If you haven’t seen anything about building material costs in recent years, then you have been completely tuned out from the real estate industry.

For that matter, you may have been entirely off the grid, as rising material costs have made headlines in virtually all corners of the economy.

While we can all hope for some relief in this regard, don’t expect material prices to go down anytime soon, with steady increases likely in the broad sector in the year ahead.

Keep reading as we explore the various factors driving material cost trends, with a look at some specific materials and strategies on how to mitigate material cost challenges.

Factors Driving Costs of Building Material in 2025

There are myriad factors contributing to the ongoing price increase of building materials. A few of the most pertinent include:

• Inflation – seemingly random and ever-difficult to predict, the construction industry has been battling inflation in the broader economy in recent years. While inflation should be more stable for the rest of 2025, expect upward pressure to remain, especially for those materials with high labor and transportation requirements.
• Supply chain disruptions – although the global supply chain has been steadily recovering since the pandemic, localized disruptions (natural disasters, political tensions) could still impact the price and availability of certain materials.
• Labor shortages – skilled labor shortages in the construction industry remain acute, with most builders charging a premium for specialized material
• Geopolitical instability – in case you hadn’t heard: Their real and perceived impact will continue to drive price volatility in the material sector.
• Sustainability movement – as the demand for sustainability innovation increases, it may result in higher material fabrication costs.

While these factors are overarching for the entire materials sector, it should be noted that their impact on specific products will vary.

Projected Cost Changes for Popular Materials in the Coming Year

In the years following the pandemic, material prices notably surged. After taking a bit of a respite in 2024, the 2025 Global Construction Outlook by JLL predicts cost increases to resume, likely between 5-7% in the materials sector. Let’s look at how the cost of a few specific materials will trend in the year ahead.

Engineered Cladding

There has been an increased interest in fiber cement siding and other forms of engineered cladding in recent years. It is a premier option in the era of climate change, as it offers top-notch resistance to fire, impact, and moisture.

The price of this innovative siding has increased by roughly 3% annually in recent years. It is expected to follow this trend in the year ahead. The main factors behind this moderate price hike are increases in the price of its aggregate components, such as sand, cellulose fibers, and Portland cement.

Insulation

Insulation is a core material in the era of sustainable construction. There are various types of insulation for exterior walls, each with their own benefits in terms of R-value. Unsurprisingly, they also have somewhat differing cost outlooks in the year ahead:

• Fiberglass batt – this common insulation material will likely rise by 2-4% in the coming year but still remain among the most affordable options.
• Spray foam – among the most popular insulation materials for new construction homes, spray foam costs may increase by as much as 8% in 2025, with high demand and more expensive chemicals used in fabrication.
• Rigid foam board – a popular material in multi-family complexes thanks to its elite R-value per inch, this insulation appears to be more stable in cost for the year ahead, with prices differing in regional markets.

Properties interested in the highest level of sustainability may look at options such as recycled denim, sheep’s wool, and hemp. While the upfront cost of these materials will likely be higher than chemically-formed insulation, there is some evidence that they will result in long-term cost savings due to their high recyclability and utility in expediting the healthy home movement.

Steel

Steel is gaining traction in residential homes thanks to its elite durability and prefabrication potential. The outlook for the price of steel is a mixed bag. Some pundits point to potential price hikes due to tariffs and the ongoing trade war. Other forecasts predict that increased steel production in the U.S. will result in overcapacity that will possibly drive down steel costs.

Cedar Roofing Shingles

Although cedar shingle roofing is rustic and charming, it is set to experience heftier price increases than other materials. This is due largely to the increased threat of wildfires,

environmental regulations on timber harvesting, and ongoing concerns over lumber availability. Expect prices to go up 4-7% in the year ahead. Due to these ever-present concerns, many builders are sourcing synthetic wood roofing as a more environmentally-friendly option than natural wood shingles.

Granite Countertops

There is little doubt that a kitchen with granite countertops is one of the most attractive options in contemporary homes. Granite offers a stately stone aspect to rival marble and onyx. However, it is generally more affordable than either of these materials and also has better heat and scratch resistance. The good news is that granite countertops look to remain fairly stable in price in the year ahead. This may be attributed to a rise in engineered stone alternatives that offer price competition in the sphere. It should be noted that prices will vary based on quality and origin of the granite sourcing.

How to Mitigate Fluctuating Material Costs

While predicting material costs is an inexact science, there are a few steps homeowners, investors, and contractors can take to arrive at more accurate forecasts and ensure that projects do not get delayed by material cost challenges:

• Realistic budgeting – always plan to pay a 20% premium on Have this extra funding on hand to keep the project moving. As the saying goes: “Plan for the worst, hope for the best.”
• Lock in costs – source from suppliers who are willing to honor prices when locked in advance, regardless of fluctuations in the market.
• Define project scope – having detailed plans limits the threat of “scope creep” that can require the need for additional materials to arise.
• Secure multiple quotes – explore diverse suppliers and try to get price match offers for the most competitive bottom line.

Stay Ahead of the Cost Trends When Sourcing Building Materials

Although building material costs continue to rise, understanding the causes of price hikes and employing strategies for getting the best quote possible can help make

construction costs more palatable. For more of the latest real estate news in Arizona, explore the content at Clear Mortgage for the leading insights in the market!

The post Building Material Cost Trends: What to Expect This Year appeared first on Clear Mortgage.

