Property flipping seems to be the investment vehicle of choice for many people looking to make money in real esatate. It's important before you start property flipping to read a top rated flipping house course or two. We offer one by email and you can sign up for it at every page on this site. Below is an article that gives some tips on flipping properties
that I'd encourage you to read:
Okay, you know the drill: purchase a house below the current
market rate, make some repairs and improvements to it, and then
turn around and sell [flip] the house to generate big profits.
While the concept of flipping houses is nice, the reality is
that so much more is involved in flipping real estate. Without
the proper knowledge on how the process works, you could end up
being saddled with a house you really do not want to own or end
up taking a big loss on the sale of your property.
The real estate market has the potential to create huge profit
windfalls for the savvy buyer. Here are a couple of tips to help
increase your profit margin when flipping houses:
Buy low and sell high. How do you find homes to buy below the
market?
1. Create a free brochure titled "3 ways to avoid foreclosure
and get cash NOW for your equity". Then,
Flipping Real Estate: Calculating Costs
If you've been in the real estate investing business, or more
specifically been flipping real estate, for more than a few
days, you've inevitably gotten an email that reads something
like this:
"Investor's Dream. This property will go...
distribute your
brochure to people who are currently in the foreclosure process
and homeowners who are currently 90 to 120 days behind on their
mortgage payments.
By the way, one of the helpful tips in your brochure should be
to call you for a quick sale.
You can obtain foreclosure information from your local court
house. For a list of homeowners who are currently behind on
their mortgage payments you will need to contact a credit agency
- Experian.com, Equifax.com, or TransUnion.com.
2. Contact divorce attorneys in your area. Offer your home
buying service as a resource to help clients liquidate their
homes quickly at a fair price.
Now, before you get into house flipping there are five main
points you must take into consideration prior to closing on your
deal:
Acquisition Costs - Every home will cost you money
Exposed! The Real Estate Wholesale Quick-turn Flipping Deal
Wholesale real estate investing (i.e. "quick-turn" or "flipping" real estate property) is conceptually very simple. Here's how it works:
First, "Investor A" finds a great real estate deal with a lot of equity. Typically, Investor A will have...
before
the deal is even finalized. Plan on writing out checks to your
attorney, to the title company, government agencies - such as
recording fees, and an application fee for a mortgage [unless
you are paying cash], and other closing costs.
Look into getting an option arm mortgage loan with a 1% minimum
payment. This type of loan program can increase your cash flow
by cutting your monthly payment in half!
These loans will also allow you to take a small piece of your
equity and turn it into a tax deduction by creating deferred
mortgage interest.
Management Costs - During the period you own the home you
can expect to shell out cash for property taxes, utilities, lawn
maintenance, homeowners insurance, mortgage payments, and more.
The longer you keep the home, the more expenses you will incur.
Home Improvement Costs - Are
Flipping Houses For Fun And For Profit
Do you want to make more money in two or three months than most people make in a year? You can do just that by flipping houses. What Does it Mean to "Flip a House?" House flipping is buying a house below market price, fixing it up and selling it...
you ripping out the kitchen?
Laying new flooring? Putting in a new garden? Whatever repairs
and improvements you make, are you certain that you can recoup
these costs when you flip the house? Will the value of the house
increase enough to cover your expenses?
Selling Costs - Once you are ready to sell the home, will
you be selling it privately or through a realtor? Real estate
commissions running as high as 6% can eat up your profits very
quickly. In addition, you will need to pay an attorney to
represent your interests and pay any other related expenses.
Capital Gains - A "good problem" to have is to make so
much money off of flipping houses that you have to worry about
paying capital gains taxes. You may avoid federal taxes, but
your state or local government may assess a tax on you. Count on
it especially if you live in a high tax
Finding, Fixing, Financing and Flipping - The Short Course
Most people get involved in Real Estate investing to make
money.
Pretty self-evident - or, is it?
What would you say if I told you that everything you have
been taught about Real Estate investing and making money
'rehabbing' your real estate...
area!
The "deal" you thought you made with the purchase of a house can
quickly evaporate if the market turns cold or your expenses run
too high. Carefully consider all five points before taking
action and know your local real estate market inside and out.
Yes, people do make tidy profits by flipping houses, while
others lose out. Do your homework before jumping in to make
certain that you understand everything before buying a house
that you plan on flipping later.
Please feel free to reprint this article as long as the resource
box is left intact and all links are hyperlinked.
About the author:
Hartley Pinn has recently created the Mortgage
Leads Generator Training Course to teach people how to make
over $50,000 a month working part-time (10 to 15 hrs per week)
as a mortgage loan officer.
