One of the best ways to get a return on an investment is real estate. Some investors have found that in a market that is full of inventory there are deals to be made. Buying a property that is run down, doing repairs on it and reselling it is know as flipping the property or Flipping Houses 101 as we refer to it in this article. It can be a difficult business, but with some practice it could be lucrative.
Finding the right property is easy when there is a lot of inventory, often a house can be purchased below market rate, fixed up and sold for a profit. When there is very little inventory this is harder to do and when interest rates are low the market is even more appealing.
Auctions are a good way to find property if an investor has a lot of cash. Short sales are another avenue to explore but they do not guarantee that the house will be acquired in the end and it could tie up an investor for several months. It used to be that people would check the multiple listings service, but a competitive market precludes that from being a viable option.
It is best to do a little homework in the neighborhood to get an idea of property values before purchasing a house to flip so that one can get an idea of the profit that might be made. Partnering with a good Realtor could offer sound advice on market values or hiring an appraiser could be worth the couple of hundred dollars they charge to get an assessment on a property. Be ready to deal with lots of paperwork from permits to insurance coverage.
Having a good team in place ready to start work after a property is purchased is necessary. It's important to have a reliable contractor on board who can schedule out the work, make sure everything is on time and done correctly, and who can be on site to watch over all the daily happenings. It is important to stay on time with a flip so that the most money can be made.
A successful flip is measured by the amount of profit made, at least 15 percent is what smart investors recommend. Location is always a factor in profit as is curb appeal. Remaining emotionally detached is important and remember to tackle big projects first.
Remember to remain neutral when selecting paint and carpet colors, take the emotion out of the interior design and think of what will appeal to the most people that will be looking at the house. Make sure the bathrooms and the kitchen are done as well as the budget will allow, all the appliances need to match, all the details should be perfect. Start with an easy flip and then tackle harder projects, keep in mind what you have learned in Flipping Houses 101 for the most profit.
Finding the right property is easy when there is a lot of inventory, often a house can be purchased below market rate, fixed up and sold for a profit. When there is very little inventory this is harder to do and when interest rates are low the market is even more appealing.
Auctions are a good way to find property if an investor has a lot of cash. Short sales are another avenue to explore but they do not guarantee that the house will be acquired in the end and it could tie up an investor for several months. It used to be that people would check the multiple listings service, but a competitive market precludes that from being a viable option.
It is best to do a little homework in the neighborhood to get an idea of property values before purchasing a house to flip so that one can get an idea of the profit that might be made. Partnering with a good Realtor could offer sound advice on market values or hiring an appraiser could be worth the couple of hundred dollars they charge to get an assessment on a property. Be ready to deal with lots of paperwork from permits to insurance coverage.
Having a good team in place ready to start work after a property is purchased is necessary. It's important to have a reliable contractor on board who can schedule out the work, make sure everything is on time and done correctly, and who can be on site to watch over all the daily happenings. It is important to stay on time with a flip so that the most money can be made.
A successful flip is measured by the amount of profit made, at least 15 percent is what smart investors recommend. Location is always a factor in profit as is curb appeal. Remaining emotionally detached is important and remember to tackle big projects first.
Remember to remain neutral when selecting paint and carpet colors, take the emotion out of the interior design and think of what will appeal to the most people that will be looking at the house. Make sure the bathrooms and the kitchen are done as well as the budget will allow, all the appliances need to match, all the details should be perfect. Start with an easy flip and then tackle harder projects, keep in mind what you have learned in Flipping Houses 101 for the most profit.
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