We have all seen them, the late night infomercials that promise to make you a millionaire in a few short months by investing in real estate. Happy couples are excited to tell you all about how they turned their lives around by following the secret formula that you can have for only $39.95, with a money-back guarantee! Want the secret formula without paying the $39.95? Read on.
The secret to making money in real estate is a technique called 'flipping houses'. The principle is simple - buy a house that needs minor repairs for a low price, fix it up, & sell it for thousands of dollars profit. That is the meat of the secret - buy low, fix up, sell high. Require more particulars? A few of the tricks to getting ready are listed below:
Know what you can afford. Before you ever look at a house, find a lender to pre-approve (not pre-qualify) a loan for you. Having your loan (or funds) in hand is a powerful bargaining chip when you are ready to buy.
Look in the right places. Read the newspapers for foreclosure sales & the legal notices for tax foreclosure properties. Buy foreclosures, HUD, auctions directly from Governments & banks (find the bargain homes here!). Look around for a real estate agent that knows the kind of house you are looking for; establish a relationship with them.
Find the right house. Avoid houses that need cosmetic repairs. You want a neglected house that is structurally sound with no major plumbing, structural or electrical issues.
Make sure you read the ads right. In real estate listings, look for words like 'Handyman's Special' or 'Fixer-upper'. Others tell that you'll get a lovely bargain: 'Motivated Buyer', 'Must Sell!', 'Quick Closing' all mean that the buyer is anxious to sell, and will likely lower the price.
Focus on the highest yield improvements. Kitchen & bath spruce-ups will give you back the most for your time & money. If you can only 'do' six rooms, be sure to make one of them the kitchen.
Paint it, cover it up. Start with the basics: paint, paper & floors.
Stick with neutrals. You need to generate a backdrop for the buyer's imagination, the more neutral the canvas, the easier it is for them to see their own furniture against it.
Sell it yourself. Why pay a realtor's commission fee now?
Have all the receipts & materials warranties for any repairs & work that you did ready to hand over. Knowing that their home is 'protected' can help make a sale.
Know your market & loan options. Lots of buyers won't. If you can help steer them toward loan sources, it will help your sale.
Be ready to close. Have your inspection & appraisal papers ready in order to keep away from delays.
Aren't you glad that you didn't pay for this "get-rich-quick" secret? Flipping houses is a viable way to invest & become profitable, on the condition that you are truly willing to put time & hard work into the technique.
The secret to making money in real estate is a technique called 'flipping houses'. The principle is simple - buy a house that needs minor repairs for a low price, fix it up, & sell it for thousands of dollars profit. That is the meat of the secret - buy low, fix up, sell high. Require more particulars? A few of the tricks to getting ready are listed below:
Know what you can afford. Before you ever look at a house, find a lender to pre-approve (not pre-qualify) a loan for you. Having your loan (or funds) in hand is a powerful bargaining chip when you are ready to buy.
Look in the right places. Read the newspapers for foreclosure sales & the legal notices for tax foreclosure properties. Buy foreclosures, HUD, auctions directly from Governments & banks (find the bargain homes here!). Look around for a real estate agent that knows the kind of house you are looking for; establish a relationship with them.
Find the right house. Avoid houses that need cosmetic repairs. You want a neglected house that is structurally sound with no major plumbing, structural or electrical issues.
Make sure you read the ads right. In real estate listings, look for words like 'Handyman's Special' or 'Fixer-upper'. Others tell that you'll get a lovely bargain: 'Motivated Buyer', 'Must Sell!', 'Quick Closing' all mean that the buyer is anxious to sell, and will likely lower the price.
Focus on the highest yield improvements. Kitchen & bath spruce-ups will give you back the most for your time & money. If you can only 'do' six rooms, be sure to make one of them the kitchen.
Paint it, cover it up. Start with the basics: paint, paper & floors.
Stick with neutrals. You need to generate a backdrop for the buyer's imagination, the more neutral the canvas, the easier it is for them to see their own furniture against it.
Sell it yourself. Why pay a realtor's commission fee now?
Have all the receipts & materials warranties for any repairs & work that you did ready to hand over. Knowing that their home is 'protected' can help make a sale.
Know your market & loan options. Lots of buyers won't. If you can help steer them toward loan sources, it will help your sale.
Be ready to close. Have your inspection & appraisal papers ready in order to keep away from delays.
Aren't you glad that you didn't pay for this "get-rich-quick" secret? Flipping houses is a viable way to invest & become profitable, on the condition that you are truly willing to put time & hard work into the technique.