Renovation.

It’s that magical word that makes a homeowner truly feel like a homeowner.

No more having to submit a service ticket to get something fixed. No need to ask anyone’s permission. Just the chance to turn an outdated space into a key component of your dream home.

While there is nothing wrong with getting excited about the prospect of transforming your property, it is important to keep a few things in mind before getting to work. Whether you are attempting a small touch-up or more expansive overhaul, keep reading as we touch on some pertinent realities of any home renovation project.

Be Realistic with Your Budget

Too many homeowners put the cart before the horse when it comes to renovation.

They jump on that HELOC offer sent by their bank and start work before thinking the dollars and cents through completely.

Issues invariably arise in the construction world. Weather delays. Material delivery issues. Labor shortages. Rework.

All of these will extend the timeline and cause the project to go over budget. 

Therefore, no matter how comprehensive and all-inclusive the quote, be sure to have an additional 20% saved up just in case. This will limit the risk of having the project sit in a state of partial-completion due to a lack of funds. 

Know Your Limits As a DIYer

We live in a DIY world.

From how to sew on a button to how to grill the most epic wings, any novice can get a crash course tutorial from a blog or video and get the job done themselves, saving money and boosting self-efficacy in the process.

For better or worse, this also includes home improvement.

While some tasks, such as hanging new blinds or upgrading the light switches throughout the house, are perfectly acceptable as DIY projects, others are best left to the professionals.

Professional contractors have the licenses, bonds, and insurance to safely–and legally–complete renovations in their niche. They also have the correct tools, such as the best circular saw blade for cutting stone, to do the job with the utmost precision. 

Construction Waste Adds Up Quickly

It’s understandable to look ahead to the finished product when performing a renovation. Those 3D renderings and VR simulations of the updated space can be quite captivating until the real thing is brought into existence. 

With that said, failure to plan for adequate waste removal will make the new space inaccessible. 

Torn-up drywall, old flooring, and any other type of construction debris is not only unsafe and unsightly but can also be a haven for pests and moisture. The best advice is to rent a residential dumpster for the duration of the project. This guarantees that debris can be removed piece by piece and hauled off on schedule. It also eliminates the risk of any unexpected dumping fees at local transfer stations. 

Keep Sustainability at the Forefront

Even if your renovation is not something overtly sustainability-centric (solar panels, green roof, etc.), it is crucial to keep sustainability in mind throughout the process. Not only will a sustainable renovation lower your ongoing energy costs, but it can potentially add value to your property in an increasingly conscientious market. 

Therefore, be on the lookout for creative ways to enhance sustainability throughout the renovation process. New windows not only boost curb appeal, but they promote natural light transmission for reduced reliance on electricity. Sourcing the best insulation tools to cut materials such as recycled denim or mineral wool can greatly improve the R-value of the building envelope for less HVAC consumption. Stately quartz countertops offer the elegance of natural stone but have a nonporous fabrication that limits ongoing maintenance and upkeep requirements. 

Exterior Spaces Are the New “Dream” Projects

Chef’s kitchens. Luxe master suites. Spa-like bathrooms.

These are the types of “wow” renovations that homeowners have traditionally dreamed about.

Add one more name to the list in 2025: exterior living spaces.

Given the rise in remote work, online learning, and other types of digital lifestyles, creating ways to escape the daily four walls without leaving the property is a top priority in modern homes.

There are some specific means of crafting exterior space to transform it from “picnic area” to a true extension of the home’s square footage. Install a pergola for weather protection and architectural dimension. Choose composite patio flooring that closely resembles natural stone but does a better job of resisting moisture to help maintain ongoing appearances. Consider decorative screen panels for an additional element of shading while also adding privacy. 

Be Meticulously Prepared Ahead of Your Next Home Renovation

Renovation is one of the most satisfying–and potentially value-adding–aspects of being a homeowner. With that said, it is important to be adequately prepared before beginning work. From setting a realistic budget to exploring functional exterior additions, consider any of the ideas listed above before beginning work on your next home renovation. For more of the latest trends in real estate and home improvement, explore the content at Clear Mortgage for the leading insights in the industry!

Author Bio

Brian Jeffries is a freelance writer who loves sharing his knowledge and expertise on construction projects and materials. He lives in Winter Park, Florida where he enjoys spending time with his wife and working on projects in his spare time. Brian’s work as a freelance writer can be found on Building Product Advisor, a construction industry resource site.

The post What Every Homeowner Should Know Before Starting a Renovation appeared first on Clear Mortgage.

In the realm of real estate, the ebb and flow of interest rates play a significant role in shaping market dynamics and influencing investment decisions. As a private lender specializing in financing for fix-and-flip professionals, Clear Mortgage recognizes the importance of staying abreast of interest rate trends and their potential impact on the fixer-upper market.  It is an interesting time.  Conventional financing rates have nearly tripled.  Institutional rates have doubled.  Yet hard money has only moved up a couple of points.

Recent Interest Rate Trends

The past few years have been marked by a period of historically low interest rates, a phenomenon that has fueled enthusiasm among homeowners and investors alike. However, recent economic developments, including rising inflation and the Federal Reserve’s efforts to combat it, have led to an increase in interest rates.  The margin of the 30 year fixed mortgage over the 10 year treasury is statistically high and is anticipated to come down in the near term as fed uncertainty is reduced.

