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Tips for Fixing and Flipping Houses

Aug 17, 2007
One way of making money by investing in real estate is through fixing and flipping houses. A fast flip is how many real estate investors start with, in order to make money quickly. After flipping a few houses, they try other real estate investing strategies, such as land lording or investing in properties like apartments. If you are considering employing this strategy for investing in real estate, then you need to know what kind of property to purchase.

You can make millions by converting ugly looking houses into attractive ones, but if you are inexperienced, there are chances you will lose money, purchasing houses that do not reap profits.

Listed below are some of the important factors you need to considered if you are planning on venturing into the real estate business by fixing and flipping houses:

. If you are planning to fix a house, make sure that you have enough credit or cash available to complete the project. You can even use rehab financing that will cover the costs of purchasing and remodeling.

. It is important for any investor to have an idea of how much a house will sell for once its fixed. Do some research and find out details about your chosen real estate market. Make a spreadsheet of several houses in order to determine which house will be profitable for you.

. Get a basic idea of how much the upgrades and repairs of the house will cost you. Learn how to estimate the material and labor costs. You can go to the local home improvement store and get the price list for the materials you will need.

. You need to know how to do the calculations. Compare the purchase price, labor, materials and the expected sales price and add in your closing costs, holding costs and the unexpected costs fund. Determine the house that offers the best profit and make several offers.

. Try to get the best financing for your situation. Decide whether you will use your own money, try rehab financing, or apply for an investment property loan. You can even talk to a loan officer or your bank for more options.

. Decide on how you want to go about finishing the work, and whom you would like to hire to do the repairing. You may want to make changes according to what your future buyers want, so learn which patterns, colors and features will bring the most profits, without spending extra money.

. Prepare an action plan so that you do not forget things, and start the repairs immediately. If you let the house sit after the closing costs, it will cost money everyday in terms of the mortgage and utilities.

. Make sure that you know how to sell a house to a qualified buyer.

If you are starting out in the real estate fixer enterprise then you may want to look for a house that needs only cosmetic work. Try to look for houses that only need painting, cleaning up and new flooring. Do not ignore houses that smell or look bad. Always remember that although these houses may not seem attractive, an intelligent investor can turn them into gold mines. You just need use your imagination and visualize the finished product, and the profit that it may bring. Fixing and flipping of houses can be more than a way to create wealth. You can also help to improve the neighborhood, and above all turning an ugly house into a dream house for a buyer can be great fun.
About the Author
Real Estate Investments are easy with Real Net USA's easy process. Using little or even no money down you can own a Real Estate Investment . Discover a ton of free Real Estate Resources at http://www.realnetusa.com
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