subject: House Flipping Tips For Success [print this page] Author: Wayne Hemrick Author: Wayne Hemrick
One of the best and first house flipping tips you need to know is to do your due diligence. It's possible to make a fortune flipping houses, and it's just as easy to lose your behind if you don't know what you're doing. When it comes to the fix and flip real estate game, there is much more than just rehabbing properties that need some renovation then selling them off to the next guy. So, to re-iterate: the first and best of all house flipping tips is to educate yourself.
The Definition of "Flipping"
When you are flipping houses, you are purchasing a distressed property at a low price and reselling quickly to someone else at a substantial mark-up. While this is often done with run-down properties in need of renovation or "rehabbing," properties like this are not the only game in town when it comes to fix and flip real estate transactions. Homes that are "for sale by owner" are great candidates, as the seller is usually very motivated. Foreclosed properties can also be purchased at a great discount; you can find these through banks and realty offices that specialize in such things.
House Flipping Tips Number 2: Tracking And Bagging Your Quarry
Basically, the best candidates for a profitable fix and flip real estate transaction are those on which you can make the biggest profits with the least amount of time and effort. As mentioned earlier, banks and mortgage companies are prime hunting grounds, but you may also find deals at real estate auctions. The only caveat here is that you are up against a lot of competition at an auction; bids get raised quickly, and you may not get the best deal.
House Flipping Tips Number 3: Financing
After you've done it a few times, you'll probably wind up with enough cash on hand to buy properties outright. However, when starting out rehabbing properties or doing your first flip, you'll probably need to get a short-term mortgage. The best terms can be had if you can make a down payment of at least 5%, and preferably ten.
Of course, it goes without saying that you absolutely must have a ready buyer or you'll be stuck with a second house that you cannot easily sell and cannot afford to keep. This alone may be the second most important of all house flipping tips. You can use Internet resources here, but it also doesn't hurt to have a lot of good networking in the real world, either.
The Most Important of House Flipping Tips
Know the law. Because of past abuses by some unscrupulous individuals, some communities have passed ordinances to discourage the practice of flipping by requiring home buyers to remain in the home for a minimum length of time (usually between six months and a year).About the Author:
