If you have watched episodes of the famous TV reality show “Flip This House”, you should be familiar with its maverick host Armando Montelongo.  Dubbed the “flipping machine”, he is your classic example of a self-made man who has gone from rags to riches and inspired many.  Through hard work, shrewd business acumen and a positive approach to life, Armando Montelongo has hit it big in the real estate arena.  In just over five years, he has turned his small family business into a major real estate firm, Montelongo House Buyers, which on average flips 25 houses every month.

Armando Montelongo’s story is definitely one for the movies.  In 2001, unemployed and heavy with debt but not discouraged, he decided to go back to his hometown of San Antonio, Texas.  Back then, he and his wife Veronica and their baby boy were staying in his in-law’s garage in Southern California.  They had no choice because their house was foreclosed.  He didn’t work to take care of his wife and their baby who were then suffering from major health problems.  Savings were completely depleted to pay off huge medical bills.  Faced with such a dilemma, Armando Montelongo did not lose hope. Instead, he decided to start life anew with his small family in his native San Antonio.
With just $1000 in his pocket courtesy of his in-laws, Armando and his family set out to San Antonio.  Lucky enough, he was able to negotiate for two months free rent. They literally struggled to make both ends meet even to the point of selling their furniture to buy food.  During those times, he observed that there is money in the real estate business.  He discovered that buying a rundown house, renovating it a little and then selling it at a higher price makes savvy business sense.  This has come to be known as house flipping. And the rest is history.

With the overnight success of his flipping business comes the offer to host his own TV show about flipping - Flip This House.  Together with his wife, his brother David and sister-in-law Melina, they feature various projects that are flipped, their transformations, the many challenges that are involved and other important aspects of flipping houses.

The show has become a very good training ground for those interested in flipping.  It has attracted millions of televiewers making the reality show a top-rater.  In the process, flipping has catapulted San Antonio, Texas as one of the fastest growing real estate markets in the United States and Armando Montelongo a famous celebrity.  He has been featured in radio talk shows and in national publications.

To reach online viewers, Armando Montelongo created and hosts a website where he teaches and shares the many strategies and techniques of house flipping.  He has even developed educational CDs as part of his desire to share his vast knowledge to those interested in flipping.  His book “Flip and Grow Rich” further proves there is money in flipping.

As he always tells people, back then he had no mentor to guide him through the ins and outs of the real estate business.  But the beauty of it is he discovered flipping and learn to make a fortune out of it. 

Today, Armando Montelongo’s real estate firm flips about 200 houses a year - a far cry from when he moved back to San Antonio in August of 2001 with $50,000 in debt.

 



Rent Back Fast

The first thing you should ask yourself when you decide to sell your house is “Should I renovate?” If your house is in dire need of repair work, then making some essential renovation work will typically translate to a good yield on your investment.

Doing some necessary renovation work on your condo unit or town house prior to listing it for sale is wise and highly advisable. It can be the best technique to get your home looking its best. Renovations and repair can ultimately help you sell your home faster and at a better price. However, before you begin any renovation work or repair job there are a small number of things that you should consider first.

Things such as:

Return on investment - Will the outcome of a particular renovation or repair work substantiate the time, cash and sweat that went into it? Before you start thinking about taking out the hammer and paint brushes you should pause for an instant and mull over this subject cautiously. A lot of renovation work does not justify itself. They more often than not fall short in enhancing either the pace with which your house sells or the selling price of your home.

Work quality - Do the repair work results appear professional? Giving your house a fresh coat of paint is a surefire way to make it more marketable, but only if the end result looks really swell. Purchasers will not be willing pay more for a badly done paint job. Lines should be straight and finishes must be constant. Likewise, an uneven or inadequately laid tilework will end up costing you time and money. If your knowledge and skills are adequate for you to do these kinds of tasks on your own, then you can definitely do so. If you are unsure of the quality of your work, it might be better to invest a small amount to get a professional.

What Not to Renovate - Do not start a big scale renovation without careful scrutiny. If your home is pretty well-kept, then it is doubtful to get your investment back by making things nicer. Renovation typically is a money loser. If it’s not necessary, don’t bother.

Be unvarying in your renovation work efforts. Keep in mind the lifestyle of the target demographic that is most likely to obtain your unit. A renovation attempt where the seller has obviously tried a little too hard to save money will undoubtedly be noticed. This will not have a helpful consequence and will just be a waste of time, money and effort.

