Real Estate Flipping Basics

You see a lot of articles and books about how to make money “real estate flipping.” Perhaps you’re heard radio or television news reports about the illegalities of flipping real estate. Maybe you’ve seen the late-night infomercials promising you easy overnight fortunes.

What’s the truth about making money flipping real estate?

First, real estate flipping isn’t illegal. Because some dishonest real estate investors conspired with deceitful mortgage brokers and property appraisers, their stories made “good news” for newscasters who love to grab attention with “Investors Scam Banks and Bilk Buyers out of Millions!” sound bites. True, some investors defraud mortgage lenders and/or desperate home buyers. Cheating investors hyped up property values, helped home buyers tell untruths on mortgage applications, and conned banks and buyers.

On the other hand, ethical real estate investors make a lot of money real estate flipping. There are many ways to make money flipping real estate:

1. You can help home sellers in foreclosure save their credit by arranging a sale of the property and never even take title. In other words, buy the property and double-escrow the property to a home buyer who wants to live in the home.

2. Find a seller under stress with a bargain property, secure a sales contract, and sell your contract for roughly $500 to $5,000 to a seasoned real estate investor without financing or taking title.

3. Buy a fixer for a bargain price, fix up the property, and sell for full market price.

You can make money flipping real estate without being dishonest or unethical. But first, you need to:

1. Get your credit in order to finance quickly.

2. Study your location so you know what properties sell for.

3. Learn how to negotiate with sellers under stress.

4. Find a good closing agent.

5. Learn how to fix houses or find good professional help.

6. Learn how to sell your property or find a great selling agent.

Before you jump into flipping real estate, do your homework. Copy other successful real estate investors who make money flipping the honest way.

Copyright © Jeanette J. Fisher

Become A Property Pro With These 5 Effective Real Estate To Do’s

This is where this article comes to your rescue. The following tips will help you get more acquainted with the real estate market, so you can hold your own when pitted against a real estate expert. Read on to know what to do, in order to get a hang of the workings of a real estate market:

Tip #1: Study The Latest Pricing Charts

This may sound boring, but keep a track of the latest prices in your locality on a regular basis. Over a period of time, you will learn the intricacies of changing realty prices and the factors that play a role in stimulating appreciation and depreciation. Also, make sure you compare the prices of neighbouring regions with your locality. This will tell you where the highest and lowest real estate demands spring from.

Tip #2: Research The Causes For Price Fluctuation

Real estate prices are not independent as there is always a driving force that causes the fluctuation. This can be due to various factors such as, a new school or mall that opened in close proximity to the house, or even the changing market forces of demand and supply. Consider investing in localities that have or will soon face appreciating prices, as they guarantee a high yield in a short period of time.

Tip #3: Keep Track Of Local School Rankings

Prices of properties are directly proportional to the rankings of the schools in the vicinity. The rationale behind this is, higher school ratings entice parents to move to localities where these schools are present, for the sake of their children. This in turn elevates the demand for houses and other properties in the surrounding areas.

Tip #4: Glance Through Property Tax Percentages

Consider there are two cities, side by side. The property tax percentage is significantly higher in one city as compared to the other. There is a definite chance that the city with low property rates will be on the list for many potential buyers. However, there is a need to be cautious here as property rates could go down, when there is low growth potential and if the infrastructure is inadequate to sustain the inhabitants. This is when first-hand research is necessary.

Tip #5: Look Out For The Outskirts

The real estate markets follows a trend where, if the developmental works in the cities reach a saturation point, the demand decreases. This is when properties in the outskirts gather more demand than expected as people start looking for better alternatives. Other areas that are close to major transportation hubs like bus and railway stations, will also face increased property demand.

Real estate professionals use their experience in the field, and their connections in the zonal commission to determine how good or bad the market in a particular region is. These few facts are sure to help improve your current real estate knowledge.