First time real estate investors and professional investors; we have great news for you! Real estate will continue to be one of the safest investments you can make and 2014 is slated to be one of the best years for investing.
The key to successful real estate investing lies in investing SMARTLY. Be patient and realistic when you invest, keep an open mind and be very clear about what you’re doing. Rely on professional help if needed, but if you venture into this territory without a map, you’re likely to lose your way and fail miserably.
Popular investment mogul Jeff Adams says that flipping homes is one of the safest and easiest investment arenas and with these 5 simple tips, every investment you will touch has the potential to turn into gold. Keep these 5 simple tips in mind for all your future house flipping endeavors.
- Do Your Homework
Research what house flipping entails, find out which neighborhoods fare well on the investment scale, study buying habits and learn how to find the true value of an investment before you seal any house flipping deal.
- Purchase Wisely
Take as much time as you need to think things through but purchase wisely. Are you buying too low? Is there a catch? Is the property overpriced? Was the property upgraded by the previous owner? Will you need to make any upgrades? Will you still be able to make a 20% profit? Make sure your smallest queries are answered before you invest in a house.
- Renovate & Repair ONLY if Needed
Do not make fancy upgrades to the home if it is unnecessary. You might choose to add a pool in the backyard if it fits your budget, but there is no need to install a majestic water fountain only to increase the home’s “envy” quotient. All repairs and renovations that are necessary should be given priority over flashy upgrades which are likely to push your investment input higher.
- Price it Right
Once the property is ready for resale, make sure you relist it at the right price. Consider the current market rate, the average rate of properties in the neighborhood and your total financial input (purchase costs, renovation costs, professional fees and advertising expenditure) before you decide on an asking price.
If you’re flipping the home for a low price just to sell it quickly, you will have buyers jumping for an opportunity and if you flip it for an extra high price, you may be unsuccessful at selling the property. The right price makes all the difference!
Invite Many Offers
Do not sell your home to the first person who is ready to buy it (unless he / she is the only person). Take the time to look at as many offers as possible and accept the best offer among them.
House flipping can be a very rewarding experience if you play the game smartly and with the right amount of patience. Acquiring success as an investor is easy, provided you make the right decisions along the way.
