What have you learned in 2019?

This is the time of year to think about the lessons learned over the past year. So, maybe you just finished flipping a distressed property. Foreclosures are a big part of the business as a flipper and there is a lot to discuss. First, here's a quick brush up on the differences between the various terms from short sale, pre-foreclosure, and foreclosure?

Top on the list regarding dealing with foreclosures is proceed with caution. This may be a tough thing while bidding in an auction so it's really important to do your due diligence on finding and researching the property. There are also many different types of foreclosures: 

•  Pre-Foreclosure 
• Tax Foreclosure
• Bank-Owned Properties and REO's

We will cover more about the foreclosure topic in later posts. For now let's take a look at a first and second flip with one of our Borrowers with the latest Active property this December.

Magno and Sarah worked together with us from the first time we met at our booth during the Home Show in April 2019! Oh the Wonderful Things We Can Do in 2020!

Below is the first flip of Magno and Sarah on Old Great Road in North Smithfield:

This flip was on the market in just 3 months!

36 Cottage Street, Woonsocket NOW ACTIVE!
Check out the BEFORE AND AFTER

Cottage Street is a two family that required a lot more time and effort to get to the finish line:

• Closed in August 2019
• As you can see from above this house was gutted down to the studs.
• Active late December 2019
• On the market:  $245,000
• 4 Bedrooms, 2 Bathrooms

Real Estate Calculations week 2

You may remember the word last week was appreciation as we reviewed The 50 Real Estate Investing Calculations by Michael Lantrip. The formula involved the Present Value and the Original Value.  This week the word is Future Value. This is also very important to understand as an investor/flipper. 

Michael Lantrip uses the Future Value Calculation as:
FV = PV x (1 + I (increase factor), Where
FV is the Future Value,
PV is the Present Value

According to million acres a motley fool company "Real estate has historically appreciated at a rate of between 3% and 5% per year, depending on the price index you're looking at."

To learn more about calculating the potential value of real estate click the link:
https://www.fool.com/millionacres/real-estate-basics/investing-basics/how-to-calculate-future-value-of-real-estate-inves/

PRIVATE LENDER OF NEW ENGLAND, LLC