If you are considering a career in real estate, then you will almost certainly be aware of flipping. In fact, if you are serious about such a career path then it is almost certain that you know of flipping; and it was probably this that originally caught your attention.The concept of flipping is when you buy a property at reasonable low price, renovate it at low cost and then sell for a massive profit. The turnaround can be as little as a few days to a few weeks. Flipping is by far the quickest and most gratifying of real estate deals but it does come with huge risks. Some of these risks are the ones which can cripple an individual if they are not careful.
There are a few basic tips to creating the perfect flip, and the ways to counteract the flip that does not go accordingly:
First and foremost, you will need to evaluate the real estate market. We are currently in a financial mess, both nationally and globally. Overall, this means that people have less money to spend which means that there is less chance of a successful flip. Always play the market, if you disregard this factor it will come back to haunt you. You must remember that house flipping is a business. Although personal emotions can come into play, if you remain cool and calm, you will develop a great business and reap the benefits of your efforts.
If you do purchase a property in order to flip it, look to decorators and workmen to get the renovation done quickly. If this is a business venture, it is vital to acquire workmen whom you trust. Be sure to explain that you are looking for a long term relationship; the best price and best work gets the contract.
When it comes to the flip (the actual resell), no matter how good the property looks, no matter how great the price, if the market is not responding, you will need a backup plan and quick. This is when you look at renting the property out, or rent to own. If you are looking into this option, you should have looked at the possibility before hand. Consult the odd property management company; find out what the rental costs actually are. You can have this all in place before the flip is in full swing. A plan b can make the difference between absolute ruin and fighting another day.
It might not be the funds you were hoping for but it is a steady income, if you can survive this, there will be better times ahead.