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.
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.
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.
Keeping the job on time and managed well is critical and that is where a good project manager and contractor come into play. Someone needs to be on site to manage the workers, make sure things are getting done in order and on time. They should also be able to handle problems and find solutions should they arise, and they will. Working smartly will reap the biggest rewards.
A 15 percent profit is considered the least amount of profit that a flip should produce. Make sure to buy in an area that is desirable to buyers, location is very important. Remember to make the outside as appealing as the inside, curb appeal is important as it is the first thing people see and the home should be inviting.
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.
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.
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.
Keeping the job on time and managed well is critical and that is where a good project manager and contractor come into play. Someone needs to be on site to manage the workers, make sure things are getting done in order and on time. They should also be able to handle problems and find solutions should they arise, and they will. Working smartly will reap the biggest rewards.
A 15 percent profit is considered the least amount of profit that a flip should produce. Make sure to buy in an area that is desirable to buyers, location is very important. Remember to make the outside as appealing as the inside, curb appeal is important as it is the first thing people see and the home should be inviting.
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.
About the Author:
For more on house flipping check over here. Check out this page for more on flipping houses and other real estate topics.
No comments:
Post a Comment