Make Money Flipping Houses
We've all seen them - the late night infomercials that promise to make
you a millionaire in just a few short months by investing in real
estate. Happy couples are thrilled to tell you in gushing terms how they turned their
entire lives around in less than a year by following the secret formula that you
can have for only $39.95, with a money-back
guarantee! Want the secret formula without paying the $39.95? Read on...
The secret to making money in real estate is a technique called 'flipping houses'.
The principle is simple - buy a house that needs minor repairs for a low price, pretty
it up, and sell it for thousands of dollars profit. That's the meat of the secret - buy
low, fix up, sell high. Want more particulars?
Getting Ready
Buying the Right House
-
Shop the right places. Check the newspapers for foreclosure sales
and the legal notices for tax foreclosure properties. Buy foreclosures, HUD, auctions directly
from Governments and banks (Find the
bargain homes here!). Shop around for a
real estate agent that understands the kind of house you're looking for
and establish a relationship with them.
-
Read the ads right. In real estate listings, look for words like
'Handyman's Special' or 'Fixer-upper'. Other tells that you'll get a
good bargain: 'motivated buyer', 'Must Sell!', 'Quick Closing' all mean
that the buyer is anxious to sell, and will likely be happy with a lower price.
-
Pick the right house. Avoid houses that need more than cosmetic
repairs. You want a shabby house that's structurally sound with no major plumbing,
structural or electrical concerns.
Doll It Up!
-
Paint it, cover it, pretty it up. Start with the basics: paint, paper and floors.
-
Focus on the highest yield improvements. Kitchen and bath spruce-ups will give you back
the most for your time and money. If you can only really 'do' one room, make it the kitchen.
-
Stick with neutrals. You want to create a backdrop for the buyer's imagination, and the
more neutral the canvas, the easier it is for them to see their furniture against it.
Sellers' Bargaining Chips
-
Sell it yourself. Why pay a realtor's commission fee now.
-
Know your market and loan options. Many buyers won't. If you can help steer them
toward loan sources, it will help your sale.
-
Have all the receipts and materials warranties for any repairs and
work that you did ready to hand over. Knowing that their home is
'protected' can help clinch a sale.
-
Be ready to close. Have your inspection and appraisal papers ready in order to avoid delays.
Aren't you glad that you didn't pay for this "get-rich-quick" secret? Flipping houses is
a viable way to invest and become profitable, provided that you are truly willing to put time and
effort into the process.
|
