House Flipping

What is house flipping? Any why do so many Americans try to do it every year? In this post I will briefly talk about what house flipping is and give some tips on how to be successful in doing it.

"House Flipping" involves buying a house that needs repair and fixing it up to sell it for a profit. Although it sounds very simple, it is actually a very complex process. It is also very easy to lose money in a real estate flip. Here are some essential tips that you can use so that you don't lose your life savings in a real estate flop.

The most important thing you can do to make a profit is to wait for the right deal. The key driver of profit is buying a property that is deeply discounted. You want to make money when you buy, not when you sell. The easiest way to do this is to wait for foreclosure auctions. These provide opportunities to buy homes at very discounted prices. You should be very picky when it comes to choosing a house to try to flip.

Another essential strategy is to try to take advantage of every tax deduction you can get. Every dollar less you pay to the government is another dollar you get to pay to your wallet.

The last strategy I can recommend is to keep enough cash to deal with unexpected problems. You will always need some of your assets in their most liquid form so that you can deal with something that was not planned, such as a water heater blowing up or a neighborhood flood. If something happens and you do not have enough cash on hand, you can go out of business.

I hope these flipping tips and strategies will help you to become a smarter flipper.

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5 Improvements to Increase Home Value

There are many things you can do to your home to increase the potential selling price of it. At the same time, there are many, many more things you can do that will give value to you, but will not increase the selling price any way. It is important to squeeze as much money out of your assets as possible. After doing some research, I have found this list of 5 improvements that you can make to your home to increase the property value.

1. Adding an Attic Bedroom.
This is the best improvement you can make on your house in terms of return on investment.

2. Adding a New Bathroom
Adding a new full bathroom to your house can increase its value roughly 20%.

3. Refurbishing the Basement
Converting a basement (glorified storage space) into a fully functioning room increase the square footage of your house and can increase the value dramatically.

4. Add an Alarm System
In these uncertain times, more and more families are beginning to value home safety as a qualifying factor for a potential home purchase. Adding an alarm system can increase your home value more than the system is worth.

5. Boost Curb Appeal
It is possible, and sometimes easy, to dramatically increase the sell time and sell price of your home just by making it look more attractive.

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Williams Tower

Williams Tower is perhaps the most iconic piece of real estate in Houston. The towering monolith can be seen from almost anywhere in Houston. I have even seen it from as far away as Sugar Land. The building sits in the Galleria area, one of the hottest real estate areas in the city. It was even named as one of America's Favorite Structures by the American Institute of Architects.

But what is the history of this famous building? The building was designed by John Burgee Architects, an architect firm based out of New York. It was completed in December of the year 1982. At the time of its construction is was considered the tallest skyscraper in the world outside of a central business district. The original name of the building was Transco Tower, after Transco Energy Company, the building's first major tenant. Many Houstonians still fondly refer to it as Transco Tower. I know I still do.

Williams Tower was named "Skyscraper of the Century" by Texas Monthly magazine in its 1999 issue. At night, a 7,000 watt beacon, positioned at the building's apex, sweeps across the city. It is said that on a clear night, the light can be seen from as far as 40 miles away. This classic building is one of my favorite pieces of real estate in the entire state of Texas.

Houston Real Estate Market

Houston was recently named as the number one real estate market to watch in 2015. It ranked number one in both investment and development prospects.

The main driver of this is the fact that Houston has such a huge energy presence. Houston is also attracting a lot of foreign capital. This may be because such capital wants to move outside of its typical comfort zone. Global investors have begun to seriously look at markets such as Houston and Dallas for industrial opportunities.

The Houston market has also historically shown strong suburban growth. With how many suburban areas Houston has, this is not surprising. Every time I drive to a new area of Houston there seems to be a new suburb popping up. Over the course of my college career I have noticed the explosive growth of Fairfield and the area around the Houston premium outlets. Construction has been booming for the past four years, and shows no signs of slowing.

