Flipping Property Despite Economic Hardship

Investors who are flipping property today are taking advantage of the unique opportunity time has brought before them. These are investors who have come to realize that there is always a bright spot despite news of falling home prices and spiking unemployment rates. They see things that for other people are sights of poverty and desperation as opportunities to make money.

So, why is flipping property is good investment in today’s market? There are a number of reasons but the first and perhaps most important is the availability of investment properties. Today’s market is filled with undervalued houses – properties that are actually worth much more than what they are selling for today. They are everywhere and if you look around, you’ll probably see one.

Properties that are ideal when flipping houses include rundown homes, also known as fixer upper homes. These are properties that need some repairs and have been neglected by their owners, whether intentionally or not. Some owners no longer live in them while others simply don’t have the money to have their houses repaired. Because they need repairs, they are priced low. That is despite the houses being located in good neighborhoods. When flipping houses or practicing other forms of real estate investing, buying low is the key. In today’s market, you can purchase houses at very low prices.

Apart from these rundown houses, you also have foreclosures and bank owned homes. Foreclosures are available at auctions. If they are not sold through bidding, they become bank owned homes, or properties repossessed by lenders from mortgage defaulters. Because of their overflowing number, banks are more than willing to sell these houses to private buyers or to those who are flipping property at very low prices. They cannot accommodate a huge number of banks owned homes so they would rather let go of them at discount prices.

But aren’t investors who are flipping houses worried of home prices? Why should they be? If home prices fall by 5%, that simply means they must be able to acquire the property at 5% lower than their usual offer. If home prices increase, they just have to sell it higher than the usual asking price. Real estate flippers ride the wave of home prices – that’s how they stay afloat despite a tsunami of foreclosures, despite a wave of economic hardship.

Article Source: http://www.articlesbase.com/real-estate-articles/flipping-property-despite-economic-hardship-3129287.html

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