Successful real estate investors have been making money flipping houses in all markets. Just like any business, some investors lose money, even during the best market conditions. The difference, besides experience, is knowledge. Here are three key points.
Knowledge of the market helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property. (Some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer’s costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
You must know the economic outlook in your area. Follow employment trends and population statistics. Are more people moving in than moving out of town? Because people always need housing, invest in an area with a good rental market. If you find too many vacancies in a neighborhood, that means you should discount any offer or look elsewhere.
You also need to learn about houses. What makes one property more attractive to home buyers? You wouldn’t want to buy a home with a terrible defect like a horrible floor plan, a noisy freeway in the back yard, or structural flaws. The best way to learn about houses is to preview many houses for sale.
When you learn about your local real estate market, local economy, and property conditions, you empower yourself to make wise investing decisions.
Copyright © 2006 Jeanette J. Fisher
Free ebook, The Truth about Making Money Flipping Houses at http://www.doghousetodollhousefordollars.com Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, teaches interior design secrets for fixing houses to make money in any real estate market: Fixing and Flipping Houses
Real Estate Investing Tips: Getting Started Flipping Houses
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