Flip That House - Finding Good Investment Property
If you want to make money in the real estate market, you have to learn to how to Flip That House. And the first thing you need to do is find the right property in which to invest. When you flip that house, you will be buying property for a lot less than what you are selling it for. This can be any type of property, including commercial real estate. But for those new to the game, you should focus on "bread and butter" single family homes.
What do I mean about "bread and butter"? These are the homes that middle America is buying. The largest segment of Real Estate Buyers are looking for the basic home for a family. That would generally be a 3-4 bedroom, 1-2 bath home. Starting out don't try the 2 bedroom homes. While these may be cheaper in the beginning, it may end up costing you more in the long run if you have to hold it longer before you can sell it. The largest segment of people looking for a home in which to live are looking for 3-4 bedroom homes. You will want to market your product to the largest segment of buyers.
Before you can flip that house, you should have a good understanding of the real estate market in the area you looking to invest. This entails knowing what areas are best in which to live as well as the general property values in those areas. If you have a good handle on which locations are the most sought after in the location in which you live, you will do better when making an investment in areas close to where you live.
In order to make the best real estate investment, you have to think backwards. In other words, you should be thinking of how much you will be able to sell the property for to a buyer before you even make the purchase. This is something you will get to know as you get to know the market in your area. Also, you should know how to get some "comps" to use to determine what you sales price will be. As you are buying this house strictly for investment, it has to be worth it to you to be able to sell it quickly after you have made your purchase. You make your money when you buy.
The type of repairs that are needed in the house must be figured in with the cost. So should any taxes that have to be paid as well as any fees for estate agents. If you plan on selling your property with the use of a real estate agent, you are going to have to figure in their commission for the sale as part of the cost of business. This should be added on to the cost of the property. Then you need to determine your profit. This should also be figured in and subtracted from your completed sales price. Once you have calculated all of the costs including your profit, subtract that from the price that you can get for it when you sell it, and that is your purchase price. That is where you will make an offer.
When you flip that house, you can make a few thousand dollars for only a minimal amount of effort. This is what makes this type of investing so lucrative in the market today. Even in a down market, you can buy foreclosures and short sales as well as rehab houses, fix them up and turn around and sell them. You can flip that house and make money in a down market or an up market in real estate.
What I reccommend to all first timers who are looking to get into the house flipping business is to get an education first. You obviously don't want to lose money on your first time out or only make a thousand or two. You are looking to increase you finacial stability dramatically. So look into a reputable course on the subject. One of the best I have found is by Armando Montelongo.. He has put together a comprehensive course using the same system that has allow him to flip as many as 30 houses in one month. To get his course just go to www.ArmandoMontelongo.com and sign up to get his course. You will be glad you did when you see all of the money you have rolling in.
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