Flipping Real Estate for Amazing Profits

Posted on March 13, 2010
Filed Under Define foreclosure |

Flipping real estate or house flipping is a popular trend in today?s real estate. The buyer looks for property that can be obtained at bargain basement prices and then resells it for a profit. The idea is to buy low, have a minimal investment in renovations and sell for a large profit. Typically the house flipper is investing in the single family home.

Frequently house flippers will look for homes with tax liens, in foreclosure, estate sales or houses abandoned for reasons such as hurricanes or flooding. In the New Orleans area, many homes were vacated and remained vacant after hurricane Katrina. Many families simply chose not to return to New Orleans after the storm and made homes elsewhere. This type of property is a prime target for a house flipper.

Once a property is obtained, the house flipper remodels and upgrades the property. Often only cosmetic remodeling is required to make a house appealing to a potential buyer. The handyman can usually do many of these changes himself. This makes for greater profit.

When considering a house to flip, know your abilities and limitations. Many times these properties are obtained by the house flipper ?as is?. The more you have to spend to make a house sale, the less profit you will make. Also, consider what remodel trends are considered to bring in the bigger dollars. Painting, replacing carpet, refinishing floors or landscaping are relatively cheap remodeling tools that can push the selling price up considerably. Renovations that are more extensive may have to be made such as updating a kitchen, bathroom, or finishing a basement. While these updating trends can be expensive, they usually have a huge appeal to the potential buyer. Many buyers will pass a house if they have to do something like remodeling a kitchen.

Another big concern to the house flipper should be the ?big? repairs. Foundation problems, out-dated wiring, bad plumbing, or a bad roof are not only costly repairs, but will quickly take a huge piece of the profit. Look for fatal flaws carefully. Get a contractor to inspect the property and get quotes for the repairs. Some repairs cannot be covered with paint or hidden by a shrub.

The astute house flipper will also consider the neighborhood. If a property is going to resale, then it has to be re-saleable. No one wants to buy a nice house in a neighborhood with nothing but run-down houses around him or her. The property to be flipped should be comparable in price to the surrounding area. In addition, the property should be kept within the theme of the property. In other words, the house flipper should not make an artisan house look like Buckingham Palace. At the same time, pleasing decorative touches can be quite appealing such as changing the color of the outside or adding a porch. Try to keep it real and in budget.

Gen Wright
http://www.articlesbase.com/accessories-articles/flipping-real-estate-for-amazing-profits-677320.html

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