If you’ve heard of investors who have made a great deal of money simply by flipping property and you’re feeling lured to join the bandwagon, take it from us; property flipping is a great way to make profit from real estate investing in 2014. You might be wondering that it’s only made to look easy, it involves back-breaking work, it’s risky or you can sink. However, if you approach property flipping correctly, it can be both fun and easy at the same time.
First things first… What is Property Flipping?
Property flipping involves the practice of buying property, usually a home, and selling it for a profit a few months down the line. While the property is in possession of the investor, he / she may choose to renovate it to enhance its market value before putting it up for resale.
What you Need to Get Started?
Property flipping has some requirements, especially if you are a first time investor. You will need:
- An excellent credit score
- Cash for down payment, professional fees and renovation costs
- Knowledge of the real estate market (current trends, best locations, buying habits).
If you’ve got each of these three prerequisites or you can easily manage to acquire them, you’re ready to get started with property flipping.
What Makes a Good Investment?
Success in real estate investing comes from being able to judge the right type of investment and the right time for investment. Wondering what to look for in your potential investment? What elements about the property can keep your house flipping plans from flopping?
- Desirable neighborhood
- Sound condition of the property
- Easy access to good schools, playgrounds, shopping centers and major shopping routes
- Low crime rate in the neighborhood
- Close proximity to your location
- Good value
If your property meets all the above standards, it is a good sign to get cracking with the deal.
How to Flip?
Flipping a home is easy once you’ve found a good one. By following these few steps, you will quickly and easily find success with your house flipping venture.
- Get educated about real estate to invest correctly.
- Find a local real estate agent to assist you.
- Research listings before you shortlist the most preferred property.
- Make an offer to buy the property you’re interested in.
- Seal the deal for a great price.
- Get working with the required renovation.
- Keep an eye out for fluctuations in the market.
- Relist the property when the time is right.
- Look for many great offers before you accept one.
- Shortlist the best.
House flipping can be a very rewarding experience, especially for the first time investor. This type of investment needs no rocket science and is also a safe and easy place to begin. While there are a few risks, as it is with any type of investment, they can be easily eliminated if you follow all the necessary real estate investment rules.
