Shawn Paul – Staying True to The Business Of Flipping Houses in Elizabethtown, KY

While the business of real estate may seem stagnant these past few years, there is a lot of hope for the residents of Elizabethtown, KY. Money may be tight and that is understandable because we are just recovering from the economic hardships that have swept across the nation. But, even if today does not look like a fruitful day, one must always stay true to their dreams of a better future. This is what Shawn Paul, a realtor at HardinHomes.com and someone who specializes in flipping houses for a living is doing. As someone who has been in the business of flipping houses well over 4 years, he knows that one must take into great care when buying and selling houses.

What is Flipping Houses?

Basically, flipping houses is when you buy a property that is priced well below market value and either renovate it or break it down and build it back to brand new condition. It sounds pretty straight forward but according to Mr. Paul, he claims that, “buying the right one and selling it at the right price” can be a very daunting task and this has always been his biggest challenge in this business. He says that one must invest a lot of time and money in order for this business to become very lucrative. You must also have a lot of “general knowledge in construction costs and understanding of the math and financial numbers where the pricing will be.”

Challenges You Will Face When Flipping Houses

There are many challenges one will face when flipping houses but so far, Mr. Paul says that, “he’ll be glad to help” if anyone wants to ask for advice from him. You have to know how much items cost and understand the whole gamut of things before you can really market the property you are working on to be a profitable one.

Future Of Real Estate In Kentucky

Mr. Paul wishes the economy could get better when it comes to the real estate market and hopefully it will since right now it is experiencing a buyer’s market wherein prices of homes are selling way below their fair market value. This can mean that more people are willing to let go of their investments and hard work for a lower price.

Advice For People Who Want To Get Into Flipping Houses

This business of flipping houses basically sounds enticing to many people because of its “extreme profitability” as said by Mr. Paul but it will take a lot of time and money on your part as well. He is open to anyone who wants to get advice from him when it comes to getting the right properties to flip and rebuild.

Flipping Houses For Mr. Shawn Paul

Indeed, this man of great personality stands firm in his ways of flipping houses and wishes people to get more interested in it if they have the proper resources and funding… so that their future will be brighter. 

If you are interested in flipping houses, do a quick home search to check out some of the real estate for sale in Elizabethtown, KY.

To speak with Shawn Paul to ask questions or find your own flip, call, text, or email 270-401-1223 ShawnPaul@HardinHomes.com

Kentucky Seller Disclosures are Important

When is a seller's disclosure of property condition required (requirements of KRS 324.360)?

• Sales and purchases involving single-family residential real estate dwellings in Kentucky if any person licensed receives compensation.

When is it NOT required?

• Residential purchases of new homes if a warranty is offered
• Sales of real estate at auction
• A court supervised foreclosure

What You Must Know About The Seller's Disclosure
You should know what a seller's disclosure is if you are selling your Kentucky home, more so if you are buying one. If you are selling your home, you can refuse to complete and/or sign the disclosure, however put yourself in the buyer's shoes, would you buy the home? If you decide not to disclose what you know to be the physical problems of your house (now and while you've owned it), you will most likely not get the highest price. If you are the one buying a home, you should make it a point to obtain the seller's disclosure and learn how to make use of the information it contains to boost your position as home buyer and get a better deal.

What's in a Seller's Disclosure
Take a look at the following questions. Although they are by no means complete, these are the type of questions you will need to answer when completing your own seller's disclosure.

• Are there any existing physical defects? If yes, what are they?
• Does the basement leak? What is the condition of the basement?
• Does the roof leak? What is the condition of the roof?
• What is the source and condition of water supply?
• What is the source and condition of sewage service?
• Do you know if there are problems with your electrical wiring system?
• Are you aware of any plumbing issues in the house that can possibly be hazardous to its new owners?
• Has the house been altered without necessary building permits?
• Is there anything else that the buyer should be concerned with when it comes to safety in the house?
• Did the house suffer any damages from fire, flooding, hurricanes, etc?
• Are there any parts of the house that must be repaired or replaced?

Remember that it is your responsibility as the home seller to disclose all the relevant information to the interested buyer. If you don't, you may find yourself in hot water for failing to disclosure. One scenario we see quite often is investors or landlords who leave the disclosures blank or draw lines through everything because they have never lived in the home. This is unacceptable. In almost all cases, repairs have been made and buyers should insist these be disclosed.

Importance of Seller's Disclosure to the Home Buyer
If you are buying a house, make sure to review and study the information contained in the seller's disclosure prior to signing the sales contract. Knowing more about the house you are buying will be a big help to confirm that you are not paying more than the real value of the property. For example, let's say you learn from the seller's disclosure that the roof leaks in many places. This means major repair or even a total replacement is needed. You should consider how much it will cost you to fix the roof because this will jack up the total costs of acquiring the home and making it habitable. You can even use that information as leverage and request the owner lower the selling price.

While the seller's disclosure will help you haggle for a lower price if the house has major deficiencies for which you must spend on later after buying the property, you should realize that there could still be a number of minor issues that may be undisclosed. Structural defects may not be included in the seller's disclosure if the owner is not aware of them. Therefore, it is in your best interest to hire a professional home inspector to check out the property you intend to buy.

