subject: How To Make A Fortune Flipping Houses [print this page] There are numerous shows on television showing you how easy it is to make money in real estate by flipping houses. If you believe these shows, you would think that flipping houses is an easy to make money. Like most things in life, you should take these claims with a grain of salt. Of course, there are ways to make a lot of money flipping houses...if you do it right. So if you are serious about making money in real estate, make sure you follow these basics.
Above anything else, you need to realize that your final goal is to make a lot of money or as much as you possibly can. You also want to do this in as short a time frame as possible. You can do this by doing several smart things.
Get An Inspection
Have a thorough inspection completed before you make an offer on the home. The inspection will give you an idea of what is wrong with the home such as structural problems, plumbing problems and anything like that. From that, you can make the determination on whether or not you really want to make a commitment to the house.
It's important that you have this inspection done because it can affect what you offer on the home and how much of your money you'll need to invest to make the home worthwhile to flip. If you determine that the house won't give you much of a profit even after the repairs then you can walk away, if you so choose.
Consider What Needs To Be Done
After you've gotten the information you need from the inspection, consider everything you need to get done to improve the home that would make it appealing to a potential buyer. You need to remember the permits and get additional inspections done plus you will need to hire licensed contractors to fix the problems so that the home will meet local codes. All of these things will need a great deal investment to get accomplished and be reflected in the price you choose to offer the sell for the property.
Look At The Overall Picture Many real estate house flippers fail to understand the big picture when they make their plans. For that reason, they fail to reach those big profits that can be achieved when they successfully flip houses. Basically you want to buy a house as low as you can, that doesn't need much work so that the investor get a high return. When you make the plans, make sure the changes are cost-effective.
Make Non-Major Modifications
If you can help it, don't make a large quantity of structural alterations unless you've hired a licensed contractor to sign off on the safety of those modifications. These alterations can be quite pricey and dangerous (since the property's stability comes into question). Keep in mind that you don't want to make a lot of changes inside the home. It's a given that you're going to have to repaint/repair the walls, and also replace the floor. However, you don't absolutely need new kitchen and/or bathroom cabinets and fixtures. If you would like to change the look of the house without taking away from your profits, you can change these.
Make An Impact
You always want to make visual changes for the lowest amount of money possible. You certainly don't want to buy a home that needs new air conditioning or heating units because these can be costly and aren't seen. Locate a house you can flip that needs very little work done to it and allows you to use your imagination so you can profit big from it. After all, this is what investing is about.
by: Lou Milard
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