Well this article will discuss many aspects of this timely strategy. The concept is simple. Buy discounted properties, refurbish, and then sell at a higher price for profit. But how can you start? Where to you find properties? What dangers are there? Is this strategy right for me?
There are lots of questions and many different answers and opinions. But this part is true, done right foreclosure flipping may be an extremely financially rewarding strategy. And right now is among the best times ever to take a peek.
If you look around the internet there are literally millions of articles on foreclosures. The unfortunate truth is that they are all very similar. Wouldn’t some specific personal insights be a nice change?
I don’t plan on changing the world with this article. I just hope to begin offering some real dialog from my own real life, real time experiences. Who knows maybe I can become a better writer. Stranger things have happened.
Follow me on this journey and you just might find your next calling in life.
So how to access this extreme opportunity? Well the time is right to consider foreclosure home flipping. We’ll start with a little of the standard stuff. Then we’ll get back to some real life stuff. Here are a few of the advantages.
How to Flip a House
If you haven’t seen the many shows on television advertising and explaining how to flip a house this ought to help you are well on your way to real estate investing riches through the operation of flipping houses. While there are several negative connotations attached to flipping houses because of shoddy deals and shoddy workmanship before, you can create a positive reputation by doing things the right way if you follow the advice mentioned below.
1) Find a foreclosure home in a suitable location. This is one of the most important aspect of flipping a house. It’s impossible a flip could be successful unless you get an absolutely great deal on a house that is in good shape, needing only cosmetic repairs and touches, that also is actually in a neighborhood where houses move and will get the price you are setting as your goal. While it seems like a little more than a mouthful these things is important to the success of your flip.
2) Have an inspection. This is essential because your inspection should clue you in to any unforeseen problems that may arise. You can either adjust your bid so that you can cover the costs of those repairs or you can pull from the project all together if discovered and unanticipated repairs would eliminate the profit you potential you should make the house flip worth your time.
3) Decide the required steps. It’s always best to salvage as much of the original structure as possible and make mostly cosmetic repairs to the house. The aim of a flip is to spend little making a lot. Plan projects which can be completed quickly (carrying costs are the bane on the town flipper) and with little expense. Flooring, paint, and fixtures are a fun way to create a large impact without spending money.
4) Get the work done. Whether you are assignment yourself or hiring experts you should get the work done as quickly as possible to enable you to maximize your profits. Plan projects to move quickly and avoid projects that rely on the entire property being useless while they are being performed as they risk putting other projects behind when they are delayed for whatever reason.
5) Be flexible with the price. If you stick to your budget you will be able to go with your original target asking price. You don’t want to price the property more than the neighborhood will be able to support and you definitely want to avoid turning off potential buyers by turning down a fair offer too quickly. Advertising and marketing to take a lower offer and sell the house quickly than hold out for a larger offer that never comes (even while paying costly carrying costs).
Flipping a house is a trying ordeal and during the middle chances are you will decide that you aren’t asking for nearly enough money out of the deal. The hours are long and the work is difficult but if you persist and don’t get greedy you will discover that the profits can be quite attractive by real estate investing standards and fairly quick to come. While the work is difficult the payoff is wonderful.
Blah, blah, blah. It’s all very true but what does it mean?
Here is my latest real life, real time example. Just closed escrow re-sale on 6/03/2010
* Purchased duplex in South Los Angeles for $115,000 then convert to single family home
* Construction costs $77,000 total project time frame 5 months
* Re-sale price after rehab $320,000
* Net Profit $68,000
I would be happy to show you and explain all the costs and procedures involved just visit my web site and contact me from there. Remember the safest place to buy is at the bottom. Do you believe we are at the bottom or close to it now? If your answer is yes then take a look at foreclosure investing. Do your homework talk to other people you respect about this topic. I am confident you will come to the conclusion that your time now.
Seth Phillips recommends the following resources.
www.SmarteRealEstate.com