How to Flip Real Estate by Jeff Adams
Flipping real estate essentially entails buying a house or any other type of property with the intention to sell it for a profit. Flipping property is one of the easiest real estate investment strategies, provided you have the necessary capital to purchase property and refurbish it before you can enter the sale stage. Also, if you wish to make property flipping your area of expertise, you will need sound professional backing.
Real estate gurus recommend property flipping to first time investors because of its simplistic nature; however, every beginner needs to possess the essential know-how of property flipping.
Today, we’ll take you through the four stages of property flipping to facilitate your understanding of its simplistic nature.
4 Steps to Successfully Flipping a Property
Stage 1 – The Research Stage
All successful real estate decisions begin with one essential step – Research. Without researching the buying process, preferable localities for buying, current market trends, buying trends and types of real estate investments (residential homes, commercial offices, retails stores, etc.), you cannot make a well informed decision.
It’s alright to take your time to look at different homes, inspect their conditions, estimate the refurbishment costs, speak to your financial planner about your monetary capacity and also get in touch with local real estate experts for their inputs. After all, it’s your investment and your money on the line, taking time to think things through will only benefit you in the long run.
Stage 2 – The Buying Stage
Once you’ve looked at your options and shortlisted a few, make your offer to the seller and you can eventually narrow it down to the property which will benefit you with the most returns. By the time you get to this stage, you’ve probably already checked your financial prowess and whether you will need a loan or not. Also, you will need competent assistance in this stage from a lawyer, financial planner and also a real estate expert to handle tasks right from the paper work to the negotiations.
Stage 3 – The Fixing Stage
In the pre-buying stage, you must have already made a note of the refurbishments that your recently purchased property will require. Your contractor can now get to work with the refurbishment process. It is essential to determine your target buyers (families, singles or partners) and refurbish the home accordingly. Giving your contractor a timeline is also necessary so that you can sell the property quickly before market rates fluctuate.
Make it a point to keep your expenses in check at every stage.
Stage 4 – The Selling Stage
Meet up with home inspectors and realtors to determine the rate at which you should sell this newly refurbished property. Once you’ve taken inputs from as many professionals as possible, you can set a sale price to an amount significantly higher than your purchase and refurbishment expenses. Put up advertisements and stage the home for open houses to meet with potential buyers. When you’ve considered all the offers, sell the property for the best one.
Now, isn’t property flipping easy?
