How to Know When "Bad" Is Good

When you first start out in real estate "fixer" business, you'll want to look for "ugly" houses needing only cosmetic work. Look for entry level fixers that just need some cleaning up, painting, and carpeting.

When you're new to fixer game, always remember your limitations and use caution when considering houses needing structural repairs. My husband replaces structural beams, sub-flooring, walls, plumbing, and electrical systems, but he acquired those skills after years of experience.

If you find a house with structural problems, get estimates from reliable contractors to do work. Experience teaches you how to do more over time. Until then, rely on experienced professionals to do repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.

The Easiest Houses to Sell

A dollhouse, located in a popular neighborhood, sells quickest. For instance, we once sold a home we named "Orange Tree Cottage" in just three hours! To qualify as a dollhouse, a home must be in a location that buyers want and must offer number of bedrooms, bathrooms, and amenities they're seeking. Beyond price, however, buyers purchase house that meets both their basic requirements and their emotional needs.

Filling Buyers' Emotional Needs

After many years of investment experience, we've found that using Design Psychology and Marketing Psychology techniques greatly increases our profits. Both concepts go far beyond "curb appeal."

For instance, we use colors that target our prospective buyer's income level and match selling season. Generally, buyers of higher-priced homes prefer complex colors, and using cool colors during hot weather and warm colors in cold seasons makes buyers feel more comfortable. We also paint front door a happy color and entice buyers into house by placing potted plants on porch.

Over years, we've bought and sold dozens of distressed properties. By using caution and common sense, as well as following a few simple rules and using Design Psychology strategies, you, too, can become a wealthy real estate investor!

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

The other big difference is cost. A third party insurance policy's premiums will not go up, so you would pay same premium today that you'd pay ten years from now. You won't get that same guarantee from a bank which can and probably will increase your premiums during life of policy. In most cases, you'll probably pay more through a bank anyway. In fact, you could pay as much as 40% more than you would if you shopped around and found your own insurance provider. Not to mention that policy you take out through your bank will gradually decrease in value while a plan you select from an outside source will be worth same amount during entire policy period.

Of course, many people don't mind paying more for their mortgage insurance because it's more convenient than dealing with insurance agents. The truth is that you can easily find a policy that fits your needs and provides affordable premiums via Internet. An organization, such as Hughes Trustco Group, can even generate quotes for you from multiple insurance providers so you'll know that you're receiving best deal possible on policy you want.

The bottom line is that mortgage insurance is important and should be part of your home buying or refinancing preparations, but that does not mean you need to pay more or let bank make important decisions for you. Instead, you should find your own personal plan from a third party provider which will let you stay in control of your policy and will save you money in long run.