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.
The housing market fluctuates with inventory levels and when the market has a lot of properties it is easy to find a deal. But when inventory is low an investor has to be more creative in finding a good opportunity. Finding a deal, fixing it up, and selling it for market value, or a little less, can make an investor a good profit.
The standard way of looking for properties used to be the MLS, or the Multiple Listing Service, but a competitive market requires more ingenuity. People are attending real estate auctions to find houses to flip as well as short sales. There is no guarantee that a short sale will close and it can tie up the investor for months with nothing gained in the end.
Before purchasing a house the investor should have an idea of what they can sell it for. Enlisting the help of a real estate agent to get comparable sales in the area is a good idea. Another idea is to hire an appraiser which could cost a couple of hundred dollars. Be ready for lots of paperwork, permits, and insurance coverage for the property after it is purchased.
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.
Successful investors say that a 15 percent profit is the least amount one should make on a flip. The first thing to consider is location when looking for a property and making sure that the outside of the house is just as appealing as the inside. Curb appeal is the first impression and that gets people in the door.
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.
The housing market fluctuates with inventory levels and when the market has a lot of properties it is easy to find a deal. But when inventory is low an investor has to be more creative in finding a good opportunity. Finding a deal, fixing it up, and selling it for market value, or a little less, can make an investor a good profit.
The standard way of looking for properties used to be the MLS, or the Multiple Listing Service, but a competitive market requires more ingenuity. People are attending real estate auctions to find houses to flip as well as short sales. There is no guarantee that a short sale will close and it can tie up the investor for months with nothing gained in the end.
Before purchasing a house the investor should have an idea of what they can sell it for. Enlisting the help of a real estate agent to get comparable sales in the area is a good idea. Another idea is to hire an appraiser which could cost a couple of hundred dollars. Be ready for lots of paperwork, permits, and insurance coverage for the property after it is purchased.
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.
Successful investors say that a 15 percent profit is the least amount one should make on a flip. The first thing to consider is location when looking for a property and making sure that the outside of the house is just as appealing as the inside. Curb appeal is the first impression and that gets people in the door.
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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