Flipping: Getting Rich Buying and Selling Real Estate
Individuals that flip real estate typically have found a quick way to get rich. The process involves purchasing a home at an inexpensive price, making significant improvements, and then selling it on the open market for much more than was originally paid. However, it may be that you are financially strapped, and cannot find the avenue to begin this profitable venture. There are alternatives to consider before deciding whether or not to invest in buying and selling real estate for flipping.
Obtaining a loan to purchase real estate that is much lower than its true value is often easier than purchasing traditional homes. Choose an area in town that is desirable where you can purchase homes inexpensively. Make sure that it has the right amenities, with no huge negative impact, like being positioned next to the landfill. This will only limit the potential buyers.
Do extensive research by talking to available real estate agents that are familiar with the area, and the viability of the current real estate market. Avoid sinking your hard-earned dollars into a home until you are 100% sure the current real estate market is solid, and you can reasonably expect a quick sale.
Once you have found a dilapidated home, or one in need of major aesthetic repairs, have it inspected to ensure it has no major structural defects. By choosing houses that need significant cosmetic improvements, such as enhancing the landscape, exterior and interior painting, new flooring, and new bathroom fixtures, you will be able to perform the work quickly.
Be sure to choose only improvements to the home that will not drain your bank account. Over time, you will become highly adept at home improvement projects and will be able to perform any of these duties yourself. You will also learn to hone your skills by using repair manuals or watching other individuals in the work they perform.
Once the home is complete, you can either sell it on the open market, or rent it out for a monthly fee. Renting the home is an ideal solution if it is not selling quickly. Be sure to ask the going rate for rent comparable to other properties in the neighborhood. The amount of rent charged every month should be at least equal to the value that someone would pay for a mortgage. Any additional funds that are collected over and above the money you have put out to purchase and improve the property can be put toward the next home for flipping.
It is highly advisable to develop positive relationships with contractors and real estate agents. Over time they will likely reduce their standard fees when working on your home, or showing you new properties to purchase. In addition, it is important to fully understand all of the building codes and regulations in your area whenever purchasing a new home.