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Flipping Houses for Gold: How to FindPerfect Fixer |
by:
Jeanette Joy Fisher |
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. Onother hand, some inexperienced investors lose money buying houses that just do not turnprofit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
HOW TO FIND THE PERFECT FIXER
one. Know Your Market
Your first task, exploring your market, helps you knowbargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how longhouses take to sell. Ask selling real estate agents aboutterms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, ifseller paid closing costs forbuyer, didprice rise fromlisted price accordingly? Or, didseller come down onprice and also paybuyer's costs?
Examinesales that sell quickly. What home features and financing options promptedfast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait fornew home to be finished. However, these buyers likedistinctive features new homes offer. Visit model homes and take notes on how details likewater fountain ornew state-of-the-art appliance makeshouse sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
two. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualizefinished dollhouse as you look at structural features andsurrounding homes. Make offers onugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes inwall, stained carpeting, and trash inyard. Remember, these houses will not look good to most buyers, but other real estate investors see them as gold mines.
three. Know When "Ugly" Means "No Thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they havemoney to pay for professional help.
If you findhouse with structural problems, get estimates from reliable contractors to dowork. Ifwalls have too many cracks and bumps, you may need to hang new sheet rock or hireprofessional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchaseinvestment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much doesaverage rehabber make? In Ohio, real estate investors buy houses expectingprofit of about $threezero,zerozerozero. In Southern California, many investors make $fivezero,zerozerozero to $onezerozero,zerozerozero on each house.
When you findgarbage-filled, flea-infested house infamily neighborhood, take your bug spray, hold your nose, and get ready to makedifference, inneighborhood and in your bank account.
You can makefortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking forhouse withhidden gold mine.
Copyright © twozerozerofive Jeanette J. Fisher. All rights reserved.
Aboutauthor:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance, and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhousefordollars.com/
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