Experts
say that it is just as possible today to become wealthy in real estate as it
ever was but you’ll need 3 things to get started; good credit, at least some
cash and of course the right strategy. The big question is what are the proper
strategies? Plenty of us have good credit and “some” cash but what’s the secret
ingredient to becoming the next Donald Trump? Here’s the right way to “flip”
your way to fame and fortune!
Fixing up rundown
homes and selling them for a profit is still one of the best ways to make it
big in real estate but there are a few “catches”. First of all
you will definitely need some cash to get started. Obtaining a mortgage for a
fixer upper is more difficult than getting bank approval for a home that you
intend to live in and be forewarned; you will be competing with persons that
have the ability to make instant all cash offers. Still, if you have the means (or
easy access to credit) this is a great way to make a return on your investment.
Rehabbed homes
are still in demand and if you time it just right it is possible to make big
profits when flipping a home. The best time to sell is when home
prices are on the upswing. That’s why some investors will “sit” on a home that
they have already finished. They are waiting for home prices to peak to get the
best price for the home. That’s a great strategy if you have the time, if not,
it’s best to sell for less and move on to the next project.
Finding the
right property is also a big part of the equation. The best method
to locating that perfect investment home is to find the “ugly duckling” in an
area where home prices are on the rise. Research is the key to success here.
Check the recent sale prices of homes in the immediate area and also take the
time to determine how long it took them to sell. Experienced investors
recommend selling the home in no more than 60 days and moving to the next one
as quickly as possible. As you can see, luck is a definite part of the process
but choosing the right home in the right area at the right time has a lot to do
with being successful.
Do your homework
before you buy your first diamond in
the rough!
The biggest mistake that investors make is buying the wrong home to flip. A
home that costs too much or needs too much work will eat into the profits and
that is a fatal mistake. Unless you intend to do all the work yourself be sure
to get at least 3 estimates from contractors that you trust. Let me say that
again, T R U S T. I’ve heard a thousand stories where the contractor was the
problem and not the house. Finally, before you sign on the dotted line don’t
forget about the additional expenses you will incur when you do finally sell
the home including closing costs. A qualified realtor can help you to determine
all of the expenses incurred when selling a home.
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