While this upward trend may raise concerns among some potential buyers, it’s crucial to understand the broader context and recognize that the current interest rate environment remains relatively favorable compared to historical averages. For savvy fixer-upper investors, this presents an opportune moment to capitalize on the existing market conditions.

Why Now is a Good Time to Invest in Fixer-Uppers

Despite the recent interest rate hikes, several factors continue to make fixer-upper investments an attractive proposition for discerning investors:

1. Strong Demand for Renovated Homes: The demand for renovated homes remains robust, as buyers increasingly seek turnkey properties that offer modern amenities and updated aesthetics. This trend is fueled by a growing preference for move-in-ready homes, especially among millennials and Gen Xers.
2. Potential for Significant Profit: Fixer-upper properties offer investors the potential for substantial profit margins by purchasing undervalued properties, making necessary renovations, and reselling them at a higher market value.
3. Diversification of Investment Portfolio: Investing in fixer-upper properties provides investors with a means to diversify their investment portfolios, reducing their reliance on traditional asset classes such as stocks and bonds.

Strategic Considerations for Fixer-Upper Investors

While the current market presents promising opportunities for fixer-upper investors, it’s essential to approach these investments with a strategic mindset and carefully consider the following factors:

1. Thorough Property Evaluation: Conduct a comprehensive evaluation of the property’s condition, including structural integrity, potential renovation costs, and compliance with local building codes. Give Clear Mortgage a call and get their thoughts on value.
2. Realistic Budget and Timeline: Develop a detailed budget that accounts for all anticipated renovation costs and establish a realistic timeline for completing the project. Clear Mortgage can fund 100% of renovation costs.
3. Experienced Team: Realtor, Contractor, Financing. Work with experienced and reputable folks to ensure the quality and timeliness of the renovations and success.
4. Market Research: Conduct thorough market research to understand the current demand for similar properties in the area and set an appropriate asking price. Again, Clear Mortgage can help with this.

Clear Mortgage: Your Trusted Partner in Fixer-Upper Financing

At Clear Mortgage, we understand the unique challenges and opportunities associated with fixer-upper investments. That’s why we’re committed to providing our clients with tailored financing solutions that address their specific needs and help them achieve their investment goals.

Our experienced team of professionals offers a streamlined application process, competitive interest rates, and flexible financing options to support your fixer-upper endeavors. Whether you’re a seasoned investor or just starting out, Clear Mortgage is here to guide you through the process and help you navigate the ever-evolving landscape of real estate investment.

The post Interest Rate Landscape: Fix and Flip Investor’s Guide appeared first on Clear Mortgage.

Fear not, aspiring real estate moguls! This comprehensive guide will equip you with the knowledge and strategies necessary to uncover the hidden gems of the fix-and-flip market, maximizing your chances of success and achieving your financial aspirations. Clear Mortgage has done thousands of fix and flip loans. We can help you navigate the process.
1. Know Your Market
Before delving into the hunt for fix-and-flip properties, it’s crucial to develop a deep understanding of your target market. Familiarize yourself with the neighborhoods that align with your renovation expertise and financial goals. Analyze recent sales data to identify trends and patterns, paying close attention to the average purchase price, renovation costs, and potential resale value. Clear Mortgage has resources and experience we would like to share.
2. Embrace Diverse Sourcing Strategies
While traditional methods like scouring real estate listings and driving through neighborhoods can yield promising leads, don’t limit yourself to these conventional approaches. Explore alternative sources such as:
• Wholesalers: These individuals specialize in identifying and acquiring distressed properties, often at significantly below-market prices.
• Foreclosure Auctions: Foreclosure auctions offer the opportunity to purchase properties at bargain prices, but beware of hidden costs and potential legal issues. Clear Mortgage has funded hundreds of trustee sale purchases. We can fund in twenty four hours. Reach out and we can help you navigate this potentially crazy process.
• Networking: Connect with real estate agents, contractors, and fellow investors to gain access to off-market deals and insider knowledge. You can check out AZREIA.ORG. They are all about education, market, support and networking.
3. Conduct Thorough Due Diligence
Once you’ve identified potential properties, embark on a rigorous due diligence process. This involves:
• Property Inspections: Engage experienced inspectors to assess the property’s structural integrity, identify any hidden defects, and estimate renovation costs accurately. We have a property right now that has problem with a basement wall. We have had to hire engineers and will have to rebuild this basement wall.
• Title Searches: Ensure the property’s title is clear and free of any encumbrances that could hinder your ownership rights or resale efforts. Don’t underestimate the value of good title work or underestimate the risks of potential title issues. All Clear Mortgage deals go through title. Cobra over at Magnus Title is an expert in her field and I am confident she or one of her team members can give you some exceptional guidance.
• Neighborhood Analysis: Evaluate the surrounding neighborhood’s crime rates, school districts, and overall desirability to ensure it aligns with your target buyer’s preferences.
4. Consider Financial Flexibility
When financing your fix-and-flip project, explore a range of options, including hard money loans, bridge loans, and lines of credit. Carefully assess the terms and conditions of each option, considering factors such as interest rates, repayment schedules, and potential prepayment penalties.
5. Embrace Professional Guidance
As a novice investor, seeking guidance from experienced professionals can be invaluable. Consider partnering with a seasoned real estate agent who specializes in fix-and-flip properties, or consult with a renovation contractor to optimize your renovation budget and timeline.

