The Flipside of Flipping Property

Television programming and infomercials are not telling you the whole truth when they say that flipping property is a fun and fascinating way to turn a serious profit in real estate. It is just that, though it is also so much more. You can make a lot of money by flipping property (buying homes in various areas of neglect or disrepair, doing the repairs, and then selling for a sizeable profit) by the right professionals. However, there is a great deal of labor that is truly involved in the process of making that profit.

The huge volume of work, the time consumption, the sleepless nights and days, and the oftentimes disgusting chores that should be made in order to make a run down property in sellable conditions is often glossed over on these television shows for various reasons-most of all the reason that the normal Joe sitting at home wants to believe that he too can do this kind of work for quick profits and these images are not helpful to that illusion. In other words, this is a tough racket no matter how simple they attempt to make it seem.

Poor planning is the annoyance of a property flipper’s existence. In order to have a successful flip (and by that I mean maximum profit-minimum investment not a few profit at all) you should carefully create a plan of action and apply that plan as fast and cost effectively as possible. You should also realize that there are likely to be rain delays, hiccups, and disasters along the way. Proper planning can eradicate some of the disasters that can occur but it will not remove every conceivable possibility that will occur along. More importantly than anything else however, proper planning can reduce these occurrences as well as their severity to the overall time schedule and budget.

Another significant thing, which falls under proper planning, is having a proper inspection completed. The value of this step cannot be stressed adequately. Knowing the problems and possible problems that occur in a property can help you create a workable timetable and budget for the property flip. This also notifies you of possible problems you could encounter along the way. The television shows that deal with this week in and out often leave out this oh so valuable step and many would be investors discover themselves investing in a cash pit instead than a home that has potential to turn the quick cash they are wishing for.

You must make each effort to insure that your first flip is a simple cosmetic flip (this is something that a skilled inspector can assist with). In fact, this must be the case for your first few flips and afterward you can move on to more significant flips that entail more labor. The rationale is simple-while the profits will be somewhat smaller on these cosmetic flips it gives you, as the investor, the opportunity to understand to budget, set timetables, and live within those budgets and timetables. This is where generally investors go astray when taking on projects that are exceeding their resources. A house flip is no little endeavor and there is a lot of cash to be lost along the way if this specific real estate investment doesn’t pan out. Begin small and ignore the dollar signs in your eyes, then work up to more extensive projects.

An additional pitfall that many investors create is not catering to the audience they are eager to draw in the property being flipped. A bachelor’s pad does not need 3 or 4 bedrooms. At the same time, a family house typically needs a minimum of 3 if not 4 or more bedrooms. Other considerations must be fenced in yards, landscaping, and maintenance necessities. Low maintenance lawns are in high demand these days specifically low maintenance lawns that appear to be well landscaped.

Keep these things in mind when flipping property and you must see some degree of success-just remember, the rewards when you are doing things you never believe you would be doing during the process.

Article Source:

About admin