Tips To Flip Houses

Retirees and other investors choose to flip houses to earn extra money. The object is to buy a fixer-upper at a deeply discounted price, make the repairs cheaply and then sell the property at a profit. Some investors earn a tidy profit by flipping several properties during the year. However, some newcomers to the field lose money since they did not learn the ropes beforehand. These tips will help investors to avoid the pitfalls and make some money on the deal.

· Assemble a repair team that is trusted. The most important part of flipping properties is the ability to do cheap repairs. The team should consist of an experienced contractor who can accurately assess the extent of damage to the property. Cosmetic repairs are significantly less expensive to repair than structural damage, and the investor needs a trusted contractor to avoid bad properties.

· Build a relationship with real estate agents that deal with distressed properties. They can help to find the real gems that are in good school districts or have other good selling points. The agent earns his commission while the investor gets a good property to flip.

· Attend foreclosure auctions to meet investors who prefer to buy a home that is ready to rent. Exchange business cards for future business. Developing a business relationship with these potential buyers can help to sell the properties quickly. Monthly maintenance cuts into profits, so always try for a quick sale.

· Research financing, if necessary, before committing to any purchase. Find the cheapest rates and fees by shopping the different mortgage sites on the internet. House flippers can save several thousand dollars by finding a mortgage with no points or other favorable terms. This increases the potential profit when flipping the property.

· Find a good real estate attorney who is experienced with flipping properties. He might give a discount on his fees in exchange for repeat business.

· Decide whether to sell the properties through a real estate broker or by owner. Selling the properties privately avoids the realtor's commission. However, the investor must be willing to show the property in the evening and on weekends, and to know how to screen potential buyers.

· Keep close tabs on the real estate market. If an area has a lot of properties for sale, then these homes are in competition with the investor's home. Avoid areas that are declining, especially if the grocery stores are leaving. This is a sign of a neighborhood turning into an undesirable area. The best neighborhoods have basic services nearby.

Before starting in this business, realize that sometimes an investor takes a loss on a property. Occasionally, there is hidden damage that is not detected until after the purchase.

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MB McLane flip houses for a living and has being working at it for more than 5 years. You can also find other great articles written by her at http://homeflipping.net

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