There are many interesting articles and news sharing how tough the real estate market has become. Many areas are getting flooded with properties for sale and properties are not moving as fast as they use to. However there is still good news!
It is not all Doom and Gloom in the real estate market! Interest rates are still at long time low. Also, there are many properties for sale, which gives you bargaining power to offer a low bid on the property. Home owners sold nearly 6.5 million houses and condos last year and this year the National Association of Realtors experts are projecting almost as many this year.
In my area, when a good "As Is", "Fix Up", or "TLC" properties becomes available. There are typically 7 to 8 people in looking at the potential flip the first day, so for us it is very competitive. You need to be able to quickly understand first is the property worth even looking at. Remember there are no emotions in flipping, simply a numbers game. We typically look at the Comps immediately to see what is happening in this area. Here are few things we look at: - What are the comparable properties selling for in the last year?
- How quickly did they sell?
- Is the square footage comparable?
- Is the age of the house a good match?
- And more..
Depending on our initial assessment, we determine whether the property is worth our time. If it is, you need to be ready to rock and roll. Things to think about:
- How quickly can you do a property inspection?
- How quickly can you determine your expenses?
- How quickly can you get accurate comps?
- How quickly can your calculate your estimate return?
- How quickly can you determine whether to make or not make an offer?
This flipping house business is no longer as easy due to the turnaround in the market. You are no longer going to get the gifts of a booming market and hefty investment return. However, if you devise a smart business plan, take into account the tougher market, and have tools to manage the business. You will greatly increase your chance of successfully flipping with a satisfying return!
Dan Dunleavy
President, FixtoFlip Inc (954) 889-7092
http://www.fixtoflip.com/ - The Tools and Resources you need to Fix and Flip Real Estate Profitably!
Other Blog Entries:
(House Flipping) A Newer, Smarter, Flipper
Flip Tips 2. (Getting Connected)
Flip Tips (House Flipping or Rehab)
FixtoFlip.com has a New Integration for Adding House Flipping (Rehab) Properties.
Watching The Numbers
Not All Doom and Gloom
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