| There are 5 important details you must keep in mind | | | | work. Your job is to get back on the path of finding |
| before you flip a property. | | | | the next property to invest in. Highly successful |
| 1. Your profit is determined at the purchase of the | | | | investors don't have time to hammer nails, they have |
| home, not at the sale of the home. Many people | | | | time to hammer out the details of a deal. This is one |
| who flip homes make the purchase, with dreams of | | | | of the biggest reasons some people make an income |
| the big profits, then they start on the repairs and | | | | in flipping homes, and others become wealthy flipping |
| renovations. Once they finish all the work they come | | | | homes. You only have so many hours in a day, use |
| to the horrible realization the money they have | | | | them where you are really needed, making the deals. |
| invested in the home is equal or exceeds the current | | | | 4. Sell your property below other comparable |
| market values in the area. Their dreams of profits | | | | properties. Gasping again? You are an investor, you |
| have evaporated. The problem did not occur at the | | | | need to turn the homes over quickly so you can |
| time of sale, but by not buying properly. You must | | | | move onto the next deal, and not have your money |
| factor in all the costs you will incur to get the home | | | | tied up. By pricing your home one to two percent |
| market ready. Figure in your costs of renovations, | | | | below other properties in the area, you home is |
| costs of ownership while you renovate, and any | | | | suddenly the most attractive. Your wealth will be |
| other expenses you anticipate. A wise investor will | | | | determined by how many deals you can turn over, |
| then add a five to six thousand dollars to their cost | | | | not by making an extra thousand dollars on a single |
| estimates to cover unexpected expenses. Once you | | | | home. When you figure your buying price, plan on |
| have determined your probable cost, you are ready | | | | selling slightly below the market value, and you will |
| to make a wise purchase. As you can see, the true | | | | turn homes over quickly, increasing your earning |
| profit on the house is made at the moment of | | | | potential. |
| purchase, not the moment of sale. | | | | 5. Don't sell the homes yourself. List the homes with |
| 2. Getting a house inspection should never be | | | | the finest real estate agent available. One more |
| overlooked. A licensed home inspector is going to find | | | | gasp? The cost you pay in the commission fees is |
| potential problems with the home you may have | | | | just part of doing business. You can be working on |
| overlooked, and not figured into your offer. Make | | | | buying more homes, while the agent is busy selling. |
| sure to include in any offer on a property, a clause | | | | Plus, building relationships with real estate agents is |
| which gives you the opportunity for a home | | | | going to pay you back in getting phone calls about |
| inspection. Your deal should include 7 days to have | | | | homes to buy. They will know you are the man to |
| the home inspection completed, and the option to | | | | contact to get a property moving for a distressed |
| walk away from the deal with no penalties if the | | | | seller, and they will make their profits on the other |
| home fails the inspection. The inspection could turn up | | | | end when you sell. With listings, you'll also have an |
| problems in wiring, the foundation, or plumbing, which | | | | army of people to sell your home, plus advertising. |
| could change the value of the home dramatically. | | | | Most successful real estate investors know flipping |
| Without a home inspection you leave yourself open | | | | homes is much easier with the help of great real |
| to a major loss on any property. | | | | estate agents as their partners. |
| 3. Don't do your own renovations and repairs. Did you | | | | Using these guidelines will help you increase your |
| just gasp in disbelief? A contractor can do the work | | | | profits, and limit your chances of losses when flipping |
| faster and less expensively than you. Make sure to | | | | homes. Now it is up to you to get out there and |
| figure in the costs of having a contractor do the | | | | make some deals. |