Remember, success in the fix-and-flip market requires a combination of market expertise, strategic sourcing, meticulous due diligence, and sound financial planning. By following these guidelines and embracing professional guidance, you’ll increase your chances of uncovering hidden gems, transforming them into profitable endeavors, and establishing yourself as a savvy player in the world of real estate. If you ever need some additional expertise on your team, please, never hesitate to reach out to Clear Mortgage. We take great pride in being EXCEPTIONAL, TRUSTED, DEDICATED, RESOURCEFUL AND LOYAL.

The post Uncovering The Hidden Gems for Fix and Flip appeared first on Clear Mortgage.

Investing in residential real estate is one of the best ways to make money while using a portion of it to pay off the property renters are currently living in. Housing is one of the parts of life that everyone needs, so offering it for rent lets you help your community while still making some money.

These are the factors to consider if you’re looking at getting into real estate, and why this investment is one more people should consider making.

Residential Real Estate Has Been a Rollercoaster

It’s no secret that residential real estate has been on a wild ride for the last two to three years. Things are slowing down now: but the news most overlooked is how high rental prices went. Although property values have slowed down, rent is still rising. This means you have a chance to buy into a market that’s actively offering growth.

The average property in Phoenix as of May of 2023 has seen a 5% increase in rent over the last year, which is much higher than the property value growth of 3% the same area has seen. Although there’s always a chance these numbers could flip in the future, so far, the market hasn’t been showing any sign of this happening.

How to Pick the Market You’d Land In

One of the best markets to land in is the Phoenix, Arizona, market. The smaller cities surrounding this massive area are increasing in value with it, which means you have a lot of real estate to pick from.

When you pick your market, pay attention to the area of town you’re in. Is there current development and jobs there? What’s the unemployment rate? What maintenance or upgrades like permeable paving systems will you have to take care of? Keeping an eye on these factors will help you find something that will have plenty of tenants excited to rent from you.

Property Costs Are Slowing Down But Not Dropping

In 2020, 2021, and the first half of 2022, property values were skyrocketing. Although they’ve slowed down to a crawl: the prices haven’t dropped. This is awesome for residential real estate investors who are worried about buying right. The slowdown means your houses will continue to gain value, and it’s just important that you hold onto them so they don’t drop again.

Is Renting Out Property Still Profitable?

Renting is still profitable! The longer you own a property, the more money you can make off of it. This is true not only because the mortgage will stay the same while the rent increases but also because the value of the property itself increases, so when you eventually sell it, you can make a large profit.

Over a third of Americans currently rent, which means you have a large market to advertise and rent to.

Finding Good Tenants and Maintenance Matters

Although it would be awesome if you never had to deal with maintenance or issues with tenants, they come up extremely often. It’s vital that you hire maintenance workers who know what they’re doing and are respectful of the tenants. It’s of paramount importance that you carefully vet your renters and ask for references while keeping a close eye on their background checks.

Like impact-resistant shingles, finding a good tenant could save you thousands in the long term since you won’t have to struggle with turnover or property damage. Make sure to find someone who will fit your property perfectly.

How to Calculate Cash Flow

In a perfect world, your profit would be entirely calculated by how much you’re charging for rent and what your mortgage is set at. Unfortunately, it’s more than that. The average Arizona homeowner spends around $1,116 a month on house payments, while the average rent payment is closer to $1,550. If we left it at that, you’d be making $434 a month from each property, but there’s more than that.

You need to calculate how much you spend on advertising, the cost of turnover when you have a tenant leave, the cost of maintenance, and even property tax. That $434 starts looking a lot smaller.

Thankfully, after the property is paid off, you have a free property and are making a pure profit.

What Work Does the Average Property Need?

Every property is different, but it’s vital to stop and consider what you’ll have to budget for when you’re buying. Weighing the costs of aluminum vs. vinyl siding is a great place to start, but when you’re buying, it’s a good idea to also consider the age of the roof, what the floors look like, and what other work needs to be done.

The most important thing to consider is what you can afford to do and how much this will increase what you can charge for rent to pay for the work done.

Anyone Can Make it Big If They Invest Intelligently.

Investing intelligently takes patience, a keen understanding of the market you’re in, and enough capital to handle the risk. Although there are countless ways to make money: investing in residential real estate is one of the best calls to make.

Brian Jeffries is a freelance writer that loves sharing his knowledge and expertise on construction projects and materials. He lives in Winter Park, Florida where he enjoys spending time with his wife and working on projects in his spare time. Brian’s work as a freelance writer can be found on Building Product Advisor, a construction industry resource site.

The post Assessing the ROI of Residential Real Estate Investments: Factors to Consider appeared first on Clear Mortgage.

BY MELISSA NICHOLSON/AUG. 15, 2022 8:08 AM EDT
Flipping houses is a great way to invest your money. If you aren’t sure what it is, flipping a home is when someone buys a house that needs work, hopefully, at a low price, then they fix it up and resell it to gain a profit. There is some risk involved, but thankfully real estate never goes out of style. There are many benefits to house flipping, including a potential business that allows you to work from home and create your own hours. According to Flipper Force, there is little startup cost and you have an opportunity to improve local communities.

