My Blog

March 27, 2008

Flipping Houses For Dummies

There are risks and rewards of flipping properties;

Ask yourself these questions: -

Do you have the time, energy, cash, and other resources to be successful; you must minimize risk and maximize potential profits in a very competitive market.

the key factors that make or break the novice house flipper

• You should secure financing before you look at houses.
• As a flipper, you want dontwanners—houses that the owners obviously don't want.
• You make your profit when you buy the property. You realize your profit when you sell.
• Always plan on earning at least 20 percent after your total investment—purchase price, repairs and renovations, real estate agent commissions, and holding costs (monthly mortgage payments, insurance, property taxes, and utilities).
• Working with a top-notch real estate agent can save you thousands of dollars more than what you pay in commissions.
• You should choose a limited geographical area to work and then become an expert on the houses and property values in that area.
• Your goal when renovating a home should be to bring the property up to market standards, not exceed them.