What to invest in is a common dilemma when you want to grow your assets. Some go the route of the stock market while others think that real estate is the right direction for investing. Purchasing real estate to upgrade and resell may seem easy, but there is a lot involved to have success in this endeavor. Here is some information you may want to consider.
It Takes Work—a Lot of Work
Buying real estate to flip has a ladder of challenges to climb from research and the actual purchase to the completion of the resale of the property. After all the paperwork is finished, and you have the keys in your hand, the real work is about to begin. The property will need an upgrade to please savvy buyers. The most often looked at qualities of a property are, according to HOMEiA, the size of the land, the location, and the number and size of the major rooms (Bedroom and bathroom). This requires basic knowledge of landscaping, exterior, and interior design, current trends as well as electrical and plumbing codes.
Buy Low, Sell High
The only way to make any money is to know the area real estate market in which you want to invest. Deals are out there, but many times, there may be a catch. Search for bankruptcies, properties that are in disrepair or estate auctions for deals. Passive Income MD recommends caution however, as competition can be incredibly stiff, particularly for first time investors.Have a budget in mind, and stick to it.
Proper Investing Is Long Term
House flipping is not a “get rich quick” way of making money. Estate Surplus explains that real estate is nothing like the stock market, and the market behaves totally different as well. If you hear anyone say there is a trick that can make you get rich quickly with real estate and beat out people who have been at it for decades, then they are most likely trying to scam you. Investing in real estate is different than house flipping, but each of the challenges produces a profit over time. They are long-term investments that require money to stay invested over a long period of time.
So many things can affect the housing market, as well as the lending market, that lag times can occur. Be sure that your budget costs stay in line with the market value of your renovated home. If you have success with flipping a home, the next hard question is, do I want to make money this way again? House flipping is profitable over the long haul if you feel you are suited for it.
New to the flipping market:? Have a property you just don’t know what to do with? Contact us today for a free estimate, and we’ll be happy to work with you making your flipping experience fantastic!