Can You Earn Money By Flipping Properties

People have been talking about flipping properties for decades.  Flipping properties is basically the act of buying a home and then selling it for a higher cost to make a profit.  Some people do this by purchasing old homes that are in disrepair, fixing them up and then selling them at a high value.  Others purchase foreclosed upon property and then sell the same property at current market value.  If you are interested in earning money by flipping properties, there is good news and bad news.

 

The good news is that flipping properties is, in many ways, a recession proof business.  People will purchase property even when the economy is bad.  Another good thing about flipping properties is that the profit to be had by this type of business is phenomenal.  Some people can make between thirty thousand and one hundred thousand dollars in profit by reselling their real estate investments.

 

The bad news is that while people do buy property in a down economy, they do not by property at high levels.  The rate of turnover slows down a lot.  In a good economy, you might flip a property in a week or two.  In a bad economy, you might be sitting on that property for months.  Another problem is that the amount of profit you can make fluctuates depending on the health of the housing market.  When market values go down, so will your profits.

 

The simple truth is, however, that flipping properties can be a great way to make large sums of money in short periods of time–if you know what you are doing.  If you are interested in this type of business, you should talk to your local real estate agent.  He or she can help you begin looking for your first property to flip!

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