Flipping HousesFlipping houses is a great way to earn money in real estate. You buy a property, fix it and then sell it for a profit. These three things are the basic principles of house flipping where an investor can earn substantial profits. An investor that is able to buy, fix and then sell a house quickly emerges with money and profits that he can use to fund his next real estate investment.
Buy a Property
This is the very first thing that you need to do in order to get started in flipping houses. Consider however the funding that you will need to purchase a property. Do you have the cash to buy the property? Will you be applying for a bank loan? Do you have a partner with whom you can share the costs of purchasing the house? Depending on your financial situation, financing and funding are important things to consider before buying a house to be flipped.
In buying a house, consider the location and the structural quality of the property. Choose a house in a very good neighborhood so that the property will be easy to sell later on. Determine as well the improvements that are necessary. Check for leaks as well as damaged flooring, plumbing and roofing. Try to assess if the house you are considering is well worth your effort. Usually, experienced house flippers choose properties wherein minor repairs are necessary such as installing new carpeting, repainting, and gardening.
Your goal is to make money so it would be great to buy a property that's priced below market value. Finding motivated sellers is one way to buy a low-priced house. These motivated sellers are people who wish to sell their houses for fast cash. Job relocation, divorce or death in the family may oblige people to sell their homes at really low prices.
Distressed properties are also low-priced homes that you can look into. Look for announcements of foreclosures in the newspaper and see if you can bid for the property. However, be very careful as some foreclosed properties don't offer a preview of the house; thus, giving you no clue of its marketability.
Buying a house to be flipped involves several factors and these are location, price, and structural value. Start by buying a property for the average American family. This is usually a house with 3 bedrooms, two bathrooms, a living room, kitchen, dining room, garage and a nice garden.
Fix the House
Renovations and improvements are the next things that you should do in flipping houses. Set a budget on the materials, labor and overall expenses that you need to make. Determine whether you'd like to hire a contractor for the job or do the fixing yourself. Try to find the cheapest labor if at all possible. You, an older son and college kids who need money can do all the fixing.
Apart from setting a budget, you also need to have a timeframe for the project. Time is of the essence in house flipping as a house that sits too long in the market, is no longer profitable. Usually, a house must be sold within 90 days from the time of purchase.
In fixing a house, focus on key aspects that can boost the value of the property. A well-tended lawn is one as well as replacing broken electrical wires and plumbing fixtures. Make a detailed outline of the materials and items that you will need for the entire project. Keep the design of the house simple and clean yet attractive.
Sell the House
Everything boils down to eventually selling the house for a profit in flipping houses. Stage an open house and invite people to come and see the house that you are selling. Market the event and inform as many people as possible about it.
You can prepare and send out flyers to your friends. Write a press release about the house and talk about the property in social networking sites and forums. Use descriptive words and phrases when telling people about the property. Instead of merely saying "house for sale", write "modern opulence" or "Twilight cottage". Do your best to sell the property as fast as you can.
Flipping houses commands an average income of at least $25,000, which is not bad for a real estate investment. This may just be what you need to do in order to earn more money. Invest in house flipping projects and enter a world where huge profits can be generated in a short amount of time.