You’ve probably heard about people making money by flipping real estate, but what’s it all about? The concept of flipping property is a simple one, and many people are making good money using the process.
To help you understand what is involved, we are going to try and explain the concept and the process in the simplest terms, so that you can take advantage of what could be a very lucrative scheme! So, let’s talk abut flipping, what it entails, and why you should be doing it.
What is Flipping?
Put very simply, flipping involves buying real estate at a discount price, and selling for a profit. That sounds easy, doesn’t it? If you know what you are doing, then it is quite simple, but for a beginner, the trick lies in finding the right property to begin with.
Let’s say you want to start flipping; what sort of property do you look for? To begin with, you want one that you are certain you can make a profit on, and preferably one that will be easy to sell. This means picking a popular area, one where there will be plenty of potential buyers. Florida is a great place for flipping property, and if you want to see the sort of homes that are available, check out Living Vogue, one of the top real estate agents in Sarasota Florida.
One way of flipping is to get to know areas that are ‘up and coming’, that may be undergoing development. These will be popular, but you may have to wait a while for them to become so.
The most successful flipping deals are to be found on two types of property: those that need renovation or repairs, and those that the seller needs to sell very quickly. These are the properties that you will get at a discount price – but you have to be able to move fast, as others will also be interested.
Fix and Flip
The ‘fix and flip’ method is perhaps the one that appeals to most people. Quite often a house needs renovations or repairs that the current owner does not have the time to do, or can’t afford to carry them out. In this case you will get the property at a knock down price. You then either do the repairs yourself or get someone in to fix the property, then sell it for its real market value.
In another case you may find that a seller needs rid of the property quickly – this often happens when the homeowner is relocating – and you get a perfectly good house at a discount price. You simply then sell it on, having checked it over and tidied it up.
So, you’re ready to start flipping real estate? We recommend Florida as a sensible place to start as it is very popular with buyers. Make sure you have money ready, and be prepared to make very fast decisions, and you could find you are making money very soon.