Distressed Homes For Sale: House Flipping For Success
Distressed Homes For Sale: House Flipping For Success
The staggering drop in prices of real estate properties has led to many market opportunities. For instance, you can find a lot of distressed homes for sale at big discounts for as much as 70 percent below their actual market value. With deals like this, it is no wonder that many investors and buyers are finding lucrative opportunities in buying these properties and turning them into profitable investment.
House Flipping
House flipping refers to the practice of real estate investors in buying distressed homes at rock bottom prices and then reselling them for a big profit. Many buyers are actually in the market to scour for distressed properties that they could house flip. They consider it as one of the fastest way to have a quick return on their investment.
The key to a house flipping business is to find the right properties to flip. Distressed homes for sale fit in this category because of their very low prices. But you should remember that you still need to evaluate and assess the overall quality of the distressed property itself before you buy one. This is to ensure that your money is well-spent for properties that have genuine potential of earning for you a big profit.
Generally, you should look for a property that is situated within a promising neighborhood. Remember that you are packaging the house for a later sale and the type of neighborhood comes well on the top of the list of every prospective buyer. Second, you need to have an accurate estimate of the overall repairs that the property need. As a rule, the cost of repairs added to the purchase price should not offset the savings that the property can give you which means that even after all the repairs, you can still make a fairly good profit from its sale.
You will also need a good team of handymen to repair distressed homes for sale. Remember that most of these properties may have been in some state of neglect due to their previous owners' financial dilemma. These handymen should be able to fix the property within your budget and tell you which parts of the house need to be repaired at very minimum cost. Be wary of contractors which are more interested in creating a business for themselves out of your investment. They may not have your best interests in mind. To be sure, consult only with qualified home inspectors.