Flipping
Flipping Real Estate – Major Steps for Successful Flipping
By Buyincomeproperty.com
Oct 11, 2005, 10:10

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.