Flipping properties has gotten a lot of press over the last few years. Ever since Robert Allen's "No Money Down" book came out, thousands of investors have tried their hand at property flipping. Is flipping properties really as easy and profitable as it sounds? Is flipping properties legal in Salem, Oregon?
The first thing you should know about flipping properties is that it can be far more difficult than it sounds. Buying a rundown house and repairing it takes a high degree of experience and expertise. For example, you need to know how to estimate the costs to repair windows, build a shed, replace a door, etc. For a beginning investor, it's very easy to underestimate expenses and wind up with a money losing property. In today's market the cost of fix up is something everyone needs to be aware of. Is there a profit after you fix the house? While our declining market continues most investors I know do the least amount of work.
On the other hand, you can get started with a less risky flip that requires fewer repairs. For example, if you can get a house that's almost in selling condition for 30% below market value, you might be about to flip it for some spare cash. When you flip the property the banks are now requiring for the deed to be seasoned for at least 3 months.
The second thing to understand about Salem, Oregon real estate flipping is that the money is in the buy. In other words, how low you can buy a property is generally what determines how much money you'll make; not how high you can sell it. This is a tried and true principle among real estate investors.
Finally, realize that you can play the real estate flipping game in Salem, Oregon on a variety of levels. You can make a lot of money "flipping" properties without risking too much financially Make sure there is a profit in the bottom line of the property you want to flip.
1. You can be a "bird dog" who scouts properties for other investors. If you know how to spot good flips and find them for investors who actually flip them, you could easily make $500-$1,000 per referral without ever risking a dollar of your own. Call the State of Oregon Real Estate Agency to see if it's actually legal to get a bird dog fee. My interpretation says it's not legal... Know the terms of what your doing before you do it. The Real Estate Agency will fine you if you are doing something illegal in Oregon.
2. You could do option-assignment flips. This involves buying a real estate option to purchase, finding a buyer or investor and "flipping" the option and collecting the difference. You can often make five figure deals while risking only $5,000 - $20,000 as opposed to the entire price of the home.
3. You can be a full fledged real estate flipper. This is the riskiest and most profitable way to get in the real estate flipping game, again making sure it's a legal thing to do in the State Of Oregon.
As you can tell, there are many ways to play the real estate flipping game. There are many risks, but the rewards are high as well. It's legal to flip properties but the State Of Oregon has implemented a few rules such as you need to have a contractors license to flip a lot of properties. Another good way is to become a Broker as it's easier to do the job of selling the property with a license. But always get the advice of your own attorney..
There is a lot of free information available to you about buying, selling or investing in Salem, Oregon real estate. For complete information about the Salem, Oregon real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Salem, Oregon estate at http://www.willamettevalleycbrealestate.com . Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 503-930-8880 or email me at aprilmoore@cboregon.com
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