Realty Executives Exceptional Realtors®

Karen Miglin

REALTOR® /Sales Associate (908) 347-9118

Karen Miglin

REALTOR® /Sales Associate

Realty Executives Exceptional Realtors®


Buy & Hold OR Fix & Flip …What's the Right Investment for You?

(Published on - 3/23/2019 7:26:21 PM)


When it comes to real estate investing, is it better to buy-and-hold or fix-and-flip? The answer depends on your investment goals, your personal preferences, and your local market. Let’s looks at each strategy and figure out which is the better fit for you.

What is Buy-and-Hold?

Buy-and-hold is when you purchase an investment property for the long-term. Most investors start with a single-family home or small multi-family property (2-4 units).

You simply find a property where the rent will exceed all your expenses (as a general rule of thumb, investors like to see the monthly rent be more than 1% of the purchase price), then find reliable renters for the property.

The rents collected will pay down your mortgage debt, pay all your investment-related expenses (like taxes, insurance, and maintenance), and put money in your pocket every month for decades to come!

The Upside:

Buy-and-hold properties are relatively safe investments that provide monthly cash flows, tax benefits, and long-term appreciation.

And they are fairly low-maintenance. You can handle the management of the property yourself or, if you’re more interested in purely passive income, hire a property manager to handle everything for you.

The Downside:

It will take time to recoup your investment.

What is Fix-and-Flip?

With fix-and-flip investments investors want to get in and out of the deal as quickly as possible.

This is the “HGTV model” where you find a fixer-upper, complete the renovations in just a month or two, and immediately sell the newly-renovated property.

Many investors like to follow the 70% rule when evaluating properties as fix-and-flips. They like to see the purchase price around 70% of the projected After-Repair Value (ARV) minus the project expenses. (ARV x 70%) – expenses = ideal purchase price

So if you have a property you can sell for $300,000 after the renovation, and your expenses will be $50,000, you’d like to buy the property for $160,000 or less (300,000 x 70% = 210,000 – 50,000 = 160,000).

For most investors, this formula confirms that the property will turn enough of a profit to be worth their time and effort.

The Upside:

Fix-and-flip properties can provide quick returns. You could recoup your investment plus a hefty profit in a matter of months.

And, for the right investor, fix-and-flip properties are fun and rewarding work.

The Downside:

Fix-and-flip properties are labor-intensive. You’ll either invest a lot of time in renovating the property yourself, or you’ll invest time and money in managing contractors to provide the labor.

Inaccurate estimates and projections can cause your project to go over-budget. There’s even some risk of losing money on a deal if you can’t sell the home quickly.

The Bottom Line

If you want to be a hands-on investor, actively engaged in a renovation project, the fix-and-flip strategy may be a good fit for you. Just take the time to do your research: understand how much work will be required, learn the going rates for local labor and materials, and know your local real estate market. Fix-and-flips always work best in a hot market where home values are quickly rising.

On the other hand, if you’re looking for something more passive and with less risk, buy-and-hold might suit you better. Just be sure you’re comfortable tying up your money in the investment long-term and spend the time to carefully evaluate the available properties and thoroughly screen potential tenants.  

Choose the real estate investment strategy that best fits your goals and personal preferences. Will you buy-and-hold or fix-and-flip?

This post is intended for informational purposes only and should not be taken as professional advice. This post was written by Michelle Clardie. Michelle is a professional real estate blogger, specializing in ghostwriting Realtor® blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at

Five Common Home Seller Misconceptions

(Published on - 3/23/2019 7:25:12 PM)


The real estate world is full of misconceptions about the home selling process. After all, selling a home can be complicated with lots of details that are easy to get wrong.

In this post, we’ll look at five common home seller misconceptions and we’ll set the record straight on each!

1. Pricing high will leave room for negotiation.

Overpricing your house is always a bad idea.

Buyer’s agents know the market, and they can spot an overpriced listing from a mile away. When buyer’s agents see an overpriced listing, they assume the seller is either 1) unreasonable, or 2) not serious about selling. Either way, agents don’t want to waste their time, or their buyers’ time, touring the house and making an offer they think will be rejected.

So an overpriced house will sit on the market until the price is reduced. And by that time, the excitement over the new listing has worn off. Even worse, buyers might see the reduction and think the price had to be reduced because of a problem with the house.

Always price your house fairly and let the market do its job.

2. The real estate agent that recommends the highest list price is the best agent.

Savvy sellers interview multiple real estate agents before choosing which agent will list their house. And the savviest sellers select the agent they feel can actually get the house sold; not just the agent that recommends the highest list price.

Unscrupulous agents may exaggerate the list price in the hopes of winning your listing. But as we just discussed, overpricing is never a good idea.

Instead of hiring a real estate agent that promises you the moon, hire an agent with the integrity to be honest with you.

3. You should get an offer from the open house.

Here’s an open industry secret: open houses aren’t as effective as most people think.

Agents hold open houses because sellers expect them to. And because it’s an opportunity for the agent to meet more people and pass out business cards.

But open houses mostly bring out curious neighbors and bored lookers. Serious buyers make appointments to see houses.

So don’t be discouraged if the open house doesn’t produce an offer. Your agent is actively marketing the house in other ways so serious buyers can schedule a time to tour it.

4. Buyers will look past the clutter.

Buyers should be looking for good bones, right? Why would they be concerned about your furniture, your knick-knacks, or your paint colors?

While that’s a logical point of view, buyers use just as much emotion as logic in their home buying decision. They are more drawn to homes that feel good.

Clutter and too much furniture can make the house feel small and cramped. And unexpected paint colors distract from the good bones.

Make the buyer’s decision easier by decluttering, deep cleaning, and painting if necessary so the house feels fresh and inviting.

5. You can save money by cutting out the real estate agent.

It may be tempting to cut out the real estate agent to avoid paying the commission, but study after study has shown this to be a big mistake.

First, if your buyers have an agent, you’ll still need to pay the real estate agent fees for that agent (and why wouldn’t they want an agent when it costs them nothing?). So you only stand to save 2-3 percent by cutting out the listing agent and what will skipping out on the listing agent cost you?  

Sure, you can list the house for sale online yourself. But that’s only reaching a small percentage of serious buyers. Real estate agents list your home in multiple locations, actively promote your house via industry channels, and market your house to buyer’s agents, who get excited to show their clients the listing.

And how much is your time worth? Do you want to spend countless hours marketing your home, arranging showings, reading up on real estate law, navigating the mountain of paperwork, and dealing with the escrow officers and title reps?

But more than any of that, studies have proven that homes listed by professional real estate agents sell for more money that those listed by owner. You might save on the agent’s commission, but you’ll lose when your house sells for less.

Don’t give in to these common home seller misconceptions. Hire a real estate agent to guide you smoothly through the home selling process.

This post is intended for informational purposes only and should not be taken as professional advice. This post was written by Michelle Clardie. Michelle is a professional real estate blogger, specializing in ghostwriting Realtor® blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at

Five Questions to Ask Your Real Estate Lawyer

(Published on - 3/23/2019 7:24:30 PM)


When dealing with real estate transactions, finding a reliable lawyer presents valuable advantages especially in protecting your personal and business interests.

The practice of real estate law encompasses a variety of fields. Real estate attorneys are able to deal with more complex issues such as zoning problems and ordinances, environmental issues, or contracts and lease agreements. However, they can also offer indispensable advice and assistance to more common commercial and residential transactions.

Whether you’re buying and selling a house, investing in real estate properties, or in the middle of a simple legal issue, having a lawyer by your side makes the process easier. However, before you embark on the search for the best real estate lawyer to handle your businesses, you might want to take note of a few questions that will help you land the right attorney for the job.

What’s your experience in the field?

Just because someone is a real estate lawyer does not mean they can efficiently deliver what you ask of them. Real estate law has many aspects. Hiring an attorney who specializes in the area you need him or her to work on is essential to the success of your partnership.

What’s your schedule like?

This may seem like an awkward question to ask your potential lawyer, but you deserve someone who will have enough time to take care of your concerns. While attorneys with large client bases are a tempting choice because of their reputation and track record, they may be too busy to provide you with the individual attention that you need.

How skilled is your staff?

When you hire a lawyer, you are also working with his or her staff. Some legal professionals have so much on their plates that they have to delegate a part of the job to their paralegals and junior attorneys. As these people may get involved in your transaction, you have the responsibility to know how good they are at what they do. Also, this will give you an idea who to reach in case your lawyer is unavailable.

Do you have a state license?

You’ll want to hire a lawyer who has a license in the state where the property involved is located. Certain real estate laws are specific to the state. Your real estate attorney should be skilled and well versed in the rules and regulations of your area in order to represent you accurately and efficiently.

How much do you charge?

Of course, you have to take into account how much the partnership will cost you. While some lawyers charge a flat fee, others go by hourly rates. It’s wise to be aware of the legal fees to avoid any unpleasant surprises at the end of the transaction.

About the Author

Kristin Keller is the Marketing Manager of Provident Law, a full service business and real estate firm located in Scottsdale, Arizona. Aside from writing, she enjoys volunteering and running with her friends.



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