We all love money. And we all want money. Real estate is a good way of building assets as well as money. Popular real estate guru Jeff Adams advocates property flipping as one of the lucrative real estate investment options that yields good returns.
Property flipping gives you a good chance to make money by striking a good deal while buying property and then by selling the property at an appreciated price. It is to be done with patience and understanding of the trade.
Listed below are five golden rules for investors to achieve success in property flipping.
1. Haste Makes Waste
Do not be in a hurry to bag the deal; be at ease. Take your own time to get into the details of the property you like. Make sure it is a trouble free deal, which will fetch you good money. Do not let the seller see any urgency in your behavior because he might take advantage of that. The seller should believe that he/she is willing to sell it more than you are willing to buy.
2. Know it All Before You Do It All
Know your exact fund situation in advance. A pre-assessment of the approximate profit the property you want to flip can offer is of extreme importance. A casual approach to calculation may well result in you losing money while flipping the property. So be careful. Your buying cost, cost of renovating the property and other expenditure should be worked upon beforehand to give you realistic figures.
3. Hold Hands with a Partner
It is better to initiate property flipping with a friend, acquaintance or any other partner. This way you share your total capital cost with another investor. Having company is better than being on your own. This is especially important for the initial few deals before you become familiar with the nuances of the business. Splitting your profits should not be a dissuading factor as such partnerships make you more confident and prepare you for your solo venture.
4. Be Quick
It is a profit making technique to be fast after the purchase of the property to be flipped. The real estate market is shooting high. Get a stunning revamp of the house done soon and be prompt in putting it up for sale. The faster you sell the property the more profit you make. And the money can subsequently be reinvested to let the property flipping go on.
5. Keep it Simple
Don’t think of touching the sky with every deal. Keep it sorted and simple. An unexpected failure in a big deal will be a big loss, but with a smaller deal, it will be a small loss that can be managed. Don’t miss the certainty of small and steady profits to run after the uncertainty of big ventures. Spread out your profit by getting into several deals over the year. Keep the money rolling to create a profitable property flipping business.
According to Jeff Adams, it is always the right time to invest in property flipping. This form of investment usually always gives you fruitful and encouraging results.