Whether you're the buyer or the seller, you stand to benefit from knowing more about the seller's disclosure, good agents will be able to assist you with any questions you have.

Viewing homes near Elizabethtown and Fort Knox Kentucky

You have found some homes in the Fort Knox Kentucky area and you are itching to go look at them. Before embarking on your quest, there are a few things that you should do to prepare. Ask your Kentucky REALTOR to provide you with the Multiple Listing Service (MLS) listing sheets. You can look these documents over as you tour the properties close to Fort Knox. You may also wish to take a digital camera, flashlight, tape measure, pen/pencil and notebook.

The MLS listing sheets will have the vital information of the homes. Square footage, year of construction, number of bedrooms/bathrooms and much more information will be located on these sheets. You may wish to compare the information on the sheet to the actual home. Sometimes erroneous information is listed and this should be cleared up when you tour, or shortly thereafter.

Use the notebook to save any questions you may have regarding the homes and any additional information you require such as utility costs and taxes. You may also wish to make notes of your likes and dislikes, i.e. proximity to Fort Knox. I suggest my buyers rank the homes as we look so they always know which one is their favorite and which ones are the backups. Take photos of the rooms, yard, and other features to refresh your memory when you later discuss the home.

You should have a flashlight because sometimes the electric is off, and also it may be needed to make cursory inspections of attics and crawl spaces or other dark areas in the home. A full blown home inspection comes after you have a contract on the house. Note any apparent water marks on the ceiling, floor joists or walls. You will want to find out what caused the marks, and what, if any repairs were made.

When done touring homes, you need to discuss your questions with your Elizabethtown Kentucky real estate agent. If you've found the home you want, it's now time to review all the information, decide how much of an earnest money deposit will be acceptable, and make an offer. Sometimes a property is sold as-is so take a careful look at the property disclosure statement(s) with your real estate agent. The disclosure statements are filled out by the property owner and should list any defects of which the owner is aware. If the home was constructed before 1978 there should also be a lead paint disclosure which the seller has filled out. In this document the sellers must disclose any knowledge they have of lead paint used in the home.

The home buying process may seem a bit daunting at first but a good REALTOR can guide you through and help you maximize your investment.

What does it mean when a home is sold "as-is".

So you've found that perfect property after looking at many around Fort Knox Kentucky with your Hardin County Kentucky Real Estate Agent, only to find out that your dream property is being sold “as-is”. When buyers see or hear the words “as-is”, housing or automobiles, they instantly change from interested to skeptical. Real estate is a large investment, and no buyer wants to leap into such a huge property investment with a chance that “as-is” must be pointing to something expensive. Are the fears worth the pain and stress? Or are “as-is” properties okay to buy?

To make a long story short, "as-is" clauses are nothing to worry about if you know what you're doing.

First we will need to define the term “as-is”. You may also see the term "as-is, where-is". An “as-is” home means just that, the home is being sold in the current condition and the seller does not intend to make any further changes. It is very common for a home in foreclosure to be sold "as-is". Sometimes sellers just say "as-is" because they don't want the cost or the hassle of repairs. Home buyers will walk through a home prior to making an offer and list the items they want fixed as part of the agreement. Buyers almost always order a home inspection to ensure there are no major problems that may eventually make the home unlivable. With an "as-is" home, if the buyers don't structure the offer carefully, they will have no one to complete the small repairs, and if there are big repairs discovered during the home inspection, the buyers will be responsible for those as well.

On the flip side of the coin, many homes listed in “as-is” condition are in great shape and may need only minor repairs. But, how can buyers know this about a home without entering into a contract with the seller.

There are basically two options when buying an “as-is” home. We would NOT recommend the first.
1) The buyers can hire a home inspector, at their cost, to inspect the home before writing an offer. This way the buyers will know what they are getting into before they make an offer on the home. The buyers must keep in mind that the home is still on the market during the home inspection process. So if another buyer comes along and makes an offer that gets accepted then the first home buyer just lost the home and the cost of the home inspection.

2) The wisest choice for the buyers is a post contract inspection. When the offer is written, the buyers can ask for anything they want. Even though the house is being sold "as-is", the buyers can be as specific as they like. Many buyers and even some real estate agents don't know that; it's all about negotiation. A clause (also called a contract contingency) is written into the offer regarding the “as-is” nature of the home and the need for an inspection before closing on the real estate (final proceedings). Depending on the specifics of the contingency, the buyers can be released from the contract and will have their earnest money deposit refunded to them if there are problems with the home that cannot be resolved. Most real estate sales contracts include a contingency allowing the buyer to have a home inspection.

An “as-is” home has the potential to be a risking situation. If you choose to think about the sale for too long, someone else may get the house, but if you are too quick to write an offer and forget about the “as-is” clause, you could potentially be stuck with a home needing thousands of dollars in repairs. Home buyers need to understand the seriousness of an “as-is” home and approach the situation strategically.