House Flipping – Class 101

House flipping is not a new way to make money, but it is growing in popularity. Several major television networks feature television shows where individuals and companies buy homes and sell those homes quickly at a profit. These shows make it look easy because they seldom show the hardships that those companies and individuals face.

house-flipping

You can start flipping homes for profit, but you must understand how the process works.

When you flip a house, you must purchase that home for a set price. Most house flippers have a cap or maximum amount that they spend on a house. If the house goes over that price, the buyer walks away. You become the owner of that property until you sell it later. You must make the mortgage payments on that property and cover any additional costs until the house sells.

Where to Find Houses

The best place to look for houses is in the classified section of your newspaper. Pay special attention to real estate auctions and foreclosure sales because houses typically sell for less than the buildings would if sold through an agent or broker. You should also keep an eye out for houses sold by owners. The owners want to maximize profits and decide to sell on their own rather than work with a broker. The sale prices are often much less than the cost of buying through a broker.

Fast Flips

The trick to success at flipping homes is to flip the home as fast as possible. Most flippers get in and get out in less than a month. Flipping a house does not involve renovating the entire property, but making a few quick changes that help the house sell for more than the original purchase price. Flippers often paint the walls, lay new flooring, clean existing flooring and make cosmetic repairs. Depending on the amount of time and money you have available, you might add a few elements such as a new bathtub or deck.

Getting Funding

You often see investors or flippers working in small groups, which is a simple way to get funding for the project. You might work with a few friends or family members. Everyone in the group puts up an equal share and split the profits when the house sells. Some groups even use one person as the handyman or project foreman. This person does not put money up, but does work on the house for his share.

Flipping Tips

When flipping a house, make sure that you pay attention to the surrounding areas. Not all homes need new cabinets, granite counters and fancy bathrooms. Only make as many changes as you need to get the house sold. When you make too many changes and add too many elements, you cut into your potential profits.

Investor Tips – http://www.robertjrussell.com

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About robertjrussellcompanies

International Real Estate Agent * Insurance Broker * Radio Talk Show Host * Public Speaker * find out about me - visit http://www.robertjrussellcompanies.com
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