Flipping properties is where real estate investors buy houses, often through auctions, fix them up and turn around and resell them down the road for profits. Is there money in this? Absolutely, however one bad decision can result in you losing everything.
Many investors are misled by real estate television advertisements that promise large returns on every deal. What they leave out, however, are all the other costs such as real estate commissions, closing costs, insurance, taxes, miscellaneous property maintenance and utilities which come with each transaction. In reality, the actual net profit you get from flipping properties is much less. To help with this, there are some considerations to take before flipping your first house.
Target Quick Selling Homes
Likewise, if you buy an expensive house to flip and resell, it might take a bit longer to sell since fewer people will be able to afford to buy it. You should aim for a price range in the area that is somewhere in the middle of the two.
Gather up a Team of Professionals
Keep it Simple
Consider Private Lenders
For your home flipping to be successful, there is a bit more you should do than simply slapping some paint on the home and mowing the lawn. You need to hire experts to help in areas you are weak in. You need to make the curb appeal of the home attractive. You need to estimate accurately and keep costs down. You need to understand what buyers are looking for in the area you are reselling; a good school district, wooded acres, upscale shopping, etc.
There is unlimited potential in flipping properties; however it takes time, patience and money. Opportunities will continue to present themselves as long as you are making wise decisions in the process. For more information on obtaining a loan through a private lender, please contact us here at Central Street Lending where we work with your unique financing needs.