Flipping Properties And Foreclosure Investing

As an investment strategy, flipping properties can be tremendously lucrative – but like any investment, there is a certain amount of risk involved. It pays to educate yourself and learn some smart house flipping tips and familiarize yourself with the lay of the land and the nature of the market before you start flipping properties. If you are a skilled handyman, you may actually find the rehabbing houses in need of repair can be a very good way to make money in real estate, since damaged properties can be had at a large discount – and since the largest expense is labor, anything you can repair yourself represent “sweat equity” that can be turned into extra cash at the end of the day.

How To Flip a House 101

At its most basic, flipping houses is the concept of “buy low, sell high.” In this case, you are looking for a property that can be had for a low price, the turn around and sell this to a second party for a substantial markup. The best of all house flipping tips is to find a “distressed property” with a “motivated seller” who will give you the home for a bargain price , then turn around and sell it for a tidy profit.

Once you have done it a few times and really know how to flip a house, you’ll never have. to worry about finances again. It still requires some homework, however. Whether you’re into rehabbing houses in need of repair or are flipping properties that have been foreclosed upon, your first stop should be at a local bank our mortgage company. These institutions generally maintain listings of “distressed” and foreclosed properties and are usually anxious to get rid of them.

More House Flipping Tips

If you see signs that say “For Sale By Owner,” that’s a good indication that you are looking at a motivated buyer. S/he may be facing foreclosure or divorce, or tax problems. In any event, chances are that you can negotiate an excellent price with such a buyer that will leave you with a sizable profit margin.

If you would know more about how to flip a house and rehabbing houses, your best course of action is to get to know some local real estate agents – particularly those whose specialize in foreclosed properties. It’s always a good idea to learn from the experts – and the greatest experts are those who have been there and done that.

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