Flipping is the practice of purchasing a piece of property with the intention
of doing some work and reselling it immediately. This is a great way of making
some nearly instant cash, if you have the money to make the initial investments
and the ability to accomplish the work needed to make the property ready to
sell. Want to know more about flipping real estate? Take a look at some of the
keys to successful flipping.
The first step is to find property that’s suitable for flipping. That means
that you have to find houses and land that will be in demand. Mountain hideaways
may be your idea of a perfect house, but the first rule is that successful house
flipping happens only when you can find buyers for the property.
Most people who work at flipping properties start with houses and buildings
that need renovation. Generally, you can expect to get a much better deal on
property for flipping if that property is in dire need of repairs. Just be
careful that the base of the house is solid – and that’s referring to more than
the foundation. If you have floors falling through, termite damage and weather
rot, you’re going to pour a significant amount of money into the property – not
a good idea when flipping that house is your goal.
If you have a solid house that simply needs some renovations – even major
renovations – you’re well on your way to successful flipping. Naturally you’ll
start with the big stuff. Leaky roofs and pipes that can cause continuing damage
should be first on the list.
While major renovations are often to be expected with flipping projects, take
time to consider what the house has to offer before you take off on those
renovations. Older properties are especially prone to have charming features
that can easily become important selling points. And selling is your ultimate
goal with flipping houses.
Take a look at the neighborhood before you create or approve a renovation
plan. Even if your only plan for the property is flipping, you’re more likely to
get a quick resale if the property fits into the neighborhood. If the area is
filled with young professionals who are seeking modern homes, that should
probably be considered in your renovation scheme. If you have a neighborhood of
charming older homes, mostly occupied by retirees who see the neighborhood as a
quiet graceful place to live, you’re probably going to attract those kinds of
people as potential buyers. That means you should renovate with those audiences
in mind.
Choose the contractor and workers carefully. This is especially important if
you’re planning a grand opening. The successful venture in flipping real estate
will sell right away. If you have potential buyers trekking in before the
project is complete you may lose a sale. Look for reliability, ask for
references and talk carefully about timeframes.
Finally, remember that your goal of real estate flipping isn’t complete until
you’ve sold the property. You can hand it over to a real estate agent or broker,
or you can do some or all of the marketing yourself. Consider throwing an open
house to show off the property you’re flipping, especially inviting neighbors
and realtors. The neighbors may know others who are looking for property in the
area and getting agents excited about selling the property will make your total
flipping time less.
If you have the money to invest, flipping houses is a great way to make a
significant return on your investment.
