The word flipping can have negative overtones because of scams and those that just patch, cover up junk and resell. But buying homes to renovate them while making a few dollars is not only challenging, fun and profitable it is a very positive thing for the community.

This week I finished a home I purchased with my self directed IRA.  I would rather bet on myself than the stock market today so I started buying homes in my IRA, renovating them and reselling them.  The profit and expenses stay in the IRA tax free.

I do this once or twice a year because part of what’s ingrained in me is quality craftsmanship.  My father instills it, my brother is the king of it and I do it as relaxation and escape from the paper filled world of my real estate practice.  The key, when doing this work is to do it right. Always use quality materials, reconstruct with the buyers of today in mind.  Nicely done kitchens with granite, 42″ cabinets and stainless appliances are all the buzz.  The bathrooms should be fresh, with new fixtures, neutral ceramic tile and plenty of light.

I look for homes that start with attractiveness to the exterior, nice yard space and a cozy neighborhood.  We can fix what’s inside.  From flooring, to paint colors, I am involved during the entire process and do the renovation and repairs as if my family is moving into the property.  This approach benefits the community where it’s located.  It benefits a buyer seeking a finished home that shows better than most on the market in this foreclosure and short sale world we live in.

Investing in real estate, remodeling and reselling is a great thing for the community if it’s done right.  See my recent project and let me know how you feel about flipping (hate that word) homes.  A great investment avenue for those adventurous  who are self employed is to utilize the funds in your IRA to purchase real estate.  If you want to know more about that, please, just ask.

While many in people in the 20th century built their homes from the ground up, some also constructed places to live from kits that the bought from places like Sears. A low cost pre-fabricated home kit might have costs about $450, while a family could pay a few thousand dollars for a higher end and more complicated home-building kit. And these were not one-room houses, either. They were multi-room, multi-floor residences with porches and the works.

With the recession, there has been a more interest in modular homes, something that people have viewed with disdain in recent times. The Washington Post reported an increase in the numbers of modular homes being built in DC suburbs and while the number of modular homes being built is not particularly high, it is an interesting trend.

In place of the assembly-line Sears homes of days past, people are opting for custom modular homes. These are homes that have been pre-fabricated to the buyer’s specifications. The pieces are created and then shipped to a designated location where they are assembled.