“What is it that you like doing? If you don’t like it, get out of it, because you’ll be lousy at it. You don’t have to stay with a job for the rest of your life, because if you don’t like it you’ll never be successful in it.” -Lee Iacocca
One of the most popular investments is flipping houses.
It is all over television, on the covers of real estate magazines, and on the lips of financial advisors world wide. There have been rumors that flipping houses is actually an illegal activity or a great rich quick scheme to turn you into a millionaire over night. However, in this article we will explore the truth about flipping real estate.
Flipping houses is not an illegal activity. However, there have been many situations were dishonest brokers, real estate agents, and appraisers have created ‘great rich quick’ schemes which victimized hard working people who wanted to make a little extra money.
This is why it is extremely important to research any type of investment and make sure it is legit. But the world is not full of bad people. There are plenty of legal and moral real estate flipping investments that are available to the casual investor. There are several different ways to make money flipping houses.
The first includes helping struggling home owners, who are in foreclosure. You would buy the property and then resell the property to the home owners at a profit. While still ensuring that it was improvement to their financial situation.
You can also seek out a home owner who wishes to get rid of their property quickly. You can create a sales contract of the house then resell the contract to a real estate developer or investor for $5,000 dollars. If you are handy you can also buy a house that needs to fixed up, repair it, and sell it far above it’s market value.
How? The first order of business, if you are invested in flipping houses, is to get your finances and credit in order and good standing. You can not get a mortgage on a house if you are already suffering financially. Then pick a target location and research. Know how much houses and land sells for. This is important because knowing the market value of the surrounding properties will make it easier to pick out the bargains.
Take a couple of classes in negotiation. Understanding human nature and stress are important if you are going to work with home owners who are in foreclosure. Then find yourself a good real estate agent that has experience with flipping houses. Making money on flipping is all about the time. The quicker you can do it the better, and more profitable.
If you do not know how to do home improvements, you need to learn or hire someone you can trust to do the work. You may also want to consider taking real estate classes and learn how to sell your own properties.
By Andrew Watson