When many people think about real estate investing, they think about flipping real estate, and with shows like Flip This House dominating the airwaves, it’s no wonder. But in today’s market, is flipping real estate still the solid moneymaker it was in the past?
Traditionally, flipping real estate simply meant purchasing a property at a low price and selling it as a slightly higher (but still low) price. Today, people who perform these types of real estate transactions are known as wholesalers. When you flip, you’re doing something more. Although all the television shows call the process “flipping,” you’re also rehabbing properties. It’s more time-consuming than wholesaling properties. After all, you have to manage a crew, stick to a timeline and sell a home – all while staying under budget. Can you still make money following this more complex process?
Absolutely! Rehabbing and re-selling is form of real estate investing that can work for anyone who makes careful decisions. At its heart, flipping real estate is about finding a low-priced property, doing your renovations and selling at or slightly below the market price. As long as the cost of your renovations doesn’t price the home out of the market or exceed your profits, you will be able to make money with flips.
The trick to real estate flips in today’s market is finding a property at a great price. You’ll need to be able to negotiate and bargain-hunt for excellent deals in your area. Although seeking out foreclosures can be an easy way to find a cheap home, fantastic properties can still be found on the housing market – particularly if a family needs to sell fast to stop foreclosure.
Although you may not be able to get away with some of the flipping tips they show on television (marble counters aren’t the right choice for every neighborhood, after all!), you can still find a fixer-upper and get it in shape for a sale. The heyday of elaborate flips may be over, but hey – that just means you’ve got less competition. So why not enter the real estate investing business by seeking out a deal and turning it into somebody’s dream home?
