Flipping real estate properties is all about being in the right place at the right time. If you’ve been following our current real estate market you know this is a great time for finding good flipping opportunities.
Real estate will maintain its value and increase in time. Many properties increase in value at an amazing rate. Keep in mind that you’re only focus is to buy real estate cheaply and flip it for more. Flipping real estate properties mean looking for that one home that is well priced and has hidden potential for an immediate sale. You want to purchase a property for 25 to 35 percent of its worth and then turn it around and sell for 100 percent of its value.
In many cases the best avenue for flipping real estate properties is purchasing from a frustrated down-on-their-luck owner. This can translate into opportunity for you.
The most relevant things to pay attention to when you consider purchasing a property are the property location and neighborhood. There are many elements to consider that will affect the property value;
Are there any future plans for development that are advantageous or could adversely affect that property?
Are there any zoning issues? If you are looking at any commercial property or the possibility of converting a single family unit, think about the current zoning regulations in that area.
Will there be any changes to traffic patterns that could affect this property?
Safety is always an issue. What are the crime statistics for that neighborhood? It is far easier to sell a safe haven than the potential for crime.
A foreclosure is a great selling advantage. When a homeowner knows that his or her home is about to be foreclosed on by the lender, it is motivation enough to sell. If the lender forecloses on the home the owner will get nothing. This is a better situation from you; you approach the owner and offer a price between what is owed and what its worth. The owner gets to pay off the mortgage and you get a home ready to be flipped immediately. You’ll probably pay a bit more than you would at an auction but you won’t have any competition and the deal will be nice and neat with a profit.
The foreclosure approach takes lots of research including knowing the value of homes in that area. Everyone wants to help those that are in need but remember flipping real estate properties takes a thick-skinned approach. It’s essential that you remained focus and remember why you’re an investor.