Real estate flipping is a little bit different than traditional real estate investing. Flipping can best be described as buying a home, and then selling it quickly for the most profit possible.
Contrary to popular belief, real estate flipping isn't an easy way to make money. It is an art. Those who have been successful at it are knowledgeable about the real estate market, and have taken time to find out what works in this business and what doesn’t. Here are some of their secrets:
Secret # 1: Micro-Market Study is a Must
The key to real estate flipping success involves knowing the micro-market you will be working in. This means studying not only the market in the city, but in each specific neighborhood. You need to know how well houses are selling on different streets, how much they are selling for, and how fast they are selling. You can get this information through various news sources, from forums dedicated to real estate flipping, and by speaking with homeowners and agents who know the neighborhood.
Secret # 2: Timing is Everything
It sounds like such a cliche, but when it comes to real estate flipping, timing really is everything. This is why it is imperative that you keep up on current events, and know what is going on at any particular time. For example if there are a number of people moving into a certain neighborhood, a new plant opening that will provide a lot of jobs, or a shortage of student housing, the opportunity to profit from real estate flipping is there. If on the other hand, there is virtually no chance of expansion in the neighborhood and plenty of homes already for sale, it may be a bad time to invest.
Secret # 3: Preconstruction is a Gamble
In a hot housing market, dealing in preconstruction can make you money hand over fist. Unfortunately, the housing market isn't as hot as it once was. Though there are some exceptions, existing homes are typically the way to go for those who want to make the most profit from real estate flipping at this point in time. Preconstruction is just too much of a gamble.
Karen Schweitzer contributes to http://efinancedirectory.com a hub for daily housing market news.
Source: www.articlesbase.com