If you enjoy remodeling and have some knowledge about real estate, house flipping is a great career option or even a side hustle. Keep in mind that the process isn’t without stress. House flipping requires a lot of work and even more patience, as surprises can pop up along the way when remodeling any home. Also, you’re sometimes at the mercy of the real estate market’s temperature. Here is everything you need to know about how to start flipping houses as a new house flipper.

Should you flip or micro-flip?

Micro-flipping is a faster process than the full renovation flip and offers a quick turnaround. If you don’t have a team, it might be an ideal way to get into flipping. According to Rocket Mortgage, micro-flipping is buying houses under market value and reselling them quickly for a higher price. There is no renovating involved.

One benefit of a micro-flip is that you can do it all from the comfort of your home. Most micro-flipping happens online. That’s good and bad news for those interested in doing it as a business. Sites like Zillow and Redfin are major players in the micro-flipping biz, which means stiff competition for a newbie in real estate investing (via FortuneBuilders). Still, it’s not impossible, and if you enjoy the idea of closely watching real estate market trends, micro-flipping might work. However, if the renovation process gets you excited and you aren’t in a hurry, you’re likely to make more money with a complete renovation or remodel flip. Buyers love clean, newly renovated houses.

You need a business plan

Flipping houses is a business. Just like any business, going into it without a plan is unwise. The U.S. Small Business Administration writes that a business plan isn’t as hard as it sounds. It’s a tool to help you outline and project a few years ahead for your business. Business plans help keep you on track, allow you to reach your milestones, and even assist you as you seek funding. A business plan helps possible investors and lenders see you’re serious and you know what you’re doing.

You have ideas and goals in mind. A written plan gets those thoughts in order and helps you and your team see where you’re headed and the end goal. It can also show what’s lacking and missing areas. In your business plan for flipping houses, state your summary first, which explains what it is you’re doing (via Rehab Financial Group). Next, the mission statement should explain why you’re doing it. Include a CMA (Comparative Market Analysis), the project timeframe, and your financial strategies and projections.

Build your team

Unless you can do electric, painting, drywall, plumbing, and take care of all the legalities, you need a team. Even if you can do it all, you’ll flip the house quicker with support. A team usually consists of a real estate agent, an attorney, a CPA, an insurance agent, and a general contractor who chooses everyone to assist with the renovation. You can also hire individuals as needed. For example, rather than having a contractor, you can hire an electrician, a plumber, and a drywaller. That part depends on how much you do on your own and how comfortable you are as your own contractor. TRUiC recommends going the general contractor route and mentions that a good general contractor is essential to a house flip. They can mean the difference between a profit and a loss. Think of it this way. Are you working another job? Do you have a family? Without a general contractor on your team, it’s all on you, and you will be married to the flip project.

In the same way, everyone on your team is essential. It can be tempting to save some money by doing the home searching without a realtor, hiring each individual to do the renovations, and figuring out your finances and tax issues on your own rather than hiring a CPA. However, this method will probably take twice as long. Although it might seem like you’re saving money, you could spend more if you make mistakes and miss deadlines.

Consider becoming an LLC

LLC stands for limited liability company. As a business, an LLC protects your personal assets should someone decide to file a claim against you. An LLC isn’t necessary if you’re doing a one-time flip as more of a hobby. However, it’s essential to protect yourself if flipping is becoming a business for you.

An LLC isn’t required to run a business, but there are many benefits to having one. LegalZoom explains that an LLC protects you from being personally liable should your business be sued. When unprotected, anything you own is at risk. Banks are less likely to give a loan to a business that isn’t an LLC. They like to see that your business is protected. An LLC protects the name of your business. Once you’re an LLC, no one else can use that business name.

There are several steps to forming an LLC (via TRUiC). First, select the state of operation, then come up with a name for your business. After that, you need to hire a registered agent service, such as LegalZoom. These services will walk you through each step and handle the legalities, such as filing with the state, creating an operating agreement, and getting your EIN (Employer Identification Number) to help file taxes. Simply put, an LLC gives small business owners peace of mind.

Choose your neighborhood

You’ve probably already been thinking about this step of the process. Where do you want to flip houses? Not every area will bring the same ROI (Return on Investment). Rock Realty mentions two places to look when searching for homes to flip: rebounding neighborhoods and new housing clusters. Rebounding neighborhoods are areas that are more established and have older homes. When many homes begin renovating and buyers notice, it’s a rebounding area. As a flipper, you can swoop in, renovate one yourself, and then sell it. New housing clusters show potential when looking for a house to flip because the older ones around the new homes could be renovated and sold.

You may want to stay in your own city or town where you’re familiar with the neighborhoods, but you could also venture out to other areas if the potential is better. Keep an eye on up-and-coming places and towns that are suddenly booming or trying to attract more people. You don’t want to invest in a flip in an undesirable neighborhood. Do some networking with real estate agents, or better yet, add one to your team. They can alert you about houses on the market that offer great value for a flip. You can also become a “farmer.” Farming is the term used in the real estate industry to describe how some real estate agents farm an area with postcards and mailings so that future sellers remember their names. As a real estate investor, you can do the same thing.

Obtain financing and buy a house

You’ll need financing for your first flip unless you’re paying cash. There are more costs to flipping than just buying the house. There are the renovation costs, homeowner’s insurance, and possibly the cost of utilities. It’s challenging to work with no electricity or running water. Explore a few places before deciding on a lender and ensure you get the best deal.

