Flipping real estate can be very lucrative. Flippers like it because of the tangible aspect of actually having a product to watch grow along with the money made from it. So when should you begin flipping real estate? Dean Graziosi explains below.
Property has always been considered a great investment. Even undeveloped property can make money for the seller. Imagine then being able to buy a home at a lower price, fix it up, then sell at a higher one. This is exactly what real estate flippers do. So how can you tell when to and not to go for the deal?
Property is real. It stands in all its glory and deteriorates when left unattended. House flippers are able to look at this very real product and see it in a whole new light. Instead of simply viewing a home for what it is and nothing more, a flipper will see the finished product of what it can become. Being able to make that happen is what appeals to investors who decide to flip.
When to flip a property is an interesting issue. The key is to flip as quickly as possible, but this doesn’t always work out as planned. Before buying a home you will turn around and flip, make sure you have the capital to sink into it. Whether you do the actual repairs and renovations yourself or hire someone to do the work for you, it will all cost money. Not having that money up front will mean the home sits for a period of time without any progress being made. The longer it sits, the more work it will need over time.
If the real estate in a particular area isn’t selling, but you have either purchased a property you wish to flip or see potential for the entire area and are seeking to really invest in the entire neighborhood, you probably won’t be as pressured to flip and sell right away. This affords you the luxury of renovating as money allows. Still, you don’t want to wait too long. Your property should increase in value, not decrease in appeal.
If you live or plan to buy in an area where the prices of property have fallen, now would not be a good time to invest and flip. An article posted on bankrate.com notes that it can still be a worthwhile investment option. The key is to be aware of its pitfalls and try not to fall into them
Flipping houses can also be a lot of fun. This may be especially true if you do all the work yourself. Now you have another tangible aspect to consider because you are able to look at the progress as it is occurring.
Watch the market. This is what will help you know when to flip. Pay close attention to what it is doing and make your decisions based on its current state at any given time. Read more about real estate by visiting Dean Graziosi’s site.