Have you heard the “I can teach you how to successfully flip houses” commercial on the TV or radio? If you have thought about signing up, first think about this.

Whether renovating a home for your personal use or flipping one for an investment, there are 9 things you absolutely need to know or have, in order to successfully complete a project.

This project was very exciting because it set in motion other renovations that transformed the neighborhoods look. I took great pride in it’s success.

These are the rules I used to make this, and other projects, successful in every respect.

1. Finance: Cash, or a sufficient line of business or personal credit to renovate. And add the ability to financially withstand the projected time required to renovate, plus a 90 day sale period.
2. A property that’s bought right, and located right: Pay too much for a property and you will sink your finances. Buy one with a bad location and your price and time on market will suffer.
3. Experience: Producing a quality renovation takes know how. It’s all in the details and if you don’t know what to look for, hire a general contractor.
4. Managerial skills: Without them you are at the mercy of your crew. If you don’t have them, hire a general contractor.
5. An architect: If a substantial renovation is necessary, hire one. They’ll create a plan used by your project contractors thus reducing costly mistakes. No matter how good you think you are unless you have experience, do it yourself renovations turn out like, do it yourself renovations.
6. A crew: They don’t appear out of thin air. It takes experience to create a good team that produces quality work. It’s one of the things a good GC can do for you.
7. Accounting: Keep track of every single penny you spend on a spreadsheet. You will need it to determine and defend your IRS exposure, and to provide accurate P&L info.
8. Don’t buy a house just because it’s a good deal. Sure, you have to buy right, but as importantly, projects must have a reason to be. Know, up front, who your buyer will be, (or what you want from your future residence), and the price point for that market.
9. A real estate agent: One who has renovation experience, one who can find your future home, and/or knows what to say to prospective buyers. Get one who can “talk the walk”.

The Importance Of Leadership Skills In A Real Estate Agent:

It’s important that your agent “talks the walk” – that’s the ability to explain in language that is unique to their field and compelling to colleagues and customers alike, explaining why what they do matters and how they expect to win. The only sustainable form of business leadership is thought leadership. And leaders that think differently about their business invariably talk differently about it as well. When you renovate, buy, or sell, you need an agent with leadership skills, and the ability to convey a compelling presentation that successfully closes your deal.

Mary Margaret Kean, Realtor

504-330-0374

mmknola@gmail.com

Middleton O’Malley, Realtor

504-579-4717

SRES (55+ Specialist), GREEN (Sustainable Building Practices),

ABR (Accredited Buyers Rep), GRI (Graduate Realtor Institute)

middleton@amnola.com

Coldwell Banker, TEC Realtors

​​504-899-4040

4500 Magazine St., Suite 2

New Orleans, LA  70115 USA

Re/Max Jaret & Cohn

207-596-0352

25 Park St.

Rockland, ME 04841 USA

licensed in Louisiana & Maine

Most of us actually “live” in our homes…they don’t look like a photo from Better Homes & Gardens or that anyone is coming for a photo shoot any time soon.  Our homes are used every day and it’s hard to keep them perfect…and perfectly clean.  But the #1 Buyer complaint will surprise you.  Think about your own home…the kids have been grabbing the door casings and swinging around the corners, the dog just got back from a day of hunting or has just come in from a rain storm, and oh, there’s that spilled chocolate milk.  All this adds up, and over time things can start to look, well, normal!  

So, since we are all human beings subject to similar things in life, most of our homes looked lived in.  But when we show our homes to prospective buyers, guess what, those very self same human beings who have homes that look just like yours…want your home to look spotless.  

The #1 Buyer complaint…the house looks dirty!  So, even though their house makes yours look like a palace, if you are staging your home for sale, make sure it is, in fact, spotless.  It will give you a big edge.  And, after those nice people buy your home…they will turn it back into a nice lived in home in very short order.

Middleton O’Malley

504-579-4717

middie@nolamiddie.com

Not necessarily in order here are four important things that drive the sale of a home. Location, Amenities, Condition, and Price.

Let’s look at two of them.

Location usually relates to a home being in a demand area. But don’t forget that while an agent may say, “Wow, this home is in a great location”, it may not be your cup of tea. Look around; get a feel for the area. Ask yourself, “Does this location meet my recreational, occupational, life style, personal preferences, and social needs?”

After getting all of the facts…You decide what location is right for you.  Here’s a link to a few locations that are getting a lot of love.  

Amenities can refer to things like a pool, (which is a neutral price wise), a garage, family room, or a fabulous kitchen or bathroom. Make sure the amenities have real value for you. Avoid getting sold on a house that has only two bedrooms when you absolutely need three but it has a killer kitchen.

In short, look beyond amenities that are more show than go.

On another note… 87 year old Willie Nelson has a wonderful new album called First Rose of Spring. There are 11 songs, two of which are originals. Given his age the album is understandably reflective, but it lacks no loss of energy or any feeling that it is the end of the line. Nelson’s laid back delivery on this album harks back to 1975’s Red Headed Stranger complete with its timeless sense of Americana…in Willie’s world time can and frequently does stand still. That fact alone, in these times of hyper accelerated change and pandemic Willie Nelson’s new album is just what the Doctor ordered.

by Middleton O’Malley: 1st Time Buyer & Over 60 Specialist.  Everything you need.

Selling Your House…Got Cameras and Audio Recorders in it?

You’d be surprised what buyers say about our darling homes. Naughty, naughty! But the fact is they have a right to privacy, so, if you have operating audio/video equipment in a home that you’re selling, make sure that your agent discloses that fact in the agent remarks section in the MLS listing, as well as other pieces of literature such as flyers. The public has a right to know.

Buying an older home built on a slab?

