BUYING, RENOVATING & SELLING
(ALSO KNOWN AS FLIPPING)
This process can be a lucrative means of investing in Real Estate, with large gains realized in a relatively short period of time. Consequently every Realtor has a number of perspective clients looking for the same opportunity.
The operative word is looking, because very few of these clients ever dip into the market and fulfill their dreams. The main reason for their lack of action is due to fear. This fear is created by unrealistic expectations fueled by a lack of marketplace and renovation process knowledge.
The “flipping” investment isn’t a game it is a well thought out and highly planned business investment. A venture that requires a sound knowledge of the local real estate market combined with technical know how, sound financial practices and a high degree of organization and time management.
What do these mean?
Local Real Estate Knowledge!
The flipping process involves much more than simply finding a run down property in need of repair.
The “Flipping Game” is fraught with investors who bought cheap run-down properties in the wrong neighborhood and therefore did not realize a return on their investment and in some cases loss money.
Contracting with a Realtor with sound local market knowledge and project analysis/management capabilities is essential. These skills will allow the Real Estate Agent to qualify and eliminate potential opportunities, ensuring your time is spent more effectively evaluating opportunities.
GETTING STARTED
The first step is the most difficult because it requires an evaluation of the risk you are willing to take and it requires an evaluation of your abilities.
The first is quite simple:
- Deciding what it is you are capable of and
- What type of renovation project you want to get involved with.
In the document below, we describe examples of the three most common renovation projects undertaken by investors. They are as follows:
- THE FACELIFT
- THE GUT RENOVATION
- THE TOPPER
Each has it own skill set and challenges and consequently it own typical reward.
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Valuable Information Inside!
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