5 Tips on Flipping Properties

1. When flipping a property or house, the goal is to make money. The money you make from the house is made when you buy the property that you would like to flip. Therefore, when making your property purchase, you must consider the costs of repairs and upgrades to the property. Many people buy houses with the intent of turning them into mansions (as an example), but soon realize that the house will either be too expensive to sell on or that repairs will cost them more than the purchase of the property. Buying a home for say, $67,000 and selling it on for $75,000 is not a profit.2. Be sure to inspect the property: – It is most definitely worth every dollar spent to have a complete inspection conducted on the property you want to buy. This is the step that you cannot AFFORD to skip over. Inspectors are qualified, trained professionals who are able to find faults, structural or otherwise, that you might simply overlook or be unaware in the property. During the contracting agreement for the house, smart investors get 7 days to have a complete inspection conducted. This way, you have enough time to see all the repairs that might be needed for the property. This information gives you the time and to negotiate or opt out of the contract completely.3. Outsource the work: – As an investor, you do not have time to do tedious and time-consuming repairs to any property. Your job is to find the properties and then delegate out any work that need to be done. Outsourcing itself can be hassle and consume your time, so it’s most important to source a list of contractors and develop a good working relationship with them. In doing this way, you can immediately get started on any of your projects, without wasting time sourcing the contractors needed for the work. Most property flips can take anywhere from 2 – 4 weeks. Developing relationships with your contractors will allow for you to save money, meet deadlines and most importantly, giving you the opportunity to have your property on the market in sufficient time.4. Market Value Rule: This rule is very simple. When flipping a property or house, it is essential to place it for sale, 1 to 2 percent below the market value. This helps for a speedy sale, which allows you to move on to your next project or flip quickly. You must remember that your sale is actually made at the purchase of the property and so therefore, it’s important to sell without being greedy. There is no need to keep a property on the market for an extra 2 months, just to make a bit more profit. This will actually cause you to lose money. Your goal is to sell the property based on competition in the market. If the property is priced too high, any buyers will simply find a better house, at a lower price in the same market.5. Have a Qualified Agent – You are an investor, not an agent. DO NOT try to sell your own property. Use your time to find other properties to invest in. If and when you are doing well with your real estate investments, you may well be to afford your own in-house agent. Be sure to engage a qualified and licenses agent and ask for proof of this. Allow the agent to take care of all the details of the selling of the property. Should you choose to outsource an agent, it would be wise to outsource from your list as mentioned in No. 3 above.If you remember these 5 steps, you will be successful in flipping properties. However, continue to research your niche market so that you are able to offer the best services available for your buyers. This market is ever-changing so when you have a better understanding of the ‘people’; it will make buying and investing in properties a whole lot easier.

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