                

Chinese Real Estate Investment in Manhattan

New York City is no stranger to foreign investment. Foreign investors have been pouring money into high quality New York properties in recent years. They believe that investments in the city are safe long-term bets, and that higher-end buildings will see values grow faster than less-flashy buildings. Chinese investors have, for the most part, stayed out of these real estate plays.

Recently, however, they have started to become more aggressive. This could be because real estate markets in China have recently started to show signs of weakening. In 2012, Chinese investors had only spent roughly $300 million. Since early 2013 they have spent more than $5 billion on New York properties.

Another interesting aspect of these investments is that they have typically been high-profile. In 2013, Beijing-based developer Zhang Xin purchased a 20% stake in the General Motors building. This building is the country's most valuable single tower.

So far, the New York region has accounted for 78% of Chinese investments in U.S. commercial property between the years 2007 and 2013. Only time will be able to tell the long-term effects these trends will have on real estate markets.

The Astrodome

The Houston Astrodome is something that is very near and dear to my heart. I have many fond memories of going to Astro's game when I was younger. Walking into the colossal structure and marveling at the architecture was an amazing experience, especially at 10 years old. This stadium was renowned for being the world's first domed professional baseball park, as well as being the "Eighth Wonder of the World." When you combine these with how great a baseball team the Astros were back in the day, it adds up to an unforgettable experience.

Those days are long gone, however. In 2000, the Astros moved from the Astrodome to Minute Maid Park. This left the Astrodome without a team, and even worse, without a purpose. For the last 14 years, city officials have been trying to decide what to do with the decaying dome.

The operators of the Houston rodeo have been lobbying to have the Astrodome demolished and replaced with a green space and a museum.  In a city that has a habit of tearing things down, people have been looking at the Astrodome and thinking, "This is something worth keeping."

Regardless of what the ultimate decision will be, the legacy of the Astrodome will never be forgotten. This building perfectly illustrates the challenges posed by obsolete professional sports facilities to local governments. In an age where sports teams are constantly trying to grow and improve, it is only a matter of time before YOUR hometown faces a similar problem.

Source: http://www.wsj.com/articles/astrodome-defies-the-wrecking-ball-1410285924

Property Rights

Real Estate is defined as "Land and anything permanently attached to the land."

Real property is "Any property that is attached directly to land, as well as the land itself. Real property also includes rights and interests."

The main difference between Real Estate and Real Property is that the latter includes intangible interests to the property.

http://articles.latimes.com/2012/jan/03/nation/la-na-wetlands-court-20120103

This article gives a real-life example of a property rights dispute. It describes how an Idahoan couple bought a residential lot across the road from a scenic lake so that they could have a distant view of the water. Instead of building a home, however, they became locked in a legal battle with the EPA over the property rights of the lot. The EPA argued that the lot was protected wetlands, and thus unsuitable for building a residential home.

This article is a great example of how potential real estate purchasers need to know every little fact about the land they are about to buy, or possibly face thousands in legal expenses.

Private Restrictions on Real Estate

A restriction is a limitation on the use of real property. Private restrictions are between private parties and are in the form of covenants, conditions, and restrictions contained or referenced in instruments of conveyance or contained in specific planned community rules.

http://lvglawfirm.com/lawyer/2014/08/06/Real-Estate/Sale-of-Building-Stymied-by-Age-Old-Covenant_bl14577.htm

Te above link leads to a case involving a 186-year-old restrictive covenant. It is a great example of how easily covenants can block real estate transactions.

Public Restrictions on Real Estate

Public restrictions on real estate arise from the government's powers of: taxation, eminent domain, police power, and escheat.

http://www.timesdispatch.com/news/henrico-loses-eminent-domain-dispute-with-property-owner/article_0503ac10-55e2-5c6b-8bae-fd725d9b5bce.html

The above article describes how a person got a more favorable compensation for her land after challenging the eminent domain in court.