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7 Simple Tips For Flipping Real Estate
nless you've been living own backyard. Not to mention,
under a rock for the past it's easier to manage and you're
few years, you've probably likely to know the values in and
either dabbled in real estate around your area.
yourself, or at the very least,
know someone who has. So, how 2. Find the "Right"
does someone that's brand new to Property
real estate start flipping homes?
(And let's clear the air right Not every piece of real estate is
now... IT IS NOT TOO LATE to a good investment - even if you
start investing in real estate). can "steal" it! Make sure you
look at things like:
Follow these 7 tips to start • Property Location - Will you
investing in real estate today: be able to sell the property once
you've renovated it?
1. Look In Your Own • Condition - How much work-
Backyard and what kind of work - needs to
be done and is it a project that
The grass is always greener in you can afford to take on
the other neighborhood, and it's financially and from a management
easy to keep looking for the perspective?
"right" area. The bottom line is • Seller's motivation - Is the
that any area is the "right" seller truly motivated enough to
area. In order to be effective in negotiate on price?
the steps 2 through 7, you've got
to get over the idea that real 3. Have A Thorough Inspection
estate deals only exist in other
areas. It sounds cliché, but
there are plenty of deals in your Unless you've been flipping real
estate for a while or have a become so attached to the deal
background in construction, then that they try to sell it for
it's a good idea to have a full higher than the market will bear
home inspection. It may cost you and end up holding the property
a few hundred dollars, but will longer, reducing their profit and
catch things that maybe you getting left with a bad taste in
didn't know to look for. When their mouth.
flipping real estate, it's the
"little" things that add up very 5. Know Your Numbers - All of
quickly and can eat up your Them!
profits!
Late night infomercials will hype
*** Bonus Tip*** Use a you up with pipe dreams of
home inspection to help flipping real estate for millions
renegotiate the purchase price OR of dollars in profits and no
ask for a credit toward repairs. work. You've seen the
testimonials that go something
like: "Mary Smith purchased this
4. Don't Get Emotional property for $100,000. It cost
$10,000 in repairs. She flipped
Real Estate is emotional by the property for $140,000 and
nature. Investing in real estate made $30,000". Somewhere on the
cannot involve your emotions. screen, you see in teeny tiny
It's got to be all business. If print: Results Not Typical. Your
the numbers don't work, move on Results May Vary!
to the next. So many times,
people are so desperate to flip Of course results are not typical
their first deal that they make because those results assume that
bad decisions just to do you buy the property for all cash
something at all. Then, they've and pay no closing fees and have
no monthly costs. Be VERY estate your new career, it's
cautious of deals that you see important that you know - and
that sound like that! figure - your costs into your
calculations. Keeping this in
In the real world, costs mind will help you keep from
associated with flipping real getting emotional (See Tip 4)
estate are:
6. Keep Track Of Your
• Purchase costs: Progress
Upfront mortgage fees, attorneys
fees, regular closings fees, You can't improve what you can't
title, survey, etc. measure! Throughout the entire
• Carrying costs: It's project, you'll want to
more than just the repairs! When constantly track your progress.
you're flipping real estate, This way, you'll know, at any
you're likely paying higher given time, where you stand on
interest rates than on, let's the deal. This will help keep you
say, a primary residence or focused by keeping the bottom
second home. In addition to the line in front of you all the
repairs, you've got to consider time.
monthly payments, taxes,
insurance, utilities, etc. 7. Expect the Unexpected
• Selling costs: Again,
you've got closing costs and In virtually every single
possibly real estate commissions property you flip, you will run
to consider. across SOMETHING that you simply
didn't expect. Whether it's an
Whether you're flipping a real issue that pops up 2 hours before
estate deal here and there or closing that needs to be handled
you're looking to make real or a big surprise when you peek
behind the drywall that you had satisfaction of taken an ugly
to replace! You'll almost always house and turned it around and
run at least a little over budget depositing a healthy check in
or hold it a little longer than your bank account.
you anticipated. But at the end
of the day, you'll have the
About the Author:
Heather Seitz makes it easy to get to the bottom line. Learn how to evaluate a real estate deal in less than 15 minutes. Get your FREE video on flipping real estate and uncover the top 5 secrets that you need to know to double your profits on every single deal. Get your free video and 5-part mini course at http://www.fixingandflipping.com.
Source: www.isnare.com
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