Tips to Successful Property Flipping
Here are some tips for buying and flipping the property for profit. It’s important to remember that property flipping comes with great financial risks as well as rewards. Consider your individual financial situation with an adviser before making a large financial investment.
What is a Property Flipper?
Property flippers provide a ready market to help motivated sellers solve problems of their own, and then take care of neglected maintenance and make improvements to the housing stock, making homes and neighborhoods more valuable after the flip than before. They get back some of this value as profit.
Making Money Flipping Properties
Make your money when you buy, not when you sell. What drives your profit potential is the discount from the fair market value that you can get. You can get this discount by being willing and able to close quickly on a house when a seller is motivated and needs fast cash or the ability to relocate. Buy at a discount to the intrinsic value of the investment. Be picky. Especially with your first deals.
Keep it Simple
Most big renovations are net money losers, on average. Don’t count on them for your profits, unless you need to renovate to make the property livable or to bring it up to the minimum standards of the neighborhood. Make sure you factor in your renovation costs when you make the offer to the seller.