earn money

House Flipping – Another Way to Make Money

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We’re always looking for ways to bring in more cash. Whether you need to pay off a few more bills or to increase your retirement fund, the more money you can bring in, typically the better off you will be. Besides your monthly income, do you have other ways you bring in cash?

Many individuals, business partners, and even couples will test their skills of flipping a house. When done correctly, you could walk away with a hefty lump sum of money. However, done poorly and you’re looking at a considerable loss.

Does that mean you shouldn’t try it? Not necessarily. Although house flipping is not for everyone, it could be the other source of income you were looking for to pay off your last credit card. If this is something you’ve thought of doing, here are a few tips to make your first house flip successful.

Are You Ready?

First of all, you want to understand that flipping a house is not a simple task. It tends to require a lot of skill in renovations, or a decent amount of money up front to hire someone to do the upgrades. If you are uncertain if you’ll be able to complete the flip on your own, or can’t afford to hire contractors to help, you may want to take another look at if house flipping is for you.

Find the Right Partner

If you’re looking to partner with someone to flip a house, don’t choose just anyone. You’ll be working closely with this person most likely seven days a week for as long as it takes to complete the renovations. Will you be able to stay civil with each other, or do you expect your relationship to fizzle out?

Do Some Reading First

So, you’ve decided you’re ready to flip a house and have found the right partner, is it time to dive in? Before you do that, consider reading up on house flipping from those who are successful in the business. They’ll be able to give you the ins and outs for you to make your first flip a successful, and profitable one.

Find a Property Fit For Your Level

If this is your first house flip, do you want to dive into one that will require basically a rebuild? Alternatively, would it be better to find a house already in decent shape that only needs a few upgrades? Biting off more than you can chew at the start could set you up for a disastrous flip and ultimately cost you more money in the end.

Finding the right property also should include the location of your potential flip. You want to find a balance of property value with how much you’re spending. A beautiful house in a rundown end of town may not sell for as much money as you want. Purchasing a home in a high valued neighborhood could sell high, but it may cost you way more than budgeted to fix and meet the neighborhood standards.



Fix Quickly, Sell Quickly

Part of the art of flipping a house is to fix it up as quickly as possible (while maintaining quality), and then turning around and selling it right away. You could put in a ton of work to make the house look beautiful, but it won’t make you much money if you don’t sell it right away. The longer you hold on to the house, the more money it costs you.
When the time comes to sell the house,every small detail matters. From how you stage the home to even the smell of it, every detail can influence someone’s decision to make an offer. So, by setting it up in a way that allows potential clients to picture their family in the home, the better chances you have of closing a deal.

About the writer: Jeremy Biberdorf is the owner & founder of the popular investing blog modestmoney.com. Check out his site for latest investing news and tips


Do you want to make some extra money this winter?

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Being a homesteader it is tough to become instantly ready for winter. No matter which month it is, you seem to be never ready for this season. It seems like there is always something more that you can do and there are a lot of people for whom it is a hardship to make money during this season. There are lots of homemakers who try to keep up with their full-time jobs which they do during daytime but there are some others for whom hours keep getting shorter because of the winter weather.

Since winter means the holiday season, how would you make up for the huge amount of expenses that you require making through Christmas and New Year? How about knowing some of the best ways to make those extra dollars? Here are some unique ways in which you can make money.

#1: Roasting chestnuts in open

It’s pretty cold in most places during winter and with that in mind, there are lots of people who will use heat from wood as their main source of heating or at least to reduce the heating costs at home. So, keeping that in mind, why don’t you sell firewood? While you can either cut down the trees in your locality or you can find out some place which sells firewood. By purchasing a bulk from them, you can charge a higher price for the delivery costs.

#2: Christmas tree farming

You will find Christmas tree farming to be a big business in many places. If you think you’ve got enough land, you could definitely consider growing Christmas trees behind your backyard so that it remains open to your neighbors and the public. People can be given the choice of choosing their own tree and take it home. You will get paid for this.

#3: Capitalize the snow

Most of us deal with snow during winter and there are few years when it snows pretty hard. People who are located in the colder areas are more worried about dealing with snow. However, did you ever wonder that this could possibly become a good business for people? There will always be the requirement of someone who will have to remove the snow. You can try investing in some snow removing equipment and make it a business this winter. Shoveling snow can help you earn a tad bit of money.

#4: Clean off leaves from the garden

We all know that fall leaves behind too may leaves fallen on the ground. Although it is a gorgeous sight but when it comes to cleaning them, it will soon become an intimidating task. There are people who invest in a sweeper who pulls off the mower and makes your lawn look clean. This will not only help you clean their lawn but it will also fill your pockets.

Therefore, now that you’re aware of the different ways in which you can earn money during winter, make sure you leverage any of the above mentioned methods.


Passively Earn Money by Helping Consumers in Need

Passively Earn Money by Helping Consumers in Need

Debt can be profitable even for us, the consumers. Banks make billions of dollars by loaning money and charging interest payments to borrowers.  Granted, you may not become a billionaire, here’s how you can create a nice stream of income by funding consumer loans.

Let’s say you have $5,000 you could loan out. You can’t just post a Craigslist ad saying you’re available for loans. Not only would it take too much time to respond to all the emails you’re going to get, you’d also have to go through the trouble of qualifying all the respondents and figuring out whether they’re trustworthy borrowers. That hardly qualifies as passive.

There’s an easier way. Using a peer-to-peer lending network like LendingClub.com or Proper.com solves that dilemma. P2P networks act as a middleman, bringing together people who need loans with investors who have the money to fund these loans. The networks vet the borrowers and assign a credit risk grade. At Prosper.com, borrowers are categorized into buckets from AA, lowest risk, to HR, high risk or unknown risk. Lending Club’s system is similar, ranging from A to G.

Investors can choose to take on risky or less risky borrowers, or a mixture of the two. The risky borrowers pay a higher interest rate so you earn more money on these loans. However, there’s a greater likelihood that the most risky borrowers will default on the loan and you’ll lose your investment. The safer borrowers come with a better guarantee of repayment, but the interest on these loans isn’t as high.

Once you’re signed up, you can review borrowers individually and choose to fund loans or you can select investment criteria and let the network invest for you. Obviously, letting the network choose loans for you is the most hands-off method. However, you may prefer to hand-select your borrowers so as to have more control over who you lend to. You can even decide to automatically reinvest your interest earnings or you can withdraw the funds as you receive loan payments.

The good thing about P2P networks is that several different investors can fund one loan. So, you don’t have to put 100% of your investment into a single loan. Instead, you can spread your funds over many different loans, lowering the risk that you’ll lose everything if a borrower defaults. For example, if you’ve invested $50 in 100 different loans and one borrower defaults, you’re only out of $50 instead of the entire $5,000 you invested.

Return on investment is pretty good from both the major P2P networks. Prosper boasts investor returns between 5.18% and 17.71% while Lending Club’s average returns range from 5.38% to 13.47%. Each monthly payment consists of principle and interest. The network will keep a small percentage of the payment for their services. You keep the rest.

Repayment terms are from 1 to 5 years, so you won’t get all your money back immediately. You’ll just have to be patient while the payments roll in. Start small and decide how much you’d like to invest based on your initial investment and your available capital.

Image credits:

http://www.lendingclub.com/public/steady-returns.action

http://www.prosper.com/

Article contributed by Eliza Collins, she is specialized in writing on debt relief, saving strategies and other investing options.  Read her articles at DebtSettlement.com.


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