19 Mar Here’s How To Flip Real Estate Right.

Are you looking to flip properties as a way to earn big money fast? Experts agree this is a great investment, however make sure you do your research so your flip won’t turn into a flop.

Investors need to be clear on exactly what kind of flip they’re prepared to pursue.  There is the “quick flip”; buying a place, fixing it up, and selling it within a profitable timeline. You can also acquire property to generate wealth over time, buying property for rental income then selling for a profit once they have appreciate in value with the surrounding community. The more income producing assets you own the faster you can make a large profit.  Assets are things like: rental houses, rental apartments, businesses, trademarks, copyrights, intellectual property, land, commercial real estate, the list goes on and on. All the businesses you see and use, the apartments you rent, etc etc…They’re all making the woman or man who own them wealthy.

The Basics

Be clear with your real estate agent about your goals. When people aren’t clear, they’re running around all over the place being guided by others ideas or advice.    As a flipper, know your own goals and share them with your hired professionals.

Ask yourself a list of questions that go hand in hand with your goals when looking at each potential property.

For example:

Why is this property is going to be worth more after you buy it?

How will you add value to this property?

Is there something happening in that town–a new business opening up or a new power station–some kind of economic reason?

The “classic” flip everybody wants is a foreclosure. While some of these sales can be profitable keep in mind they are not the only outlets. Banks that have taken over ownership of these properties have done their research on market value and also have the means to hold on to properties until they receive an offer that meets it.

Pick a city experiencing economic growth not just speculative value increases. Have a plan B in case the property doesn’t sell as quickly as you would like. And only renovate it to the level of the neighborhood or the target buyer or renter, not to the level you may want to live in.

Remember there is risk involved you may go somewhere and buy the wrong thing, or you might buy the right property at the wrong time. Hiring a real estate agent with knowledge of the area and market will lower your risk. Contact Danielle Lunetta your Windsor Agent at 519-817-0815 to start building your investment portfolio today.

Great link below to the Globe and Mail about Ms. Cindy Wennerstrom an experienced real estate “flipper’:  http://www.theglobeandmail.com/report-on-business/small-business/sb-money/valuation/real-estate-long-flip-versus-quick-flip/article4258898/