If the slab built home you’re thinking about buying is 50+ years old, you can almost guarantee that the cast iron pipes under the house, and those running out to the street are in less than stellar condition. That’s in addition to other age related deficiencies such as deteriorating pilings. With older slab built homes the bywords are… Inspect everything very carefully, and Video Inspect all under slab drain pipes.

Picture yourself walking into a home that you’re thinking about buying…what’s the first thing you want to see?  At the top of many people’s list it’s…Clean.  Well, that’s exactly what someone else is going to look for when they come into your home. After that comes the cosmetics and mechanical repairs of  proper staging, and the list goes on. 

Wouldn’t you like to present your home in its best light?  Inevitably, a clean, good looking, mechanically sound home will sell for more money, and in less time. We will come to your home and help you identify what needs to be done.  Then we’ll hook you up with the right people to help properly stage your home to give it the competitive edge you deserve.   Good staging will give your home a better chance to sell faster, and for more money. 

Call… Middleton O’Malley  504-579-4727  

When you’re moving… get the help you need with our start to finish support.

• When buying a home, give serious thought to how easy or difficult it might be to sell that home, because someday you will probably do just that. 
• Your real estate agent should know the different factors that affect your home’s resale potential… so you can make your best decision, up front.
• Consider the neighborhood trend and relative safety.
• Flood zones are a big factor when calculating flood insurance pricing.  An AE (not good) flood zone,  can cost hundreds of $$ a month! That potentially affects buying power.  
• Flood insurance in an X flood zone costs about $450-$600.00 a year.  A relative non factor.
• High flood insurance cost can diminish the number of buyers who otherwise would be interested in buying your home. 
• You don’t want to hear, “It’s a lovely home, but we can’t afford to pay the flood insurance”. 

All buyers truly benefit from hiring an experienced agent. An agent who knows about the many factors that could affect the resale of the home you’re thinking about buying.

Questions? Call us.

O’Malley & Associates

504-579-4717

Owning rental property can return great profits, but buying a rental property requires some serious financial investigation before you part with your cash.  In short, before you buy, investigate the three major components of rental investment.

• Income
• Expense
• Finance

Rentals are only money machines, and you deserve one that runs very well, so do your homework.

Here are examples of calculations to use, before you buy, to determine your return on investment, up front.  Obtaining the advice of an accountant before making any important financial decision is strongly advised.

These calculations don’t assume a return on investment with appreciation.

• Cash Buyers:  Use Cap Rate

Annual Income, minus local vacancy rate, equals gross operating income, minus operating expenses, equals net operating income, divided by Purchase Cost, equals Cap Rate

Ex:  $89,550 annual rental income, minus local annual vacancy rate, (use 10% for this equation) equals $80,595 (GOI), minus $36,260 operating expenses, equals $44,335 (NOI), divided by $585,000 (purchase price), equals 7.58 % Cap Rate

• Financed Buyers:  Use Cash On Cash

Cap rate does not take financing into consideration.  If you finance, calculate the cash-on-cash return for the first year of ownership. Figure out your cash outlay by adding up your cash invested to buy the property.  Divide your cash flow before tax by your cash outlay and you’ll have your cash-on-cash return, which is expressed as a percentage.

Ex: $89,550 annual rental income, minus local annual vacancy rate, (use 10% for this equation), equals $80,595 (GOI), minus $36,260 operating expenses, equals $44,335 (NOI), minus $36,648 (annual debt service, monthly P&I X 12), equals $7,687 (cash flow before tax), divided by $126,000 cash invested, equals 6.1 % cash on cash.

Plug in your own numbers and see your return on investment.

• Even if you are financing it’s good to a use a cap rate calculation as well to compare against your financed interest rate.  The above financed example was calculated using a 7% finance rate.  The cap rate shown above is almost 7.6%.
• If the cap rate is greater than the financed rate, good.  If it is below the finance rate, use extreme caution because you can’t always count on tax advantages and appreciation to give you an acceptable return.

These calculations, and the advice of your accountant, can help you decide which property is the most lucrative, and to compare the yield of a property with that of other types of investments, like Treasuries, Bonds, and Stocks.

• Apartment rents are expected to increase.
• For additional information about local annual vacancy rates consult with other rental owners and seek out on-line information.
• Obtain the services of an accountant, and if you will be financing the deal, make arrangements for finance… before you start looking.

We’ve helped many clients buy and sell rental property, and we have relationships with lending institutions, title companies, and all kinds of contractors, who can help you obtain the right property.

Our experience can help you make smart decisions.  Call us anytime if you have questions, or need assistance with any aspect of rental investment.

Middleton & Wanda O’Malley, Realtors

SRES (55+ Specialist), ABR (Accredited Buyers Rep), GRI (Graduate Realtor Institute)

504-579-4717

middie@nolamiddie.com

Coldwell Banker, TEC Realtors

​​504-899-4040

4500 Magazine St., Suite 2

New Orleans, LA  70115 USA

There are many things to think about when people come a point in their lives where it’s helpful to downsize.

• Leaving a much loved larger home
• The emotional and financial pressure of staging that home for sale
• Finding a new home that meets the needs of older individuals
• Learning to live with less space
• Having to part with cherished items
• Moving away from friends, family, and a familiar neighborhood
• Coming to terms with the fact that the move may be age related

The cumulative emotional impact of all these factors is not to be underestimated. They are critical elements to which family members, and real estate agents must apply an understanding and caring approach.

We are well qualified to help clients with every facet of the transaction, from staging, to listing, to closing, we will be there with you. We understand, and we care. 

I am a certified National Association of Realtors, SRES. A designation that means I specialize with clients who are 60+. My exceptional reviews from clients whom I have helped through this challenging transition, and my ability to relate to their needs are available by clicking  on this link to our reviews.  

May we help you, or a family member?  Call us: 504-579-4717