There were a lot of real estate investors during the real estate boom but a lot of them were not able to stay afloat when the housing market collapsed. Now that we’re seeing a rebounding market in the past 12 months, many of the house flippers are back again after hibernating during the housing crisis, and this time they are more careful. Here are some of the rules in house flipping that will make real estate investors do well financially in this volatile business.
- Location location location - Investors need to pick the right neighborhood. Unlike before when most markets were good for a quick rehab and resale, not all markets have recovered. Homebuyers need to find where to get the best deals and the right area to invest.
- Plan ahead - Even before making an offer, you should have an investment plan. Investors should know the budget, the carrying cost and the sale price when it’s finished. Failure to plan is the main reason why a lot of investors make bad real estate investments.
- Cash deals have the advantage - Unlike before, banks now have tight restrictions, if you are buying cash you will have an edge over the other home buyers who will need to deal with their lenders. Cash buyers can move faster and have the advantage of getting a better deal.
- Renovate but watch your budget - Avoid properties that need major repair and renovation, stick to homes that just need new paint, new carpet or other basic improvements. Though every single home you flip is different, it is suggested to spend only about 25 percent of your expected sale price on necessary upgrades.
- Forget your preference - Since you’ll spend many days and weeks in these houses, you will be more attached and you’ll start to think about all the things you want to do. Don’t renovate the property to your own taste. Make the property appeal to the broadest market.
- Buy low, sell low - Know your market and check the inventory. You will have more profit if you are able to buy low and sell it below the competition. Don’t get greedy. If you want a quick sale don’t price it too close to the market value.
- Prepare to hold - You may also want to rent out the property for a while as the market continues to recover, you may get a higher resale price.
Are you a first time buyer? Looking to downsize or relocate in Greenville? We advise you talk to realtor before you start looking at homes. Please do not hesitate to contact us – no obligation! We can do an online consultation if you can’t make it in person. We’re happy to serve you!
Keller Williams Realty Greenville 700 Airport Rd Greenville, SC 29607
Selling your home? Contact us! (864)881-1352
Looking for a great home? You can search homes by clicking your desired location:
Easley | Five Forks | Fountain Inn | Greenville | Greer | Liberty | Mauldin | Piedmont | Simpsonville | Taylors | Travelers Rest | Greenville – City Homes at McBee Station | Greenville – Tanner Estates | Greenville – Tanner’s Mill | Greenville – Warrenton | Greer – Thornblade | Simpsonville – Cottages at Harrison Bridge | Simpsonville – Five Forks Plantation | Simpsonville – Holly Tree Plantation | Simpsonville – Stonehaven | Simpsonville – Woodruff Rd | Simpsonville- Gilder Creek Farm |Simpsonville-Kilgore Farm | Simpsonville-Kingsbridge
The J Michael Manley Team can also be found through these media:
Comments(0)