We have all seen them, the late night infomercials that promise to make you a millionaire in 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! Require 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, it up, & sell it for thousands of dollars profit. That is the meat of the secret – buy low, fix up, sell high. Require more particulars?
* Know what you can afford. Before you ever look at a house, find a lender to pre-approve (not pre-qualify) a loan for you. Having your loan (or funds) in hand is a powerful bargaining chip when you are ready to buy.
Buying the Right House
* Shop the right places. Check the newspapers for foreclosure sales & the legal notices for tax foreclosure properties. Buy foreclosures, HUD, auctions directly from Governments & banks (Find the bargain homes here!). Shop around for a real estate agent that understands the kind of house you are looking for & establish a relationship with them.
* Pick the right house. Avoid houses that need over cosmetic repairs. You require a shabby house that is structurally sound with no major plumbing, structural or electrical concerns.
* 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 lovely bargain: ‘motivated buyer’, ‘Must Sell!’, ‘Quick Closing’ all mean that the buyer is anxious to sell, & will likely be happy with a lower price.
Doll It Up!
* Focus on the highest yield improvements. Kitchen & bath spruce-ups will give you back the most for your time & money. If you can only ‘do’ six room, make it the kitchen.
* Paint it, cover it, it up. Start with the basics: paint, paper & floors.
* Stick with neutrals. You require to generate a backdrop for the buyer’s imagination, & 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.
* Have all the receipts & materials warranties for any repairs & work that you did ready to hand over. Knowing that their home is ‘protected’ can help clinch a sale.
* Know your market & loan options. Lots of buyers won’t. If you can help steer them toward loan sources, it will help your sale.
* Be ready to close. Have your inspection & appraisal papers ready in order to keep away from delays.
Are not you glad that you didn’t pay for this “get-rich-quick” secret? Flipping houses is a viable way to invest & become profitable, on condition that you are truly willing to put time & hard work in to the technique.