Great information for anyone starting out in the fixer-upper business. The author has served his apprenticeship in the trenches. -- Fixer Jay P. DeCima, Investor and Author
It's full of useful tips and advice. I have used these methods to make a good living in real estate. -- Paul Hoyt, Real Estate Investor, Tucson, Arizona
Terry Sprouse has created a profitable rental business in his spare time. What sets him apart is he took action -- Bob Zachmeier, Investor, Educator, Author
This book is beyond a simple how-to guide, it provides inspiration for seekers of a way to achieve financial success -- Cynthia Pope, Ph.D., Connecticut
With the wit of Will Rogers, this book provides simple guidelines for restoring homes, and sanity to our crazy lives. -- M. D. Matlock, Ph.D., P.E., C.S.E., President, American Ecological Engineering Society, Award-winning designer of green neighborhoods for Habitat for Humanity, Professor of Ecological Engineering, University of Arkansas.
Award-Winning Finalist in the Real Estate Category of the 2008 National Best Books Awards. --USA Book News
Refinancing Houses. What a unique and useful book this one is! First, I will state that I have dabbled in this sort of thing, i.e. fixing up old houses for resale, for a number of years now. To be honest, had I had access to this particular book twenty years ago, I would have been able to avoid a lot of mistakes and a lot of grief. Some of what this book addresses I have learned over the years through trial and error and simple luck. Mr. Sprouse has been able to articulate what I have known, but was unable to say for myself. I must say that the author was able to point out much that I have missed or was unaware of. Reading this work was a very pleasant learning experience for me. This is a very useful book for anyone wishing to purchase old homes, fix them up, and either rent or sell them. This is a wonderful resource!
The book is actually rather funny, or I should say amusing. The author has a quick wit and it shows through his writing. The book, even though dealing primarily with physical things, is so much more. The author has given us a good dose of old fashion common sense, philosophy, and very sound advice. He has done this in a way that fits perfectly with the subject his is addressing. Attitude in any endeavor is extremely important and the author quite well makes this point.
Now take note. This book is not one of those flashing works similar to some of the late night T.V. infomercials, which promise instant wealth (picture of a dorky looking guy with gold chains driving a new Hummer that is setting in front of his multimillion dollar home telling you that he just made a zillion or so dollars with nothing down, no credit and no work, and did it all in just six weeks...just sent him $19.95 and he will tell you how he did it). The author plainly states (and I know his advice here to be a fact), that this sort of endeavor takes work, lots of work, and to make money at it, takes time. Simply put, "there are no free lunches." So, if you are looking for a get rich fast scheme, then look else where. The author is not in any way into trying to sell one of those silly pyramid deals that, in truth, simply never work.
What this work does give you is ideas and an outline, that through hard work, common sense, and a bit of luck, you can do quite well for yourself and have a bit of fun while you do it. The author is quick to point out the down side of every aspect of this business and points out ways, if there are any, to avoid them. On the other hand, the author does a wonderful job of pointing out the positive.Refinancing Houses He not only emphasizes the financial aspects, but does a very nice job of drawing attention to the many side benefits involved, and there are many of these! I like the way that the author directs your attention to the fact that a job well done is a wonderful feeling. The author has listed given us a great list of other books and resources to turn to which I find most helpful. Actually, his list of places to go for information is almost worth the price of the book alone.
NOTE: Even though this work deals with the fixing up of older homes, the principles set fourth in this work will work for just about any business a person would want to set up or start. There is wonderful, good and sound advice in this book. Even if you are not into the fixing up of old places, it is well worth the read. I would certainly hope this author expands into other areas. His ideas and general outlook on life are/is quite a bit better than those of many of the ones touted by the so called "experts." Recommend this one highly!
Are you thinking of buying, selling, or renting property out? Then get this book! Compact, easy to read, and packed with step by step instructions for several phases of making real estate work for you, Terry Sprouse has written all the basics in a way that anyone can understand, and will be especially welcome in steering people through this time of fluctuating and uncertain markets, so that you'll make the most of every dollar you invest or gain as a buyer, seller, or landlord, and the principles will even make sense for you in other forms of business, as I found that some of what is in "Fix Em Up Rent Em Out" could even be applied to my career as a free-lance artist.
