Making money fixing and flipping houses

Making money fixing and flipping houses

Fix and flip is a term used to describe the action of buying a house or a property with the intention of selling the same at a profit. House fixing is the general repair of the house to raise its value. The typical duration to flip is anything between two to six months. Some of the major advantages for engaging in this kind of real estate trade are the ability to make a quick profit rather than have an investment that holds money for years. There is also no long-term commitment into the home. The deal is done as soon as one finds a willing buyer. As a result, there are no management issues or tenant hassles to deal with. However, the job calls for constant hunt for foreclosures and a good market for the house. This is in line with what Peter Harris real estate coach said in a seminar last year with Phil Pustejovsky.

Most foreclosures have certain defects that require fixing before obtaining willing buyers for the house. Most of these houses are in distressed conditions making them less attractive to potential buyers. Furthermore, the house could be having a title defect that keep buyers away. Fixing takes care of the physical appearance of the house such kitchen, floors, bathroom renovations amongst others to raise the value of them home just like what commercial real estate investing coaching specialist, Peter, mentioned in the seminar referenced above. It also takes care of defective titles to make the house more attractive investment to buyers. Most foreclosures are bought at auctions and do not come with title insurance. Furthermore, sometimes it may not be possible to view the house interior before the purchase. There is also cost involved in evicting the current occupants of the house. It calls for a greater appetite for the associated risk to reap bigger rewards.

Despite the risks involved, fix and flip trade can rake in high profits. During the boom, there is high demand for houses but the same goes down during harsh economic times. The key to remaining afloat is being on the lookout for current economic trends. It may be desirable to buy cheaper houses when the economy is not doing great. If one is caught up in a recession, it would be good to dispose of the house at lower rates and recover the investment. Furthermore, it is good to look out for such amenities as malls, hospitals, and schools springing up an area. People tend to troop to areas with social amenities. One could make a good profit selling houses in the area.

For one to make good profits in fix and flip business, he or she must be willing to take some risk, hunt around for good houses and invest some money for repairs. He or she needs to watch the economic atmosphere and make the right decisions. Consider consulting a Real Estate Investing Mentor  as well as reading tips on FreedomMentors.com to help better your chances at success. When well managed, the business could rake in good, constant profits.