10 Mistakes To Avoid When Flipping Property

Your goal may be to build wealth quickly by buying and selling properties. But the reality is that flipping properties is a tough business. Here are 10 mistakes that could turn a flip into a flop.

1. Liar loans. "Lying on a mortgage application is a federal crime," says Joseph Falk of the National Association of Mortgage Brokers. "It includes bank fraud, wire fraud and mail fraud and potentially a host of state offenses. This can result in jail time."

2. Overpaying. No matter how promising the property, the bottom line is trump.

3. Lacking cash. Desperation makes investors do crazy things. When you act in haste, you're more likely to make poor decisions.

4. Quitting your day job. A steady source of cash staves off desperation.

5. Hiring unlicensed contractors. Not only do they present an insurance risk, but worse yet, often they don’t get the job done.

6. Buying sight unseen. You can bet it will be uglier than the seller said it was.

7. Buying property far, far away. Even the tiniest repair can mushroom into a crisis.

8. Buying too many properties too fast. Too much money, too little time.

9. Underestimating remodeling costs. There’s no such thing as a cheap and easy fix.

10. Having a poor exit strategy. Running out of cash and living on credit cards doesn’t work.
Source: USA Today, Noelle Knox (10/23/2006)

If you are thinking of buying Montgomery investment property, visit our website, InvestInMontgomeryAlabama.com.

Midtown Montgomery Real Estate Prices Continue To Rise

Home sales appear to be bottoming out with lower home prices attracting buyers in many areas of the country, according to the National Association of Realtors®. Is this happening with Midtown Montgomery real estate?

The number of sold single family homes in Midtown Montgomery (Midtown consists of neighborhoods south of I-85 between Exits 1 and 6) for September is down 6 percent compared to September 2005. The number of pending listings are, also, down by 15 percent. Whereas, last month (August) there was a 14 percent increase.

During this same time period, there has been a dramatic decrease in market times. September 2005 saw market times of 109 days compared to this September's 90 days, a 17 percent decrease.

The average sales price has decreased by $13,523 or 9 percent. This is the first decrease in the average sales price this year. We have seen a steady increase in prices each month until now. This month's decrease may be an indication that the market is leveling off. Or, it could be a more normal fall market for Midtown when prices soften a bit compared to the previous spring.

It would be easy for buyers to overpay for a Midtown Montgomery home in the current market. We have the experience, market knowledge and negotiation skills needed to get you the best possible deal.

Contact us if you are in the market to buy a home. Also, visit

Letter To The Advertiser

Wanted you to be aware of a letter I have today sent to Ken Hare at the ADVERTISER.
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Last month, Volkert Engineers under contract with the Alabama Department of Transportation presented a comprehensive presentation about the proposed I-85 extension that would connect Montgomery to Meridian Miss.

What bothers me most is the lack of attendance and public awareness of the opportunity for the public to see and participate in the planning process, point out concerns and make suggestions as to the proposed route. I understand that packed houses attended similar presentations in Selma and Demopolis, yet the one held in Montgomery was the least attended. In spite of the fact that the ramifications of a decision will have lasting impact on the city's future direction, our local media did not even cover it in advance or during the event.

On the eastern end of the project, two alternatives are proposed. One would go south of Montgomery, through Lowndes County, the other would go north of the city through northern Autauga County.

Without doubt, there are some legitimate concerns to the proposed I-85 extension, but I cannot understand the public apathy when this decision will impact our region's economy and growth patterns for a century.

Thankfully, much time remains for those with concerns to seek answers and express reservations.

The firm charged with the I-85 corridor study seems genuinely interested in doing this the right way. They know what elected officials know that this Interstate is meant for the benefit of this region of the state, not it's detriment. So it is a reasonably safe assumption that they will seek to choose the most acceptable route for this longterm project.

Surely, any of the proposed routes will upset some. That is the inevitable by-product of progress. While it may be easy for us to say such when we have no property to be lost in the project or personal gain to be made by its location, we have a responsibility to express our views and insure accountability for the decisions ahead.

Nonetheless, there are great benefits in the I-85 extension project. Not only will it provide access to jobs for some of the state's poorest counties, it will open a new east west route across the US from the port of Savannah to the West Coast. It will lower mileage costs to truckers, and it will open up Montgomery as an even better distribution center. Plus, it will make leisure travel much easier and shorter, not to mention providing a new evacuation route from the Gulf Coast.

As a member of the Montgomery Chamber's I-65 Corridor Committee and a champion of Montgomery and the River Region, I encourage all citizens to educate themselves about this project and become involved in future public hearings, the next of which will be held in February 2007. This project may take years to finish, but the work being done now holds great ramifications for future decisions. Officials hope that this fast track planning will permit fast track completion of this important project.

For those who did not attend the public meeting, there is a public web site at www.I85extension.com where citizens have an opportunity to see what is proposed and to express an opinion. They may also call toll free at 1-866-485-7623.

This may be the most important economic decision of the century, and we should all feel a responsibility to be involved. After all, they asked for our input up front, not after decisions are made.

Sandra Nickel
1200 S. Lawrence
Montgomery 36104
834-1500

Alabama National Fair Opens Today

Opening Day for the Alabama National Fair

One of the most anticipated events of the year, the Alabama National Fair, opens today in Montgomery and runs through October 15.

The Alabama National Fair organizers' philosophy this year is to give fairgoers more. That means more variety in the music acts, more rides and more activities. We hope to see you there!

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If you are thinking of buying or selling Montgomery real estate, visit our website to view all Montgomery real estate listings, get the current market value of your home, and more!


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