More and more people are asking the question,
“What is property flipping and how can I profit from it?”
You have no doubt seen all the hoopla on television, in the newspaper and in a number of top-selling books, and now you are ready to find out firsthand how profitable it can be.
All it means to flip a property is to buy a piece of real estate with the intention of selling it quickly, instead of holding the property as a residence or long-term rental. You will discover quite a few methods for flipping investment properties, some are profitable and some are not.
Buy It, Fix It, Sell It
The most popular strategy for flipping is to find a property that is in need of a little tender loving care, make all the necessary repairs and the sell it on the market for a competitive retail price. This is a method has brought great success to many investors all around the world. Depending on the state of the market and ability to find good deals, it is easy to make at least $15,000 in profit from a single deal.
The risk with this strategy comes in either dishing out too high of a payment or underestimating the necessary repairs. It is a good idea to be conservative in the amount of time it will take you to resell the property as well as how much you will pay to fix up the property. In addition, when you are estimating your costs, remember to include the cost to have a real estate agent sell it for you.
No matter which method you decide to use, flipping investment properties is a great way to earn a substantial income. If you are uncomfortable with getting started on your own, search the Internet for others who have long been successful and learn from their experience in the real estate market.
Property Options Australia
Property Options Blog © 2006 – 2009
Hi Sean,
Flipping investment properties is also a favourite of mine. I really think you have to know your figures upfront and what your profit margin will be before you actually buy the property.
I think it might be wise to factor in some kind of margin of error in case the renovations cost more than you bargained for.
If you are great with repairs than flipping real estate would be great way to make some cashflow. Especially if you like fixing things then it would be fun instead of being a job.