California real estate says that might not be such an easy mistake to recover from in season II. Which, BTW, I'm hoping is going to start soon. I figure a marathon has to be a good sign :) In the meantime, feel free to look around for my other flipping posts. There all over the place. I've also linked to my husband's blog . . .it has a bit on Kirsten's earlier acting career . . . :) Merry Christmas!

educating eric

Virtual flip finally moves to sold!

Well, our virtual flip has FINALLY moved from pending to sold. (It seems like every house I follow spends a good month after its supposed closing date sitting in the "pending" category . . . if they ever move at all!) It sold for $5000 under asking and that includes a $5500 seller's credit (for closing costs I suppose.) So, whoever bought it essentially got it for $10500 under asking, but we figured $25,000 under asking was the maximum purchase price for a profitable straight up flip. Now, I suppose the buyer may be planning to rent it or do a lease-option. It will be interesting to see! Oh, I also found it interesting that the buyer got 100% financing. So, the buyer isn't out any cash if the deal goes south. (Oh course a foreclosure does not do wonders for one's credit rating!)


BTW, the "powers that be" (whatever they know) say the twin cities housing market is expected to see a price increase of .5% a year for the next two years. At least we're not looking at a reversal like some markets are, but it's harder to make money in a stagnating market than a growing one. (Still not impossible, but you have a be a lot more careful . . .and I'm not sure novices in the REI game around here are.)

Finally, cat crap house is still pending after being off the market for months. I supposed they'll have to move it to sold sometime before they try to re-sell it? (I can't imagine that the buyer bought it to live in. You'd have to be an extraordinary person to see that house in its original condition and still want to live it in . . .even if it was all fixed up!)

Ginger Alexander and Flip This House

Well, Kirsten Kemp and the gang on Property Ladder must be starting season 2 after the first of the year, so I've been getting my flipping fix from Flip This House on A&E. In last Sunday's episode they worked on their biggest flip ever with a hilltop, gated community, mansion. It was full of rats and mold, but hey, every house has its issues.

This show is based in South Carolina and the culture seems a wee bit different from Property Ladder's California based flips. (Not to mention the folks on Flip this House are far from novices like the people on Property Ladder.) One thing I think is very funny is that Ginger (the investment coordinator) is always in heels. What up with that? In one scene they show her running from the rats in (what must be) 3 inch heels. Eric thinks it might be because they show is based in the south and they tend to dress up a little more . . .

Anyway, Eric read me a "review" of the house from somebody who had actually been in it and they mentioned all of the flaws of the flip. Some of them were things you would expect (sloppy paint, cheap trim, etc.) but the reviewer also mentioned the "cheap" appliances. They were only stainless GE profile. Afterall if you're not cooking with Thermadore or Subzero you're just not rich enough I guess. I was reminded of the Simpsons episode (Alls-Fair-in-Oven-War) where Marge gets a new kitchen and Homer comments how great it is that will all of the technological advances we can now have a refridgerator that's slightly colder. . . .

Luvs Diapers Target $2 off coupon

Okay. Not a big fan of Luvs myself, but I don't post very many coupons for Cheri :)

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Steps toward financial freedom

I just read a Bankrate article that, to be honest, isn't really worth quoting. However, it did have some insight by Stan King who's a leader in the simplicity movement. If you haven't heard of the simplicity movement, it's pretty much like it sounds. Simplify your life and you'll be happier as well as more financially free. Gandhi, a long time ago, said "live simply so that others might simply live." This is the same idea. Anyway, here's how Stan evaluates whether or not he really wants something: 1) Calculate your TRUE hourly wage. (Salary - taxes/SS/etc. - work related expenses like clothes, car expenses, and daycare) / The number of hours you really work (Not what you're supposed to work, what you really work. Make sure to include commute time!) 2) every time you want to buy something that you're not sure you want/need, calculate how long it will take you to earn the money to buy it. Then ask yourself, "Is this really worth x hours of work?" Trust me. Lots of times the answer is NO.

Insurance to mortgages -- talk about it!

The folks at the Motley Fool agree with my long held premise that finances are the last taboo. Their argument (that I agree with) is that it shouldn't be. We'd all have a better chance of financial sucess if we were open in our discussions on everything from long term care insurance to mortage payments. How else are we going to learn??

Spill Your Money Guts: Financial News - Yahoo! Finance