There are four types of lenders for houses, including private, hard money, fintech services, and crowdfunding sites, per Rocket Mortgage. Private lenders include banks, financial companies, and credit unions. Hard money lenders require real property as collateral, fintech services are app-based lenders, and crowdfunding sites are cloud-based services where a home buyer can seek funds from investors. Though private lenders are what most people are familiar with, it may not be your best option for a short-term loan to flip a house. That’s why shopping around is so important. Understand your finances before considering a loan to flip a house. Get out of as much debt as possible before taking on any more debt.

Fix major issues first

Now it’s time to flip. Painting and staging are fun, but you’ll first need to fix structural, electrical, or plumbing issues. Axiom Power points out that when flipping a house, other than changing a light fixture or doing other minor electrical repairs, you need a permit and an electrician to complete the electrical work. Some signs the home may have significant electrical issues are buzzing outlets and switches, flickering lights, burning smells, charred outlets, or breakers and fuses that go out often. Drains that keep clogging or multiple drain clogs, low water pressure, discolored water, or an unpleasant odor in the house are all signs of plumbing problems (via HELP Plumbing). Call the licensed plumber on your team or hire one to fix any plumbing issues.

Structural damages compromise the interior and exterior of a home. When the damage is bad enough, the structure could possibly fail to support the house (via Forst Consulting Group). Nothing else matters without a sound structure. A home can also have drywall issues, especially if there has been water damage. Walls won’t look smooth if sheetrock isn’t mudded and sanded properly. If there is a lot of drywall to replace, consider it one of the top priorities. Get the house safe and sound, and then start the next steps.

Choose your flooring

Once the structure is sound, it’s time to replace the flooring if necessary. You need flooring that is current, easy to maintain, and not too difficult to install. If you’re wondering which flooring that might be, Parterre Flooring Systems explains that out of all the types of flooring today, vinyl is a consistent winner in the popularity contest. On top of that, it’s easy to maintain. Vinyl flooring is highly durable, thanks to its surface that resists stains and scratches (via America’s Floor Source). It’s easy and cost-effective to install, and you can plan for it to last up to 20 years.

However, you don’t have to choose vinyl. You may live in an area where ceramic tile or carpet is more suitable. A loft in the city will have a different vibe than a suburban home. Each requires its own style of flooring. Regardless of location, vinyl floors are an excellent option if you aren’t sure what to pick. Remember to ensure the floors are installed correctly, kept clean, and ready to handle plenty of foot traffic.

Keep in mind when flipping a house that colors should remain neutral. You might like the thought of an unusually colored floor, like purple carpet in the bedrooms. However, many potential buyers will not. Neutral-colored flooring helps potential buyers to envision their own lives in the home (via Frederick Real Estate Online).

Paint and add final touches

Finally, the repairs are complete, and your team can make the home look beautiful. Choose neutral paint shades when flipping houses. Asset Based Lending recommends bright whites or grays as a neutral, modern color choice. You can also paint brick walls, doors, and cabinets. You may need to clean the walls before painting, depending on the home’s condition or how much dust has been flying during repairs. When choosing a paint sheen, semi-gloss is for high-traffic areas and places with moisture, such as the kitchen or bathroom (via Mission Painting). Satin paints are a happy medium with a velvety finish. They work well for family rooms and bedrooms. Save the high glosses for cabinets, doors, trim, and molding.

Final touches on your newly flipped home can include towel bars, faucets, and light fixtures. Choose metals and colors that are current. Brass, brushed metals, and matte black are sought-after fittings (via G.J. Gardner. Homes).

Painting and final touches are a part of the process that many flippers might feel comfortable completing. Depending on your skill level and budget, you can choose whether you have a painter on your team or if that’s something you can knock out on your own. You won’t need much more than a drill and some screws for most accessories. Walk through the house and imagine yourself as a buyer. Ask yourself if you feel you could live there and what you would want in a new home. That should help you visualize the colors and little touches that are needed.

Market the home

You did it! You flipped the house, and it’s time to sell. Will you list it as a “for sale by owner” or have a real estate agent on your team who can list it? Don’t be tempted to forego a real estate agent to save on commission costs. Real estate agents know the housing market and all the ins and outs of marketing your home. Selling a home in a reasonable amount of time isn’t as easy as it looks.

Agents are experts in the field, understand all the lingo, and can help secure excellent deals with their negotiation skills, per Realtor.com. They often have plenty of connections from constant networking. Also, agents adhere to a strict code of ethics, and in many states, they study and take a test about ethics every two years. A real estate agent is on your side and prepared to do battle for you to find a buyer. Don’t take on the stress of going at that alone. It could mean the difference between a one-week sale or one year.

Consider getting listed as a “coming soon” home to generate excitement (via Houseopedia). Knowing the home has been flipped often creates interest, even if it’s just nosey neighbors. The more traffic, the better. Open houses are also effective ways to show the house and let people know what you’ve done to it.

Invest your earnings

After selling your first flip, you have a decision to make. Are you going to invest the profits into another flip? New Silver writes that the average range for return on investment for flippers is 10 to 20 percent. So, for example, assuming an ROI of 15 percent on a $100,000 house flip, there would be a gain of $15,000. Many things make a difference in those numbers, including the house location, the selling price, and how much you owe the bank as the house flipper.

Read More: https://www.housedigest.com/964628/how-to-start-flipping-houses/?utm_campaign=clip

The post How to Start Flipping Houses appeared first on Clear Mortgage.