What to Fix

Incomplete tasks - Partial repairs or renovation work that has been started but hasn’t been finished yet certainly has to be attended to. The typical buyer is commonly not a visionary or an innovator. They won’t appreciate the worth of a three-fourths finished project. They will simply witness a big mess. It is always a smart decision to complete repair jobs and renovation works before putting your house up for sale.

Dim, passé or discolored painted interiors - Paint is possibly the best way your can spend your money on to improve your home’s appeal. Bear in mind though that the end result should look bright and professionally done. Light or neutral paint colors are generally a safer choice. Several researches indicate that darkly painted homes may take up to two times longer to sell as compared to homes that are painted in lighter hues. Light colors can also help make a room seem larger than it really is.

Water damage marks - These should be fixed right away. Water damage is on top of the list of things that potential buyers are avoiding. If there are any water marks from a small water problem before, make sure to take the time to paint and refinish to take away any and all signs of water damage.

Kitchens and Bathrooms - Aside from painting, there is probably nothing else that can give you a better return on your investment than making sure that your kitchen and bathrooms are in excellent condition. You must make it appoint that all bathroom fixtures and plumbing are functioning properly. The kitchen should be spotless and void of any unpleasant smells. If either of these rooms is looking worn or dated, it may be wise to attend to them immediately.

Cupboards and Closets - Your cupboards and closets should open smoothly. Doorknobs and hinges should be tightened and lubricated if necessary. Loose or clattering knobs and hinges give the impression that you are not very particular about maintenance. Fix or replace such items right away.

Faucets and light switches should be shiny and clean. If simple cleaning doesn’t do the job then replacing them is the best inexpensive option.

If your cabinetry is looking shabby or behind the times and you don’t have enough money to replace them, the next best option is to refinish or repaint the doors. You can also swap the old and dated cupboard handles for more contemporary ones.

On the other side it is not advisable to overspend. Do not spend enormous amounts of money in a room or area. One room should not stand out too much while other rooms are noticeably simpler. Keep in mind that you are supposed to create a consistent feel all through the house.



Sell and Rent Back

We all have our dream homes. However, most of us do not have enough to purchase our dream house. If only we could find a great house like those at Gilbert Homes with a lower price, it would be great.

We often associate beautiful houses with big bucks. That is why we often settle for smaller simple houses. There is nothing wrong with living in a simple home. All that matters is that it is safe and comfortable.

Although we could settle for the smaller house, we want to experience living in a beautiful abode.

It is indeed difficult to find an affordable house. It also seems that now is not a good time to invest on anything. However, what would you do if you can purchase a beautiful house at a price lower than its market value?

It is not impossible to find a beautiful house at an affordable price nowadays. One of the best ways to purchase a house at a cheaper price is to buy foreclosures. Foreclosed homes are those houses that the lenders took hold of, because the homeowner was not able to settle their debt.

They are most of the time valued less than their true market value.

The value of a foreclosed property is lower because lenders often times want to recover the amount unsettled by the homeowners. Foreclosed house are usually valued at 5 to 10 percent lower than its market value. However, it can go to as much as 20 to 50 percent, depending on the lender and the property.

The best way to find foreclosed houses is to ask lending companies. There are also government agencies that have a list of foreclosed houses. You can specify the location and check if the house appeals to you. You can also attend auctions for foreclosed houses. This will also help your strike a good deal.

Another advantage of purchasing a foreclosed house is that the miscellaneous expenses that go with it are also cheaper. Therefore, you will be able to get a good bargain for a very low price.

You can also profit from investing on these houses. Like the Gilbert Homes, you can set it up for sale. Most foreclosed houses need a little renovations and repairs. By spending some for its repainting and other repairs, you can resell it at a much higher price and generate more profit. In fact, this is what most investors do today. They look for cheaper houses, renovate them, and sell it at a much higher price.

However, buying a foreclosed house is not a walk in the park. You might encounter a few challenges if you do not do your research ahead of time. For a smooth transfer of ownership, make sure that you know what goes with the house when you purchase it. This includes unpaid taxes and other liens. In addition, you have to make sure that the previous owners are no longer staying in the property. This can be very difficult to handle as previous owners may refuse to leave.

You can benefit from purchasing foreclosed house, just make sure you know more about the property before making the purchase.



Sell and Rent Back