Flipping houses is a type of real estate deal allowing investors to buy distressed properties, renovate them, and resell them quickly at a profit. Flipping is an attractive option for investors because just about any investor with some know-how can structure a successful flip. Also, the profit potential in this sort of transaction is very attractive - successful investors can make tens of thousands of dollars or even more from a flip in a relatively short amount of time.
Not like the Foreclosures on TV
A number of reality shows suggest that flipping is very easy indeed, and this is somewhat misleading. Successful flipping does in fact take some work and some planning - but the payoff can be significant. Successful flipping, in almost all cases begins with a careful selection of foreclosure properties. Buying foreclosures that are in need of some minor cosmetic repairs is one of the best ways for new investors to break into flipping.
Smart Foreclosure Tips From the Experts
Many new investors think that buying a home that needs a great deal of work is the best option because such a home will rise in value the most. This is not the case. Experienced investors sometimes purchase homes that need major rehabilitation, but these investors have the experience, capital, and the contractors to be successful with this type of project. New investors can still make an admirable profit by buying homes that requires a good cleaning, some fresh paint and some minor repairs to flooring or walls. Since it is often difficult to tell which homes will need expensive foundation or roofing repairs, it is essential for all investors to have a professional inspection completed of any property they are considering buying. It is also important to develop a budget for the renovation project.
In Real Estate, Location Counts
Location is important in all real estate transactions, and it certainly is important in flipping as well. Choosing a distressed home in a good neighborhood is important, since a great deal of your success will depend on how quickly you can sell the property once it has been fixed up. Research communities carefully and buy in areas where homes sell quickly and well. One good piece advice is to buy the untidiest home in the nicest neighborhood you can afford. Once you have brought the home up to the same standard as its neighbors you should be able to resell quickly at a good profit.
If you need help getting started with flipping houses, start your 7-day trial and view our listings at DistressedPropertiesSale.com today. We offer many distressed homes that would make a great flip.