What are the attributes of an intelligent person?

• They draw wisdom from multiple sources
• They know their audience
• They are exceptional at their job
• They are curious
• They are great at conveying ideas
• They ask considerate questions
• They ask great questions
• They communicate complex concepts in a simple way
• They know what they don’t know
• They don’t pretend to know everything
• They change their minds with new information
• They are open minded
• They don’t argue
• They pivot well
• They use analogies
• They learn from mistakes
• They love learning
• They have a sense of humor

“Intelligence” is not necessarily something you are born with. It is not an IQ thing.  It is not a success or failure thing.   It is also not a given or a constant.  We all can and should work on these things throughout our life.

Go be intelligent!

The next challenge, problem, discussion you have, think, “can I be more intelligent in this?”.

The post Are you intelligent? appeared first on Clear Mortgage.

Whether your property is older and needs a lot of work, or you want to push in the most value possible, these are some of the best renovation projects for anyone eager to increase their home’s value!

Update The Kitchen to Modern Tastes

How old are the appliances and surfaces of your kitchen? Homes built in the early 2010s may notice that low-quality ‘stone’ countertops are starting to yellow because of resin that’s mixed into them or coating them. Beyond this, the all-wite kitchen has become unpopular, leaving behind stained surfaces nearly impossible to keep clean in any kitchen.

One of the best updates any homeowner can do to increase their home’s value is to update the kitchen to more modern design choices. This means treated natural-wood-appearing surfaces and cabinets, updated appliances, and neutral paint colors besides white.

Ensure Your Home is As Well Insulated As Possible

Insulation is vital to every part of your home because it protects it from moisture, insect life, and temperature fluctuations. If you want to sell the idea that your home’s energy-efficient, add details like insulated roof panels and a smart thermostat to help drive this point home.

Consider going through and checking your windows and doors for any air leaks to ensure that there’s no chance they could be adding to a heating or cooling issue and checking if your home has continuous insulation. These will drop the heating and cooling bills over time and make a far more comfortable environment for future buyers.

Add Exterior Space to Lounge In

Many people are aching to get outside more often, and one of the best ways to do this is to offer outdoor lounging and entertainment space. Consider building a deck or updated entertainment area outside to allow people to gather in the fresh air.

If you want to take this further, you can create portions of your yard for different activities, from a fire pit to an outdoor kitchen, allowing the space to have many purposes at once.

Create Eye-Catching Details in Every Room

The best part of any home is the details: give buyers something that will stand out and inspire them. Research how to add molding to cabinets and what types of handles and knobs are most popular for doors and cabinetry in your area. Although these details may feel small, they add up over time and can leave buyers with the impression that the entire home is updated and in fantastic shape, even though all they’re noticing is a new faucet or light fixture.

Waterproof Spaces to Keep Them Moisture Free

Water is one of the most dangerous materials on Earth: so you must do everything you can to protect your property from it. With PMMA coating, you can add protection to your property and give it the chance to continue to be moisture free and capable of handling whatever weather or humidity your area deals with.

Moisture-resistant paint is also a good idea, especially on the exterior of your home, to ensure it’s not dealing with any issues that come with water or rain on it.

Increase Your Home’s Curb Appeal

Curb appeal can be a game-changer in how many people want to look at your home or consider buying it, so take the time to give them something gorgeous to look at. This is the least expensive change you can make that will make the largest impact on your home’s value. Spend a couple of weekends deep cleaning and preparing your home’s exterior, adding flowers and greenery while also updating things like the paint on your porch, and replacing an updated mailbox.

Make Your Bathrooms Spaces of Relaxation

We all need a space where we can vanish away from the world and unwind at the end of the day, so why not make the bathrooms into a space like this? Updated bathrooms are a must in many properties, with shoppers looking for a five-piece bathroom in nearly any home they look at. This includes a bathtub, separate shower, two sink vanity, and a water closet for the toilet.

Although you may not have the space for all of this within your bathroom: don’t try to cut away closet space to add it. Storage space is extremely sought after, and maybe more important than an updated bathroom to some.

Every Home’s Value Can Be Increased Through Clever Renovation

The best renovations are able to add value to your home while also making sure it’ll have more utility to the future owners you’ll sell to. Take the time to consider which of these projects your property needs and how soon you can complete them!

Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.

The post Renovation Projects to Increase a Home’s Value appeared first on Clear Mortgage.

House flipping is one of the best ways to make money while getting to practice a fun skill. Not only do you get to create homes that have your aesthetic taste and interest, but you could also be setting yourself up for a profit of hundreds of thousands of dollars if you do it right.

The inside of a home isn’t the only area that matters! These are the top exterior updates all home flippers should consider!

The Siding Color and Style

The property’s siding matters more than most of the rest of a home. Not only does the color of it shift how buyers perceive the property, but the style can also change who might be interested in it. Board and batten siding is extremely popular right now, and going with a color that sets the house apart without being an eyesore is vital.

Make sure the siding is clean and looks new. Replacing it is the best bet, but if it doesn’t need to be replaced yet, consider power washing the property’s exterior so that any dirt and pollen is knocked off of it.

