Flipping Houses Your Beginners Guide
Date Added: December 04, 2007 11:09:21 PM
Nearly everyone dreams of making big money in real estate, but dreaming won’t make it happen. If you have the dream the next step is to get to work and make it happen. It can be done whether you are young and inexperienced or a veteran. The key is learning how to “flip” houses.
Let me relay a story of an investor I know that made a fortune in real estate. He started early in life at the age of 21 without any help from anyone and here is how he did it.
He started out by purchasing a HUD repossessed home with no money down. He took that home and fixed it up by making needed repairs and sold it himself. When it closed he made enough in profit to purchase his next fixer-upper home for cash. He got to work right away fixing his second house and when finished sold that one collecting a profit of $45,000. The profit allowed him to purchase his third home and pay cash.
Now he was getting a comfort level with his method and a short time later he sold his third flip. On this one he realized enough profit to pay for his fourth home and that new truck he had his eye on. The time from the first flip to the third flip was only nine months.
His method was not all that difficult. By targeting homes in need of cosmetic work and avoiding major repairs such as structural issues he could quickly turn the properties with minimal investment. He would complete the painting himself both inside and outside the home. He would also update the plumbing and lighting fixtures and carpeting. When the homes were complete they had a nice fresh look and sold quickly for a profit.
Flipping homes in real estate is a very well practiced method of making money. It is possible with very little money needed for start up so don’t pay attention to people who say it can’t be done. That is simply not true. With the various financing options available you can purchase homes for no money down and get sellers assistance with the closing costs.
There are numerous tactics you can use when rehabbing a home for resell. Some take the process further than just basic fix ups and go to out shine the competition and sell for a higher price. They go the extra mile to make the home feel good when the buyers walk through by adding popular features and styles. Investors take extra steps to put the buyer in the mood to buy now even if the price is higher than the home next door.
