Real Estate Investing – Strategies for Flipping Houses
Real estate investing provides many ways to make money. One that has become quite popular over the last several years is flipping houses. House flipping is the process of buying a house, making any necessary repairs or updates, then selling it for a much higher price that what was paid. This is a very effective method of making money for many people who are able to take care of the repairs themselves. Just think about it.
Let’s say you purchase a home for $90,000. It needs some work so you begin making repairs, replacing fixtures, floors, carpets and so on. You turn it into a completely different house than what it was when you bought it. Once completed, you then put it on the market for $150,000. You could even ask more depending on what its value is after the repairs and updates are made.
Selling a Flipped House
When the house sells, you’ve made a profit. How much of a profit will depend on your cost of repairs and updates. If you purchased all materials at cost and did it yourself, you could make a healthy profit. If you had to hire someone else to do this for you, you probably didn’t come out too far ahead, but chances are you still made a profit.
One great way to build your profits when flipping homes is to take what you make off the endeavors and put it back into the materials for the next home. Think of real estate investing like a business because that’s exactly what it is. You can continue putting the money you make right back into the business and it will continue to grow.
House Flipping Strategies to Consider
One great strategy you can use when flipping houses is to buy low and sell high. This will keep your profits up and enable you to choose houses that really need a lot of work. Again, if you are able to do it yourself or even have your own team who can work with you, the profits will be greater. You can make a lot more by paying your own team of people than you can contracting it out to another company. That way everything will go smoothly, on time and you can begin making money regularly.
When flipping a house for the first time, you might try finding one that is run down and being sold for a very low price. By fixing it up yourself, you will save a lot of money. Since you did not pay very much for it, you can fix it up at your leisure. Then, in a few months time, you can sell it for more than you paid and you will have made a profit. Be sure to figure in your cost of materials when selling the home. You can continue doing this until you have built up quite a business for yourself.