Sections of the Lawn That Stand Out

Sectioning off portions of the property with concrete pavers is an awesome way to ensure that house shoppers can visualize how they’d use the land. Consider adding pieces like a brick fire-pit, grilling or lounging area, and a shaded area to your backyard. You can achieve a lot of this with a large deck, but getting good use out of the grassed areas of the yard is a good choice.
Details That Pull it Together
The little details where you put your final touches and taste can dramatically shift a property. One good idea is to consider updates like a mailbox door repair or replacement, especially if it’s cracked or dented. Although this may feel like an incredibly small thing to think about, if there are tiny problems all over the property, they’ll eventually add up into a home that buyers aren’t interested in.

Add other details, like millwork products to your roof and entry that will also stand out. These can elevate what might have been seen as a ‘cookie cutter’ house into something stunning.

Updated Paths and Driveway

Cracks form in concrete constantly. Over time from freeze and thaw cycles, roots growing up beneath them, regular use, driveways, concrete paths, and porches will eventually need help. When completing repairs to concrete, make sure you do it after every other huge exterior project is done. This will save you from having to power wash it down at the end and make sure prospective buyers are greeted by a clean, fresh slate.

Attractive Lawn and Plantlife

Curb appeal is a heavy hitter on home value, so take the time to do this extremely inexpensive fix. If you’re trying to stay as low on budget as possible, take a weekend and get your lawn in order. This means mowing, edging the lawn, pruning bushes and shrubs, and planting greenery that compliments the home.

Pick plants that flower in colors that work with the house, or local plants that can handle whatever the natural moisture content of the soil is. If you create a lawn with tons of high-maintenance plants that will die without constant watering, you may struggle to find a buyer that appreciates it.

Privacy Matters

Many buyers invest in a home because they want a slice of paradise and privacy. If your project property is in an area where many people have privacy fences, and yours doesn’t yet: consider building one. Not only will buyers like the security of a privacy fence, but these fences increase the value of a home, adding up to $40,000 for the ability to have a property closed off from the world. Many buyers with pets or children will be especially interested in this property. Invest in good materials and a stain that suits the house when you make this update.

Ways to Keep Water Away

Water can be incredibly damaging to any property. If you notice water buildup anywhere near the home, it’s important to look into installing landscape drainage systems to help move this risk away from the house. Trenches and ditches help, and you can also take steps like cleaning your gutters regularly, extending your downspouts, installing a rain barrel, or even creating a rain garden.

It’s especially important to keep water away if any part of your home is underground, like a basement. Even three inches of water are enough to add tens of thousands of dollars of damage to your property, which is something no house flipper wants to deal with.

Updating and Caring for the Exterior is Vital

Flipping properties is an awesome way to make money while doing something you enjoy. However, take the time to make the right choices while you do this to make the most money possible.

Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.

The post Top Exterior Considerations for Flipping a House appeared first on Clear Mortgage.

Flipping houses is a great way to earn some extra money. Whether it’s a side-gig or your full-time job, flipping homes is one of the easiest ways to earn lump sums of money without having to work all that hard for it.

All you have to do is buy a home, invest in it to bring its value up, and sell it for more than you bought it for. Now, the investing part is where you can really maximize the value of a purchase with any number of home upgrades.

There’s an endless number of renovations and repairs you can make to a home, but not all of them provide the same return. So in case you want to know how to get the most of your property, let’s take a look at some of the best high ROI investments when you’re trying to make a flip.

 1. New Siding

Installing new siding on a home is a surefire way to bring up its value and get a return on your investment. In fact, new siding is one of the higher ROI renovations you could make, with some types netting as much as an 80% return on your initial investment.

Stone veneer siding has actually been known to net homeowners a 97% ROI, but most types of siding fall between 60-80%. Both wood and aluminum house siding will provide a 77% ROI, but expensive wood like natural cedar will get you less. Engineered wood is likely to net you more than a 77% ROI.

 2. Garage Remodel

Remodeling your garage is another high ROI investment. Many garages are in need of repairs and general maintenance, so you can kill two birds with one stone by simply remodeling the whole thing.

A high-quality garage remodeling might involve adding more storage space, like overhead storage. Or, you can add a more organized station for performing various types of work. A bench, table, and neat storage for tools and items are all good ideas here.

Replacing your garage door is another smart move, especially if it’s showing signs of wear or isn’t hooked up to an electric garage door opener yet. You’ll also want to seal up your floor with a waterproof garage floor covering of some sort. This improves longevity and increases value.

 3. New Windows

Windows get old fast and often need to be replaced for years before homeowners get around to it. Boost your home value and get a decent ROI by replacing your windows.

You don’t always need to replace them down to the studs though, as many windows just need new, tight-fitting window panes to seal air leaks. Insert replacement windows are the perfect product to get the job done here.

 4. A New Deck

If you don’t already have a deck, adding one to your home is a guaranteed way to get a nice ROI when you flip the place. Materials matter here, as a composite deck will get you anywhere from a 60-70% ROI.

Some less expensive wood decks can get you over a 100% ROI, though, which makes a new wooden deck the perfect project for a quick flip. Just make sure you add some rdi railings to maximize safety and value.

These Investments Can Provide a Great ROI On Your Next Flip

With so many home improvement projects to choose from, it’s important to know which ones provide the best ROI if you’re looking to flip a home. From adding a new deck to replacing your windows, remodeling your garage, and adding new siding, any one of these projects is sure to get you a nice return on your investment.

Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.

The post High ROI Investments for a Flip appeared first on Clear Mortgage.