In today’s crazy market, flipping houses is still one of the best investment strategies. To be successful in this side of the real estate industry, you need to know your numbers and what you are looking for.
So what is Flipping? Flipping is an investment strategy where the buyer looks and purchases distressed and run-down properties and "flips" them by renovating and updating the property to improve its value.
In this blog, we will go through some of the pros and cons of flipping houses to give you an idea if you’re about to start this type of strategy.
Grow Equity Quickly
Flipping is a great way of boosting property value faster than doing the traditional methods of property investment. Traditional methods rely on appreciating value, while flipping will help the property increase its value thru updating and renovations.
Doing flipping is not an easy task. You have deadlines to catch up with and people to manage and coordinate. Throughout the process, you will likely gain the skills to be more efficient and have more experience in management and coordinating.
Flipping is not all work. If you’re that investor-type agent that is creative and loves to renovate, then this is for you. You will not just earn profit from flipping. It’s also a fun and hands-on way to invest.
Let’s face it. The real estate market is not always in a good mood. The property market has a positive and negative impact if investors will gain large profits or experience lulls. Always do location and market research before deciding on doing flipping.
Like any form of real estate investing, flipping can be a gamble. You cannot avoid the market going turbulent. It only takes a few turns before you start seeing your effort and potential profit go down the drain.
Do you find it hard to coordinate with the right people to make the work done? Can you work under pressure when you start to shifts away from your plan? Even experienced house flippers go through that, and for sure, they will tell you that it’s common for things not always go with your plan.
If you’re really decided to go with this type of real estate investing, here are some tips before settling on a house to flip.
- Always do your research and know your market.
- Always look for property issues when doing the inspection.
- Always do pest and property inspections.
- Always know your number and double-check your figures.
No matter what type of property investment you are planning, as long as you are equipped with the right knowledge, the possibility of your success in doing flipping is going to be high. I hope this blog will help you start your journey in real estate investing.
If you want to focus more on flipping and you need some help with the paper works or coordinating with tradespeople, Summit VA Solutions will be your best partner.
Find out how a Summit Virtual Assistant can help you start and grow your real estate business. Call us at 877 561 2778 or send us an email thru firstname.lastname@example.org.
About the writer: Graduate with Diploma in Information Technology and Business Administration major in marketing & management. Former teacher for secondary and tertiary level. Former Trainer for Medicare customer support John used to write articles for Houston Real Estate investing and management.