Six Smart Tips for Successful House Flipping

Did the radio or television just tell you through an advertisement that you can “make an extra twenty, thirty five or fifty thousand dollars every month just by FLIPPING HOUSES”? While there is truth to the matter (established investors have made fifty thousand dollars and more every month with property flipping), the radio and television make flipping houses sound easier than it is.

If you’re lured into the prospect of making a profit from real estate investing, specifically by flipping homes, there are 2 things you should be very well aware of:

  1. It requires time and effort
  2. It may be no rocket science; but it’s not as easy as counting to ten.

Property flipping entails buying property for the purpose of investment, most often at lower than market value, and putting it up for sale a few months down the line to make a profit. While the property is in the ownership of the investor, he / she may choose to conduct certain renovations and repairs to enhance the value of the property.

Although house flipping is one of the best strategies for a first time real estate investor, every venture needs basic preparation before getting started with it. Here are 6 smart tips that will help you attain success with all your house flipping investments.

  1. Familiarize Yourself with the Process

House flipping is an exciting and overwhelming venture. Once you know the ins and outs of the process, you will be able to flip properties at the snap of two fingers. House flipping can provide you with an impressive pool of income; however, you can use your strengths to play the game better than other investors only if you know what you’re doing. Acquiring basic knowledge about house flipping procedures is essential.

  1. Make a Good Offer

Make an offer that’s attractive enough to lure the seller into accepting your deal and that’s beneficial enough for you to make a profit of at least 20%. It might take twenty or even fifty rejections before your offer is accepted; however, with time, you will learn how to price just right.

  1. Don’t Simply Buy “Low”

Don’t purchase dilapidated property or property in a bad neighborhood just because it’s selling at an unbelievably low price. If you come across property at an unbelievably low price, there is always a catch to it. Examine the value of the property before you jump the gun.

  1. Be Realistic

You cannot expect your first investment to give you 100% profit. Be realistic! Flipping homes can give you a good profit but expecting too much can leave you disappointed. Do the math before you invest with professional assistance from a financial strategist, attorney or a local real estate agent.

  1. Set the Right Selling Price

Ultimately, it’s the selling price of the property that decides your fate. You cannot overprice the property simply to make a profit; but you also have to ensure that you do not incur loss.

  1. Formulate a Plan B

While house flipping is a safe investment venture, it is not possible to find success 100% of the time. Therefore, you should always have a Plan B. If your property does not sell immediately or for your asking price, consider putting it up for rent or sell your own home and move into the investment property. Explore many options before finalizing Plan A and Plan B.

Real estate gurus like Jeff Adams state that by following the above basic tips, you can make a significant profit by flipping houses.