Money is made at the point of acquisition, and not the sale of your flip. So many times people buy a property with the intentions of generating a big profit only to discover that they could hardly generate any money after taking into consideration the refurbishments because the price of the house was way too high.
1. Money is created at the buy, not the sale of your flip. When flipping a house your money is generated during the purchase and not during the sale of the house. So, frequently people buy a house with the explicit aims of making a big profit only to discover that they weren't able to generate any money after all the refurbishments because the acquisition price of the house was too high. When you purchase your property you need to be certain that you buy the house with ample money to make refurbishments, have holding cost, and add around $5,000-$6,000. The mistake was made during the acquisition of the home, not the sale.
2. Get the home inspected - Get a complete inspection carried out on the property. By spending a few hundred dollars on this expenditure you can save thousands in conditions that you can not observe. Foundation, Infestations, Wood Decay, Etc... By getting a total assessment you can rest assured that you know every thing that is wrong about the property before it is too late. In the agreement for the property you have to make sure that you have 7 days to have an inspection conducted, and if the inspection detects conditions that are going to be more expensive than you are prepared to spend you can get out of the agreement without any penalties.
3. Don't do the work on your own - Get a contractor or a number of sub-contractors and get the job completed promptly. You definitely want your property flipped as soon as possible, so that you can get it on the market and get it sold off. Even if you do have the necessary skills in construction or home reconstruction, it is still not an efficient way to invest your time. Your time really should be used looking for the next deal. This is how you become rich in real estate.
4. List the property 1% to 2% below market price: If you are wanting to flip real estate and make money the object is to buy and sell the real estate right away, to enable you to concentrate on the next property. If you happen to invest in a property and try to sell it off at top dollar to make an extra few thousand dollars on the flip, and wind up keeping it for 6 months you will be losing profits. Have the property on the market on a rate which is going to blow your competitors away, and you will then sell it regardless of market situations. That's generally what you must do particularly if the market is sluggish.
5. Use a real estate agent - Do not try to sell your property by yourself. Harness the power of a realtor as well as the effectiveness of the Multiple Listing Service technique. When you do a "For Sale By Owner" you are depending on people driving by your property and reading your sign. By using a real estate agent you have someone actively promoting your property to get it sold off. Once again this will free up some more time for you to seek out even more bargains. If you wish to speed up the process, Craigslist and placing your property in Google Adwords help as well, however utilize these tools with the help of an agent to ensure you have all of the angles protected.
When you will study and learn you can expect to generate income. However, do your homework before you buy a property, and make sure that you could pull a profit on your property. Then, allow it to happen!
Milan Doshi holds regular talks on the topic of investing in property. If you want to what to invest in property, then come to his Property Intensive seminar organized by Wealth Mastery Academy that has helped opened the minds of many to the opportunities available in property investment.
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