I've always been tempted with the idea of buying a "fixer upper," whether to live in myself or rent out (I've done it several times for other people in exchange for cheap rent, never for myself), and Sprouse gives the complete details on what I could expect to find in this adventure. You'll learn a lot from his Tables too, which at a quick glance one can get information on cash flow, interest, appreciation, even the tools to have on hand (it is recommended to learn how to do as many repairs as you can yourself) and much more. There is even one table on page 84-85 on "The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Your Tenants" that is funny as well as wise counsel.
There's great advice in Chapter 8 on what to look for in a prospective tenant, and how to make out a rental contract that suits your requirements; Chapter 9 is about taxes. Read and memorize! You'll be glad you did. One of the final chapters is on how to make this real estate experience a family affair, and lists some activities young children can do to help and the advantages to having the kids be involved in the process. It is followed by "A Tale of Two Investment Strategies," where you read from start to finish Sprouse's experience with two properties, and the last chapter is "The Big Picture," which explains that "Even When You Lose You Win," with a positive outlook to always grow as we learn (and of course always taking lots of photos and notes on the progress for future reference).
This is one of those rare books you'll find yourself highlighting a lot and marking with added thoughts that apply to your specific situation. It also includes some valuable appendices, from "Useful Websites," to additional reference materials, though this handy real estate book is the ideal place to start, if you've ever thought about buying, selling, or being "Mr. Landlord."
The housing market being what it is, with two of the highest subprime home loan, foreclosure markets being in the Stockton and Sacramento areas, this book may be of value to those wise enough to have some savings to invest in houses being foreclosed on, like one I saw for $79,000 that sold orginally for $205,000. And yes we are a family with rental properties and properties bought and fixed up and then sold.
The parts of the book I found of value are those dealing with learning to do jobs like sheetrock, tile, windows, doors, floors, etc yourself. Depending on where you live and if you want bank financing, you may be required to have all the electrical and plumbing done by a licensed person. Some counties here in California allow you to do these things as long as you have a qualified elctruician or plumber check your work as you go to make sure its safe and sane.
Am glad the author notes that the law (1997 Taxpayer Relief Act) now allows you to pay no Income taxes on a home you have lived in for two years that you then use as a rental when you buy another home to live in as your main residence. However this exclusion is only available once every two years, which is great if you buy a place to live in that needs some repairs that you can do over time. You not only get a place to live but can do the work over time and do it right. Then sell or rent it out and get another place an repeat the process.
The book also has an excellent piece on Increase Cash Flow, Sell One House to Pay off Another. As well as a piece Know When To Sell which is as important I believe as knowing when to buy and when NOT to buy. The San Francisco Chronicle has had some excellent articles on some folks who did subprime loans and bought investment properties when the market was hot a couple years ago, and then their adjetable morgages went sky high, renters couldnt afford the rent needed to pay the owners morgage and many owners with multiple properties were foreclosed on, their credit ruined, and then they had to file for bankrupcy and some lost their own homes.
As for rentals. Good pieces on Curb Appeal, Background checks and avoiding bad tenants from the get go. Rental/lease contracts, advertising, dealing with problem tenants/renters, evictions, repair issues, insurance, and very important record keeping. As a renter I always have taken photos of places before moving in and also recommend renters take photos, and detailed notes of even minor damage that can eveolve into big damage and if not noted, can be attributed to you and not the foremer tenants or the owners lack of responsiblity.
The Refinancing Houses last part of the book makes a great suggestion if you have kids over the age of 8 or 10, who are old enough to help out with caring or repairing a rental property. Its a great way for them to learn as they grow. By the age of 16 many kids will know how to do sheet rock, tile, flooring, installation of bathroom items, and fixing up the yard. I even suggest to take a small percentage of the income earned on a rental or sale of a property and stick it away for them so when they become 18, you can help them invest in a place to rent or sell, and help them become finacnially independent and wise beyond their years.
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